Webb Analytics Publishes Annual Construction Supply 150

After sales were boosted by skyrocketing commodity prices in 2021 and 2022, three-quarters of the largest sellers of building materials recorded sales declines in 2023, according to the annual Construction Supply 150 released by Webb Analytics.

Webb Analytics says the industry-wide revenue drops—collectively totalling $382.03 billion—are the largest seen in the space in 15 years. Declining lumber prices played a big role in the revenue declines in 2023. AS commodity lumber prices declined by 48% in 2023, lumberyards with manufacturing operations saw revenue decline by 22.7%, according to the Construction Supply 150. However, the decline in revenue is seen more as a stabilization from unprecedented and unsustainable highs rather than a wider cause for systemic concern.

The Home Depot and Lowe’s ranked No. 1 and No. 2 on the 2024 list, followed by ABC Supply, Builders FirstSource, and Ferguson Enterprises. Among the top 10 dealers, ABC Supply, SRS Distribution (which has since been acquired by The Home Depot), and Beacon Building Products were the lone companies to post positive sales changes for the full year 2023.

Other key takeaways from the report include:

• The construction supply market shrunk by an estimated 3.3% to $595 billion in 2023
• Webb Analytics tracked 780 construction supply acquisitions, greenfields, and closures in 2023. Drywall facilities and landscaping facilities experienced the largest volume of acquisitions during the year. The deal count excludes The Home Depot’s acquisition of SRS Distribution, which occurred in 2024.
• Among surveyed companies, dealers project an average growth of 4.4% in 2024; one in seven dealers project declines in 2024.
• Just under half of the Construction Supply 150 make or modify building products such as trusses, custom doors, and custom millwork; 69 companies said they install products.
• Close to 20% of the Construction Supply 150 reported they use artificial intelligence in some part of their operations.

The full report is available for download at https://www.webb-analytics.com. The full report also includes data on products and services offered by industry companies, data on IT and other technological investments, data on company personnel and demographics, and data on payroll figures and benefits packages.