Investment Banking for Residential Building Industry
The Residential Building Industry is experiencing a host of pressures that are causing consolidation and change.
- While activity has slowed, expectations are for continued consolidation in the industry by acquisition and organic growth.
- The residential market downturn has been a number of markets slow while some markets strengthened.
- Restrictions on land use and more lengthy entitlement processes create more cost and risk for homebuilders and developers of all sizes.
- Technology is changing the supply chain and providing opportunity to cut costs.
- Pro dealers and trades are being asked by large and growing homebuilders to broaden geographic coverage and reduce costs. More and more pro dealers are also in the installation business, and are always expected to deliver local service.
- Building product manufacturers must compete on cost, quality, product offering, and delivery in an international market.
- Retailers are expanding their capabilities in installation broadening their offerings to homeowners.
These pressures are challenging all participants in the industry. Public companies are driven by Wall Street. Private companies consolidate or seek their own niche to prosper.
FMI’s understanding of the construction industry and experience with consolidation provides a unique capability to business owners in the industry. The services provided by FMI to Builders, Trades, Pro Dealers, Retailers and Building Product Manufacturers include: