US LBM Acquisition Timeline national builders or large custom production builders to others that operate a more ‘home center’ model and service contractors and DIYers.” Additional divisions focus on specialty offerings such as drywall, windows, doors or millwork. “Our strategy is simple – provide the customer what they need and whatever we provide them with, we do it well,” Gibson says. It’s not a one-size-fits-all approach either as US LBM adopts specific plans and programs around how it can best serve the customers in its markets while continuing to grow its business. “The advantage of us coming together as one enterprise is that in one market we may have strong relationships with specific customer types or a range of competencies in a category or specialty area, and we’re able to build on those relationships or embed and replicate those capabilities in other markets,” says Gibson. Gibson also noted that he is particularly proud of the company’s charitable arm, the US LBM Foundation, founded in 2013. In 2021, it donated more than $400,000 to charities. Its efforts included partnering with the Gary Sinise Foundation to help build custom housing for wounded veterans, providing funding to support tornado victims, and teaming with Meals on Wheels to combat hunger and isolation among senior citizens.
Supply challenges
But looking to the rest of 2022 and beyond, disruptions continue to daunt the industry. Supply chain issues continue to be a challenge while long lead times across multiple product lines have increased the cycle time from start to close in residential construction. “In some cases, this caps the ability of our customers to grow,” says Pat Managan, senior vice president of Supply Chain at US LBM. “Additionally, volatility in commodity lumber and panel prices add complexity for our customers in how they take their products to market.” The buying power and national strength of US LBM have been key in assisting customers in local markets. US LBM’s
Acquired this past September, Mid-Cape Home Centers strengthens US LBM's presence in Massachusetts and New England.
HBSDealer.com
Here are the acquisitions US LBM has made since November 2020. Company Acquired Zeeland Lumber & Supply Ridgefield Supply
11/1/2020 12/1/2020
Tri-County Building Supplies
12/17/2020
Gilcrest/Jewett
12/31/2020
Jennings Builders Supply
12/31/2020
Villaume Industries
2/1/2021
Higginbotham Brothers
5/1/2021
J.P. Hart Lumber & Components
7/1/2021
Brand Vaughan Lumber
7/1/2021
American Construction Source (ACS)
7/1/2021
Home Center Supply
7/1/2021
Massey Builders Supply
8/1/2021
Junior's Building Materials
8/1/2021
North Georgia Building Supply
8/1/2021
Mid-Cape Home Centers
9/1/2021
Northern Building Supply
9/1/2021
Oldham Lumber
10/1/2021
BuilderUp
11/1/2021
Arrowhead Stairs & Trim
11/1/2021
Barrons
12/1/2021
Professional Builders Supply
12/1/2021
size allows it to navigate the supply chain. Gibson says that US LBM has strengthened its relationships and partnerships with strategic suppliers, enhanced the company’s demand planning process and increased communications to help battle the supply chain environment. “With supply chains tight, those relationships have been critical in allowing us to keep running our day-to-day operations while still organically growing, opening five roofing and siding focused greenfields last year and two more this year,” Gibson says. “Those greenfields have been in adjacent areas to existing markets for us, allowing us to grow with and support our customers as they expand, knowing they can rely on the brands, service, and quality we bring.” Events of the past 18 months have also accelerated customers buying into using new technology. Gibson notes that US LBM was one of the first dealers to introduce a mobile app and now the company is focusing on how it can build on technology, including making it easier for customers to do business with the company. The LBM industry is ripe for additional acquisitions to come. The next four to five years are projected to witness large numbers of owners and executives retiring from family-owned LBM businesses. Gibson says independents are looking to sell for a variety of reasons, including the pandemic, supply chain, tax and labor issues, while seeing record sales dollars, in large part HARDWARE + BUILDING SUPPLY DEALER Januar y 2022
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