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May 17, 2017

Partnerships, Mergers and Acquisitions Suggest Building Products Industry Growth


As we move toward midyear, we realize 2017 is proving to have the potential for greatness in terms of building products industry growth. Exciting partnerships, profitable mergers and key acquisitions are positioning many companies for expansion and growth. This building products industry growth potential could foreshadow a surge in job sectors related to the building materials industry. We’ve outlined a few of these industry shifts that we feel paint a picture of the direction we might expect as a result of these partnerships, mergers and acquisitions.

Mead Lumber Acquires Kildare Lumber 

These two Nebraska based lumber companies have been operating for over a century. This year, however, Mead Lumber added four of Kildare’s five Nebraska-based yards to its already robust 43 locations spanning seven states. Kildare will retain its original yard, but the rest bring Mead Lumber that much closer to 50-yards strong. Mead’s acquisition of Kildare is a testament to the former’s drive to reach a broader market while strengthening their foundations. It is also a sign of the building products industry growth.

Huttig Building Products Partners With American Fasteners

St. Louis-based Huttig Building Products is partnering with the California company, American Fasteners Company (AFC) via a manufacturing deal. AFC will be producing collated fasteners carrying the Huttig-Grip brand. What is especially inspiring about this partnership is its domestic nature. This type of building products industry growth is the type of catalyst that can reverberate to other markets, encouraging growth within our borders.

Boral Ltd. and Headwaters Inc. Merge to form Boral North America

While more of an acquisition, Boral Ltd. viewed its purchase of Headwaters as such a substantial growth opportunity that it created a new division, Boral North America. Adding Headwaters production of 29 brands for building products such as siding and trim, roofing, stone and windows, will, according to Boral, position the company to deliver more sustainable growth. Boral’s acquisition represents the building products industry growth that seems to be defining 2017.

The opportunity for building products industry growth, especially domestic growth, could result in larger economic benefits. At Davalyn Corporation, we have the experience to approach these market signals with cautious optimism. We know that growth is a wonderful thing, but if corresponding staffing does not occur, then the growth all too often falls short of its potential. As various companies continue to partner, merge or acquire one another, they need to consider whether they have the talent to handle the transition. Our experience allows us to answer the staffing needs of building products industry growth. Partner with Davalyn and prepare for growth.

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