In this article we will take a look at the top building materials companies in USA. You can skip our detailed analysis of these companies, and go directly to Top 5 Building Materials Companies in USA.
The construction industry in the United States is one with a significant impact of 3.36% on the country’s GDP. Some major names in the construction industry in the US that contribute largely to the industry’s share in the national GDP are Vulcan Materials Company (NYSE: VMC), Granite Construction Incorporated (NYSE: GVA), Eagle Materials Inc. (NYSE: EXP), Quanta Services, Inc. (NYSE: PWR), and Martin Marietta Materials, Inc. (NYSE: MLM). According to economic forecasts, the construction industry in the United States will demonstrate a growth of 15.6% and be valued at $1515.65 billion in 2021.
Although the construction and building materials industry in the United States has been facing challenges in the recent past that have slowed down its short-term growth, the medium and long-term growth in the industry is forecasted to remain relatively constant and positive. The expected compound annual growth rate (CAGR) will be 4.7% from the year 2021 to 2025. Moreover, the construction output for the US construction and building materials industry is forecasted to be as high as $1819.1 billion until the year 2025.
As the COVID pandemic has brought about a huge increase in outdoor renovation and construction projects, the demand for construction materials is also expected to rise. Consequently, the prices of construction and building material have risen accordingly. The norm of social distancing during the pandemic has shifted people’s behavior from relaxing and entertaining visitors indoors to outdoors in patios, fire pits, and outdoor kitchens.
Even though construction activities have gained importance as the quarantine and lockdowns have lifted, the industry suffered significantly during the peak of the pandemic due to the weakened economy, disturbances in the supply chain, and delays in schedules. Contractors and construction workers suffered, too, as the lockdown signified that they were to remain in their houses for months on end. Accordingly, the demand for building materials fell drastically.
At present, however, there are a number of major construction projects underway in the United States, especially in the institutional, residential, and industrial sectors. The primary reason behind the initiation of the projects is to help the national economy in regaining its previous strength. The factors that currently support economic recovery include government protection to industry workers and falling mortgage rates. Moreover, the demand for additional health facilities and infrastructure has raised the demand for construction activities.
The top trends in the construction and building materials industry that, upon analysis, seem sustainable in the longer term are the use of software and drones. Using software often help contractors, construction managers, and other construction workers, in matters such as bundling, timekeeping, and scheduling activities. In addition, the usage of drones has also gained popularity in construction activities since the technology has become more efficient and affordable. Construction managers often use drones to better survey sites for buildings as well as assessing any situations that are potentially hazardous for the construction workers. Both the usage of software and drones will gain even more popularity in the coming years.
In the following article, we will be discussing the top building material companies in USA. We ranked the companies based on their market cap. We also mentioned the number of hedge funds having stakes in each company.
With this context and industry outlook in mind, let’s start our list of the top 15 building materials companies in USA.
Top Building Materials Companies in USA
15. Huttig Building Products, Inc. (NASDAQ: HBP)
Market Capitalization: $15o,ooo,ooo
Number of Hedge Fund Holders: 3
Huttig Building Products, Inc. (NASDAQ: HBP) was established in the year 1879 under the name Gray & Holekamp, which was a wholesale manufacturer and distributor of sashes and doors. The company currently distributes building materials that are used in the repair and construction of homes and other structures. However, it does not manufacture the products it distributes, instead choosing to source the products from various different manufacturers.
Huttig Building Products, Inc. (NASDAQ: HBP) has more than 20 distribution sites that serve all kinds of primary and secondary users in over 40 states in the US. The products of Huttig Building Products, Inc. (NASDAQ: HBP) are millwork such as doors, general building products such as roofing materials, and wood products such as lumber. The company is 15th on the list of top building material companies in USA.
14. Argan, Inc. (NYSE: AGX)
Market Capitalization: $763,710,000
Number of Hedge Fund Holders: 12
Argan, Inc. (NYSE: AGX) offers its customers various consultation, procurement, and construction services through its two subsidiaries: Gemma Power Systems, LLC and affiliates (GPS) and Southern Maryland Cable, Inc. (SMC). Argan, Inc. (NYSE: AGX) operates in both the power and renewable energy generation markets and the telecommunication infrastructure industry. The customers of Argan, Inc. are public utility providers, broadband companies, public municipalities, and private consumers.
13. U.S. Concrete, Inc. (NASDAQ: USCR)
Market Capitalization: $970,ooo,ooo
Number of Hedge Fund Holders: 6
U.S. Concrete, Inc. (NASDAQ: USCR) provides mixed concrete and construction solutions to its customers. The company was initiated in 1999. Although the headquarters of the company are in Euless, Texas, U.S. Concrete, Inc. (NASDAQ: USCR) offers its products and services all over Washington D.C., Oklahoma, New Jersey, U.S. Virgin Islands, and Texas. The primary product offerings of U.S. Concrete, Inc. are mixed concrete, gravel, and sand. The company is 11th on the list of top building material companies in USA.
12. Granite Construction Incorporated (NYSE: GVA)
Market Capitalization: $1,840,000,000
Number of Hedge Fund Holders: 13
Based in California, Granite Construction Incorporated (NYSE: GVA) is a famous producer of construction materials. Granite Construction Incorporated (NYSE: GVA) is 12th on the list of top building material companies in USA. Since its incorporation in 1922, the company has developed its specialty in infrastructure projects in both the private and public sectors. Granite Construction Incorporated (NYSE: GVA) is divided into the materials division as well as West and East divisions, which conduct operations in further regional divisional offices. The two major regional divisions carry out construction projects such as in the transportation infrastructure industry, while the materials division prepares material such as concrete, sand, and gravel.
11. Boise Cascade Company (NYSE: BCC)
Market Capitalization: $2,520,000,000
Number of Hedge Fund Holders: 16
Boise Cascade Company (NYSE: BCC) produces and distributes wood building materials such as lumber, plywood, and specialized wood products. Boise Cascade Company (NYSE: BCC) is 11th on the list of top building material companies in USA. The company employs approximately 6000 people in its different locations. Boise Cascade Company has been segmented into two divisions: the wood products division manufactures lumber and plywood; while the distribution division delivers the company’s orders to all kinds of private and public customers.
10. Comfort Systems USA, Inc. (NYSE: FIX)
Market Capitalization: $3,130,000,000
Number of Hedge Fund Holders: 19
Comfort Systems USA, Inc. (NYSE: FIX) offers all kinds of air conditioning installation, replacement, and repair services. Moreover, the company handles electrical and plumbing services. Comfort Systems USA, Inc. (NYSE: FIX) operates in 38 units across 72 cities in the US. Comfort Systems USA, Inc. operates primarily in the commercial, industrial, and institutional HVAC markets. Furthermore, Comfort Systems USA, Inc. provides specialized applications, such as building automation control systems, fire protection, process cooling, electronic monitoring, and process piping.
9. APi Group Corporation (NYSE: APG)
Market Capitalization: $4,326,000,000
Number of Hedge Fund Holders: 33
APi Group Corporation (NYSE: APG) provides specialty construction services. With approximately 40 subsidiary companies, the company provides its services throughout the US, Canada, and the UK. APi Group Corporation (NYSE: APG) offers HVAC and plumbing system installation; electrical, industrial, and mechanical contracting, and industrial insulation. Moreover, APi Group Corporation (NYSE: APG) also installs fire sprinklers, security systems, and alarm systems for its customers. The company is 9th on the list of top building material companies in USA.
“APi Group, in the industrials sector, was our most significant new addition. APi Group Corporation (NYSE: APG) helps office and industrial buildings ensure their safety and fire alarm systems are operating properly, a largely recurring business where the company has an opportunity to grow market share. Also in industrials, Array Technologies makes mechanical tracking systems platforms for industrial grade solar installations that pivot as the direction of the sun changes to capture the most solar exposure. The company, run by a team with a keen sense of where to offer software around its physical platform, has seen mostly U.S. market share gains thus far and will begin to ramp up its international business this year.”
8. Eagle Materials Inc. (NYSE: EXP)
Market Capitalization: $6,230,000,000
Number of Hedge Fund Holders: 35
Eagle Materials Inc. (NYSE: EXP) is based in Dallas, Texas and manufactures building materials such as concrete, sand, gypsum, construction aggregate, and wallboard. The company owns multiple cement plants, frac sand wet processing facilities, slag grinding processors, cement distribution terminals, and sand trans-load locations. In 1963 when the company was established, Eagle Materials Inc. (NYSE: EXP) was a part of Centex Construction Company and was named Centex Construction Products, Inc. After the year 2004, the company went public, and its name was revised as Eagle Materials Inc. Since then, Eagle Materials Inc. (NYSE: EXP) has had much growth; it expanded its plant in LaSalle, Illinois and acquired new plants from Lafarge in Tulsa, Oklahoma and Sugar Creek, Missouri. Moreover, Eagle Materials Inc. had another acquisition in 2014, when it purchased CRS Proppants LLC. In February 2017, the company purchased a cement plant in Fairborn, Ohio. As of June 2021, Eagle Materials has a market cap of $6.23 billion.
“Contributors to the gains were broad based, with the decision to selectively increase exposure to more cyclical sectors such as U.S. housing delivering strong returns. Eagle Materials, a high quality but below the radar building products company, was featured in the December 2020 quarterly report. Pleasingly, the market began to recognise the quality of this business and its strong cashflow and earnings outlook. Its share price increased by 33% during the March 2021 quarter.”
7. TopBuild Corp. (NYSE: BLD)
Market Capitalization: $6,458,000,000
Number of Hedge Fund Holders: 18
TopBuild Corp. (NYSE: BLD) distributes as well as installs insulation materials and building materials. TopBuild Corp. (NYSE: BLD) has two divisions that handle the installation and distribution separately. The installation division has 200 branches across the US, while the distribution network comprises 75 branches. Moreover, the distribution of building materials such as closet shelving, rain gutters, fireplaces, and roofing materials is also carried out by TopBuild Corp. The company also provides various products, including fireproofing, spray foam, fire-stopping, thermal & acoustical insulation, and intumescent sprays. TopBuild Corp. (NYSE: BLD) is 7th on the list of top building material companies in USA.
6. EMCOR Group, Inc. (NYSE: EME)
Market Capitalization: $6,947,000,000
Number of Hedge Fund Holders: 20
EMCOR Group, Inc. (NYSE: EME) is based in Norwalk, Connecticut, USA. The company offers all kinds of electrical construction, energy infrastructure, and mechanical services to all kinds of private and industrial customers. As the name suggests, EMCOR Group, Inc. (NYSE: EME) is a conglomerate of companies as it comprises of more than 80 companies. There are 170 different locations of its offices, and the holding company employs over 33000 people. EMCOR Group, Inc. (NYSE: EME) has utilized the acquisition strategy to its maximum benefit, as each acquisition broadened its geographical boundaries and opened new markets for EMCOR Group, Inc. The company is 6th on the list of top building material companies in USA.
“EMCOR focuses on electrical and mechanical construction and facilities services, which seems a difficult business given the acceleration of e-commerce and the likely persistence of remote work going forward. It’s interesting to note that the Amazon-inspired, oft-discussed “retail apocalypse” occurred over the course of two decades as 12% of retail sales shifted to the internet and overall sales were growing. What effect will the pull-forward of pandemic e-commerce have on the needs for retail space going forward? While EMCOR rebounded sharply with the announcement of a vaccine, we had sold it earlier in the year.”
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Disclosure: None. Top 15 Building Materials Companies in USA is originally published on Insider Monkey.