Building Products and Materials Industry Insights – Winter 2020 M&A Advisory

or to bookmark this page

Click here to bookmark this page

Click here to remove bookmark

Building Products and Materials Industry Insights – Winter 2020

Housing activity was robust throughout 2019 as home sales and prices continued to rise while inventory levels declined.

Building Products and Materials Industry Insights – Winter 2020

New home sales increased 10.3% in 2019 likely due to a combination of low unemployment, rising wages, attractive mortgage rates and increases in household formations (i.e., millennials entering the housing market) while existing home sales were sluggish most of the year, but increased at a seasonally adjusted annual rate of 10.8% in December.

Housing starts and building permits posted gains of 3.2% and 3.9%, respectively, in 2019. Most notably, December’s seasonally adjusted annual rate of 1.608 million housing starts was a 40.8% year-over - year increase and the highest level since December 2006. 

Multifamily starts were up 7.8% while single-family starts were up 1.4% in 2019, representing the second consecutive year that multifamily starts outpaced single-family starts.

Remodeling activity remains strong likely due to the upward trajectory of home prices, strong consumer confidence and a robust economy with steady job and wage growth. However, remodeling growth may slow considerably in the second half of 2020 primarily due to a projected softening in existing home sales and rising labor and material costs.

Strong demand and low inventory levels drove home prices higher in all markets in 2019, with all cities in the 20-City Index notching gains on a year-over-year basis. 

Finally, the performance of stock market indices for homebuilders, building product manufacturers and building products distributors outperformed the S&P 500 Index over the past 12 months, reflecting investor confidence in the near-term future of the industry.

Building Products and Materials Industry Insights – Winter 2020 2020-02-27T05:00:00.0000000 /insights/publications/m-and-a/building-products-and-materials-industry-insights-winter-2020 /-/media/assets/images/publications/featured-images/2020/building-products-and-materials-industry-insights-winter-2020.jpg publication {D59CA77E-C551-45A3-BE89-F567210C5A60} {4DACD310-421A-42AC-BEF4-8AA7E70484CD} {752BC43C-E6D1-4E66-9781-02CF57DC521C} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {9AE295AC-8FEF-486E-AD1D-883E7C9A8AFF} {9B44E83A-E993-4902-AAE0-82849CEAD728} {5CE144D0-ADDC-43A3-95E4-3428CA819BF8} {46C15BB5-0833-4B51-B9BD-6E99C50DB149}

Other Areas We Can Help

Corporate Finance

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance
Corporate Finance

M&A Advisory

Middle-market M&A advisory differentiated by industry expertise and superior deal execution.

M&A Advisory

Industrials M&A

Industrials expertise for middle-market M&A transactions.

Industrials M&A

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services
Global Restructuring Advisory

Global Restructuring Advisory

Advising companies, financial sponsors and other stakeholders involved in challenging situations and distressed transactions.

Global Restructuring Advisory

Private Capital Markets

Senior, subordinated and mezzanine debt and venture/private equity for a wide range of transactions.

Private Capital Markets

Insights

M&A Advisory

Staffing Industry Insights – Fall 2020

M&A Advisory
Valuation Insights

U.S. Security and Exchange Commission’s Fund Valuation Modernization Proposal

Valuation Insights
Valuation Insights

Highlights from the Dow Jones Industrial Average Special Report

Valuation Insights