Constructions Industry News: Investing in American Construction
Wednesday, March 28th, 2012
America’s housing industry continues to be battling to locate solid footing among countless delinquent financial loans and foreclosures.
But as the wider economy starts to show signs of life again, and the American consumer is beginning to feel happier about their current and future finances, as they’re sinking their toes into the housing waters, by means of remodeling and updating construction.
“Residential remodeling construction this winter is really as strong as it’s been in past 5 years. Some analyst predicts residential remodeling will keep growing throughout 2012,” states Joe Emison of Texas-based BuildFax, a division of 
BUILDERRadius and creator from the BuildFax remodeling index. Residential remodeling, as measured because they build permits in the month of January, were in an annual rate of, up 13 percent from December and 11 percent from last year, based on BuildFax. The index shows particular strength within the Area and also the West. Sales of foreclosed properties might be enhancing the amounts, as traders have swarmed the marketplace, purchasing up distressed qualities
and turning them into rental fees. A lot of individuals qualities happen to be either abandoned or vandalized and want at the minimum fundamental renovating and at most full makeovers.
Great news for U.S. companies that serve the construction market, and of course their stocks. Sherwin Williams (NYSE: SHW), which gets 77 percent of its revenue from the U.S. market, is trading at an all time high, going back to its IPO in 1964. Home Depot (NYSE: HD) is seeing the best levels since April of 2002, and shares of Lowes (NYSE: LOW) are at a high not seen since 2007. Both get all of their revenue from U.S. customers.
Others poised to profit: Weyerhaeuser (NYSE: WY), which takes about 65 percent of its revenue from U.S. sales and of course U.S. Gypsum (NYSE: USG), whose shares are up 103 percent in the last three months, United Rentals (NYSE: URI), which rents construction equipment, shares up 44 percent this year, and MASCO (NYSE: MAS), which makes all kinds of building products.
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