Aug 3 2007 7:47AM | Permalink | Email this | Comments (0) |
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Everything that I am reading these days says that the new home market should bottom out by mid-year in 2008 and a recovery will begin to take place late in 2008.  You could argue with the exact time when the recovery will take place, but there will be a recovery.

I have been wondering what changes will take place in the industry and in the supply chain when our industry does recover.  What lessons will we have learned?  What form will industry consolidation take?  Which members of the supply chain will be eliminated or fortified?  Will builders utilize companies like my company, Builder Partnerships, to administer and manage its rebate programs in an attempt to save money and resources?

Well, as I read about our industry and talk with many folks within the industry I keep hearing that there will be consolidation among the giant builders.  That’s right, giant builders consolidating with other giant builders to form “mega” builders!  I’ll bet this happens and when it does it could cause some major changes within the supply chain.

Will these mega builders enter into the supply chain as significant players?  Will they enter into the distribution and/or contracting business?  Will major manufacturers begin selling these mega builders direct and cut out some players in the supply chain?

As you can see I have posed a lot of questions but no answers, however, I am willing to predict that the supply chain will take on a new form and that some national manufacturers and suppliers will make some significant changes in how they sell home builders.  Only time will tell.