Lumberyard vs One-step Distributors Sentiments: Insights from Principia’s LBM Dealer Survey

Understanding market sentiments among LBM dealers (one-step distributors and lumberyards) can be helpful in navigating the complex landscape of building materials. Principia’s monthly, ongoing survey explores LBM dealer sentiments regarding lead times, revenue projections, market dynamics in repair and remodel (R&R), and more.

On many sentiment measures, there is agreement between the dealer types. For instance, both are bullish on increasing revenues in the next 12 months. Additionally, both state lead times are improving and R&R projects as a percentage of their total business is increasing. Lastly, both have similar levels of agreement that higher prices are negatively impacting their business.

Other measures show differences between lumberyards and one-step distributors. As an example, lumberyards are seeing inventory turns decreasing at a higher rate than one-steppers. They also report losing business to big box retailers at a higher rate.

Continued evaluation of sentiment measures by dealer type will help reveal possible trends helpful for product suppliers as they continue to navigate building product distribution.