Lumber & Building Material Stores in Canada Industry Market Research Report Now Available from IBISWorld - News and Weather For The Quad Cities -

Lumber & Building Material Stores in Canada Industry Market Research Report Now Available from IBISWorld

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Heightened competition and rising purchasing costs have cut into operators' profit margins and forced a number of smaller operators to merge to remain competitive. For these reasons, industry research firm IBISWorld has added a report on the Lumber & Building Material Stores in Canada industry to its growing industry report collection.

New York, NY (PRWEB) July 04, 2014

The Canadian Lumber and Building Material Stores industry has fared significantly better than its US counterpart over the past five years. Industry operators were not affected by the prolonged decline in demand for building products that decimated so many US lumber and building stores during the recession. The Canadian government rescued the construction sector from the recession with stimulus money, reviving demand for many of the building products used by contractors. Furthermore, the Bank of Canada helped by slashing interest rates, making it more affordable for developers to obtain financing. As a result, industry revenue has achieved steady average annual growth over the past five years, including growth in 2014 alone.

While the industry escaped the recession relatively unscathed, building materials operators have faced a number of more fundamental challenges over the past five years. According to IBISWorld Industry Analyst Will McKitterick, most lumber and building materials are relatively small operations who face fierce competition from big-box companies in the Home Improvement Stores industry (IBISWorld report 44411CA) and the Hardware Stores industry (IBISWorld report 44413CA). Companies in these external industries are able to leverage their large size to achieve economies of scale. Big-box stores can save on purchasing costs by buying in bulk, passing their savings down to consumers. Heightened competition and rising purchasing costs have cut into operators' profit margins and forced a number of smaller operators to merge to remain competitive, says McKitterick.

The Lumber and Building Materials Stores industry has a low level of market concentration. The Lumber and Building Materials industry is expected to continue to grow over the next five years, although at a slightly reduced speed. The governor of the Bank of Canada has commented that the housing market is headed for a soft landing, meaning the much-feared housing market bubble is unlikely to pop. Nevertheless, this cool down in the real estate sector will subdue demand for new housing, reducing demand for lumber and building materials. Furthermore, though it is difficult to forecast the Bank of Canada's monetary policy, the overnight rate is expected to moderately increase over the next five years. This would raise interest rates to rein in borrowing, further reducing demand for new housing. As a result, private contractors will demand less industry products, slowing revenue growth to an average annual rate over the next five years.

For more information, visit IBISWorlds Lumber & Building Material Stores in Canada industry report page.

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IBISWorld industry Report Key Topics

The Lumber & Building Material Stores 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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