Steady course ahead

By Al Leitschuh, CAE Executive Vice President National Building Material Distributors Association

A S THE building producrs indus- frl try enters the 1990s. that magic benchmark associated with a new decade, today's building products professional is still play a very important part (and will be successful) in the overall building products market. ing, increased competition, mergers and acquisitions, an unpredictable economy and an increased need for educated employees have created a new set of "norms" throughout all levels of the building produc-is industry. Will the 1990s bring the same? Probably, but most NBMDA members do not predict the ride reaching as many peaks and valleys. The course will be a steady one.

Distributor members tell us that 1990 and beyond will bring more emphasis on operation efficiencies. Technological advancement like bar coding, E.D.l., and other computer applications will enhance the role a distributor plays in the market channel. Many tell us opportunities for distributors have never been better as many retailers and manufacturers pull out of the distribution functions. Will 1990 bring great changes for the building products industry?

Probably not. It will continue a dynamic, yet steady course.

A quick survey of NBMDA members indicates that economic growth will continue to level off in the U.S. Housing starts will be up moderately, due in part to diverse interest rates. The repair & remodeling side will continue steady growth.

U.S. distributors are confident that significant recessions will be avoided on a national level, but will continue to exist on a regional level as a "rolling recession," one that actually travels from region to region, while other segments of the country are experiencing modest to good economic activity.

Story at a Glance

Economic growth leveling, no significant recession.. more mergers and acquisitions. increased technological advancements... improved opportunities for distributors.

Mergers and acquisitions will continue to impact our industry with a trend toward national distribution networks, but most predict the role of the niche-oriented distributor will