The lumber and building materials (LBM) industry saw a surprising shift in 2024, as the number of mergers and acquisitions (M&A) barely surpassed the previous year’s total yet affected twice as many locations. According to a recent report from Webb Analytics, 57 M&A transactions were reported year to date in 2024, compared to 54 during the same period in 2023. However, these deals encompassed 647 locations, a stark increase from the 326 locations affected in 2023.
This disparity highlights a trend of larger-scale acquisitions dominating the market. Fewer deals are accounting for a greater footprint, signaling a strategic focus on consolidating extensive regional and national networks. This could potentially reshape the competitive landscape for LBM suppliers, as companies prioritize efficiency and broader market reach over smaller, localized acquisitions.
Regional Focus and Key Players
Webb Analytics’ analysis indicates a strong regional component to the year’s activity. The South and West regions accounted for a significant portion of acquisitions, as companies targeted growth in these high-demand markets. Meanwhile, several major players, including ABC Supply, Beacon and US LBM, played leading roles in driving the industry’s consolidation.
“This year’s M&A activity demonstrates a clear trend toward strategic expansion, particularly in regions with robust construction growth,” the analysis noted. By acquiring multi-location operations, companies are positioning themselves to capture a larger share of an increasingly competitive market.
Looking Ahead to 2025 LBM Landscape
As 2025 begins, industry observers are watching closely to see whether this trend continues. Will the focus remain on large-scale acquisitions, or will smaller niche deals make a comeback? Additionally, what sort of impact these consolidations will make on independent retailers and regional suppliers remains a critical question.
To dive into these trends and get a comprehensive look at 2024’s M&A activity, visit Webb Analytics.
