www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ MARCH 2015
13
Embed
BUILDING PRODUCTS & MATERIALS...regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
Harris Williams & Co. is pleased to present our Building Products & Materials IndustryUpdate for March 2015. This report provides commentary and analysis on currentcapital market trends and merger and acquisition dynamics within the globalbuilding 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 2015
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.
SUPPLY-ORIENTED CONCERNS TOP BUILDERS’ LISTS IN 2015
CONCRETE OPTIMISM
U.S. FORECLOSURES FALL TO LOWEST RATE SINCE JULY 2006
BUILDER CONFIDENCE DROPS TWO POINTS IN MARCH
Builder Online 3/5/2015
As the recovery strengthens and becomes more focused on housing, supply issues are replacing the broader andmore general concerns about the economy. In 2011 and 2012, about 4-in-5 builders were concerned abouthomeowners' ability to sell their homes but the intensity fell to about 2-in-5 expressing that concern in 2015. Concernabout employment and general economic conditions also was highest in 2011 and 2012, but sank to seventh mostrecently; still a concern but not as heightened as earlier. Leading concerns now are supply oriented. Over two-thirdsof the builders responding listed the availability of labor as their greatest concern for 2015; building materials pricesfollow closely with two-thirds listing it as an expected problem, and lot availability tops out with 57%.
Read the full article here.
Concrete Construction 2/17/2015
“World of Concrete this year is unlike any World of Concrete I’ve been to in the last decade,” said Ed Sullivan, chiefeconomist and group vice president with the Portland Cement Association (PCA). “There is a big broad burst ofoptimism that has been absent the last decade.”… We are seeing the healing of the deep wounds we saw during therecession,” he said, adding that U.S. gross domestic product will increase 3.2% this year. Sullivan specificallyanticipates portland cement consumption will increase 8% each of the next two years, from just over 80 million metrictons all the up to 120 million metric tons by 2019.
Read the full article here.
Reuters 3/19/2015
Foreclosure activity in the United States fell last month to the lowest rate in nearly nine years as banks started theprocess on fewer homes and scheduled fewer auctions than in the previous month, industry firm RealtyTrac said onThursday. A total of 101,938 properties across the United States were at some stage of the foreclosure process, whichincludes foreclosure notices, scheduled auctions and bank repossessions, the group said. That drove overallforeclosure activity down 4.3% from January and down 9.4% from the same time last year.
Read the full article here.
National Association of Home Builders 3/6/2015
Builder confidence in the market for newly built, single-family homes in March fell two points to a level of 53 on theNational Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. “Even with this slightslip, the HMI remains in positive territory and we expect the market to improve as we enter the spring buying season,”said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “The drop in builder confidence is largelyattributable to supply chain issues, such as lot and labor shortages as well as tight underwriting standards,” said NAHBChief Economist David Crowe.
Read the full article here.
INDUSTRY UPDATE │ MARCH 2015
AS CONSTRUCTION DEMAND SPIKES IN U.S., SO DO MATERIAL COSTS
World Property Journal 3/13/2015
"Leasing momentum is boosting construction demand across multiple commercial property sectors--but raw materialand labor costs are making it more expensive to get out of the ground than ever before," said Todd Burns, President,JLL Project and Development Services, Americas. "Demand is exploding, but demand isn't everything. You have toconsider the bottom line of every project to make sure it makes economic sense short- and long-term."Affirming rising demand, the American Institute of Architects' Consensus Construction Forecast projects that spendingon non-residential construction is expected to rise 7.7% in every commercial property sector this year.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit form 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 at www.harriswilliams.com/industries
Harris Williams & Co. (www.harriswilliams.com) 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.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.
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.