Quikrete Industry Dashboard: Starts up
Total housing starts increased 9.7% to 1.33 million — the highest level since October 2016. Elsewhere on the dashboard, stock prices accumulate in the top left quadrant, reflective of a difficult month but a strong year.
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January housing starts pick up the pace
The seasonally adjusted annual rate of housing starts in January increased nearly 10% to 1,326,000. It was the highest monthly total housing start figure since October of 2016. Compared to January a year ago, the current rate is up 7.3%.
Single-family starts also rose in January – up 3.7% to a rate of 866,000, compared to the revised December figure of 846,000.
Meanwhile, building permits produced mixed results. January’s total figure of 1,396,000 privately owned housing units authorized by building permits marked a 7.4% increase above December. Single-family building permits declined 1.7% month to month.
Home builders were pleased with the report, and the direction of residential construction in general. “The growth in production is in line with our reports of solid builder confidence in the housing market,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “A pro-business regulatory climate and increasing housing demand are boosting builders’ optimism, even as they continue to face supply-side hurdles such as rising construction material prices and access to lots and labor.”
Generac powers up an acquisition
Generac Holdings agreed to acquire a Mexican maker of industrial generators. Officially, General will acquire the shares of Selmec Equipos Industriales, S.A. de C.V. and its wholly-owned subsidiaries from Enesa Energia, S.A. de C.V. and Enesa, S.A. de C.V. The agreement includes the power generator product and after-sale support services of the business.
Selmec, founded in 1941 and headquartered in Mexico City, is a designer and manufacturer of industrial generators from 10 kW to 2,750 kW. It has about 300 employees and 100,000 sq.ft. of production capacity.
“Selmec’s deep experience in standby energy solutions, specifically telecom, data center and other mission critical applications, where power is essential for operational continuity, makes this a great fit for our Latin America strategy,” said Ricardo Navarro, Generac’s senior VP – Latin America. “Acquiring Selmec will allow us to dynamically scale our existing Ottomotores business, leveraging both distribution and operational footprints of the combined businesses to offer the Latin American market a broader portfolio of products and solutions.”
Financial terms of the deal were not divulged.
“This is a very exciting development for Selmec to partner with a global leader in power generation technology to offer an expanded portfolio of products and solutions. This transaction will allow Selmec to continue to innovate, leveraging Generac’s technical capabilities and expertise especially in gaseous powered generation,” said Gabriel Hajj, Selmec’s CEO and principal at Enesa. “We are pleased to join the Generac family, and we look forward to our continued success as we work together to provide greater value to our customers.”
The transaction is expected to close in three to six months following pending receipt of required regulatory approval.