Participants in the residential and commercial building products industry are routinely faced with increasing competition, pricing and margin pressure, labor shortages, and uncertainty surrounding construction cycles. These issues impact stakeholders throughout the value chain (e.g., manufacturers, distributors, contractors, etc.) and across segments (e.g., flooring, windows and doors, roofing, plumbing, etc.). L.E.K. has deep industry expertise helping leaders within the building products sector navigate these dynamic and critical issues, capitalize on trends, and focus on high-potential growth initiatives to realize significant value.
We have completed more than 300 projects focused on building products in the past five years. Our practice leaders in each region have deep local experience as well as understanding of the commercial and operational dynamics of industrial companies. Our extensive knowledge of builders, contractors and channels and our unparalleled access enable us to develop credible and relevant market insights that lead to actionable results.
We are uniquely positioned to advise clients based on our experience and understanding of contractors’ views on construction markets, which we gather through an annual survey of more than 750 residential and commercial contractors. We maintain proprietary views on the drivers, and forecast for residential and commercial construction markets, and on where we are in the cycle and stage of the recovery for these markets.
Our expertise in deal-support engagements in the building products segments has been acknowledged and endorsed by leading independent industry associations and publications — including ACQ Global Awards and International M&A Awards. We host the only annual building and construction conference focused on M&A and growth issues within the industry.
How we help
Small, medium and large corporate and private equity clients routinely engage us to solve strategic issues related to:
- Value creation and growth planning
- Channel optimization and marketing strategy
- Growth strategy
- Network optimization
- Manufacturing/plant strategy
- Performance improvement
- Pricing strategy
- Transaction support
- Vendor due diligence
- Commercial due diligence
- Post-merger integration
- Activating strategies
- Sales force effectiveness
- Strategy activation
We have helped companies in the building products and materials sector recalibrate their product strategy or business model to drive profitable growth and outsized returns.
- New product launch strategy: L.E.K. was engaged to help develop a launch strategy for a new, novel lightweight wallboard product. We conducted a customer segmentation analysis, identified key drivers of purchasing behavior and estimated the price elasticity of demand for the new product. The client implemented our recommendations, gained share in the overall wallboard market and improved overall margins. It was first to market in the category and the CEO called it his “Apple moment.”
- Market prioritization plan: An aluminum wire and cable manufacturer wanted assistance in prioritizing the markets to play in. L.E.K. evaluated the local supply/demand situation to identify attractive markets to drive sales, and developed a tactical implementation plan to enter these markets. After implementing our recommendations, the client doubled the size of its business in 12 months and acquired a significantly higher transaction value upon the subsequent sale of the business.
- Ecommerce strategy: An industrial products distributor wanted to realize incremental value through ecommerce. L.E.K. identified the future winning e-tailing business models, and developed go-to-market positioning and customer segmentation. The client made substantial investments in online (content, merchandising, big data) capabilities to accelerate its position and performance in that channel. In the first quarter of implementation, its earnings beat Wall St. expectations for performance.