Read: 1675
Introduction:
The building products and construction materials sector witnessed macroeconomic challenges in 2023, primarily from elevated interest rates, increased raw material costs, and a tight labor market. Despite these obstacles, early indicators for the current year show signs of near-term optimism with improving performance in residential housing starts and stabilizing sales volumes and prices in single-family homes. Infrastructure investments have predominantly supported recovery in non-residential construction activities.
Housing Market Trs:
Single-family housing starts surged by 18.8, while multifamily starts rose by 10.2 during the year.
U.S. aggregate housing starts remned above the 10-year historical average, with southern states leading due to population shifts towards warmer climates.
In a positive sign for existing home sales, there was a 4.4 increase in new home sales; however, existing home sales dropped by 18.3 over the same period.
Home prices increased throughout 2023, with an average rise of 5.4, albeit under pressure from higher interest rates.
Construction Activities Overview:
Non-residential construction experienced a significant boost, with sping increasing by 21.0, mnly driven by record growth in the manufacturing sector and robust advancements in education and healthcare sectors.
Canadian Housing Market:
The Canadian market faced comparable headwinds as the U.S., but witnessed promising signs at the beginning of 2024 across both single-family and multifamily segments.
Insights for 2024:
Remodeling activities are anticipated to slow down further in 2024 due to squeezed budgets from increased interest rates and higher construction material costs.
Non-residential construction is expected to remn robust, supported by significant investments in public infrastructure.
Kroll's Building Products Materials Valuation Data:
To delve deeper into industry trs, download our U.S. and Canada Building Products Materials Industry Valuation Data for comprehensive insights.
Services Offered by Kroll:
Mergers and Acquisitions MA Advisory
Restructuring and Insolvency Services
Debt Advisory and Strategic Alternatives
Transaction Diligence and Indepent Financial Opinions
Kroll's Corporate Finance and Restructuring Team:
Our team is equipped to offer comprehensive support including corporate finance advisory, transaction structuring, capital rsing, and coverage for financial sponsors.
Industry-Specific MA Expertise:
Kroll offers extensive experience in advising public corporations, private companies, financial sponsors on buy-side and sell-side transactions within the Industrials sector. For further detls, please visit our recent deal achievement page.
Contact Kroll for Insights and Assistance:
Headquartered in New York with offices globally, Kroll provides periodic news updates, reports, and invites through its dedicated subscription service.
: For more information about our services or to schedule a consultation, please visit the appropriate section on our website. This document may contn confidential data; kindly refer to our privacy policy for detls regarding data handling practices.
This article is reproduced from: https://www.kroll.com/en/insights/publications/m-and-a/building-products-and-materials-industry-insights-spring-2024
Please indicate when reprinting from: https://www.ao08.com/Building_material_prices/Building_Products_Insights_24.html
Building Products Market Trends 2024 Housing Starts Growth Prediction Non residential Construction Recovery Canadian Real Estate Outlook 2024 Kroll Industry Valuation Data MA Advisory Services Offered