行业焦点：2022年第二季度建筑产品市场更新

Despite increasing uncertainty, demand and activity remain robust Sector Market Observations Recession Expectations:The quarter was allabout an increasing likelihood of a comingrecession. However, demand remained strongthrough the Summer and as wage and jobgrowth continued, inflation began showingsigns of slowing, concerns have somewhatabated and a growing sense of optimism in themarket has made its way into sector stocks. M&A:Investors have shifted focus towardsrepair and remodel driven business and a morecautiouscapitaldeploymentstrategy.However,longer-term perspectives remainoptimistic given demographic trends and themassive housing shortage. Labor and Supply chain:Labor remains the #1constraint resulting in longer work cycles, whilecompaniescontinue to focus on retentionenhancing initiatives. Supply chain bottlenecksremain but continued focus on strategic sourcingrealignment and longer purchasing cycles haveimprovedavailability for certain inputs.Inaddition, shipment costs, particularly from Asia,have started to noticeably decline. PricingTrends:Priceincreaseshavemeaningfully slowed, and in certain categoriesstopped, for the time being. As manufacturersbegin to capture the benefit of decreases incertaincommodityprices,margincompression/expansion trends could reverse. Q2 Public Company Performance Public Building Products Manufacturers & Distributors Inflation and Supply chain Industry Quotes “Our operating profit was impacted by higher supply chain costs, planned marketingexpense increases and unfavorable foreign currency. Commodity and other inflationwas mid-teens in the quarter, but we expect this to be a peak level as we anniversaryinflation that began last year and we are beginning to see declines in certain input costsin the spot market. Importantly, with our continued pricing actions, we have begun to recover the price cost lag that we experienced in the back half of 2021”– Keith J Allman, President & CEO & Director, MascoCorporation “We have some products that we distribute that are tensioned up and they're toughto get. And when they become available, people are taking everything they can gettheir hands on. There are other products that are starting to ease up whetherallocation has been increased or in some cases, allocation has gone away. So it’s amixed bag on everything…. A lot of it has to do with what the raw materials that aregoing into things that still can be tight and hard to get. So each product line is a littledifferent.” –Jeff Robert Strom, Executive Vice President of Building Materials, BoiseCascade “I'd say on the pricing side we are expecting in thisenvironment for material inflation to start to moderate. Therearen't any announced price increases out there right now.”-Robert Kuhns, CFO & VP, TopBuild Corp Recession Industry Quotes “Despite growing macro uncertainties, the fundamentals supporting our near-term outlook remains strong. We continue to see high levels of residentialactivity currently hindered by isolated challenges within the market to secureenough labor and product to meet that demand. A gap between housing startsand completions provides confidence for the remainder of calendar 2022 as builders need to complete their backlogs of already started homes while favorable demographics in an underbuilt industry provides supportfor the longer term. To be clear, affordability impacted by rising interest rates coupled with inflation andgeopolitical concerns does create an unknown.” –John Turner, President, CEO & Director, GMS Inc. “Over the last decade plus, we've had a huge underbilling in thisindustry. So that demand is not going away. We've underserved themarket somewhere between 2 million and 6 million single-family homesover the last 12 to 15 years. So, we think any of that recessionaryenvironment will power through that through the long term. So that's why we're very bullish on where theindustry ends up over the long term.” –David Flitman, CEO, President & Director, Builders Firstsource “I cannot help but feel optimistic about the prospects for the company and theeconomy when business is as good as it is today. We remain confident about theshort term and the long term and recognize the midterm introduces a more thanusual amount of uncertainty as the Fed rebalances employment and inflationgoals” –Michael Haack, CEO, President & Director, Eagle Materials M&A Industry Quotes “Our fourth pillar is allocating our strong free cash flow to achieve profitable growth. As weseek to generate long-term value creation for our shareholders, we are always on the lookoutfor organic and inorganic opportunities to improve our product offerings and productioncapabilities. That being said, as we navigate this inflationary environment, disciplined capitaldeployment will remain a top priority as we look for accretive opportunities to grow ourbusiness while delivering above-market results.” –Jeffrey T. Jackson, President & CEO &Director, PGT Innovations, Inc “We're not pulling