Building Products
The strategies of the past no longer
ensure success.
Shifting consumer preferences, unpredictable geopolitical forces, and evolving environmental imperatives are transforming the fundamentals of building products. Innovations now favor performance-based concepts over prescriptive ones. Architecture trends prioritizing comfort and sustainability are making structures more efficacious, healthy, and safe, but are demanding more from industry participants. Distributors that cannot adapt will be disintermediated and contractors that do not pivot penalized.
Internally, technology-enabled advances are enhancing facilities, with automation and computer-software optimizing plant activities from sawmilling and machining to inventory management, cutting cost and helping stabilize overly leveraged balance sheets.
But for leaders looking to capitalize on upturn cycles, the path is not as straightforward as it seems. Tariffs, tightening regulations, and COVID restrictions are disrupting supply chains, leaving entire pipelines backlogged. Consolidation across the value chain is distorting power balances further complicating the strategy forward.
Disruption creates opportunity. Capitalizing on these opportunities requires bold and well-placed capital allocation strategies. Tomorrow’s building products market will favor agile market leaders that can move quickly and with conviction.
How Pointe Can Help
For more than two decades Pointe has been a trusted partner to global building products segment. Grounded in a balanced combination of original research, advanced quantitative analysis and sector expertise, we bring original and creative insights to formulate and execute creative strategies to anticipate disruption, outmaneuver the market, and illuminate opportunity.
Rigorous evaluation and granular insight
A national building materials company was evaluating a potential merger of equals and required independent, outside-in analysis on the transaction. Pointe supported the client with rigorous evaluations of new, end-market exposures and granular insight into acquired capabilities of the target on a business unit level to determine optimal approaches to synergy capture and cultural integration. As a result of Pointe’s work, the client rescoped its purchase deal, refined the terms sheet, and adjusted valuations to properly account for the downstream challenges anticipated and avoid overpaying.
The Industry 4.0 revolution is here. In a market moving this fast, a strategy of catching up will quickly leave you behind.