Where Do Builders and Remodelers Buy Building Products?
A recent NAHB analysis highlights the pivotal role of specialty retailers, lumber yards, and wholesale distributors in supplying building materials for both new construction and remodeling projects. These three channels collectively account for approximately 70% of product sourcing across 24 building product categories, underscoring their importance in the residential construction supply chain. Notably, lumber yards are the primary source for essential materials such as plywood, sawn lumber, and engineered wood products, reflecting their centrality in builders’ procurement strategies.
The study also reveals distinct purchasing behaviors between builders and remodelers. Remodelers are three times more likely than builders to procure materials from home improvement centers. However, both groups commonly purchase hand and power tools from these centers, with 68% of remodelers and 56% of builders doing so. Additionally, 11% of remodelers who buy tools at home improvement centers also purchase at least one other product there, compared to just 3% of builders.
These insights into sourcing preferences are valuable for manufacturers and suppliers aiming to align their distribution strategies with industry needs. Understanding the reliance on specific channels and the differences in purchasing patterns between builders and remodelers can inform targeted marketing and supply chain decisions. As the residential construction sector continues to evolve, such data-driven approaches will be essential in meeting the demands of both new construction and remodeling markets.
