Building Materials Retail & Distribution Industry Trends

Increased Services to Contractors

New methods of appealing to contractors include renting construction equipment, tools, and delivery trucks. Retailers like Lowe's and Home Depot hope to draw more commercial customers and increase walk-in sales by renting equipment.

More IT

New technology, especially in product tracking and supply chain efficiencies, has cut costs. Home Depot is introducing a wireless scanner it hopes will dramatically reduce the time spent in checkout lines. Self-checkout systems, which reduce labor costs and improve traffic flow and overall customer service by allowing customers to scan their own purchases and pay with credit cards or cash, are making their way to the hardware industry.

Environmental Certification

In response to the anticipated continued increase in consumer demand for certified forest products, more building material suppliers and home improvement retailers are expanding their lines of certified wood products. Environmental concerns are driving the growth of environmental certification and labeling for wood products. Certification, or eco-labeling, is a way to reassure consumers that the wood was harvested in an environmentally responsible way that sustains the forest ecosystem.

Women Customers

Women are taking a bigger role in home improvement, and according to Lowe's research, initiate 80 percent of all home improvement purchase decisions, especially big-ticket orders like kitchen cabinets, flooring, and bathrooms. New store designs are created to attract women, focusing on details like better lighting and merchandise racks and floor colors. Product selections include more home furnishings like curtains, lamps, and seasonal decorations. A national survey commissioned by Lowe's finds 94 percent of female homeowners consider themselves DIYers and complete a home improvement project on their own at least once every five years.

Synthetic Materials Gain Popularity

Synthetic materials are increasingly replacing natural materials, such as wood and brick, in construction, creating a potential new product market for building material suppliers. Technological developments continue to make the products more realistic, making them a legitimate substitute for natural materials. These substitute products are also more cost-effective long-term as they're more durable and need less frequent repair or replacement. In the last five years, synthetic materials have grown more popular in siding, roofing, porches, trim, decks, columns, molding, and flooring.