2024国际建筑展回顾

Key 2024 IBS Takeaways •The 2024 IBS drew record numbers as over76,000 attendees and 1,800 exhibitorspacked the Las Vegas Conference Centerand delivered a resounding endorsement ofexpectations for increasing tailwindsacross the residential and lightcommercial end markets for both newconstruction and repair/remodel. •Multiple factors, including the overall housingshortage, a historic dip in existing home sales, and affordability challenges continue to create a notable imbalance in the market, drivingrecord levels of pent-up demand. As some or all of these factors begin to ease, experts believethey will support meaningful, long-term tailwinds across a variety of end markets. •Contractors and home builders are already signaling a meaningful increase in activityasthe year progresses, expecting a ramp in land acquisition and construction activity. •New home sizes are decreasing to combat affordability challenges. However,labor shortagesremain top of mind and continue to drive increased costsfor new construction. •Whileinflation worries have somewhat subsidedearly in 2024, they remain top of mind.Otherpotential headwinds, such as increasing environmental regulation and local land usedecisions, are generating rising levels of concern for industry professionals. •The recent announcement by the Biden administration signals a growing recognition thatthecurrent standstill in the market is unsustainable and, if improvement is slow to materialize,may require government action to resolve. New Construction Takeaways •Recent surveys and market indicators point to ameaningful ramp in both land developmentand housing starts. •~50% of builders are planning on being aggressive in their land acquisition strategy,compared to less than 5% 18 months ago. •~80% of builders anticipate more housing starts in their business than last year. Whileestimates for the total quantum of housing needed vary, the need for stimulating housingconstruction is clear. •The recent dip in the new home lot supply index, after a period of rapid growth, indicates newconstruction is ticking back up which will require additional land development. •As a result, after consecutive declines in single family starts in ’22 and ’23, theNationalAssociation of Home Builders expects new construction activity to grow through 2027. 1) Zonda Survey2) Zonda New Home LSI3)Zonda Survey4) US Census Bureau Additional Thoughts Construction Job Openings1 •On the construction services side, laborshortages persist and continue near all timehighs as measured by open constructionpositions. There were ~407,000 open positions inJanuary 2024, and the Home Builders Instituteestimates that ~740,000 new constructionworkers need to be hired per year to keep upwith the housing shortage. •In addition, while inflation concerns have eased,all other builder concerns grew in mind share.47% of builders mentioned environmentalregulations, up from 41% in 2022, while 37%highlighted local land use decisions. 2024 Problems Faced Survey2 •Given the growing pressure, the Bidenadministration announced housing affordability ismoving to the top of its agenda, outlining plansthat aim to construct two million additional homesand increase affordability for both renters andhomeowners. However, passing these measuresthrough congress will be challenging at best. •Specific legislative items include a new $10,000tax credit for first-time home buyers,strengthening the Low-Income Housing TaxCredit, and up to $25,000 in down paymentassistance to first-generation home buyers. Selected Innovative Brands •Not surprisingly, given these challenges andconcerns over environmental regulations,sustainable/energy efficient and productivity-oriented building products garnered significantattention at the show. Categories such asinsulation and heat conductivity were of particularinterest. Cascadia Capital Building Products Investment Banking Team Sub-verticalIndustry Expertise CustomizedApproach Proven Results Contact the Building Products andDistribution Team Cascadia Overview Naaman HeymanManaging Directornheyman@cascadiacapital.com(206) 436-2536 TransactionsCompleted $16+ Billion in TotalM&A TransactionsClosed Spencer MuellerSenior Associatesmueller@cascadiacapital.com(206) 436-2507 Sector Overview Building Products Manufacturing& Distribution Joe CornerAssociatejcorner@cascadiacapital.com(206) 436-2517 •Interior & Exterior Products•Infrastructure & ConstructionMaterials•Paint & Coatings•Electrical, HVAC & Lighting Trevor KunkelAnalysttkunkel@cascadiacapital.com(206) 436-2567 A T L A N T AA U S T I NL O S A N G E L E SM I N N E A P O L I SN A S H V I L L EN E W Y O R KS E A T T L E Presentation Disclaimer This presentation is being furnished by Cascadia Capital, LLC (“Cascadia”) to the recipient and isintended as an outline of matters for informational and discussion purposes only. The informationcontained in this presentation, including any market data and industry information, has