Building Products and Solutions – Market Perspective 2026

Following a period of volatility, the Building Products sector is stable and positioned for growth:

• Cuts to the Federal Funds rate throughout 2024 and 2025 are expected to drive an increase in new construction activity, repair and remodel projects, and aid in affordability overall.
• Repair and remodel (R&R) project demand has normalized from the elevated post-COVID environment; the current level of activity and market sentiment is positive.
• While the US tariff strategy and foreign policy remains in flux, there are increasing levels of clarity in the market with respect to supplier channels and “normalized” pricing levels.
• There is generally bipartisan support for federal investment in infrastructure projects in the U.S., driving activity for a vast set of commercial projects, construction services and the building products sector broadly.
• Long term tailwinds continue to exist for the industry. On the residential side, Freddie Mac estimates there is a housing shortage of 3.7 million units. R&R spending is uniquely durable, with both residential and non-residential demand expected to persist.