Trade News
AD Owner/Members Set Sales Record of Almost $80 Billion
AD is reporting a record result for 2023 in owner/member sales, which increased 5 percent over the prior year to $78.9 billion.
Purchases by member companies from AD supplier partners were $19.8 billion. Net distributions to owner/members were $1.4 billion.
AD welcomed 49 new members to its community of independents in 2023 through a combination of organic growth and the merger with the groundwater-focused Baron Group in AD’s PVF – U.S. Division. This count does not include the members joining AD as part of the merger with The Edge Group in AD’s Electrical – U.S. Division, which became effective on Jan. 1, 2024. In addition, existing members acquired 41 non-AD companies and 20 fellow members. Thirty-four of AD’s 860 members sold their business outside the group.
“The independent distributor community is strong and growing in each of our industries in the U.S., Canada and Mexico,” commented AD Chairman and CEO Bill Weisberg. “Even though some independents do sell, many others are buying and expanding, adding new locations and attracting great people to their teams who value working at nimble, people-oriented companies. We are proud to partner with our owner/member-led boards and committees, our industry-leading suppliers and a team of fantastic AD associates who are passionate about our mission in support of independents.”
https://www.wconline.com/articles/96038-ad-owner-members-set-new-sales-record-of-789-billion-in-2023
Owens Corning Acquires Masonite in Billion-dollar Deal
Owens Corning and Masonite International Corp. announced in February that the companies entered into a definitive agreement, under which Owens Corning will acquire all outstanding shares of Masonite for $133 per share, in cash.
OC said the purchase price represents approximately a 38 percent premium to Masonite’s closing share price on the NYSE, as of February 8, which was approximately a “46 percent premium to Masonite’s 20-day volume-weighted average price.”
The implied transaction value is approximately $3.9 billion, implying a purchase multiple of approximately 8.6x 2023E-adjusted EBITDA2 or 6.8x when including synergies of $125 million.
OC said the addition of Masonite’s doors business creates “a new growth platform for Owens Corning, strengthening the company’s position in residential building materials and extending its offering of highly valued products and brands.”
The company added that by leveraging its “unique commercial capabilities and proven go-to-market model” serving contractors, builders and distributors, it expects to build on Masonite’s strong track record of innovation, brand quality and category excellence.
https://www.wconline.com/articles/96046-owens-corning-acquires-masonite-in-39-billion-deal
Saint-Gobain Announces Acquisition of International Cellulose Corp.
Saint-Gobain announced in February that it has acquired the business assets of International Cellulose Corporation, a privately-owned manufacturer of commercial specialty insulation products, including spray-on thermal and acoustical finishing systems.
The acquisition of ICC’s assets will allow Saint-Gobain to reinforce its leadership position in light and sustainable construction by offering fireproofing and insulation solutions that will enhance energy conservation and efficiency in commercial spaces. Manufactured with natural, plant-based fibers and high recycled content, ICC products meet some of the world’s most rigorous sustainability standards, such as LEED V.4 and GREENGUARD Gold certifications, aligning with Saint-Gobain’s focus on sustainability. Cellulose, the primary raw ingredient in ICC products, contains high levels of sequestered carbon, furthering Saint-Gobain’s commitment to net-zero carbon by 2050.
“With plant fiber-based spray insulation products that allow commercial spaces to be more energy-efficient, safe and comfortable, International Cellulose Corporation is a perfect fit for Saint-Gobain North America,” said Mark Rayfield, president and CEO of Saint-Gobain North America and CertainTeed. “I look forward to welcoming the ICC team to the Saint-Gobain family and working together to meet our sustainability goals and our purpose; ‘Making the World a Better Home.’”
With approximately 50 employees at its manufacturing site in Houston, the acquisition of ICC will allow Saint-Gobain to establish its Commercial Building and Infrastructure business as a leader in cementitious fireproofing and sprayed acoustic insulation, complementing Saint-Gobain’s steel fireproofing solutions and contractor offering. ICC’s product portfolio complements existing Saint-Gobain insulation solutions, such as GCP’s fireproofing products (acquired by Saint-Gobain in 2022) and CertainTeed’s interior insulation portfolio.
International Cellulose Corporation will join CertainTeed’s Commercial Building and Infrastructure business in the Americas region. The acquisition includes the assets of Ecosorb International, a subsidiary of International Cellulose Corp.
Construction Workforce Shortage Tops Half a Million, Reports ABC
The construction industry will need to attract an estimated 501,000 additional workers on top of the normal pace of hiring in 2024 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors. In 2025, the industry will need to bring in nearly 454,000 new workers on top of normal hiring to meet industry demand, and that is presuming that construction spending growth slows significantly next year.
“ABC estimates that the U.S. construction industry needs to attract about a half-million new workers in 2024 to balance supply and demand,” said Michael Bellaman, ABC president and CEO. “Not addressing the shortage through an all-of-the-above approach to workforce development will slow improvements to our shared built environment, worker productivity, living standards and the places where we heal, learn, play, work and gather.”
ABC’s model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s Value of Construction Put in Place Survey, and payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction labor at a rate of approximately 3,550 jobs per billion dollars of additional spending. This increased demand is added to the current level of above-average job openings. Projected industry retirements, shifts to other industries and other forms of anticipated separation are also embodied within the computations.
Based on historical Census Bureau Job-to-Job Flows data, an estimated 1.9 million construction workers will leave their jobs to work in other industries in 2024. This should be offset by an anticipated 2.1 million workers who will leave other industries to work in construction. These frictional inter-industry transfers are estimated exogenously and serve as inputs to the model.
The U.S. construction industry unemployment rate averaged 4.6 percent for the second straight year, matching the second-lowest level on record, while job openings remained historically elevated at an average of 377,000 per month through the first 11 months of 2023. As a result of labor shortages, contractors laid off workers at a slower rate than in any year between the start of the data series in 2000 and 2020.
https://www.wconline.com/articles/96019-abc-2024-construction-workforce-shortage-tops-half-a-million
NIBS Celebrates 50 Years
This year marks five decades of significant contribution and service by the National Institute of Building Sciences to the U.S. built environment.
NIBS was officially established in August 1974 by the U.S. Congress in the Housing and Community Development Act, Public Law 93-383. At that time, Congress recognized the need for an organization to serve as an authoritative source supporting government and private sector building science research, code/standards development and innovative technology integration.
“We are planning to celebrate this important milestone throughout the year,” said Stephen T. Ayers, interim president and CEO. “This is our chance to honor the relationships we have formed, research we have developed and stakeholders we continue to serve. Our work is far from over.”
Several special events are planned in 2024, including the release of a comprehensive 50th Anniversary Report, the launch of new online resources reflecting NIBS achievements and a Golden Anniversary celebration during Building Innovation 2024, which will be at the Capital Hilton in Washington, D.C. in May.
DeWALT Celebrates 100 Years
DEWALT is celebrating its 100th anniversary of powering the pros. Through its commitment to innovation, safety and productivity, DEWALT has been delivering tools to meet the needs of professional tradespeople around the world since 1924, when Raymond DeWalt’s forward-looking vision resulted in the founding of DEWALT.
“DEWALT has been committed to professional tradespeople for the past 100 years, and Raymond DeWalt’s founding principles of innovation, safety and productivity remain the core ethos of our company today,” said Chris Nelson, chief operating officer, executive vice president and president of tools and outdoor at Stanley Black & Decker. “When we put the DEWALT name on something, it’s a commitment that our tools will help get the job done right. This milestone anniversary is also a humbling reminder of both the responsibility and critical role DEWALT plays supporting the trades with solutions, training and resources needed to meet the demands of the future.”
https://www.wconline.com/articles/96008-dewalt-celebrates-100-years-of-innovation
Armstrong Adds 3-D Revit Models to ProjectWorks
Armstrong World Industries recently expanded the capabilities of its ProjectWorks Design and Pre-Construction Service by making 3-D Revit models available to designers, architects and contractors utilizing the complimentary service. By expanding its in-house ProjectWorks proprietary design software to deliver 3-D Revit models, Armstrong has answered the call of architects and designers needing to produce detailed renderings, ensured the feasibility of ceiling designs and reduced the “friction” that sometimes occurs when contractors receive incomplete, inaccurate or confusing project details.
The 3D Revit model is a full-scale, dimensionally accurate depiction of an architect’s ceiling design, supported by data-rich product information—including item numbers, descriptions, finishes and perforations—on all elements of the panels, perimeter trim and suspension system. This extensive information and model expand project evaluations to ensure constructability. In addition, the model can be used by architects and designers to generate detailed renderings and animated 3-D presentations, supporting a more seamless design process.
“There’s no greater satisfaction than seeing an architect’s jaw drop when we bring their design to life through Revit—we help them visualize it and offer the assurance that it can work beautifully for the project at hand,” said Nick Friez, manager of digitalization for ProjectWorks at Armstrong. “Our 3-D Revit capabilities provide a much smarter, more interactive model that elevates confidence for the architect or designer because everything is figured out when a project moves to bid. Moreover, we provide a detailed drawing package that puts all the data right there, eliminating guesswork and facilitating the most accurate specifications.”
“ProjectWorks is always about collaboration and providing the human touch that has distinguished Armstrong for more than 160 years,” Friez said. “That will never change. Our vision is to leverage digitalization to enhance the human side of design and create exceptional customer experiences by supporting projects holistically.”
ProjectWorks provides complimentary assistance to help simplify ceiling layouts and deliver comprehensive drawing packages that streamline the entire project process — from design and quoting through takeoffs and installation. To learn more, visit armstrongceilings.com/projectworks.
Georgia Metals Acquires Tennessee-based Watson
Generational Capital Markets, a mergers and acquisitions advisor for privately held businesses, announced in February that it had brokered the sale of its client, Manchester, Tennessee-based Watson Metals, to Georgia Metals, a portfolio company of CID Capital.
Generational Capital said the deal closed on Feb. 5 for an undisclosed amount.
Watson Metals is a provider of metal roofing, pole barns and pre-engineered steel buildings in the southern U.S. Founded in 1997 by Michael Watson, the company is one of the region’s largest distributors of metal building products for residential, agricultural, commercial and industrial customers.
Georgia Metals, headquartered in Danielsville, Georgia, is a leading distributor of metal roofing and other related metal building products and accessories and is owned by Carmel, Indiana-based CID Capital, a private equity group that makes control investments in lower-middle-market companies.
Generational Capital Markets’ Senior Managing Director of M&A, Chris Heckert, successfully closed the transaction with the support of Vice President of M&A Nydia Blanco.
https://www.wconline.com/articles/96050-georgia-metals-acquires-tennessee-based-watson
Spackle by Dave Coverly
People News
Ware Malcomb has appointed Luciana Arim to the position of science and technology.
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Ware Malcomb has appointed Luciana Arim to the position of science and technology.
The Spray Polyurethane Foam Alliance has announced the impending retirement of Richard S. Duncan, PhD, PE, from his full-time role as executive director. A well-respected, longtime member of the polyurethanes and spray foam industries, Duncan will complete his term with the SPFA in April and will stay on in a consulting role as technical director. The SPFA is currently interviewing candidates to fill the position, beginning in April.
Emerging as a pillar of his local and professional communities, Architect Joshua Zinder, AIA, LEED AP, frequently lends his talents for design innovation, leadership and mentorship. Now, his commitments to supporting his professional community have resulted in new honors and a key leadership position.