If there’s one word that can describe the lumber and building materials (LBM) market in 2018, it’s volatile. The LBM industry benefited from record-high lumber prices last spring, due partially to weather-related shipment delays from British Columbia that lowered overall lumber supply. By the fall, though, when the lumber supply surged, prices plunged nearly 50%. Yet, despite this volatility, the companies on the 2019 ProSales 100 list have much to celebrate.
First, they made the list, which, alone, is an impressive feat. Additionally, this year’s list of companies generated $61.46 billion in collective revenue, which breaks last year’s combined revenue record by more than 10%. Even more impressive, this achievement represents nine consecutive years of growth for the leading pro dealers. Clearly, the companies in this year’s ProSales 100 issue have not only weathered a volatile pricing storm, they continued to build on their strong foundations.
Sitting atop the ProSales 100 list by a wide margin is perennial leader ABC Supply with an overall 2018 revenue of $10.5 billion. Despite its large size, the dealer managed to achieve double-digit annual growth of 13%, which was helped by 13 branch openings and the onboarding of new employees and pro customers when it acquired the assets of six companies in as many states.
Like last year, Builders FirstSource (BFS) grabbed the second spot on the ProSales 100 list, with 2018 revenue of $7.7 billion, a 9.8% jump over 2017 sales. The growth was enough to enable BFS to retain the No. 2 spot with some wiggle room, despite significant growth from Beacon Roofing Supply, which saw its revenue skyrocket 58%.
Rounding out the top 10 are 84 Lumber, BMC, US LBM, SRS Distribution, GMS, Foundation Building Materials, and Carter-Jones Lumber. The top 10 dealers’ combined revenue of $44.9 billion accounted for 73% of overall sales generated by all of the dealers on the ProSales 100 list. This marks the second consecutive year that this percentage has surpassed 70%—an indication that, while the industry is growing, its concentration of wealth is narrowing.
