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Writer's pictureCraig Webb

Are Roofing Dealers Running Out of Companies to Buy?

Updated: Apr 15, 2019



Take note of all the green pins on the map above. They mark the 25 locations where a construction supply company is opening a location where none had existed previously. That's two-thirds more than the 15 greenfield locations opened by this time in 2018. Equally notable is that roofing specialty firms account for 19 of those 25 openings. SRS alone announced 10 new stores, follows by ABC Supply and Beacon Roofing at four apiece and Travis Roofing Supply with one.


All told, we have had nearly 100 greenfield openings since January 2018. What's going on? One possibility is that these highly acquisitive companies have run out of local roofing dealers to buy. Another is that they coveted a market, failed to get a local buyer interested in selling, and then invaded that market with hopes of grabbing market share (and perhaps weakening the incumbent enough to sell out). There also are some cases, particularly at Travis, in which local roofing dealers who were part of a company that was taken over decided they didn't like the new owners and chose instead to ally with a new firm. Meanwhile, a total of 62 facilities have changed hands so far in 2019. By this time last year, there were 53. Here are the most important deals and openings to have taken place since mid-March: * US LBM made two acquisitions: The six-unit, Mississippi-based Bailey Lumber & Supply and BM Windows of Las Vegas.

* Travis Roofing Supply plans to open a new branch in Nashville, Tenn., by late April. * Busy Beaver opened a new branch in Elkins, WV.

* US LBM's Universal Supply unit opened a new store in Edgewood, Md. * SRS Distribution opened greenfield locations in Sudbury, MA; Fargo, ND; Spokane, WA; and Belton, TX. The announcement came a few weeks after SRS said it opened greenfield stores in Austin, TX; Medina, MN; and Delray Beach, FL. * Beacon Roofing Supply opened four new locations between Jan. 1 and March 31 In Sparks, NV; Fresno, CA; Panama City, FL; and Plano, TX. * Fingerle Lumber of Ann Arbor, MI, finally closed. Taking advantage of that action, Mans Lumber opened a showroom in Ann Arbor and hired several of Fingerle's employees. * Sunroc bought Sierra Truss of Willard, UT. * Gordon Lumber closed facilities in Bowling Green and Bellevue, OH, consolidating those operations with nearby yards. * ABC Supply opened a new yard in Junction City, KS.

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1 Comment


robertbrownnfl
Jan 25, 2022

These are some very interesting facts that i come to know about the roof repair and roof replacement dealers.

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