US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Foundation Building Materials Acquisition Shows Continuing Strength of Construction Market

Foundation Building Materials (FBM) – a leading distributor of wallboard, suspended ceiling systems, metal framing, and other specialty building materials – announced today that it is being acquired by American Securities, a private equity firm. The transaction, which is expected to complete in the first quarter of 2021, will make FBM a privately traded company.

Demand for all many construction products has remained high through the second half of 2020, which surging lumber prices and lumber shortages only among the most exemplary. Wallboard too is integral to many DIY building projects – such as creating a home office or a home gym – and home builders and other construction professionals need substantial amounts of wallboard, ceilings, and other construction materials to complete homes.

Furthermore, demand for building materials – especially those sold by FBM – is expected to continue to rise going forward, spurred by:

  • rising housing completions as builders increase output to meet pent-up demand for new housing
  • continuing homeowner interest in DIY renovation projects
  • increasing commercial construction activity as building owners renovate structure interiors to repurpose them and prepare them for new tenants

Indeed, it is not difficult to see increases in FBM sales going forward. For instance, as commercial structures are gutted and refurbished – for example, to turn an office building into an apartment complex – demand for such materials as drywall and ceilings will post solid growth. Thus, the FBM acquisition will provide a solid return on American Securities’ investment over the long term.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.