The Ducker Carlisle building & construction team were among the record crowds attending the recent NAHB International Builders’ Show® (IBS) and the NKBA Kitchen and Bath Industry Show® (KBIS) in Las Vegas NV.
The event drew over 100,000 attendees to the two co-located shows, and the mood was one of enthusiasm, positivity and cautious optimism despite the current slowdown in new construction.
Some of the major themes observed by the Ducker Carlisle team:
- Builders and remodelers indicate continued project opportunities due to backlog from 2022 and catching up on deferred projects; although optimistic, most are planning for a slower year than 2022.
- Distributors and manufacturers alike are in the process of adjusting supply, inventory and procurement targets to manage excess inventory, adjust mix and reset production and purchase levels to better align with forward market potential compared to prior demand levels.
- Industry consolidation continues, particularly in the building materials and distribution segment, with corporate M&A activity, scaling and diversification as evidenced by Holcim, Westlake Royal, Oldcastle and others.
- M&A activity is slowing except in the contractor services segment, lower middle market and specialty dealer/distribution segment, where installed services, plumbing/heating/cooling, and residential interior remodeling are attracting investors.
- Major building product manufacturers taking the opportunity to present new/updated brand positioning – reflecting recent consolidation and acquisition activities expanding corporate portfolios.
- Focus on health and homeowner well-being – products to improve health and fitness, safety and security, accessibility, functionality, and comfort, such as air quality and water quality solutions, tunable lighting, and acoustic comfort.
- Companies throughout the B&C supply chain are advancing digital tools and platforms with a focus on ease of use, modernization, and simplification of the design and purchasing experience for contractors, architects, and channel suppliers which will have major impact on evolving inventory carry requirements, pricing, and transparency.
- ESG messaging and continued emphasis on green, energy efficient products – however, a more focused effort on recycled material and renewable designs, but also strong messaging on corporate initiatives to address carbon emissions and new business models for post-use recycled products.
- Limited product innovation from suppliers – not surprising in light of the focus on the supply side and delivery in the Covid era – but continued drive to smarter homes and increased technology, such as smart electric panels and garage EV chargers.
- Design aesthetics for kitchens and baths continue to favor more modern, Euro design influence – resulting in larger panel profiles, innovative decorative wall products, and a return to warmer colors in cabinets and surfaces to offset the white movement from recent years.
- Continued promotion of multifunctional building envelope systems and solutions – labor saving, installation-efficient combinations of water and air barriers, sheathing with innovative materials such as MgO boards.
- Increased presence of European and Asia suppliers – large floor areas for window and door exhibitors from Poland and Turkey.
Ducker Carlisle’s Building and Construction teams are at the forefront of key trends impacting the industry. Our goal is to help clients deliver growth solutions to support critical decisions and growth strategies.
Contact us to connect with a team member and learn how we can help with corporate M&A targeting, portfolio mix rebalancing, pricing and supply chain solutions, demand forecasting and growth planning and other complex challenges.