Introduction: A Tough Year, But Opportunities Ahead
2024 was a challenging year for the construction supply industry. construction supply sales decline 2024, Sales were flat or declining for many, driven by a mix of economic uncertainty, a sluggish housing market, and changes in consumer behavior. However, these challenges also reveal clear opportunities for construction supply dealers to adapt, reposition, and capture new market segments, especially among U.S. Hispanic homeowners and small contractors seeking trustworthy partners.
Here’s what happened in 2024, what it means for your business, and strategic marketing actions you can take to prepare for growth in 2025.
What Happened in 2024?
Weak Overall Market
- CS150 members grew revenue by just 1.3%, or 0.7% excluding Home Depot and Lowe’s.
- 77 companies saw revenue declines – the second-worst total of the decade.
Housing & Remodeling Declines
- Single-family construction down 5.3%.
- Multifamily down 22%.
- Remodeling spending down 1.4%.
Lumberyards Hit Hard
- Prices were stable (down only 2.4%), but sales volumes fell, causing 8.5% declines for lumberyards without manufacturing.
Dealer Size & Focus Matter
- Larger, diversified dealers grew while smaller, lumber-dependent dealers struggled.
- Dealers serving DIY and remodeling clients fared better than those serving only professionals.
Consumer Behavior Shifted
- Higher prices and reduced disposable income led to less project spending.
- COVID-era spending pulled forward purchases, leaving lower volume in 2024.
2️⃣ Why This Matters for Your Business
While 2024’s decline feels discouraging, it highlights areas where proactive marketing can drive growth:
✅ DIY & Small Contractor Focus – Homeowners and small contractors are seeking personalized, trustworthy suppliers.
✅ Remodeling Opportunity – Remodeling dipped less than new builds; this is a resilient market to target.
✅ Hispanic Market Potential – Hispanic homeowners represent one of the fastest-growing segments in homeownership and remodeling, prioritizing family-centered, community-driven projects.
✅ Expansion & Acquisition – Dealers who grew locations or service areas saw better performance, showing expansion can offset volume declines.
✅ Education & Experience – Consumers are looking for partners who educate, guide, and inspire project confidence.
Marketing Recommendations to Pivot for Growth in 2025
1. Target Hispanic Homeowners & Contractors
- Bilingual marketing (Spanish/English) in ads, signage, and customer service.
- Feature real stories of Hispanic families and contractors completing projects.
- Partner with local Hispanic chambers or community events to build trust.
2. Shift Messaging to Remodeling & DIY
- Position your store as the local remodeling partner rather than just a material supplier.
- Promote small projects (bath remodels, outdoor spaces) through seasonal campaigns.
- Create DIY workshops in Spanish and English to bring in foot traffic.
3. Become an Educational Resource
- Use short-form video and social media (Instagram Reels, TikTok) for tips on:
- Tool usage
- Material selection
- Cost-effective remodeling
- Host “Saturday Project Days” with demos to inspire customers.
4. Expand Services for Small Contractors
- Offer delivery, material staging, and easy credit lines for small contractors.
- Develop a loyalty program rewarding frequent purchases with discounts or project support.
5. Leverage Data for Targeted Campaigns
- Identify which SKUs and categories had volume declines vs. resilience.
- Run targeted email campaigns around popular remodeling categories.
- Adjust product positioning based on seasonality and local community needs.
Marketing Messaging Angles
Use these angles in your ads, email subject lines, social posts, and in-store banners:
✅ “Your trusted partner for your next home project – big or small.”
✅ “Remodel with confidence – quality materials, expert guidance, and family-friendly service.”
✅ “Hablamos Español – we’re here to help you build your dreams.”
✅ “Transform your home without breaking your budget.”
✅ “Small contractor? Get the service you deserve to grow your business.”
Calls to Action for Immediate Action
✅ Analyze your 2024 sales by segment (DIY, Pro, remodeling, new build) and adjust your 2025 marketing priorities.
✅ Invest in local community events that attract Hispanic families interested in home improvement.
✅ Plan a Q3 campaign around fall remodeling and DIY readiness.
✅ Train your team to deliver bilingual, culturally competent service.
✅ Connect with 11/11 Media for a customized Hispanic marketing strategy to increase foot traffic and loyalty.
Conclusion
The construction supply sales decline in 2024 was driven by factors outside most dealers’ control, but your response is within your control. By pivoting your marketing to focus on:
✅ Remodeling
✅ DIY segments
✅ Hispanic homeowners and contractors
✅ Educational content
…you can turn the challenges of 2024 into a growth springboard for 2025.