| Service Offering
- Production
- Distribution
| End Markets
- Commercial
- Industrial
- Infrastructure
- Residential
| Sample Sectors
- Aggregate
- Asphalt
- Brick/Block/Pavers/Stone
- Cement
- Concrete
- Lumber
- Sand/Gravel
Asphalt plant
Decorative brick
Lumber warehouse
| Vertical Overview
The raw materials vertical consists of producers and distributors of minimally processed goods such as aggregates, asphalt, bricks, stones, cement, sand, mulch, and other hardscape landscaping materials. Raw materials are used in the construction of residential, commercial, and industrial buildings, as well as infrastructure projects. Demand for raw materials such as asphalt and cement is driven by new construction as well as maintenance of existing infrastructure. Demand for raw materials such as mulch and pavers are closely related to new construction and remodeling of residential and commercial properties.
| M&A Trends
Strategic buyers that are looking to consolidate or enter into a new geography are the most common buyers of raw materials companies. Interest also comes from labor services providers looking to vertically integrate and control product supply. Private equity buyers are also interested in the sector but valuations can be tempered due to the high level of capital expenditures and physical assets typically associated with raw materials businesses.