Freedonia Analyst Weighs In On Builders FirstSource-BMC Stock Holdings Merger

Builders FirstSource, one of the leading building materials distributors in the US, announced that it planned to merge with BMC Stock Holdings, another key retailer of building materials. The transaction, which is expected to close by the end of the first quarter of 2021, will create a firm with over $11 billion in annual sales and more than 500 distribution and value-added product manufacturing sites across the US.

According to Freedonia Group industry analyst Matt Zielenski, “The merger of these two companies will create the largest retailer of building materials in the US, one that has sales locations in nearly every major metropolitan area in the nation. The combined company will play a leading role not only in the sale of lumber and engineered wood products, but also of such key materials as siding, gypsum board, insulation, and roofing.”

In addition to its leading position as a retailer of building materials, the combined company will play a major role in one of the more rapidly growing industry segments – that of supplying builders and other construction professionals with prefabricated components, such as roof trusses, wall panels, and fenestration products.

Stated Zielenski: “Use of prefabricated components has been increasing in the construction industry as builders try to maintain production in the face of a continuing labor shortage. This trend is expected to continue going forward as construction firms look to reduce the impact of COVID-19-related slowdowns in production – such as those caused by the need to have fewer workers at job sites to maintain social distancing. The combined firm will have more than 200 facilities dedicated to the production of these prefabricated components, making it not only perhaps the market leader, but also one with a truly national manufacturing footprint.”

For more information on the outlook for related building products – such as wood panels, siding, insulation, roofing, windows and doors, and building materials distribution – see the Construction Studies page featuring the following industry studies by The Freedonia Group:

Insulation

Roofing

Siding

Windows & Doors

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. 

About the Author:

Matt Zielenski is a Senior Analyst at The Freedonia Group, where he covers trends in the use of building materials and related construction products in the US market.