Editor's Note: The West Coast Lumber & Building Material Association has created a short-term pass-through process to provide direct support to people in the LBM industry affected by the fires. These are for urgent needs such as food and temporary housing. Click here to donate to the fund or notify the association of people with needs.
Most experts agree that it will take months, perhaps years, before we'll see significant work under way to rebuild Los Angeles' fire-ravaged neighborhoods. When that happens, the task of bringing materials into the area and then to job sites likely will be handled by a relatively small group of pro-oriented LBM companies and home centers.
The map above shows the locations of roughly 400 pro-oriented dealers and home centers serving the Southern California coast from Santa Barbara to the Orange-San Diego county line. The Home Depot and Lowe's dominate the list with 115 stores between them, and while they don't focus on big homebuilders they are likely to generate a lot of sales to remodelers, smaller builders, and consumers. There's also an opportunity for The Home Depot to leverage relations with its new acquisition, SRS Distribution, which has 48 roofing, exterior specialty, landscaping, and pool supply stores in the region.
Production builders also are likely to be served by Builders FirstSource, ABC Supply, Beacon Building Products, and White Cap, each of which have at least 20 stores in the Southland. Then there's Anawalt Lumber, which has five yards located relatively closely to the Pacific Palisades fire, and Ganahl Lumber, whose 13 branches include one in Pasadena that was near the Altadena fire.
Online stores and service providers also might make the fires an opportunity to grow. One recent startup in the area, Supply Ontime, offers a catalog full of lumber, concrete, shingles, and other basics that it then will bring to the jobsite. Interestingly, Supply on Time can offer those products because it buys them from local home centers and dealers, then marks up the goods to yield its profit.
Speaking of Altadena, the only significant LBM facility believed to have been damaged (at least as of Jan. 15) was Altadena Hardware, which was destroyed. Webb Analytics' database indicates there are more than 100 hardware stores in the L.A. area that are affiliated with the Ace, Do it Best, or True Value groups.
Rebuilding efforts always require time for insurance checks to be paid, plans made, and contractors hired. The usual rule of thumb nationwide is that the work doesn't really get going until at least a half-year has passed since the event. California's geography, population, and regulatory challenges indicate this project will take longer to get going, even if authorities such as Gov. Gavin Newsom have issued executive orders suspending some permit and review requirements.