www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ MARCH 2016
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BUILDING PRODUCTS & MATERIALS · commercial has still managed to recover slightly after a late-2015 decline. Read the full article here. BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE
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www.harriswilliams.de
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE │ MARCH 2016
Harris Williams & Co. is pleased to present our Building Products and MaterialsIndustry Update for March 2016. This report provides commentary and analysis oncurrent capital market trends and merger and acquisition dynamics within theglobal building products and materials industry.
We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MARCH 2016
OUR PRACTICE
Harris Williams & Co. is a leading advisor to the building products and materialsindustry. Our significant experience covers a broad range of end markets,industries, and business models.
BRINGING YOUNG BLOOD TO THE CONSTRUCTION LABOR FORCE
DODGE MOMENTUM INDEX INCHES UP 0.5% WITH BOOST FROM COMMERCIAL SECTOR
FEWER CONSUMERS EXPECT HOME PRICE GAINS
Construction Dive 3/8/2016
The Dodge Momentum Index edged up 0.5% to 126.1, up from its revised January number of 125.5. February's rise —the third consecutive month with a recorded rise in the Index — was due to a small 1.0% uptick in commercial, makingup for a 0.1% decline in institutional.
Dodge found that commercial planning had less activity than was seen through most of 2015, but noted thatcommercial has still managed to recover slightly after a late-2015 decline.
Read the full article here.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MARCH 2016
PENT-UP DEMAND AND THE MATH OF RENTING VS. OWNERSHIP
NAHB 2/24/2016
Sales of newly built, single-family homes dropped 9.2% in January to a seasonally adjusted annual rate of 494,000 units.
“After an unusually high December reading, some pullback is to be expected,” said Ed Brady, chairman of theNational Association of Home Builders (NAHB) and home builder and developer from Bloomington, Illinois. “On thepositive side, builders are adding inventory in anticipation of future business.”
Read the full article here.
Builder 3/7/2016
Fannie Mae's Home Purchase Sentiment Index (HPSI) increased 1.2 points to 82.7 in February, but the net share ofconsumers who think home prices will go up over the next 12 months fell 4 percentage points to 33 percent,continuing the downward trend from January. The largest HPSI component increases in February were consumers'confidence about not losing their job and the share of those saying now is a good time to buy a home, both up 4percentage points.
Read the full article here.
Builder 3/8/2016
People patterns make markets – and unmake them. Here, Calculated Risk post-meister Bill McBride asserts that, afterseveral strong years for multifamily, the move "from owning to renting" is mostly over, and demographics forapartments are still positive - but less favorable than 6 years ago.
McBride observes that demographic destiny – the millennial cohort swelling the ranks of 20 to 29 year-olds – createdthe tidal wave of demand for multi-family and for-rent development and building.
Read the full article here.
Builder 3/3/2016
The construction industry is facing a severe labor shortage. According to the U.S. Bureau of Labor Statistics, themedian age of construction industry workers is 42.8, with young workers under 34 accounting for less than one third ofthe total workforce. A different report from the U.S. Census also finds that new hires of younger construction workerscontinue to trend down. Millennials – currently the largest labor force in America – do not seem ready to take overthose who are about to retire. One of the biggest hurdles to overcoming the labor shortage has become how toattract younger generations to enter the home building field.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence, andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website.
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OUR FIRM
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MARCH 2016
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HARRIS WILLIAMS & CO.
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BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MARCH 2016
Bloomberg
Builder Online
Building Design & Construction
Building-Products.com
Bureau of Economic Analysis
Construction Dive
CNBC
Dodge Data & Analytics
Eurostat
Floor Daily
Freedonia
Global Industry Analysts
IBIS
NAHB
National Association of Realtors
New York Times
PNC Economic Outlook
RealtyTrac
S&P Capital IQ
S&P Leveraged Commentary & Data
The Wall Street Journal
Thomson Financial – SDC Database
Thomson Reuters
U.S. Census Bureau
DISCLOSURES
SOURCES
Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.