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Freedonia Market Research Blog Recent Announcements Indicate Strong Demand for Building Materials

Recent Announcements Indicate Strong Demand for Building Materials

by Freedonia Industry Studies

December 9, 2021

As 2021 comes to a close, the US building construction industry will look back with fondness as it considers its balance sheets. Despite supply chain issues that often caused shortages of raw materials and delayed shipments of finished products, participants across the US building construction industry – manufacturers, distributors, and contractors – generally experienced strong sales throughout 2021. Bolstered by continuing high demand for new housing and homeowner interest in renovation projects, demand for a number of building products was at an elevated level throughout the year. 

For many construction professionals, the question now is what will the market look like in 2022? A pair of recent announcements by leading building product manufacturers indicates that the market will remain strong going forward:

  • CertainTeed – a leading supplier of a wide range of building materials – announced plans to expand production of gypsum board, asphalt shingles, and insulation
  • Kohler – one of the largest suppliers of plumbing fixtures and fittings – announced plans to construct a new manufacturing plant in Arizona

These new and expanded production centers indicate the companies believe that the US construction market will remain bullish in 2022 (and beyond). With housing starts expected to remain at a high level going forward, this will boost demand for gypsum wallboard, asphalt shingles, and insulation – all of which are used extensively during the home construction process. Furthermore, home renovation activity is expected to remain strong in 2022, as homeowners continue to refurbish older homes or remodel residences to make them more suitable for post-coronavirus living, such as by adding or expanding rooms, remodeling kitchens and bathrooms, or converting little-used spaces into home offices and gyms. All of these projects will also spur demand for building materials.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly our series of studies in the Construction and Building Products catalog. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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