The restructuring of the industry

By Emma Peterson. 

Learn about how major acquisitions, emerging technologies and evolving supply chains are changing the competitive landscape for contractors, manufacturers and distributors alike. 

Paul Trombitas is a partner at FMI Corporation, a consulting firm specifically focused on providing insight and data to the engineering, construction and built environment fields. He stopped by The Coffee Shops® for a recent episode of Contractor Outlook™, sponsored by SRS Distribution, to talk about the ways the industry has evolved and grown.  

The main thing that Paul has noticed recently is the restructuring of the supply side of the industry. He shared, “Think about Home Depot with SRS, GMS, QXO, Lowe's. There’s been a lot of major acquisitions in the supply sector.” And with a restructuring of this scale, the impact and effects will not only be felt by suppliers and distributors, but it will also be felt by contractors and manufacturers. Paul explained, “With distributors and suppliers consolidating at this scale, it has potentially significant downstream effects. And I think for contractors and firms, there's going to be a gap between those who are adjusting and those that are not.” 

What has created this consolidation dynamic in the industry? Paul points to technological advancements, adding, “The proliferation of AI and other technologies like eCommerce have really changed all industries, including ours. And I think that these suppliers have been able to implement these tools in a way that fosters growth and scaling that creates the consolidation we’re seeing.” 

In other words, technology’s continual development has enabled the restructuring of our supply chains, which subsequently changes how everyone in the building products sector conducts business. The best advice Paul has? Adapt with the change. He shared, “I think that competitiveness is going to be a really big pain point for those that aren’t adopting and changing.” 

Want to learn more? Listen to the episode or Watch the recording on YouTube!