Revenues for building product suppliers rose 6.3% in January through May compared with the same five months last year, a survey by Zelman & Associates finds.
"Assuming this expansion of demand is maintained for the next seven months, it would mark the fourth consecutive year of growth in the 6%-7% range, more than double the historical increase for the industry," the firm wrote in the June 16 issue of The Z Report, its biweekly newsletter.
Zelman based its numbers on a survey of manufacturers, distributors, and dealers that it said collectively take in more than $90 billion annually. Manufacturers presently are about 55% of the total respondents but drive a higher share of the revenue, the firm's research director said.
Within the 6.3% total growth, sales involving new residential construction increased 7.8% in January to May from the previous year, home improvement-related revenues rose 6.1%, and revenue for non-residential construction increased 4.9%.
The growth for individual months over the year-earlier period ranged from 8% in January to 4% in April. After adjusting for factors like leap year and number of business days, "monthly performance ranged from 5% to 7%, and we believe this would be even tighter if the timing of Easter was consistent versus last year," the report said.
The Z Report is published 26 times a year and carries a subscription price of $1,199. For more information on the report, visit https://www.zelmanassociates.com/products-services/z-report.