Like the rest of the industry, LBM dealers are navigating a range of uncertainties, from ongoing housing market volatility to tariffs and supply chain concerns. These issues were top of mind in LBM Journal’s LBM 100 survey and Webb Analytics’ Construction Supply 150 survey, released this month. Both annual studies not only rank the leading building material suppliers, but tap into the dealer trends revealed in what companies are doing and feeling.
Here’s a look at the trends they found.
Despite Challenges, Many LBM Dealers Show Signs of Growth
What’s the state of the industry, according to LBM dealers? LBM Journal put it this way: “Trying to forecast economic changes in the lumber and building materials space over the past few years has felt a lot like that old saying from Mark Twain about local weather, ‘Just wait five minutes, it’ll change.’”
Despite many uncertainties, the magazine found that dealers reported improvements over the previous year, though there is definitely a divide.
“While the long-term effects of recently announced tariffs, inflation and other economic factors remain to be seen, the current data show there are still reasons for dealers and those in the LBM industry to be optimistic about the future,” LBM Journal reported. “The last 12 months have seen expansions, easing hiring challenges and a decline in the companies showing losses in gross sales. In fact, 46% of companies surveyed reported revenue gains in 2024, compared with only 23% in 2023.”
In addition, more than half of LBM dealers in the LBM 100 say they plan to expand their business in the near future, some through new locations and others through acquisition.
The Webb Analytics Construction Supply 150 is a longer list that comprises independent LBM dealers as well as big box stores. Companies on this list outside of The Home Depot and Lowe’s posted only a 0.7% gain in revenue last year.
“There’s no shortage of issues that are testing construction supply dealers today, particularly as they struggle to manage and develop their personnel,” Webb said. “More than half of this year’s CS150 companies recorded sales declines in 2024, and many of those that did eke out increases did so because of acquisitions and greenfielding, not from same-store sales.”
Dealers Use Diversification to Strengthen Market Position
One way dealers are protecting themselves, according to LBM Journal, is through diversification — helping them better serve customers and compete at the local level.
In fact, Webb Analytics found that in 2024, dealers collected more than $7.77 billion—4.3% of their total revenue—from installation services and they brought in twice that amount through manufacturing.
Hiring Remains Tough but Labor Conditions Are Improving
Finding qualified labor continues to be one of the leading hurdles for dealers—with 54% of the LBM Journal 100 dealers saying it remains a major challenge. But that’s down almost 20% from the year before, so there are signs of improvement. As in years past, drivers, yard workers and outside sales reps are the hardest positions to fill by a large margin.
Webb Analytics had similar findings, with Construction Supply 150 companies reporting less difficulty finding truck drivers and yard workers than in previous years.
Dealer Trends Show Ecommerce Growth Accelerating in LBM
Demand for online shopping is carrying over to building materials, with 57% of the LBM Journal 100 reporting an increase in online shopping, up from 45% the previous year. “That number is expected to continue to increase, especially as dealers begin to take advantage of existing and emerging ecommerce platforms and tools from co-op partners,” the magazine said.
Larger LBM Companies Lead in AI Adoption
For all of the LBM industry’s reputation for slow technology adoption, the Construction Supply 150 survey found that 44.9% of companies on the list are using artificial intelligence. Webb did note that those businesses were primarily in the top half of the list by revenue.
For the company rankings and many more data points, view the full LBM Journal 100 here and download the Construction Supply 150 here.
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