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Chinook Industry Spotlight: Building Materials Retailers Q2 2021

  • The U.S. lumber and building material stores market was $153B in 2022 and has grown at a CAGR of 3.5% since 2018. The two biggest sources of revenue in this industry are lumber and hardware, representing 35% and 34.5% of total revenue, respectively.
  • The U.S. lumber and building material stores market is forecasted to grow by 4% CAGR until 2028. This growth is primarily driven by private spending on home improvements and increased infrastructure development in the United States.
  • Demand for building material retailers grew in 2022 due to rising housing starts and the elevated price of lumber, while retailers are offsetting their costs by increasing prices for consumers.
  • The building material retailer M&A market has historically been driven by strategic players but is currently shifting towards private equity firms seeking to build their platform companies.

About Chinook Capital Advisors:

Chinook Capital Advisors, based in Kirkland, WA, is a leading M&A advisory firm serving the needs of Pacific Northwest business owners. We help businesses prepare for and execute business ownership transition events.

Our expertise includes sell-side advisory/seller representation services, recapitalizations, advisory board/transaction preparation services, and other services including business valuation and debt advisory. Chinook serves many of the key industries that drive the Pacific Northwest economy, including manufacturing, distribution, business services, technology, healthcare products & services, and consumer products & services.

We welcome inquiries from business owners wanting to discuss business valuation, M&A market updates, or how to build value towards a future exit or recapitalization.