Under construction: A cooldown in the real estate sector will reduce demand for industry products

The Lumber and Building Material Stores industry in Canada has outperformed the overall economy over the five years to 2018, rebounding from its downturn earlier in the period. During the period's outset, the housing market bucked its three-year expansionary trend with the number of housing starts and the value of residential construction declining. As a result, demand for lumber and building materials flagged after two consecutive years of contraction. However, a robust, if not overheated, housing market later in the period was more than enough to make up for this slow start. Overall, IBISWorld projects industry revenue to grow over the five years to 2018. The industry is expected to continue to slowly grow over the next five years...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry will continue to slowly grow, but declining housing starts will subdue demand
  • Small retailers are the most likely to succumb to competition from big-box retailers
  • An increase in renovation activity from homeowners is expected to drive industry sales
  • Industry Report - Industry SWOT Analysis Chapter

    The Lumber and Building Materials Stores industry in Canada is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry's overall contribution to the economy, is expected to grow at an annualized rate of 3.3% over the 10 years to 2023, significantly faster than the Canadian economy, which is forecast to grow 1.9% during the same period. The disparity between the two growth rates is primarily due to the extensive residential building activity, particularly in major metropolitan areas of the country. Historically, however, industry IVA typically grows in line with the overall economy.There are several indications that the industry is in a mature phase. Sma...purchase to read more.

    Additional Insights for the Lumber & Building Material Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lumber & Building Material Stores Industry are

  • Attractive product presentation
  • Ability to control stock on hand
  • Experienced workforce
  • IBISWorld analysts also discuss how external factors such as Housing starts and Residential renovation expenditure in the Lumber & Building Material Stores industry impact industry performance..

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    What's in this report

    What is the Lumber & Building Material Stores Industry?

    This industry retails building materials such as lumber, hardwood, stones and brick. This industry also supplies cabinets, floor coverings, roofing materials, electrical and plumbing goods, doors and windows to the construction market. The industry does not include home improvement centres, paint and wallpaper specialty stores or hardware stores.

    Industry Products
  • Lumber and other wooden building materials
  • Other structural materials and supplies
  • Hardware, tools, plumbing and electrical supplies
  • Industry Activities
  • Retailing building materials
  • Retailing cabinets
  • Retailing ceiling fans
  • Retailing doors and windows
  • Retailing electrical supplies
  • Retailing fencing
  • Retailing floor coverings (wood or ceramic only)
  • Retailing lighting fixtures
  • Retailing masonry (e.g. block, brick and stone)
  • Retailing plumbing supplies
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Residential renovation expenditure
  • Value of nonresidential construction
  • Population

  • Current Performance
  • Major market dynamics
  • Competitive environment
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Small companies adapt
  • Green building supplies
  • Table: Lumber & Building Material Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Lumber & Building Material Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Apartment & Condominium Construction in Canada
  • Electricians in Canada
  • Roofing Contractors in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Electrical Equipment Wholesaling in Canada
  • Lumber Wholesaling in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada

  • Products & Services
  • Other structural materials and supplies
  • Hardware, tools, plumbing and electrical supplies
  • Lumber and other wooden building materials
  • Other
  • Chart: Lumber & Building Material Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Professional contractors
  • Household consumers
  • Other
  • Chart: Major Market Segmentation for the Lumber & Building Material Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Lumber & Building Material Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lumber & Building Material Stores Industry

  • Industry Globalization
    Home Hardware Stores Limited,
  • Table: Home Hardware Stores Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lumber & Building Material Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Lumber & Building Material Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of nonresidential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Do-It-For-Me (Difm)
  • A category of customers who purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers that includes homeowners who purchase products and complete their own projects.
  • Point-Of-Sale (Pos) System
  • A system used at checkout in retail stores that uses computers and cash registers to capture transaction data at the time and place of sale.
  • Professional Contractors
  • Professional remodellers, general contractors, repairmen and tradesmen.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Lumber & Building Material Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Lumber & Building Material Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Lumber & Building Material Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Lumber & Building Material Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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