2014-03-06 01:05:01 - Construction Materials - Industry Analysis - a new market research report on companiesandmarkets.com
Although building product usage often crosses several subsectors, many companies are dependent on one single market. For example, housing products might be found in commercial construction, though residential demand is much more significant. The Business Description may show that a company mainly serves the home repair & remodel market, a stable venue, as opposed to new home construction. Other companies may dominate a niche market, such as drywall or insulation. This usually doesn´t translate into substantial pricing power, however; high sales volume can be more beneficial to the bottom line. Geographic diversity is also an important consideration. The health of the construction sector can vary widely among domestic regions. Exports are not viable due to the high cost of
shipping heavy materials. Some suppliers have overseas operations, which can help to offset problems in the U.S. The Description may indicate that a company is a market leader, suggesting it has the strength to compete through the entire economic cycle.
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