Damato of the Day Is ... "Pay Attention to Mergers"
The news that two mega-builders, Centex and Pulte, are moving toward a merger was not surprising but could signal a new direction in the homebuilding sector.
The news that two mega-builders, Centex and Pulte, are moving toward a merger was not surprising but could signal a new direction in the homebuilding sector. Homebuilders have been consolidating for years with large national builders moving into new markets, often buying out local builders. This move may cause others to consider similar moves and may ultimately cause ripples in the supply chain. Until home buyers move back into the residential market I would not expect too much to happen.
But pay attention to this merger and the motivations behind it. Could we be looking at another wave of consolidations in the roofing industry, particularly among the large commercial roofing contractors? Will the independent commercial roofing contractors who have thus far stayed out of the consolidation game maintain their independence? We live in some interesting times.
The news that two mega-builders, Centex and Pulte, are moving toward a merger was not surprising but could signal a new direction in the homebuilding sector. Homebuilders have been consolidating for years with large national builders moving into new markets, often buying out local builders. This move may cause others to consider similar moves and may ultimately cause ripples in the supply chain. Until home buyers move back into the residential market I would not expect too much to happen.
But pay attention to this merger and the motivations behind it. Could we be looking at another wave of consolidations in the roofing industry, particularly among the large commercial roofing contractors? Will the independent commercial roofing contractors who have thus far stayed out of the consolidation game maintain their independence? We live in some interesting times.
