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ProSales 100 Reveals Upturn for Biggest Construction Supply Firms
Craig Webb / ProSales / May 15, 2013
Survey finds that growing demand led to higher 2012 sales for construction supply companies.
America’s largest pro-oriented construction supply companies saw sales rise 13.3% in 2012, all the while expanding facilities by 3.6% and growing payrolls by 7.7%, according to the latest ProSales 100 survey results released today.
The annual report by ProSales found that ProSales 100 companies sold a total of $29.74 billion worth of goods in 2012, up 13.3% from their 2011 total sales. Ninety-four of the 100 companies posted sales increases, compared to 72 in 2011. Meanwhile, only two suffered slight declines (-1% and -2%, respectively) in 2012 sales, and four reported no change. In contrast, 20 companies reported sales drop offs in 2011, some as high as 16%.
“This year’s ProSales 100 survey is evidence that dealers are staying nimble as they rescale operations to take advantage of local growth opportunities.” said Hallie Busta, ProSales’ project editor and leader of the PS100 report.
PS100 members responded to growing demand for building products by opening a net 121 more facilities to push their total number of facilities to 3,475, a 3.6% increase over the previous year. They also expanded payrolls by 7.7%, bringing total industry employment to 67,868 in 2012, compared to 63,012 in 2011. The Top 10 dealers alone accounted for more than half of the increased employment adding 2,440 jobs from the year before for a 2012 total of 38,244 workers.
Nearly all dealers expect growth in new-home construction during the next five years. Of that group, 46.5%—10 percentage points more than in 2011—expect that rise to occur at a rate of at least 10% annually.
“Pent up housing demand is translating into increased demand for lumber and other building materials,” said Craig Webb, ProSales’ editor-in-chief. “Dealers are ramping up facilities, both new and reopening shuttered ones, and adding staff and sales reps to handle the growing demand.”