What Awaits the Remodeling Market Into 2023?

What Awaits the Remodeling Market Into 2023?

The current state of the new-home economy tends to lean toward the bleak, with falling housing starts and declining builder confidence. But the remodeling market may be feeling the challenges a bit less. Though spending slowdowns are happening or anticipated, various indicators point to homeowners investing in their current houses and continuing with project lists begun during the pandemic.

The Joint Center for Housing Studies of Harvard University (JCHS) is predicting a steady downturn in home improvement spending throughout the next year, Pro Remodeler reports, with year-over-year spending expected to grow just 6.5% in Q4 2023 versus an anticipated 16.1% growth in Q4 2022. Factors driving these expectations include a drop from unsustainable growth during the pandemic, higher interest rates, and higher prices for materials and labor.

Despite these contractions, reports from the field paint a picture of continued, if more measured, investment in the remodeling market, both DIY and professional.    

The U.S. Remodeler Index by John Burns Real Estate Consulting dropped from 65.7 in Q2 2022 to 62 in Q3, but remains above the index’s growth indicator line of 50. Among the report’s key takeaways, Qualified Remodeler said, is a 4.9-month average backlog among remodelers, with 56% of survey respondents having at least four months of in-progress or planned projects. Supply chain issues are improving, remodelers said, but most also said that customers are downgrading to stay on budget amid pricing concerns.

Lowe’s also conducted a survey of home improvement professionals. The Pro Pulse Survey found that pros remain optimistic despite challenges, and 73% of respondents expect to have more work next year than this year.

Homeowners Invest in Existing Houses

In a recent study of 4,000 homeowners by Houzz, only 1% of homeowners have canceled remodeling projects so far in 2022 and 23% plan to start a project in the next 12 months. “For many, conditions like limited choices of available homes and rising interest rates are driving them toward renovations and improving their current home, since the cost of moving into a house that fits their current needs has become so expensive,” said Marine Sargsyan, Houzz staff economist. “Moreover, more than half of the homeowners we surveyed have no intention of selling or moving out of their current residences in the next 20 years — or ever.”

Exterior updates and “bringing the outdoors in” were among the projects taking priority.

The Houzz study also found that 91% of homeowners planning remodels plan to hire a professional. Though the report didn’t indicate, this could be due to some DIYers reaching the end of their pandemic to-do list of items they can perform themselves.

With some positive indicators, it’s perhaps no surprise that both Lowe’s and The Home Depot are “faring better than expected,” according to CNBC. “Home Depot financial chief Richard McPhail pointed to an ‘improve in place’ mentality among current homeowners, who might have wanted to sell but changed their minds because they could no longer command top dollar,” the website reported.

That’s reflected in the NAHB’s recent forecasts, as well. “The growth rate for improvement spending will slow due to declines for existing home sales,” Robert Dietz, NAHB’s chief economist, told CNBC. “However, an aging housing stock, work-from-home trends, and a decline for household mobility all favor remodeling spending.”

Stop Selling. Start Solving Homeowners’ Pain Points.

For many of us, we’ve been programmed to sell a certain way: Hard selling, non-stop calls, high pressure. But the old methods are problematic. For one thing, you wind up playing a pricing game, with little else to finish the deal. And, perhaps most importantly, homeowners no longer want to be sold to, and they are armed with information they didn’t have before.

What’s a better way? Become a problem solver for your remodeling clients. Take the time to understand their home, identify its pain points, and sell products that solve these issues. Paul Burleson, Westlake Royal Building Products’ National Remodeling Accounts Manager, calls this a “sick home selling system.”

Burleson travels the country training contractors and remodelers on a prescription method of selling. The remodeler serves the role of a doctor, diagnosing a home’s problems and then writing a prescription for how to fix it.

He recommends the following tactics for more effective selling:

Change your thinking: Instead of the mindset that you’re selling something, reframe your approach as helping customers buy a solution to fix a problem. One of the things that COVID and natural disasters have taught us in recent years is that we could be shut into our houses at any time. This created a sense of urgency to understand the problems in our homes that make them less safe and comfortable. Rather than selling on pressure and price, you can bring value to your customers by addressing their challenges and making their homes more livable.

Ramp up your education: Solving problems requires an intimate understanding of the products used to fix them. Knowledge of basic features and benefits is the first step, followed by deeper learning of installation best practices. Leverage your LBM dealer and manufacturers for product knowledge sessions and other education.

Understand the effects of trapped moisture and other issues: Trapped moisture is a top enemy of the home because it can create toxic mold. By knowing how exterior products work together to drain away moisture, you can help homeowners make the most appropriate decisions. For example, Westlake Royal Building Products’ CraneBoard® SolidCore® insulated siding has moisture management tracks in the foam and Versetta Stone panelized stone siding has a built-in rainscreen.

Arm yourself with the right tools: When touring the home, use moisture meters, thermal cameras, a Go Pro, and other devices to collect necessary data. Learn how to use that technology to build the case for the homeowner and help them understand the problems or potential problems. For example, a common find is a gutter pulled off the wall, which likely means water running behind the fascia and windows and into the foundation. A $600 fix now can help avoid a $10,000+ overhaul down the road. It’s not smoke and mirrors—they can see and understand your findings.

Another thing Burleson does is give the homeowner a notepad; each of them circles the house and writes down issues that need fixing. Engaging the customer in the process can help build trust and understanding.

Consider a hybrid approach: While nothing can replace the in-person tour, a virtual meeting might make sense for the follow-up discussion. Utilize virtual sessions for busy clients or your own tight schedule.

One thing to keep in in mind is that homeowners know more now than ever. With the Internet, social media sites like Pinterest, and peer reviews on everything from products to your own remodeling services, your clients are coming into the process armed with information about what they want and don’t want. To truly be a valuable resource, you need to stay ahead of them; ensure you have up-to-date knowledge on products, trends, and the latest design and installation techniques.

2023 Color of the Year Selections Reflect Life After the Pandemic

Each year in late summer and fall, major paint companies release their “Colors of the Year” for the following year. These hues represent how each company’s in-house experts interpret the consumer pulse—our emotions, design motivations, influences, and more—and how color selection influences our lives and lifestyles.

While the color reveals are interesting in and of themselves, they provide our industry with a view into the hearts of our customers and a look at how their color choices may shift, or need to be shifted, in the process of navigating the latest trends and tastes.

Not surprisingly, the pandemic has had a tremendous influence on the color trends of the past few years, with many choices seeming to focus on relaxation and tranquility, or perhaps a little brighter for a feeling of positivity and optimism. This year’s selections continued to feel that global impact, but with varied interpretations of how consumers will feel going forward. Of the four colors shown below, two are bold and two are soothing. And perhaps both approaches are appropriate today, as Americans continue to navigate a post-pandemic norm in very different ways.

Here’s a look at a few of the Colors of the Year for 2023.

Benjamin Moore: Raspberry Blush

Benjamin Moore made a big move this year, shifting from 2022’s subtle October Mist, a silver green, to 2023’s vibrant Raspberry Blush. “A vivacious shade of coral tinged with pink, Raspberry Blush enlivens the senses with an electric optimism,” the manufacturer says. The “charismatic,” “unapologetic” shade is saturated and impactful, designed to be bold and make a statement.  

Benjamin Moore 2023 Color of the Year
Photo courtesy Benjamin Moore

The remainder of Benjamin Moore’s Color Trends 2023 palette, including Conch Shell (a dusty but rich pink), Savannah Green (a rich ochre with balanced green and yellow undertones), and North Sea Green (a deep teal with gray undertones) “was chosen for its distinct presence and personality,” the company says.  “Each of these eight confident hues offer inspiration and creativity, while encouraging a push beyond the traditional to experience truly exceptional color.”

Sherwin-Williams: Redend Point

In contrast to Benjamin Moore’s bold color, Sherwin-Williams’ 2023 Color of the Year leads with “warmth and intrigue.” Redend Point, an earthy brownish-pink reminiscent of clay earth and walls of the desert west, is described as “soulful yet subtle.” And while a more calming hue, the company says it represents moving forward and looking ahead, connection and care.

Sherwin Williams 2023 Color of the Year
Photo courtesy Sherwin-Williams

Behr: Blank Canvas

Behr’s 2023 Color of the Year is Blank Canvas, a “hopeful, warm, and welcoming white” the company says will answer homeowners’ need to create retreat-like spaces that feel restorative. At the same time, the company says the color is designed to be versatile. “The color works in both private and shared spaces and can work as a focal color or a foundation to build on for more layered spaces,” Behr says.

Behr 2023 Color of the Year
Photo courtesy Behr

Research showed that the hue would be in demand in 2023: “According to a survey of more than 1,000 U.S. homeowners, 63% of people agree that the color white is mood-boosting, and 77% say it makes them feel positive,” Behr reports. “Homeowners also say they want their home to be a space where they can unwind and destress, according to the survey, needs warm whites like Blank Canvas can help fulfill.” 

PPG: Vining Ivy

PPG joined Benjamin Moore with a saturated statement hue, Vining Ivy, a deep Caribbean aqua, as its 2023 Color of the Year. The manufacturer says the color is classic and elegant, and it works with a variety of styles.

PPG 2023 Color of the Year
Photo courtesy PPG

“Resilience, the need for connection, and inspiration from nature were recurring themes at the Global Color Workshop,” PPG says. “This annual event brings together more than 30 global color stylists from the automotive, consumer electronics, aerospace, and home paint and stain industries. Over the course of several days, the stylists analyze the runway, lifestyles, demographics, geographies, global events, and cross-cultural societal inspirations to determine what colors will resonate and represent that year, including the 2023 Color of the Year.”

Along with predictions from paint manufacturers, the design community highly anticipates the annual announcement of Pantone’s Color of the Year, which is due out in early December. What will follow the color expert’s hopeful yellow-gray duo in 2021 and this year’s creativity-inducing Veri Peri (a dark lavender)? Stay tuned.

8 Quick Tips to Work Efficiently

As labor challenges abound and schedules remain tight, trimming inefficiencies out of your installation processes can add up to critical time and money savings. Every contractor has their tricks for eliminating wasted steps without sacrificing a quality install. Here are a few best practices to work efficiently.

1. When installing vinyl siding, be sure to leverage available accessories that can reduce detail work while ensuring a finished look. These include:
• Dual undersill trim: This is used the same way as standard finish trim, such as under windows or at the top of the wall, but because it has two slots instead of one, there’s no guesswork as to whether you need to bump out the finish trim to keep the siding angles correct.

• Board and Batten Trim: Use this to separate the courses of vertical siding since the profiles can’t overlap at the seam. The Board and Batten Trim has built-in flashing, making installation easy as well as functional.

• Shake Finish Trim: Designed for Westlake Royal Building Products’ Portsmouth Shake Panel, Shake Finish Trim secures ripped panels under windows and doors or at the top of a wall. Use a snap-lock tool to create snap lugs about every 6” to 8”, then snap the panel into the Shake Finish Trim and lock the snap lugs into place securely.

2. If you have a damaged vinyl corner, you can replace it without removing any siding. Cut and remove the existing face, leaving the channels. Cut and remove the face of the new corner, leaving the return. Then snap the new corner over the channel of the old.

3. When installing CraneBoard® Solid Core Siding® insulated vinyl siding, keep the ends of the foam no more than ¼” from each other to retain the insulation value, while giving the panels enough room to expand and contract. Pull and use your measurements from the foam instead of the panel. Both the panel and the foam will be the correct length.

4. For deck stairs, Fulton Fine Woodworks created a wooden jig that fits between the deck boards and shows precisely where to pre-drill for screw placement, eliminating the need to measure. See it here.

5. Need to find center but working with an uneven number? Simple rotate your tape measure, like so: https://www.instagram.com/p/CfnFg3lJAHT/

6. Tim Uhler, lead carpenter at Pioneer Builders, often creates makeshift tools that can do tasks more quickly while reducing user strain and fatigue. For example, instead of bending to cut sheathing while framing walls on the ground, he mounted a floor scraper to a router with spiral bit: https://www.instagram.com/reel/CcuBh83gBzS/?utm_source=ig_web_copy_link

7. To lift heavy beams into place, Uhler made a beam wrench out of plywood: https://www.instagram.com/p/CZIt_NnKiU3/

8. When painting trim, Robert Cripps Construction sprays aerosol hairspray on the painters tape, helping to prevent bleed-through.

Want more pro tips to work efficiently? Check out our compilation on Instagram. Have a tip that can help others in the trades? Post it to Instagram and tag us at @WestlakeRoyalPros.

Westlake Royal Building Products Celebrates 300th Home with Habitat for Humanity 

Together with Habitat for Humanity – MidOhio, Westlake Royal Building Products recently celebrated a historic milestone with the dedication of the 300th home to feature the company’s donated siding and trim materials in the Ohio region. On Thursday, Sept. 15, the three-bedroom, two-bath single family home was dedicated and keys were turned over to the partner family in the South Linden neighborhood of Columbus.

Habitat for Humanity MidOhio home dedication

The dedication of this house marks the 300th siding donation that Westlake Royal has made to Habitat for Humanity – MidOhio over the last 20 years. For this home, Westlake Royal donated 20 squares of siding, including Exterior Portfolio® Vinyl Siding and Portsmouth™ Shake & Shingles Siding, as well as Royal® Shutters, Mounts and Vents accessories. Westlake Royal’s Columbus-based employees also donated their time and skills to help with installing the building products during the construction of the home this summer. 

Installing siding on a Habitat for Humanity MidOhio home.

“Amid inflation and rising costs, the need for affordable housing today is greater than it’s ever been. Westlake Royal is proud to be part of the solution in donating building products for good quality, single-family homes,” said Steve Booz, VP of Marketing & Product Management, Westlake Royal Building Products. “Our partnership with Habitat MidOhio dates back through several company name changes and decades, but our commitment to this organization and the community of Columbus remains unchanged.” 

“When we invest in housing, we invest in the future of the entire community. Thanks to the contributions of Westlake Royal, Habitat MidOhio has brought the dream of homeownership to 300 families,” said E.J. Thomas, President and CEO, Habitat MidOhio. “We are grateful for the generous support of our donors and volunteers, and look forward to continuing our work of providing quality, affordable housing to our family partners.” 

In January 2021, Habitat MidOhio celebrated the dedication of its 1,000th home. The organization works to bring people together to inspire hope, build homes, empower families, and develop communities. For the past 35 years, Habitat MidOhio has served families through new home builds/rehabs (437), owner-occupied home repairs (350), and tithe support to its sister affiliates in Africa (331). 

5 Basic Steps Contractors Can Take to Jump-Start Search Engine Optimization (SEO)

Even if you’re preferred workspace is on the jobsite rather than behind the desk, it’s crucial as a building or remodeling pro to take the time to keep your website it proper working order, especially when it comes to search engine optimization (SEO). SEO is how you ensure your company website will appear in Google search results (and ideally at or near the top of those results) when potential customers are looking for contractors to build their home, remodel their kitchen, or replace their siding. Appearing in search results can help increase traffic to your website, build brand recognition, and ultimately grow your leads.

While SEO is complicated enough that there are folks whose jobs are solely dedicated to the practice,  there are a few basic steps you can take right now to ensure your company’s website is checking off the basic must-have features.

1. Ensure your contact info is up to date: Make sure your website has your current company name, address, and phone number, both on the contact page and in the static footer.

2. Update your Google Business Profile: If you haven’t claimed and updated your Google Business Profile, it’s critical that you do so right away. When potential customers search for your type of business, such as “siding contractors in Fairfax, Virginia,” having an up-to-date Google Business Profile will help ensure you appear in the results and are shown in the Google Map Pack (see image below)—which also means you’ll show up before all paid and organic listings.

SEO Google Map Pack

Keep your Google Business Profile updated with as much current information as you can, including contact information, hours of operation, photos of your location, and before/after project photos. Encourage your customers to write a Google review of your company so those results show up, as well. (Click here to learn more about Google Business Profile and what it does, and check outthis article for step-by-step setup instructions.)

3. Use regional language: Make sure your website banner and content include your location and region. Consider what people search for (perhaps “siding contractor in Fairfax, Virginia”) and make sure you’re specifying those keywords.

4. Create original content: Google prefers websites with organic content, so create and maintain a blog if you can (see an example from Westlake Royal Building Products customer Boston Exterior Remodeling). Even a weekly post featuring design tips, reflections on the latest industry trends and topics, descriptions and images of recently completed projects, and other educational articles can give you a boost. Weave keywords related to your business, including regional references, into the content when practical. (For instance, an article on design trends may include “While dark exterior siding colors are trending nationwide, we find that our Fairfax, Virginia-area homeowners are still preferring classic white siding with dark trim.”)

If you want to dig further into the most popular keywords for your work areas, a tool like SEMrush provides research tools along with website and SEO analysis.

5. Ask for help: If you want to get beyond the basics, it can be helpful to hire an expert. A digital marketing agency or an independent consultant can evaluate your current website and fix any key problems without requiring a huge investment, freeing up your time to do what you do best—build.

If you want to dive deeper into these tips, check out Backlinko’s Definitive Guide to local SEO here.

Tips and Trends for Choosing Exterior Colors

Whether styled in classic colors that never fade from favor or featuring trendy pops of color, the exterior façade sets the tone—and critical first impression—for the home. With tastes changing at a near-constant rate, what’s the best way to choose exterior color combinations that meet today’s needs without feeling dated quickly? We checked in with Kate Smith, color expert and president of Sensational Color, to get the latest tips and tricks for exteriors.

What Colors Are on Trend?

As often happens with exterior trends, some familiar looks remain popular amid a few emerging options.

“We’re seeing so much interest in very dark paints, which is surprising,” Smith says, including black, deep gray, olive green, and blue gray, as well as colors with dark undertones, such as green-black.

Smith says that classic grays and other timeless neutrals continue to trend, along with bright white or off-white for the popular Modern Farmhouse look.

Material colors are coming into play, as well, she notes, with stained wood accents, such as beams, appearing on homes where they may not have in the past. Metal is popping up in similar ways, from steel beams to glass-and-metal contemporary-style garage doors.

And, of course, mixing materials, textures, and colors continues to be popular, offering homeowners the opportunity to differentiate their façade and add an extra touch of personality.

Best Practices for Combining Exterior Colors

Indeed, multi-color and -texture facades are a key trend right now, but pulling it off well isn’t always easy. Smith recommends starting with the fixed elements—the roof and any brick or stone materials—and ensuring they work together.

“When those harmonize, it’s harder to go wrong with siding and trim,” she says.

From there, select exterior colors that work well alongside them. For example, if the stone façade has a lot of grays or browns, choosing a paint or pre-finished siding color that coordinates will ensure a more cohesive look.

When considering neutrals, keep in mind that not all beiges and grays are the same. They likely have undertones, such as brown or even purple, that alter their look. When in doubt, look at the grout, which can clue you in to a coordinating neutral hue.

“Your house is telling you what color to paint it, you just have to listen,” Smith says.

Another thing to keep in mind is the role of light in the appearance of the home exterior. Color in the paint store will likely look very different—from washed out to more vibrant—in daylight. When narrowing down color selections, advise your customers to take samples to the project site to see how the colors look in the environment in which they will be used.

Avoiding Common Mistakes With Exterior Colors

Smith is quick to note that “there are no bad colors, just some unfortunate combinations.”

Here are a few ways to avoid an exterior façade that stands out for the wrong reasons:

• Don’t go too vibrant: Jewel tones and other vibrant colors are beautiful, but can be overwhelming in large amounts on the home’s exterior. Choose a toned-down or grayed-out version of the hue to avoid an over-the-top, dated look.

• Don’t go too bold: Similarly, a full façade of purple or chartreuse may stand out too much and even affect resale value. The entry door, shutters, and other accents are great spots for those bolder hues and personalized style expressions, adding that pop of color without feeling overwhelming.

• Don’t aim for the perfect match: It might be tempting to precisely match the siding color to the brick, stone, or roof. But it’s nearly impossible to do and can create an off-putting look. Even if perfectly matched, materials weather differently over time and likely won’t look the same for long. If similar colors are desired, go for a lighter or darker shade to create a blended look instead.

When in doubt, consider timeless combinations. These might include white siding with black trim and a red door or gray walls with a black slate roof. Neutral hues are always a safe bet, as well. “A great gray or a great beige will never go out of style,” Smith says. She notes that neutrals are particularly helpful for multi-textured facades, acting as a bridge between materials and helping draw attention to visual focal points like a stone bump-out or dramatic copper gutters. “If color blends well, it becomes the backdrop.”

Also, be sure to leverage Westlake Royal Building Products’ color tools, including:

Royal® Vinyl Siding Color Combinations guide

Exterior Portfolio® Color Combinations guide

Celect® Cellular Composite Siding Color Combinations guide

•  Virtual Remodeler, HomePlay, and Dream Designer online visualizers that allow you to preview different product and color combinations on an image of the home or a similar home.

To learn more strategies for choosing exterior colors, download Smith’s e-book.

How On-Site Trim Fabrication Can Save Contractors Money

With the cost of materials continuing to be volatile, you may be looking for ways to save money on the jobsite. On-site trim fabrication using a Tapco Tools brake and trim coil can not only provide those savings, but can also be a way to bring in extra money.

Tapco Tools offers a range of brakes suitable for everything from small remodeling shops to commercial projects, helping you achieve a high-quality finish no matter the size of the job. A full line of accessories provides even more versatility.

For example, the Brake Buddy allows you to elevate your on-site trim fabrication with more style and originality, including producing brickmold trim and decorative ribs in just seconds. Suitable for any Tapco Tools portable brake, the Brake Buddy features a measurement guide and quick-twist handle that provide for quick adjustments and simple, efficient operation.

Tapco Tools Brake Buddy
Brake Buddy

For cutting, the Pro Cut Off for Tapco Tools Pro Series brakes provides factory-quality, single-pass cuts of heavy-duty sheet metal, eliminating the need for utility knives and shears. It features an easy-adjust mechanism for versatility and an ergonomic grip for smooth operation.

How Much Can a Brake Save in Material Costs

Crafting your own trim can save up to 36% of the cost of premade trim. Here’s a breakdown:

This spring, the cost of a 6” by 12’ aluminum cedar texture fascia trim from a big box store came to $14.98.

To craft that same fascia in a Tapco Tools brake and the Brake Buddy would cost $9.52 per piece. This includes a 24” by 50” trim coil at $119, which provides 12.5 6” fascia per roll. This results in a savings of $5.46 per piece vs. premade trim.

In addition, bending trim can take place off site and indoors, allowing contractors to work well past dark during winter months or to generate extra income.

Click here to find the right brake for your operation.

Video: How to Make Common Trim Bends on a Tapco Tools Brake

Brakes and saw tables from Tapco Tools offer the utmost precision to create high-quality trim bends for the finished look of custom exterior trim. As the industry leader in premium professional-grade contractor brakes for more than 50 years, our tools and accessories are efficient, durable, portable, and easy to use. Plus, we back it up with robust training and unparalleled customer support.

Here’s a step-by-step look at some of the most common trim bends you can complete on a Tapco Tools brake.

The 4 Most Basic Shapes of Trim Bends:

Some of the most common bends on a brake that can get you nearly anywhere you need to go are hemming an edge, a sill seam, simple (3/4”) step flashing, and tight (1/2”) step flashing.

J-Channel and L-Bends

Making a J-channel on a Tapco brake is straightforward, and creating a window head flashing is a very similar process.

Bending Bay Window Corner Posts

Often, installers will try to stretch a vinyl siding corner at a 22- or 45-degree bay window. Here’s a better solution.

Ready to learn more about trim bends? View more how-to videos on our YouTube channel and click here to find the right brake for your operation.

Top LBM Dealers See Dramatic Growth Alongside Supply and Labor Challenges

The 2022 LBM 100 from LBM Journal and the Construction Supply 150 from Webb Analytics are not just lists of the leading LBM dealers in the country—they’re a reflection of the state of the greater construction industry and its challenges and opportunities. As such, it’s not surprising that dealers reported dramatic sales increases all while navigating a series of unprecedented obstacles.

“Though the nation’s dealers continued to navigate the pandemic in 2021, the challenges that accompany it were slightly different,” LBM Journal said. “Pandemic-amplified labor shortages and continued supply chain constraints and price hikes have only worsened and have recently been joined by rising inflation and fuel costs, due in part to the war in Ukraine. At the same time, booming residential construction activity continued throughout 2021, forcing dealers to channel their problem-solving even more as they tried to keep materials in customers’ hands, deliveries on time, and expenses down.”

Growth indeed. The magazine reported that all but one dealer on the list experienced sales gains in 2021, with 29 growing 50% and 10 companies experiencing gains of 75% or more. Some of the growth was driven by acquisition, but much of it can be attributed to booming construction activity.

Skyrocketing lumber prices also played a role, Webb Analytics noted. “Largely because of softwood lumber’s 116% price increase between January 2020 and January 2022, according to the Producer Price Index, lumberyards with manufacturing operations saw their revenues shoot up 58.6% in 2021 from the year before,” the analysis said. “This group—one of five subcategories tracked in the CS150—gets a lion’s share of its revenue from sales of framing lumber as well as from manufacturing wood-based components. Thus, a huge amount of what these dealers stock sold for drastically more than it did just a few years ago.”

Here are other notable trends from this year’s LBM Journal 100 and Construction Supply 150:

Ongoing labor woes: Not surprisingly, LBM dealers are feeling the labor strain like elsewhere in the construction industry and the rest of the country overall. “This year, 84% of companies indicated that recruiting, hiring, and retaining employees is a challenge, up 7 percentage points from last year,” LBM Journal reported. “The most difficult positions to fill, by a significant percentage, were drivers and yard workers.”

In response, dealers said they are implementing a number of efforts, from mentoring programs to pay and benefit increases.

Price and supply: Also expected, dealers cited price hikes and tight supply as another top hurdle. “Our biggest challenge currently is extended lead times and the constant rising costs,” Charlie Parks, owner and vice president of Parks Lumber & Building Supply, told LBM Journal. “Both of these challenges make it extremely difficult to play a consistent and reliable role in our customers’ attempt to get jobs under contract.”

Yet dealers still came through for their customers. “Priority customer retention was over 95% during extremely unprecedented times in which keeping the customer fulfilled was more difficult than ever,” Parks said.

Acquisitions abound. The trend of dealers gobbling each other up continued. Webb Analytics reported 156 deals covering 693 facilities in 2021. At the same time, 167 new facilities opened.

Ecommerce growth: Webb Analytics said that 72.7% of the Construction Supply 150 are allowing customers to access bills online, and 58.6% are allowing online payment, a significant increase from 56.7% and 42.3% the previous year, respectively.

On the other hand, online sales are still sluggish, LBM Journal found. “Compared to 2020, fewer LBM 100 dealers—just 31%—say they conducted sales online last year. However, among those companies, more are seeing greater chunks of sales online: 3.9% are seeing 25% to 49% of sales take place online, up from 0% the year before, and 3.9% are seeing 10% to 24% of sales take place online.”

View the full LBM Journal 100 here and download the Construction Supply 150 here.

Image: iStock.com/Foryou13