Building Products Industry Trends to Watch for the Remainder of 2023
Inside the latest edition of the Building Products Insider, BGL’s Building Products investment banking team shares expert insights obtained through an exclusive executive roundtable which addresses diverse topics ranging from the demand outlook and operational challenges to M&A and valuations.
Building Products Industry Roundtable Participants
We asked the group, “What is your outlook for near and long-term activity across the residential new construction market?” Several trends emerged, including:
- The residential new construction market is expected to see increased activity towards the end of 2023 or early 2024, with a return to normalcy predicted for 2024.
- There are about 17 million new single-family homes needed over the next five years to meet current demand, suggesting a strong market in the long run.
- The Southeast, Florida, Texas, and select Western states are predicted to experience significant growth due to strong demand, particularly from millennials entering the market as first-time homebuyers.
- The high costs of raw materials and supply chain constraints are still impacting the market, but these factors are expected to stabilize over the next six to 12 months.
We also gained the group’s insights into a variety of other topics, such as:
- The group’s views on the current building products M&A market
- How the outlook for commercial and multifamily new construction differs from residential
- Current valuations and the gap between buyer/seller expectations
To read the rest of our building products industry roundtable interview, you can download our full Insider report here:
Our Building Products investment banking team is highly experienced in the residential and commercial construction and infrastructure segments. We have successfully completed transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and precast products, to complex fenestration extrusions, glass fabrications, curtain wall, and highly engineered specialty coatings products.
Led by Andrew K. Petryk, BGL’s Building Products team leverages its industry knowledge and global relationships to execute highly effective and efficient transactions on behalf of our clients. Please reach out via our contact form below to learn more.