COVID-19 shocked industries in 2020, and Residential Building Products was no exception. However, the slowdown was only short-term, buoyed by a strengthening housing market, with demand accelerating since June.
The pandemic has been called a “catalyst,” spurring renewed consumer interest in the home, added to which economic expansion, favorable demographics, and strong fundamentals are tailwinds expected to sustain growth. Manufacturers are forecasting mid- to high-single-digit revenue growth in 2021, and there is great visibility in window and door production deep into the second and third quarters.
The M&A market is also exhibiting strength, with transaction activity accelerating since May. Strategic and financial buyers are showing strong interest in acquisitions, valuations have returned to pre-COVID levels, and capital is plentiful to support high-quality transactions: