Only a few times in history has the North American construction industry witnessed a balanced, sustained level of demand. After years of trying to predict the peak of the current upturn, many in the industry are now comfortably agreeing that a blended, longer tail of potential is a more likely scenario. Thus, more demand is yet to be captured across the many segments of construction. Corporate executives, investment banks and equity investors should see significant opportunities to optimize their portfolio and manage increasing sell and buy-side activity.
With assets or interest in the North American construction industry, Ducker encourages you to understand several of the dynamic elements that are changing this industry:
- Growth of building stock and higher age buildings and terminating lifecycle of materials will lead to unprecedented repair/remodel and MRO activity.
- Labor shortage across all construction sectors leading to deferred project completion and material demand - as well as innovation in product install.
- The Amazon effect is real and expanding into materials and products typically not easily sold online - opening up a greater need for channel management and connected customer strategies.
- Our next big turn in consolidation and M & A activity is here - but different this year is we are seeing more creative and downstream activities which will shift composition of competing forces in segments.
- Innovative building processes for home construction will shift our traditional housing market - and allow for better fulfillment of demand in the entry level home segment.
To learn more, download Ducker’s most recent white paper Synchronized Growth.