In the aftermath of Hurricane Harvey in Houston and Beaumont, Texas, the cleanup and repair efforts are just beginning. Principia previously reported on the need for suppliers, distributors and dealers to be prepared to move substantial stocks into the area for the rebuilding effort.
Additional analysis of our estimates regarding the value of building materials required for this effort has been completed. Overall, just under 1.8 million housing units exist in the Houston and Beaumont areas and for each house an estimated $18,000 of materials (excluding labor) will be required in the categories shown in Figure 1 below.
Figure 1: Houston & Beaumont – Total Projected Product Replacement Demand (Factory Gate $MM)
Source: DemandBuilder® from Principia
Latest estimates are that a minimum of 100,000 homes were damaged or destroyed which translates into a minimum of $1.8 billion of product needed in the area. Of course, this estimate may be higher or lower based on the final number of homes and the extent of the damage as some homes will need a complete rebuild rather than replacement. Further, home interior product categories will also need to be considered, including plumbing, HVAC, flooring, cabinets, countertops, paint, trim and millwork.
All industry participants are encouraged to monitor the specific areas where assistance is most needed. Unfortunately, next up will be assessing the damage inflicted upon Florida and the neighboring states based on Hurricane Irma which is still underway at the time of this writing.
Click Here to learn more on Principia’s estimates on the impact on building material demand from storm damage.