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Episode 243 Impacts of Market Trends on The Building Industry

Impacts of Market Trends on The Building Industry

Uncover the latest market trends and insights in the building products industry, and learn how they could impact your manufacturing business and product categories in the coming years. Stay ahead of the curve and make strategic decisions based on expert analysis and predictions.

Photo of Zach Williams
Photo of Beth PopNikolov
by Zach Williams and Beth PopNikolov

Episode Rundown

02:06 - A look into current market conditions and areas experiencing growth and decline

03:40 - What the residential market shows about changing multifamily home trends

04:57 - Product categories that are expected to perform well in upcoming years

07:46 - Predictions for the residential and renovation markets

09:34 - How manufacturers can stay competitive despite supply chain disruption

Meet Stanley Elliott

Stanley Elliott is a Managing Director of Building Product Equity Research at Stifel, a diversified wealth management and investment banking company with offices across the United States and Europe.

Specializing in equity research, Stanley covers publicly traded building products and construction material companies, providing investment recommendations based on stock performance and market demand. With his finger on the pulse of the industry, Stanley is well-versed in the dynamics of the building products market and its future trends.

The Market Outlook for Building Products

Stanley discusses the current market dynamics of the building products industry, shedding light on how different sectors are performing. He emphasizes that while some parts of the market are thriving, others are facing challenges. Regarding total construction, the market appears to be healthy.

You're seeing some offsets in manufacturing, highway streets and some others, so that's what's really driving the market right now.” - Stanley Elliott

Stanley highlights the rise in construction activity across the United States and provides insights into the factors contributing to this growth. He also discusses the impact of stimulus programs and unused COVID funds on the construction industry.

Stanley talks about the multifamily and single-family housing markets, highlighting the different factors influencing each segment. While multifamily projects accounted for 40% or more of total home starts in recent years, Stanley predicts that these levels should decrease to the normal 30% range. Stanley also predicts single-family new construction marketing improving, helping offset the potential decline in multifamily projects.

Addressing specific product categories, Stanley points out the potential opportunities in the market, especially in the context of changing consumer behavior and needs.

He emphasizes the growing demand for composite decking and outdoor living products, citing the cost-effectiveness and user-friendliness of these categories. Additionally, he highlights the resilience of the luxury market and its impact on product preferences.

Products that are tending or catering to some of those higher-end customers, at least right now, would seem to do better than the more entry products.” - Stanley Elliott

The Future of Residential and Renovation Markets

Zach and Stanley look forward to the industry’s future, considering long-term forecasts and strategic considerations for manufacturers. Because of the labor shortage, builders are constantly looking for ways to reduce construction cost and build time. Stanley emphasizes that as a manufacturer, it is important to add value to products that answer these industry issues to enhance market competitiveness.

Because market changes may occur in the near future, manufacturers are advised to strategize and plan for the coming years. Stanley touches on the potential for significant R&R (repair and remodel) spending driven by aging housing stock, alongside the importance of balancing price adjustments and manufacturing volumes.

Whatever the correction looks like, it's not going to be anything like 2008. So we're encouraged by the long-term fundamentals within the space in terms of products.” - Stanley Elliott

Stanley advises manufacturers to improve service levels and effectively manage supply chain disruptions. He also suggests that the supply chain situation is expected to improve, relieving some of the challenges faced by businesses.

I think the supply chain piece is going to end up sorting itself out, which ultimately will help in terms of how people are navigating and managing.” - Stanley Elliott

Get in Touch with Guest

If you have any other questions about market predictions for Stanley, you can email him at [email protected].

More About The Smarter Building Materials Marketing PodShow

SBMM is co-hosted by Venveo’s Founder, Zach Williams and Venveo’s CEO, Beth PopNikolov.