Summary
This technical report provides an overview of the building products market for the second quarter of 2023. It discusses the current trends in construction spending, highlighting a rebound in residential housing starts with a total of 1.63 million units reported in May, significantly above expectations. The report notes that single-family housing starts increased by 14%, while multifamily starts outperformed typical annual rates. Non-residential construction remains strong but is anticipated to slow down in 2024 due to varying performance across different property types. Public infrastructure spending is expected to grow steadily, driven by the Infrastructure Investment and Jobs Act. The report also covers existing home sales, which have decreased year-over-year but show signs of stabilization. It details the financial performance of various companies in the sector, noting that while margins have eased, they remain higher than pre-pandemic levels. The report concludes with insights on market dynamics, including shifts in market share from big-box retailers to pro distributors.
