NCI Building Systems - Competitors

NCI Building Systems Competition

Now Viewing NCI Building Systems's competition in: Building Material Supply

Recent Developments

US Residential Construction Decline Continues - US residential construction, a demand driver for building materials, declined 19.9 percent during the first four months of 2008 compared to the same period in 2007. Experts blame US economic weakness and the large inventory of unsold homes as key causes. The US housing market may not recover until 2010, according to homebuilder DR Horton.

Building Material Retail Sales Declining - US retail sales of building materials declined 3.2 percent in the first five months of 2008 compared to the same period in 2007. Experts cite slowing US construction activity as a key cause of the decline. By comparison, total retail sales rose 3.2 percent.

Rising Transportation Costs may Reduce Imports - The rising price of oil is beginning to offset cost advantages of countries like China, due to higher transportation costs. US building material supply companies may begin emphasizing the transportation component of the cost of goods sold, and may buy more US-made building materials as a result. The cost to ship a container from port cities in China to New York has risen from $3,000 to $8,000, according to ABC News.

Competitive Landscape

The industry is driven mainly by residential real estate construction and renovation. Large chains have expanded rapidly in recent years by focusing on the home improvement market, with contractor sales as a sideline. Smaller companies, often family-owned lumberyards, can compete effectively by catering to contractors (for whom price is less important than other services), through a wider range of specialty products and services, and by serving areas unattractive to the big-box stores because of limited customer concentration.

Full Industry Overview For Building Material Supply

Building Material Supply Industry Forecast

from Hoover's/D&B subsidiary First Research

The value of all US construction, a driver for building material supplies, is forecast to grow at an annual compounded rate of 4.1 percent between 2007 and 2012.

Building Construction Growth Recovers After Drop

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.