Recent Numbers Indicate Promising Growth for the Building Products Industry in 2025

The building products industry is poised for significant growth in 2025, buoyed by encouraging trends in both residential and non-residential construction. Early data from 2024 paints a picture of a sector rebounding and evolving, fueled by increased construction activity and heightened demand across various markets. Here’s a closer look at the numbers driving this optimism.

Residential Construction Rebounds

After a challenging few years, residential construction is experiencing a resurgence. Early 2024 data reflects an optimistic outlook:

• Single-Family Housing Starts: Increased by 18.8% during 2024, signaling a robust recovery in this segment.

• Multifamily Housing Starts: Rose by 10.2%, highlighting sustained demand for apartment buildings and other multifamily developments.

• New Home Sales: Climbed by 4.4% in 2023, showcasing renewed interest among homebuyers.

• Existing Home Sales: Declined by 18.3% in 2023 and gained only 1.6% in 2024, likely influenced by higher mortgage rates and the "lock-in effect," which kept homeowners in place and spurred investments in renovations instead.

This shift has benefited suppliers of building materials, as homeowners and developers invest in both new builds and upgrades to existing properties.

Non-Residential Construction Surges

The non-residential construction sector is also showing strong performance, with a 21.0% increase in overall activity in 2023, and 4% increase in 2024. This growth is being driven by key areas:

• Manufacturing Sector: Record spending in manufacturing construction underscores a growing need for new facilities to support industrial expansion and supply chain resilience.

• Education and Healthcare: Significant investments in these sectors are driving demand for specialized construction projects, such as schools, universities, hospitals, and research facilities.

These developments create opportunities for manufacturers and suppliers of building products to cater to a diverse and growing set of needs.

What This Means for the Building Products Industry

The upward trends in both residential and non-residential construction have far-reaching implications for the building products industry. Key opportunities include:

• Increased Demand for Sustainable Materials: Builders and developers are prioritizing eco-friendly options to meet regulatory and consumer demands for sustainability.

• Technology Integration: Smart building materials and innovative construction techniques are gaining traction as the industry embraces digital transformation.

• Supply Chain Resilience: With increased activity, companies in the building products sector are focusing on enhancing their supply chains to meet demand efficiently.

Outlook for 2025

The numbers from 2023 and through 2024 suggest a strong foundation for growth heading into 2025. With continued investments in construction and a steady rise in demand for building products, industry stakeholders are well-positioned to capitalize on these trends. However, navigating challenges like inflation and labor shortages will require strategic planning and agility.

Conclusion

The building products industry is on the cusp of a promising year, with robust growth expected across both residential and non-residential markets. For businesses in this space, the time to act is now—whether by investing in sustainable materials, adopting new technologies, or strengthening supply chains. As the industry gears up for 2025, collaboration and innovation will be key drivers of success.

As a niche market search firm, we focus on finding top candidates for sales, sales management, and executive positions in the building products industry. Contact us to to find out how The Bridger Group can help your team. 

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