Webb Analytics Says Sales Declined in 2024 for Most US LBM Companies
More than half of the lumber and building supply companies in the United States reported sales declines in 2024 according to the 2025 Construction Supply 150 report released by Webb Analytics.
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| The 2025 Webb Analytics Construction 150 report marked another year of revenue declines within the LBM industry. |
The report is a comprehensive guide to the size, scope and plans of key lumber and building material supply companies in the United States.
Per the report, companies constituting the Construction Supply 150 saw their revenues rise 1.3% to $411.75 billion in 2024. Removing sales at The Home Depot and Lowe’s and the remaining 148 companies saw only a 0.7% gain.
Craig Webb, president Webb Analytics stated that more than three-quarters of the companies posted revenue declines, the second-worst total in this decade.
Totals would have been worse if acquisitions and new greenfield openings were not included. Companies that expanded posted a 1.6% rise in sales and those that didn’t had 2.4% declines.
“CS150 members had to slog through weak economic conditions in 2024,” Webb stated
He noted that 2025 isn’t looking any more promising with nearly three-quarters of companies projecting declines, no change or increases of 5% or less.
“Despite what has been pretty much two depressing years in construction supply, the industry keeps getting new entrants like QXO’s Brad Jacobs and new start-ups around the country,” Webb stated.
A significant factor for the lumber companies was the decline in the number of single-family housing units. According to the report, those numbers dropped 5.3% in 2024 from 2023, while multifamily unit construction declined by 22%.
Consumer price increases of 2.9% should have helped retail sales but could not overcome the overall sales volume decline.
Webb said the drop in same-store sales revenue ranged from 0.3% at Ace Hardware stores to 1.8% at The Home Depot and 2.7% at Lowe’s.
Unlike 2023, the blame could not be placed on lumber in 2024. In 2023, a 48% drop in framing lumber prices ravaged CS150 members. However, in 2024, lumber prices declined only 2.4%, and yet lumberyards without manufacturing operations posted an 8.5% sales decline, and lumberyards with manufacturing declined 2.1%.
According to Webb’s analysis, specialty dealers fared better than the lumberyards, growing 3.1%. Home centers and hardware stores grew by 1.6%.
The 25 dealers on the CS150 list with over $1 billion in annual sales reported increases in 2024, while those below $1 billion declined.
Further, echoing past years, the report again indicates the significance of value-added products and services. The Home De-pot and Lowe’s get 3.2% of their total revenue, more than $7.77 billion, from installation services, while dealers collect $2.07 billion more from installations.
For the 80 companies that build trusses, create custom millwork and operate door and window shops, manufacturing of products is a significant revenue source. Combined, it amounts to nearly $14 billion, or nearly 29% of their entire revenue.
All told, Webb said the value-added products and installation amount to approximately $24 billion of the CS150’s $412 billion in total revenue or about 5%.
To download a copy of the full report, click here.
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