From last week’s presentation by Bulk Materials Logistics company Truck IT to our recent Projects Conference ( 2020 Project Delivery Conference:- Material Readiness at the Enterprise Level. Proliferation of Technologies Changing How the Industry Sources Materials and Manages Deliveriesįrom Ferguson Ventures to Nova External Ventures, Saint Gobain, building products and materials companies are increasingly paying closer attention to emerging technology companies and the way they are selecting materials and building products, buying them, tracking and managing their delivery to job sites, and even tracking them post construction. Again, harkening back to the days of Sears catalogue homes, Amazon made headlines with an investment in Plant Prefab, a west coast builder of modular homes.ģ. It was also interesting to note modular builders attempting to get deeper into their supply chains, with the most notable example being Katerra’s 2019 announced line of manufactured products including everything from cross laminated timber products to bath kits to HVAC systems and tinted glass products. This standardized purchasing may mean changes to buying practices, disrupting prior supply chains. Increasing Trends in Modular and Offsite ConstructionĪs we noted in our 2019 Modular Construction Update, one benefit of modularization is the ability to standardize supply to a single, central area as opposed to distributing it to various, changing job sites. In the spring of 2019, Construction Supply Group, purchased Best Materials, a construction materials eCommerce site.Ģ. Russ Young, then Senior Consultant at construction industry management consulting firm, FMI, contributed a piece last December entitled, Amazon Business Shakes Up Building Product Manufacturers, in which he pointed to the growth of Amazon’s business-to-business sales and the implications that may have on manufacturers and suppliers. Continued Gains in eCommerce in Building Supply Some of those trends impacting the building supply business include:ġ. So, while mergers and acquisitions have continued apace among building product manufacturers and distributors in recent years, there are a number of trends in technology that may be influencing this activity or may influence it in the years to come.
Construction Supply Group, itself, a unit of the Sterling Group, has acquired numerous players in the construction supply space in recent years. Earlier this year, Ferguson announced an acquisition of Chicago-area based Columbia Pipe & Supply after buying New York Metro-based, S.W. In April of last year, L & W Supply purchased Delta Gypsum, after itself having been acquired by ABC Supply in 2016. Mergers and acquisitions in the construction supply business are not new. News of the proposed $4 billion merger of HD Supply’s White Cap Group with Construction Supply Group points to more changes in the construction supply business.
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