Rising infrastructure spending and the growing demand for residential and commercial spaces have boosted the demand for building materials. Building material companies are witnessing steady growth due to the consistent demand from different verticals.
Given this backdrop, it could be wise to add fundamentally strong industrial stocks GMS Inc. (GMS – Get Rating), Owens Corning (OC – Get Rating), and CRH plc (CRH – Get Rating) to one’s portfolio.
Before diving deeper into the fundamentals of these stocks, let’s discuss why the building materials industry looks well-positioned for sustainable growth.
Increased government spending on improving infrastructure, growth in privately owned housing starts, and the adoption of sustainable building practices are driving the demand for building materials.
Privately-owned housing starts in September were at 1,358,000, indicating a rise of 7% sequentially. Moreover, privately owned housing completions in September were at 1,453,000, a 6.6% rise sequentially. The global construction materials market is projected to grow at a CAGR of 3.9% to reach $1.73 trillion by 2030.
Furthermore, the world’s efforts to reduce emissions will boost the demand for green building materials. The green building materials market is expected to grow at a CAGR of 11.2% to reach $962 billion by 2033.
Considering this favorable backdrop, let’s take a look…
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