Capstone Headwaters has released its August 2020 Building Products report, reporting that COVID-19 has created unprecedented disruption in the Building Products industry in early 2020 as lockdown measures and supply chain challenges severely impacted industry demand and downstream markets. However, as lockdown measures ease and building products participants move towards a more normalized workload, industry demand and unemployment rates have displayed signs of a rebound.
Merger and acquisition (M&A) activity had remained robust through Q1 2020 with 84 transactions announced or completed, modestly trailing Q1 2019 volume of 97 transactions. In Q2, as the pandemic’s effects amplified, M&A activity dropped in April, coming to a near standstill in May.