- Seventy-one percent of building materials users and sellers reported an increase in revenue during the first
half of 2011 compared to 2010.
Respondents, which included building industry product manufacturers,
wholesalers, kitchen and bath dealers, private equity firms, rep
agencies and residential home builders, confirmed (82.5 percent) that housing starts have an impact
on their business.
Offering first-half results and projections for their business for the balance of 2011, those surveyed indicated they are moving into new markets to survive, despite the growth.
âThe market seems to be spotty," said one respondent. " Our business has relied heavily on commercial business to offset the weakness in the residential segment.â
A major concern echoed by the respondents is that banks are not lending money to businesses within the building products industry, especially the small to mid-size firms dependent upon new housing starts and remodeling. Many respondents indicated that some areas have stabilized and are gaining momentum, and the majority expects an increase within the next 12 months.
While many anticipate no increase in their overall staffing plans during the next year, 25 percent said they would increase their sales and marketing staff to increase market share during the next upward swing in housing starts.
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