L.E.K.’s experience in building products spans multiple submarkets, products and services providers, and our residential building products experience spans the entire home. We have completed over 300 projects globally in the past five years, and our extensive nonresidential building products experience covers a range of end markets.
Examples of our work
We have helped companies across residential and nonresidential building product sectors address key strategic issues to drive profitable growth and outsized returns.
- Growth strategy: L.E.K. assisted a leading diversified building products manufacturer in understanding the drivers of profitable growth in each of its markets, how the client’s business units were positioned against these drivers, and what strategic options the company could pursue in current and adjacent markets. The client executed on the strategy and experienced approximately 300% stock price appreciation in 18 months.
- Channel strategy: L.E.K. developed an optimized channel strategy to drive higher profitability, sustained ASPs and improved share of the market for an asphalt shingles manufacturer as the market recovered. We developed a range of game-changing strategic alternatives and tested each with channel participants. The chosen approach was funded by cost savings and reduced channel conflict, prevented channel migration and presented a differentiated offer to the market.
- Strategic review: A world leader in automatic control of openings and closures engaged L.E.K. to provide strategic due diligence on a European supplier of equipment for home automation, selling mainly via online retailers and installers. The client was willing to increase its footprint in the fast-growing Smart Home business sector and asked us to assess the attractiveness and potential synergies of this Z-wave and Bluetooth components manufacturer.
- Financial assessment: The float glass and hardcoat performance glass products division of a major building materials company, formed by a recent merger, was underperforming. L.E.K reviewed the current strategy and financial outlook for both the upstream and downstream businesses and established a view on the evolution of the glass industry and the client’s role therein. Our work included financial modeling of the future financial performance and current value of the business, as well as synergies of the recently merged businesses. We helped the client understand the source of the business’s underperformance and developed a strategy to turn around a failing business.
Impact of COVID-19 on Global Industrial Supply Chains
From automakers to power companies, industrial production in China is ramping up. But lingering challenges from the coronavirus outbreak threaten to impact supply chains around the globe. Here’s what industrial executives need to consider as they guide their businesses through the crisis.