Principia Stat of the Week

8/27/2019
There are approximately 200 two-step distributors serving the LBM industry in North America, generating more than $38 billion revenue in 2018. These distributors can be categorized into three types, based on distribution footprint:

  • National: Distribution centers across North America
    To qualify as a “national” distributor, a company has distribution centers spread across North America. National distributors have an average of 32 locations.

  • Regional: Distribution centers across one or more regions
    To qualify as a “regional” distributor, a company has several distribution centers, spread across a large region, typically over three or more states. Regional distributors have an average of six locations.

  • Local: Distribution centers in a single area
    To qualify as a “local” distributor, a company has one or two locations and is typically located in a single CBSA or state. Local distributors have an average of one location.




These distributors have a total of approximately 1,170 distribution locations across the United States. Most distributors are small, privately held companies—52% of two-steppers have just one or two distribution centers. Although representing over half of the two-steppers in North America, these smaller distributors only account for approximately 13% of the total two-step distribution market revenue. Conversely, national distributors represent only 8% of all two-step distributors, but generated nearly half of the total revenue for two-step distribution.

Principia Consulting is a leading research and consulting firm focused exclusively on the building materials and construction industry. For over 20 years, we have helped our clients grow faster and more profitably by providing high quality information, analytics, and insights.

For more information about building materials distribution, contact Principia today. 
X
This ad will auto-close in 10 seconds