Lumberyards need to learn what the one-steppers do well, then strive to beat them at their own game

Lou Rossi, Managing Partner, Principia Consulting

Traditional lumberyards have expressed strong interest in greater participation in roofing and wallboard and ceiling markets, according to our recent research. However, there’s a major obstacle facing lumberyards: Channel supply, which is dominated by specialized one-step distribution in both categories

Lumberyards accounted for only 10% of the $21 billion worth of roofing sold through wholesale and retail channels in North America in 2015. Similarly, lumberyards account for 11% of the $5 billion wallboard and ceilings channel revenue in North America last year.

Distributors largely serving these categories are narrowly focused, providing the ability to carry a deeper product line within the category. Roofing distributors tend to be bit broader, typically extending into siding and windows to serve overlapping contractor and installer customers. Wallboard and ceilings distributors are almost exclusively focused on these two products. Some companies sell related products like steel framing and installation tools but generally have not diversified into other product categories.

Read Full Article at ProSales Magazine HERE.