The Building Products and Construction industries comprises businesses ranging from small, family-owned operations to some of the world’s largest corporations — everything from commercial and residential construction, to the companies that convert raw materials into finished products at your local wholesale/retail outlet.
The overarching construction industry accounted for $792 billion in economic activity according to the latest U.S. Economic Census, and is closely tied to interest rates and federal/state funding for infrastructure projects, as well as currency strength, labor constraints, and commodity prices. Lower offshore labor and materials continue to hurt domestic manufacturing for construction materials (galvanized steel, floor tiles, drywall, plywood and more). Low interest rates, strong demand for new residential and non-residential building, and highly competitive bidding, have many construction companies choosing to rent construction equipment rather than add more capital assets to their books.
Construction inventory plays a major role in valuations and can include both finished goods and raw materials, including: lumber, steel, aluminum, copper, glass, aggregate, chemicals and paint, tools and accessories and works in progress.
The other important side of the construction industry is the machinery and equipment (M&E) including:
- Mobile & tower cranes
- Boom & personnel lifts
- Bulldozers, excavators, backhoes, wheel loaders & motor graders
- Skid steers, forklifts, light towers, water trucks
- Storage containers & mobile offices
- Pipe layers & drill rigs
With more than 40 years of experience, Great American knows how to deliver the most accurate valuation for your building products and construction companies and their assets. We’ll do a complete SKU level review of all finished goods, identifying any excess/obsolete inventory. We’ll provide close inspection for all M&E to check for hydraulics/undercarriage wear, along with reviewing maintenance records and rental history. Our team of professionals conducts over 1,400 appraisals each year representing hundreds of billions in assets, all without losing sight of what makes your business uniquely valuable.