Top product categories by the numbers
The Principia 'Stat of the Week' identifies the biggest slices of revenue.
The lines separating pro-dealers have been blurring in recent years as dealers of all types have been expanding their product mix in order to grow their revenues. Nevertheless, the historical focus of each dealer type is still evident in identifying their top product categories.
Lumberyards accounted for 34% of the total market revenue for LBM distribution in 2018. The top product for revenue generation in lumberyards are lumber and engineered components, which generated 61% of the total lumberyard channel revenue, followed by windows, decking, and siding.
Specialty one-step distributors typically sell a narrower range of products compared to lumberyards and big box retailers. In specialty one-step, roofing has the largest percent of revenue, at 38% of channel revenue. However, for roofing-oriented specialty one-step dealers this percentage is higher. There are distinct specialty one-step segments that focus on wallboard and insulation, which together comprised 23% of this channel’s revenue.
Specialty retailers are heavily oriented toward cabinets and countertops which comprised 66% of the total channel revenue. Additionally, there is a large group of specialty retailers that focus primarily on windows, at 14% of channel revenue.
Big box retailers have a more diversified mix than any of the other channels with cabinets and countertops accounting for just over one-third of this channel’s revenue mix, followed by lumber and engineered components, and windows.
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