Did COVID-Era Shortages Cause a Sea Change in How Remodelers Feel About Suppliers? No

One of the biggest fears product manufacturers had during the COVID years was that contractors would try a new brand because their usual one was unavailable, and then switch allegiance to that new brand. Distributors, meanwhile, worried that big-box stores and multi-regional dealers would take market share because they had better access to products.

The Farnsworth Group has paid close attention to this question for years. Speaking last month at the Home Improvement Research Institute’s annual conference, Farnsworth Group President Grant Farnsworth said the concerns were justified. Three-quarters of remodeling contractors said they had used a new supplier or manufacturer or product during the summer, he said.

But trying a product doesn’t mean you’ll love it. Farnsworth Group surveys found that the percentage of remodelers who described themselves as extremely loyal to a product (1 on a 5-point scale) did drop notably during COVID, but it has since risen about halfway up from where it was. Loyalty to suppliers also declined during COVID and has since risen to nearly where it was before the pandemic, but the drop wasn’t as steep as it was for brands.

Welcome To EquiNova Capital

EquiNova Capital Partners LLC is the new company launched by Michael Collins and Walk Kurek following their years as Managing Directors of Building Industry Advisors. EquiNova invests private equity capital in middle-market companies and provides merger and acquisition advisory services. 

We Can Answer Your Most Pressing M&A Questions

  • How do the most active buyers in today’s market value my company?
  • What parts of the business should I change to improve its valuation?
  • When is the right time to sell?

These are questions that are commonly asked by the owners of building products manufacturers and distributors. Our work in selling and raising capital for companies puts us in a unique position to help answer these important questions. Regardless of when you might decide to approach the market, please contact me to have a confidential discussion about your company and ways to maximize its value for the owners. 

Michael Collins
Work 312-854-8036
Cell 312-282-5462