Building Products and Materials Newsletter: Construction Industry Update

This issue of the Building Products & Materials (BP&M) newsletter highlights the macroeconomic drivers supporting the ongoing resurgence in mergers and acquisitions (M&A) activity in the sector and rapidly rising valuations. Optimistic buyers continue to aggressively seek deals due to strong economic fundamentals and robust construction activity. In particular, optimism in the market for new single-family homes is holding strong, likely due to the shortage of existing inventory in the market and high demand for housing. While housing starts slowed somewhat in March, dropping 6.8% from February to a seasonally adjusted annual rate of 1.215 million, starts were up 9.2% year-over-year, with growth in building permit authorizations pointing to more construction activity likely in the coming months.

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