Episode Rundown

• 00:00 - How the Masonite acquisition is expected to impact the industry
• 04:01 - Why consolidation can lead to increased efficiencies
• 08:03 - What decreasing home sizes means for industry pros
• 10:41 - Expectations for 2024’s International Builders' Show
• 10:41 - Impressive innovations in construction technology

Tim Seims, Founder of Tim Seims Consulting, embarked on his journey into the world of building material sales back in 1997. Tim is a leading expert in the building materials industry with a wealth of knowledge in housing, modular building materials and products.

His extensive experience and research in the industry allow him to provide valuable insights and strategic advice to stakeholders. With a strong passion for keeping up with industry trends, Tim is known for offering unique perspectives on key industry developments.

The discussion opened with a deep dive into the recent Owens Corning (OC) acquisition of Masonite. Tim shared his initial reaction to the news, reminiscing about his early days in building material sales and his familiarity with Masonite through past jobs.

He highlighted the rarity of such substantial deals in the finished goods sector, stressing the significance of the acquisition for the industry. Tim's observation on the potential positive impact of consolidation on the industry hinted at the underlying opportunities for trade partners and the overall distribution channel.

“It's generally good for the industry when you see consolidation — you're hoping that it adds to efficiencies and makes things better for the trade partners and the lumber and building materials distribution channel because, as we know, the whole industry is very fragmented.” - Tim Seims

Industry professionals should closely monitor such acquisitions and consider the potential ripple effects on trade partnerships, market dynamics and operational efficiencies within their own organizations.

Beth also brings up the uniqueness of the OC and Masonite merger, especially considering the industry-wide expectation of continued mergers and acquisitions. Tim provided valuable insights into the strategic motivations behind such mergers, offering a nuanced perspective on the dynamics of regional and product-focused acquisitions.

Tim, Beth and Zach explored the significant trend of decreasing home sizes in housing markets and its potential impact on building materials supply. Tim offers valuable data and analysis, showcasing the diverse impact of shrinking home sizes across different markets. When you break it down by market, Los Angeles has lost over 300 square feet in their inventory of homes while it’s down almost 500 square feet in Denver. (Source)

From flooring and fasteners to adhesives and moulding, these changes impact various building material companies.

“Building materials, in terms of unit inputs, is going to go down because the overall square footage is going down. So what are building product manufacturers going to do about that? Well, consolidation is one way to answer that — that's a lot of what's going into these decisions.” - Tim Seims

Understanding regional housing trends and their implications for building material manufacturers and suppliers is essential for industry professionals. He emphasizes the necessity for industry players to adapt to these changes, considering factors such as construction spending and the evolving demands for building materials.

As the episode veered toward the upcoming International Builders' Show (IBS), Tim offered valuable insights into the topics of focus that professionals should anticipate at the event. He emphasized the importance of strategic partnerships, tech innovation and product management as critical areas that industry players should be attentive to during the event.

Additionally, he highlighted the significance of technological advancements, such as battery technology and robotics, which could drive transformative changes in building material manufacturing and construction practices.

“I was just at World of Concrete. There was huge innovation I saw with battery technology. You saw DeWalt®, Bosch, Milwaukee® — the stuff they're doing is bonkers in terms of what they're putting together. Not just in product but in services.” - Tim Seims

Professionals should actively seek out and engage with exhibitors and experts focusing on strategic partnerships, tech innovation and transformative product management during industry events to gain actionable insights for their own organizational strategies.

Get in Touch with Tim

If you have any questions for Tim about the Masonite acquisition, the housing market or expected 2024 building material industry trends, you can reach out to him on his LinkedIn or on his website.

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