There are approximately 200 two-step distributors serving the LBM industry in North America, generating more than $38 billion revenue in 2018. These distributors can be categorized into three types, based on distribution footprint:
- National: Distribution centers across North America
To qualify as a “national” distributor, a company has distribution centers spread across North America. National distributors have an average of 32 locations.
- Regional: Distribution centers across one or more regions
To qualify as a “regional” distributor, a company has several distribution centers, spread across a large region, typically over three or more states. Regional distributors have an average of six locations.
- Local: Distribution centers in a single area
To qualify as a “local” distributor, a company has one or two locations and is typically located in a single CBSA or state. Local distributors have an average of one location.