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Tag: Building Materials

The Market Pays for Margin, Not Volume

July 30th, 2026

Five things moved building materials hiring this month. June jobs came in soft, the housing rebound was almost entirely multifamily, and the searches that cleared fastest all pointed at the same profile. Here is July, and what it changes about who you hire.

Labor MarketJune hiring missed, and nobody is moving

Employers added 57,000 jobs in June against a consensus near 115,000, and April and May were revised down by a combined 74,000, according to the Bureau of Labor Statistics. Unemployment fell to 4.2 percent, but the move came from people leaving the labor force rather than getting hired. Participation dropped to 61.5 percent, the lowest since March 2021.

The May Job Openings and Labor Turnover Survey said the same thing another way. Openings held at 7.6 million and the quits rate stayed at 1.9 percent, at or below 2 percent for close to a year now. Openings exist. Movement does not.

57K
Jobs added in June against a consensus near 115,000, with April and May revised down a combined 74,000. Every one of those numbers describes a labor market. None describes the leader who has to run a building materials business inside it.

Housing & MaterialsThe housing rebound is multifamily, not single-family

June housing starts rose 19 percent to a 1.427 million annualized pace, the largest monthly increase since May 2023, on Census and HUD data. Composition matters more than the headline. Multifamily starts jumped 76.2 percent to 532,000, while single-family starts slipped to 895,000 and sit 3.2 percent below June 2025. Permits, the forward-looking number, fell across the board, with single-family pointing at a second straight year of contraction.

Builder sentiment confirms the direction. The NAHB Housing Market Index read 34 in July, below 40 for 15 consecutive months, with more builders cutting prices than in either prior month. Cost is moving the wrong way at the same time. Building material prices are up 3.5 percent year over year, the largest annual increase since early 2023, with metal molding and trim up roughly 50 percent on Section 232 steel and aluminum tariffs.

+76.2%
The multifamily starts jump to 532,000 that carried the June rebound, while single-family slipped to 895,000. Volume is flat, mix is rotating toward multifamily and repair and remodel, and margin is made or lost on pricing discipline rather than on demand.

Where We Are SearchingCompanies are hiring where they intend to hold share

The hiring is not landing evenly. Across July, three regions absorbed most of our new search activity, and all three point the same direction. Companies are putting experienced customer-facing leadership into the markets where they intend to hold or take share.

Northern New Jersey & New York City 6 new searches / past month

Most are Outside Sales and Regional Sales positions. Companies here are continuing to invest in customer-facing talent to drive growth.

South Central U.S. 4 new roles / recent

New roles opened across Texas, Oklahoma, Arkansas, and Louisiana. Hiring activity across the region is accelerating, and it is one to watch closely over the next two quarters.

Southwest 5 searches / past three months

Activity spans Phoenix, Las Vegas, and Southern California. The majority are sales-focused, as companies invest in experienced field sales talent while these markets keep expanding.

M&A ActivityConsolidation slowed at the top, not at the bottom

The Webb Analytics Deals Database tracked 61 acquisitions covering 773 locations through July 15, against 62 deals covering 1,324 locations at the same point last year. Same deal volume, roughly 40 percent fewer facilities. Four transactions carried most of the count, led by QXO acquiring TopBuild at 437 locations and Kodiak Building Partners at 114. No other first-half deal involved more than 15 locations.

Read that as a hiring signal. The platform buyers are still buying, but the mid-market transactions closing right now are small and operator-dependent. A six-location acquisition does not arrive with a bench. It arrives with one general manager who may or may not stay, and an integration that lives or dies on whoever the buyer puts over it.

40%
Fewer facilities year over year on the same deal volume. The mid-market transactions closing now are small and operator-dependent, and they arrive with a single leader rather than a bench.

The ProfileThe margin-holder clears the offer, not the growth operator

The searches moving fastest are not the ones asking for growth-market operators. They are the ones asking for leaders who have held gross margin through a flat volume year, priced through tariff-driven input swings without losing the pro account, and integrated a small acquisition without losing the branch manager who came with it. That is a narrower pool than a general operations or sales leadership search, and it is why these searches are running longer.

It is also showing up across the roles we are closing. Recently, we have closed searches for a CCO, a CEO, a VP of Sales, and HR leadership, plus a steady run of general manager roles where the mandate is to hold a branch or region through flat volume.

Private equity is a large part of that demand. When a sponsor closes on a platform or an add-on, the first calls are for leadership: the operator who will protect margin through integration, and the commercial leader who will hold the customer base while it happens.

Inside A SearchWhat this looks like in practice

Case Study

Rebuilding operations leadership at a national HVAC manufacturer

A national HVAC manufacturer running eight plants lost its VP of Operations without warning, at a company already working through a difficult operating environment. Rather than backfill the role as it had existed, the board treated the exit as an inflection point and upgraded the mandate.

Two problems had to be solved by the same hire. First, margin discipline in a flat, cost-inflationary market: revenue had been flat for two years while tariff-driven copper and steel costs, freight surcharges, and tightening labor ate into EBITDA. Second, operational modernization at national scale, including standing up a green-field plant in Arizona from a clean slate.

We screened adjacent industrials against one evidence standard. P&L ownership at comparable multi-site scale, with before-and-after margin data tied to the candidate’s own tenure. Specific, attributable margin-protection moves. Share growth without discounting. Direct green-field startup experience. Every finalist’s claimed impact was verified through reference checks built to isolate what the candidate controlled from what the market or a predecessor handed them.

Client and candidate details anonymized. A search brief template and candidate scorecard adapted from this engagement are available on request.

We evaluate against SPACE for exactly this reason. Credentials tell you someone ran a region through a growth cycle. SPACE tells you whether they held margin while volume stood still, and whether they will do it again in your seat.

What It Means For HiringWhat this means for your bench

This market is not going to resolve on a predictable timeline. Single-family demand is rate-bound, multifamily is volatile month to month, input costs are moving on trade policy, and consolidation has narrowed to a handful of platform buyers. The companies that build real advantage from here will be the ones whose commercial and operations leadership were built for a flat-volume, cost-pressured market rather than the one that came before it.

That starts with an honest look at the spec. Most building materials leadership job descriptions in circulation today were written for a market that was still expanding, and quietly never updated. Hiring against that spec checks the box and misses the mandate. We rewrite the profile around what this market is actually paying for, then run the search against it, using SPACE to surface the judgment that never shows up cleanly on a resume.

If your leadership bench was built for the last building cycle and not this one, that gap is worth closing before the next one tests it. Let’s put your leadership against the profile the market is paying for today.

Tell us the seat you need to get right this year, and we will show you who clears the offer in this market.

Talk To Our Team

The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail

www.snapdragonassociates.com

Sources

Bureau of Labor Statistics, Employment Situation, June 2026. Released July 2, 2026. bls.gov/news.release/empsit.nr0.htm

Bureau of Labor Statistics, Job Openings and Labor Turnover Survey, May 2026. Released June 30, 2026. bls.gov/news.release/jolts.nr0.htm

U.S. Census Bureau and U.S. Department of Housing and Urban Development, New Residential Construction, June 2026. Released July 17, 2026. census.gov/construction/nrc

National Association of Home Builders, Housing Market Index, July 2026, and NAHB analysis of Bureau of Labor Statistics Producer Price Index data. nahb.org

Webb Analytics Deals Database, LBM Midyear M&A Report, July 2026. webb-analytics.com

Two Decades of Change in Building Materials and What It Means for Hiring

July 23rd, 2026

Market Intelligence · Leadership Hiring

Two forces have reshaped building materials over the last two decades, and neither one is finished. Private equity has spent years buying small operations and folding them into larger platforms. Technology moved from optional to standard across the COVID years, and the industry is now working out where AI belongs. Both changes land in the same place, which is the leadership bench.

Mark Barnard has watched the full arc of it. What follows is his read on where the market has moved, where it is still moving, and the part of this business that no amount of consolidation or technology is going to change.

Consolidation & OwnershipThe Numbers Became the Qualification

Consolidation is the single largest structural change in the sector. Private equity has been the engine of it, and the buying has not slowed. That shift did not only change ownership. It changed the standard a leader is measured against.

Mark Barnard

Private equity does not know the difference between a 2×4 and a window. But they know their numbers, and they expect their operators and management in those businesses to understand the numbers.

Under previous ownership, deep product knowledge and a long tenure were often enough to qualify someone for the operating seat. Inside a platform structure, they are the starting point. The leader who holds the seat is the one who can speak to margin, to working capital, and to the levers behind both without translation.

This is the exact gap a resume will not show you. It is why our evaluation runs past the credential. The SPACE framework exists to measure how a leader actually operates and decides, because the platform buyer is going to test that within the first two quarters, whether the search process did or not.

Technology & AdoptionAI Is a Demand Signal, Not a Headcount Plan

This industry was not running video interviews or video meetings before 2020. Now it is the norm. The same adoption curve is happening again with AI, and Mark reads it against a pattern he has already lived through once.

Mark Barnard

We talked back in the late eighties that the dot-com world was going to change everything, that it was going to put people out of work. It did not. It created the demand for more, better, stronger people who understood how to embrace technology.

The practical read for hiring companies is straightforward. AI is not thinning the leadership requirement. It is raising it. Tools that let one person cover more ground, make faster decisions, and build their own analysis change what a strong operator looks like. The question in the interview is no longer whether a candidate is comfortable with technology. It is what they have already put to work, and what it returned.

Workforce DemographicsThe Demographic Math Is Not Reversing

The workforce in this sector is aging, and the openings that creates run in both directions, in labor and in leadership. Mark is direct about where that leaves the hiring market.

Demand is increasing, not decreasing.

Consolidation compounds it. Every platform that absorbs an operation needs someone to run the combined business, and the bench inside these companies is thinner than the org chart suggests. Companies that begin a search when the seat opens are starting from behind. Companies that keep a live read on who is available, what they are earning, and what would move them are the ones running searches on their own timeline instead of the market’s.

Client RelationshipsWhat Does Not Change

Clients come to us every day with questions that have nothing to do with an active search. How to build out a sales force. How to structure sales compensation. What a competitor is paying. Those conversations are the relationship, and they are the reason the search work lands when it matters.

Mark Barnard

You are never going to replace that personal connection. AI is not going to replace being able to really listen, really understand what your client is saying, and be able to coach and advise them.

You can use technology to find people, to reach people, to market to people. From idea to deliverable, there are still people involved, and the judgment about whether this leader fits this company at this stage of its ownership is made by someone who has been in the market long enough to know. That is the work. It has been the work since 2004, and it will be the work through whatever the next platform cycle brings.

Hiring StrategyWhat This Means for Your Next Hire

If your business has been acquired, is being courted, or is competing against a platform that was, the leadership profile you hired against five years ago is no longer the profile that survives. Financial fluency, technology adoption, and the ability to run a business through an ownership change are now baseline requirements rather than differentiators. Building the search around that from the intake conversation forward is the difference between a hire that holds and a search you run twice.

The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

If your leadership bench needs to hold through the next platform cycle, talk to SnapDragon.

Start the Conversation →

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail

Tariffs Changed What A Strong Operations Leader Looks Like

July 16th, 2026

Section 232 tariffs on steel, aluminum, and copper reached 50 percent this year. Construction input prices climbed at their fastest annualized pace since 2022 in early 2026. Under current policy, aggregate construction costs are estimated to rise roughly 8 percent.

50%
Section 232 tariffs on steel, aluminum, and copper, as of this year
Fastest Since 2022
The pace of construction input price growth in early 2026
~8%
Estimated rise in aggregate construction costs under current policy

Every one of those numbers describes a cost environment. None of them describes the person who has to run a business inside it.

That person is who our clients are actually searching for right now, and the spec for that seat has moved more in eighteen months than in the decade before it.

The operations leader who ran a stable supply chain in 2021 is not the same candidate who can protect a P&L through 50 percent metal tariffs.

The ShiftThe Mandate Has Shifted From Managing Supply to Defending Margin

Look at where the demand is concentrating. At PE-backed platforms, the COO seat has moved away from driving volume growth toward operating discipline, acquisition integration, and margin protection without the tailwind of a rising market. The candidates closing at the top of that band are being measured on working capital efficiency and EBITDA protection, not top-line growth.

COO (PE-Backed)$200K–$285K Base

Total compensation at PE-backed platforms regularly clears $450K.

The same shift shows up one level down. Directors of Manufacturing are winning offers now on measurable output gains through automation and labor-efficient process redesign, not on the size of the crew they manage. Operators with engineered wood products experience are commanding a premium above that band, because EWP output has stayed essentially flat while sawmill employment keeps declining.

Director of Manufacturing$190K–$230K Base

EWP experience commands $15K–$25K above the standard band.

And at the general manager level, P&L ownership at scale has become the dividing line. A GM running a single yard and a GM running a multi-location distribution platform carry the same title on LinkedIn. Only one of them has proven they can hit plan in a flat, tariff-pressured market, and that is the one every client wants.

From a Recent SearchWhat This Looks Like Inside a Search

VP of Operations, Regional Building Products Distributor

We ran this search for a client that came to us for a volume-growth operator. Three weeks in, their landed steel costs moved again, and the brief changed on the call. The seat was no longer about growing the top line. It was about holding margin against a supply base that had become the largest risk on the P&L.

The candidate who closed was not the highest-volume operator in the slate. They were the one who had already rebuilt a single-source supply base across several regional suppliers during an earlier tariff cycle, and who had written price-escalation caps into supplier contracts before the cost shock landed. They had defended margin under pressure once, and they could walk the client through exactly how. That judgment was the entire search, and it was nowhere in the job description the client sent us on day one.

That is the pattern across every operations and manufacturing search we are running. The job description written eighteen months ago is not the job description that gets filled today. Cost volatility rewrote the brief, and most companies have not rewritten the spec to match it.

The Narrow PoolThe Candidates Who Fit This Profile Are Not Easy to Find

The skill set is specific: sourcing diversification, escalation protection in supplier contracts, and the operational discipline to hold margin through a policy environment that changes by the quarter. That is a narrower pool than a generic operations leader search, and it is why these searches are taking longer and paying more.

We evaluate against SPACE for exactly this reason. Credentials tell you someone managed a supply chain. SPACE tells you whether they managed one under pressure, and whether they will do it again in your seat.

The TakeawayWhat This Means for Your Operation

Cost volatility is not going to resolve on a predictable timeline, and the operations leaders who can hold margin through it are not going to get any easier to find. The companies that come through the next several quarters intact will be the ones whose operations and procurement leadership were built for this environment, not the one that existed before the tariffs landed.

That starts with an honest look at the spec. Most operations job descriptions in this sector were written for a stable supply chain and were quietly never updated. Hiring against that spec today fills the seat and misses the mandate. We help clients rewrite the profile around what the market actually demands now, then run the search against it, using SPACE to surface the margin discipline and sourcing judgment that never show up cleanly on a resume.

If your operations bench was built for the last environment and not this one, that gap is worth closing before the next cost shock tests it.

Let’s look at your leadership against the profile the market is paying for today.

Connect With SnapDragon →

The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction

Sources: AGC of America tariff resource center, updated June 30, 2026 (Section 232 tariff rates, construction input price growth); Construction Dive, February 2026; 2026 U.S. Construction Cost Outlook (aggregate cost estimate). Compensation and market signal data drawn from the SnapDragon Associates Q2 2026 Top 10 In-Demand Roles report.

The 500,000 Hires Nobody Is Actually Planning For

July 9th, 2026

Two numbers are circulating in this industry right now, and they are usually quoted in different rooms.

The first: the sector is projected to need roughly 499,000 new workers this year.

The second: in February, construction posted the slowest hiring rate on record. BLS data released on March 31 confirmed a 3.3 percent hiring rate. Job openings fell to 202,000, down from 230,000 in January and 53,000 below where they sat a year earlier.

499K
New workers the sector is projected to need this year
3.3%
February’s hiring rate, the slowest on record. BLS, released March 31.

Read those together. A sector that says it needs half a million people is hiring at the slowest pace it has ever recorded.

That is not a demand problem. That is a capacity-to-hire problem, and it does not get solved by posting more jobs.

The market is not soft. It is selective.

Where the Real Risk SitsThe Number That Gets Quoted Is Not the Seat That Stops a Company

The half-million figure is a floor-level number. It describes crews, yards, and production lines. It is real, and it is not the number that costs you a quarter.

A distribution center can run understaffed on the floor for a quarter. It cannot run without a general manager. A regional sales organization can absorb two open territories. It cannot absorb the loss of the leader who holds the top ten accounts. An operations group can backfill supervisors from within. It cannot replace a P&L owner at scale, and P&L ownership at scale is the dividing line in every general management search we are running.

Here is what that tier actually looks like in Q2 2026.

The general manager’s base compensation ranges from $165K to $340K. That is the widest band on our list and the most misread. A GM running a single yard at $30M in revenue and a GM running a multi-location distribution platform at $200M carry the same title on LinkedIn. The market is paying for the second one and competing hard for it. The candidates closing at the top of that band have full P&L authority and have hit the plan in a flat market.

General Manager$165K–$340K Base

VP of Sales is landing at $170K to $235K base, with OTE typically between $250K and $320K. The brief has changed. Two years ago, that seat was hired to grow the top line. Now it is hired to protect the customer base and build sales discipline that does not depend on a rising market.

VP of Sales$170K–$235K Base

OTE typically $250K–$320K.

At PE-backed platforms, COO base runs $200K to $285K, and total compensation regularly clears $450K. The mandate there is working capital efficiency and EBITDA protection, not volume.

COO (PE-Backed)$200K–$285K Base

Total compensation regularly clears $450K.

4–6%
Base compensation growth across building materials, year over year. In the Northeast, offers are landing 10 to 15 percent above national averages because of competition for off-market talent. Those are not projections. Those are the offers our clients are making.

Timing RiskThe Reactive Search Is Where the Cost Sits

The reactive search begins the day a general manager gives notice. Every variable is already against you. The seat is open, the team knows it, competitors know it, and the market hears urgency in every conversation you have. You are negotiating from a position you did not choose.

Meanwhile, the candidates you want are not waiting. Leaders with multi-state P&L experience and acquisition integration on their record are taking two and three offers in parallel, and we are watching decision windows close in 10 to 15 days. A search that starts cold does not survive that clock.

2x Salary
The approximate cost of losing a top performer, once you count lost revenue, ramp-up, and the hit to the people who stayed. And the cost of getting it wrong is not the fee.

Building the BenchThe Planned Search Begins Before the Seat Opens

The planned search begins before the seat opens. It is a map of who exists in your market, at what level, in what geography, at what number, and who would take a call. That map does not expire.

~45
Strategic leadership roles placed across VP, GM, and sales leadership in the first half of 2026, most of them before the seat became an emergency.

Our ProcessHow We Run It

We do not send a slate of resumes and wait for feedback. We evaluate against SPACE because credentials tell you what someone has done, and SPACE tells you how they will perform in the seat you are actually filling. Then we walk you through our thinking on each person and why we believe they fit what you are building.

We do not stop at the acceptance either. A leadership hire that leaves within the first year is not a placement. It is a search you get to run twice. The retention architecture starts before the offer letter and continues well past the start date, because we do not send offers hoping they work. We send offers knowing how they will land.

The TakeawayWhat This Means for Your Bench

The half-million number will keep running through every outlook this year, and it will keep pointing at the wrong tier. The seat that actually decides your next four quarters is not the one the headlines describe. It is the general manager, the regional sales leader, the operations head whose absence a business feels immediately and cannot backfill from within.

Protecting against that is not a search you run when the seat opens. It is intelligence you build before it does: a live map of who leads in your market, at what level, in what geography, at what number, and who would take a call. That is the work we do ahead of an opening, so that when one arrives, you are choosing from a bench instead of starting from zero against a 10- to 15-day decision window.

When we do run the search, we evaluate against SPACE rather than credentials alone, and we hold the relationship past the acceptance, because a leadership hire that leaves inside a year is a cost, not a placement.

That is the difference between filling a seat and protecting a business.

If a single unplanned departure would expose your operations or commercial bench, that is the conversation worth having now, while it is still a plan and not an emergency. Reach out, and we will start there.

Connect With SnapDragon →

The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail

Sources: SnapDragon Associates Q2 2026 market intelligence and internal data; U.S. Bureau of Labor Statistics; Associated Builders and Contractors.

It’s America’s Birthday: A Special Independence Day Edition From SnapDragon Associates

July 2nd, 2026

A Special Independence Day Edition

Two hundred and fifty years ago, a small group of colonies decided they had had enough of being told what to do from across an ocean. They put it in writing, they meant it, and they built something that is still standing a quarter of a millennium later. That is worth stopping for.

This week, instead of our usual market updates and hiring trends, we wanted to take a moment to mark the occasion properly.

A Bit of HistoryFrom Sea to Shining Sea

Katharine Lee Bates wrote “America the Beautiful” after climbing Pikes Peak and looking out over the country in 1893. She saw spacious skies. Amber waves of grain. Purple mountain majesties above the fruited plain. It is easy to forget how big and how varied this country actually is until someone puts it into four lines you cannot get out of your head.

Spacious skies. Amber waves of grain. Purple mountain majesties above the fruited plain.

That variety is something we see every day in our work. Building materials, manufacturing, distribution, retail: these are the industries that turn raw ambition into actual structures. Lumber yards in Maine. Fabrication shops in the Midwest. Distribution centers everywhere in between. Someone has to build the amber waves into barns, and the purple mountains into roads that get you there. That has been true for 250 years and it is still true today.

GratitudeWhat We’re Grateful For

At SnapDragon Associates, we get a front row seat to this industry’s people. The plant managers who have been at it for thirty years. The young operations leaders stepping into roles their parents never had access to. The family businesses now hiring their fourth generation. It is a very American story, told over and over, in every state we work in.

We are grateful for the clients who trust us with something as important as their next hire. We are grateful for the candidates who take a leap on a new opportunity. And this year especially, we are grateful to be doing that work in a country that has made it to 250.

From Our Team to YoursHave a Safe and Happy Fourth

However you are celebrating: grilling in the backyard, watching fireworks with the kids, or just enjoying a long weekend, we hope it is a good one. Take a minute to look up at the sky tonight. It will be worth it.

From all of us at SnapDragon Associates, happy birthday, America. Here’s to the next 250.

The SnapDragon Associates Team

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction

Everyone Wants a Bigger Piece of the House

June 25th, 2026

What the building materials buying spree is actually about, and what it means for the people running these businesses.

Housing demand is soft. New construction is stuck. And the largest checks in the history of building materials are being written right now.

That contradiction is the whole story.

When volume is flat, you cannot grow by selling more houses’ worth of product. There are not more houses. So the biggest players stopped competing for the next housing start and started competing for something more durable: a bigger share of every house that does get built, and control of the pipe that product travels through to reach the job site.

Two strategies. One goal.

Manufacturer ConsolidationStrategy One: Own More of the House

Fortune Brands Innovations is the clearest example. Spun out in 2011 with legacy brands like Moen and Master Lock, the company has spent the years since buying its way deeper into the home, one category at a time. Therma-Tru entry doors. Fiberon decking. Emtek door hardware. Yale and August on the connected-security side. SpringWell water filtration. Plumbing, doors, decking, locks, water, and the smart-home layer, all on one invoice.

Each acquisition adds another line item to the builder and dealer relationships the company already owns. The math is straightforward: if you cannot grow the number of starts, grow your dollar content per start.

Owens Corning → Masonite $3.9B

Acquired in 2024. Masonite is a global leader in interior and exterior doors. The move expanded Owens Corning’s addressable market by $27 billion and pushed combined revenue to roughly $12.6 billion. The thesis: roofing wraps the house, insulation fills it, doors open it. Own all three.

These are not diversification plays. They are concentration plays, acquiring adjacent categories to capture a larger share of the dollars flowing through every single residential construction project.

Distribution ConsolidationStrategy Two: Own the Channel

This is where the real money is moving, and it is moving fast.

Home Depot → SRS Distribution $18.25B

Closed June 2024. SRS is a leading specialty trade distributor of roofing, landscaping, and pool products, adding roughly $50 billion to Home Depot’s total addressable market in a single move.

SRS Distribution → GMS $5.5B

2025. SRS used its new scale to deepen Home Depot’s reach into wallboard, ceilings, and interior commercial products.

Lowe’s → Foundation Building Materials $8.8B

Closed October 2025. FBM is a distributor serving over 40,000 pro customers through 370-plus locations across the U.S. and Canada.

QXO → Beacon Roofing Supply ~$11B

Early 2025. Made QXO the largest publicly traded distributor of roofing and waterproofing products in the country. Kodiak Building Partners followed.

QXO → TopBuild $17B pending

Announced April 2026. Would make QXO the second largest publicly traded building-products distributor in North America, with combined revenue exceeding $18 billion.

Brad Jacobs, the serial entrepreneur who previously built XPO Logistics and GXO, launched QXO as a building-products roll-up and has spent roughly two years executing at a pace the industry has never seen.

$800B
The size of the distribution market Jacobs has called highly fragmented. He has said publicly he intends to build QXO to $50 billion in revenue. Bigger, in his words, is better.

The ImplicationWhat This Means If You’re Running an LBM Business

Put both strategies side by side, and the picture sharpens fast. Manufacturers want more of what goes into the house. Distributors want to own the road that the product travels to the house. Both are racing to control more of the same chain, from the factory floor to the contractor’s truck.

Consolidation at this scale does not just move logos around. It reshapes who the leaders are.

Every one of these deals creates a wave of leadership decisions that never make the press release: integration teams built from scratch, regional operators who suddenly own three times the territory, or get consolidated out of it entirely, and strong performers inside acquired companies who start taking calls because the business they signed up for just changed hands. Independents watching a “Big 3” form in roofing distribution are now deciding in real time whether to sell, scale, or specialize.

That is the part of consolidation that does not show up in deal math. And it is the part that decides whether the deal works.

You can buy the branches. You can buy the brands. You cannot buy the bench.

The firms writing these checks are about to find out exactly how deep theirs goes.

SnapDragon Associates has spent twenty years inside this market, on the phone every day with the operators who run these businesses, the ones currently hitting their numbers and not answering recruiter InMail. When the channel reorganizes, those are the exact people every acquirer needs and cannot easily reach. If you are building a leadership team to compete in a consolidating market, or you are a strong operator trying to read where you fit once the dust settles, that conversation is worth having before the next deal closes, not after.

The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction

Knowing Who’s Retiring Isn’t a Succession Plan

June 18th, 2026

A retirement calendar tells you when people leave. A succession plan protects what they take with them.

Most building materials companies believe they have a succession plan. What they actually have is a list of names and approximate retirement dates. Here is what we are seeing in the market that exposes the difference, usually at the worst possible moment.

Market RealityThe Retirement Wave Is Not a Forecast

The retirement wave in the building materials industry is real, and the last two years have pushed it past anything the prior two decades produced. The workforce in this sector skews older than almost any other, and the exits are not a forecast. They are happening on your floor and in your branches right now.

1.9M
Manufacturing jobs could go unfilled by 2033, with retirements driving most of the openings. Source: Deloitte & The Manufacturing Institute.

The numbers are not a surprise. Every operator in this industry can feel them. The surprise is how little protection a retirement date actually provides.

The GapA Date Is Not a Transfer

When a 30-year branch manager, category lead, or distribution head walks out, the org chart shows one open seat. What leaves with them is not on the org chart at all: the contractor relationship that has renewed for fifteen years because of one person, the sourcing judgment built across three downturns, the reason a key account stays when a competitor calls. That knowledge does not transfer in a two-week handoff or an exit interview. If it was never mapped, it does not transfer at all. It simply leaves.

That is the gap between a list and a plan. A list says Tom retires in eighteen months. A plan says: here is exactly what Tom carries, here is who is being positioned to hold it, and here is the timeline to move that knowledge while Tom is still in the building.

A list predicts the loss. A plan prevents it.

The risk compounds when the exits stack. Most firms we talk to are not facing one senior retirement. They are facing three or four inside the same two-year window, concentrated in the commercial and operational leadership layer that is hardest to replace and slowest to develop.

Talent PipelineThe Pipeline Below Is Real. It Just Isn’t Aimed Here.

Here is where the conventional read gets it backward. The story everyone is telling is that young talent will not do this work. The data says something more useful. A 2026 survey from Resume Templates found 60% of Gen Z planning to pursue skilled trade and industrial work. Yet a Harris Poll the year before found under 40% interested, and the reason it gave was specific: they knew very little about the opportunities.

60%
Of Gen Z plan to pursue skilled trade and industrial work. Resume Templates, 2026.
<40%
Interested a year earlier, citing low awareness of the opportunities. The Harris Poll, 2025.
78%
Of Gen Z want a defined growth path before committing to a role. Cengage Group, 2025.

Both can be true at once, and that is the whole point. Interest is rising, but it is aimed at the visible roles, the welder, the electrician, the tech. The commercial and leadership track that actually carries a building materials company, outside sales, branch management, distribution operations, category leadership, is invisible to the people you would most want in it. Most firms in this industry have never had to draw that growth path, because for twenty years the bench filled itself. It will not fill itself now.

The Action PlanWhere This Leaves You

  • Map the bench by name and by timeline, now. Identify every senior exit inside the next 24 to 36 months, what each person specifically carries, and who could hold it. Do it while there is still runway to move the knowledge, not after the notice lands.
  • Treat transferability as a business asset. The more your operation runs without any single person, the more options you have and the more the business is worth. Succession planning is not an HR formality. It is risk control and valuation protection.
  • Hire for the handoff. When the bench is thin, the most valuable senior hire is the one who can teach, build systems, and leave a developed layer of people behind them, not just fill the open seat.

Superior outcomes are no longer about who you know. They’re about what you know about who you know.

The building materials companies treating succession as an intelligence problem will be the ones still standing when the retirement wave crests. The ones treating it as next year’s problem will learn the cost the expensive way.

If your three most knowledge-heavy people gave notice this quarter, what would actually transfer, and what would just walk out the door?

If that does not have a clean answer, that is the conversation to start. Tell us where your bench is thinnest. If it is easier to see it mapped, we can do that together.

Map Your Bench With SnapDragon →

The SnapDragon Standard

We don’t replace leaders after they’re gone. We build the bench before they leave.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction

Sources: Deloitte & The Manufacturing Institute, manufacturing skills gap study (2024, cited through 2026); U.S. Bureau of Labor Statistics, manufacturing employment data (2026); Resume Templates, Gen Z career plans survey (2026); The Harris Poll, Gen Z and skilled trades survey (2025); Cengage Group / Ready to Hire, Gen Z in the Skilled Workforce report (March 2025).

The Master Builder Disappeared. The Hard Part Didn’t.

June 11th, 2026

What the data says about senior hiring, and what the building trades teach us about getting it right.

OriginsThe Old Way Stopped Working

There was a time when one man built your house. He read the land, dug the footing, poured the foundation, raised the frame, set the windows, shingled the roof, and hung the doors. We called him a master builder, and the title was earned. But it carried a quiet ceiling. He was excellent at some of the work and merely competent at the rest, because no one is excellent at all of it, and the house reflected exactly that. Its quality was capped by whatever trade he was weakest in.

That model did not fade because we stopped admiring craftsmanship. It faded because the math stopped working. As buildings grew more complex, the gap between competent and excellent at each stage started to matter more than the convenience of one set of hands. So the work broke apart. A single build now moves through a site crew, a foundation team, framers, a glazing crew, roofers, mechanical trades, drywall, and finish carpenters, each doing one thing at a level the old master builder never reached outside his own trade. The house goes up faster, performs better, and fails less often.

The ShiftThe Role of Judgment

It is tempting to read that as a story about specialization and stop there. The more useful part is what it did to the person in charge.

The general contractor did not become less important when the work split apart. The job moved up a level and got harder. The scarce skill on a modern build is no longer swinging a hammer well. It is knowing which framing crew holds its dates, which concrete team passes inspection the first time, which roofer does clean work and which one looks sharp in the bid and falls apart on the deck. The bottleneck used to be labor, measured in hands and hours. Now it is judgment about people. The contractor who knows the trades wins. The one who guesses pays for it later, in change orders and tear-outs.

Org ArchitectureThe Hidden Structure of a Company

Look closely at any company and you are looking at a structure. The org chart is not a ranking of importance. It is a load diagram. A business is built in layers, the way a building is.

Foundation

The operational and financial roles everything rests on.

Frame

The leadership spine that holds the company’s shape under load.

Envelope

The commercial roles that face the market.

Finish Work

The roles that make the whole thing scale and feel complete.

Every layer matters. None of them carries the same kind of risk. A weak hire three layers off the frame is a cosmetic problem. You see it, you fix it, the building still stands. A wrong hire in the frame compromises everything built on top of it, because every layer above inherits the flaw.

That is not a metaphor reaching for effect. It is one of the most consistently measured failures in business, and the numbers are worse than most leaders assume.

46%
Of new hires fail within their first 18 months
89%
Of those failures are about fit and judgment, not technical skill
213%
Of salary: what replacing a senior leader can cost

The ResearchWhy Senior Hires Fail

Consider the leadership layer specifically. McKinsey, studying CEO transitions, found that between a third and half of new chief executives are seen as failing within their first 18 months. A broader study of more than 20,000 new hires by Leadership IQ, a research and training firm, found that 46% failed within 18 months while just 19% were an unqualified success.

Read that again. Fewer than one in five senior hires is a clean win.

The bill for getting it wrong is not the salary. Reviewing years of turnover research, the Center for American Progress found that replacing a senior or executive employee can run as high as 213% of their annual salary once you count the open seat, the lost productivity, the disruption underneath them, and the second search.

$400K+
The approximate loss on a $200,000 leadership seat once you apply the 213% figure, before the new person has framed a single wall. A wrong hire in a load-bearing seat is among the most expensive mistakes a company can make, and it almost never announces itself the day you make it.

But the most important number is not the cost. It is the cause.

When Leadership IQ examined why those hires failed, only 11% came down to a lack of technical skill. The other 89% failed on the things a resume cannot show and a standard interview rarely tests: coachability, emotional control, motivation, and temperament. Fit and judgment, not competence. More telling still, 82% of the hiring managers admitted that, looking back, they had seen the warning signs during the interview and moved ahead anyway. Sit with what that means. The interview is built to measure the 11%. The 89%, where the seat is actually won or lost, is the part it consistently misses.

Talent VisibilityThe Passive Market Problem

This is the same problem the general contractor solved generations ago. He cannot lay brick at the level of the mason or run conduit like the electrician, which is the entire reason those trades exist. So he does not evaluate the craft by performing it. He evaluates the people: who delivers under pressure, who holds their dates, who only presents well in the meeting. He knows it from watching them on real sites over years, not from the bid sheet. Senior hiring demands exactly that kind of knowing, and the interview is a poor substitute for it.

And the people worth knowing are almost never the ones answering the posting. In research across 18,000 professionals in 26 countries, LinkedIn found that roughly 70% of the workforce is passive: employed, performing, and not looking. A job posting competes for the 30% who are actively on the market. The operator quietly running the best division in your sector, the one you actually want, sits in the 70% who never see it, has not touched a resume in years, and will move only for the right person making the right call. That market, the one that never lands in your inbox, is where the frame talent lives.

Industry RealityThe Leadership Depth Challenge

Nowhere is this sharper right now than in building materials and construction, where the trade is living the master builder problem in real time. Associated Builders and Contractors estimates the industry needs to add roughly 349,000 workers in 2026, and by the association’s own account, more than half of that is simply to replace people retiring out. Close to one in five workers in the field is already 55 or older. The most experienced layer, the people carrying decades of judgment about how things actually get built, is leaving faster than it can be replaced.

This has stopped being only a labor shortage and become a leadership depth problem.

Not enough superintendents, operations leaders, general managers, and commercial heads ready to hold the frame when the experienced ones walk. The seats that carry the most weight are exactly the ones getting hardest to fill with people who can actually carry them. In a market like that, the interview-and-hope approach is not just expensive. It is a structural risk.

Which is the quiet shift underneath all of it.

The Shift UnderneathThe Foundation

Superior outcomes are no longer about who you know. They’re about what you know about who you know.

The companies building the most durable organizations have internalized that the most consequential specialist they engage is not on their own org chart at all. It is the one who lives inside the labor market of their trade, the way a general contractor lives among the crews, who can read the 89% the interview misses, and who already knows the names inside the passive 70% because they have spent years in real conversations with them.

That is the role SnapDragon was built to play, and it is why we do not search across every industry.

We are specialists in the exact sense that this whole story has been about. For more than twenty years, our work has lived inside one world: lumber and building materials, manufacturing, distribution, retail, and the private equity that backs them. We are not generalists who recruit a building products VP on Monday and a hospital administrator on Tuesday. We know this trade the way a seasoned contractor knows his crews. We know who holds their numbers, who leads well when the market turns, who looks strong on paper and comes apart under load, and who is quietly the best operator in the sector and has never once answered a cold message. We carry that knowledge because we have spent two decades in real conversations with the people who run this industry, not because we ran a search string the morning your seat came open.

20+ Yrs
Inside building materials, since 2004
95%
Post-search retention
30%
Faster time-to-hire than the industry average

That is what makes SnapDragon the premiere search partner for the building materials industry. Not the size of a database, but the depth of knowing the people in one trade, completely. It is also why our searches hold. When the role you are hiring into carries real weight, you do not want a firm that can recruit anyone. You want the one that already knows the few who can carry it, and whose searches are still carrying it years later.

If you have a load-bearing seat coming open, talk to the firm that already knows who can carry it.

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The SnapDragon Standard

In a load-bearing seat, the right hire is never the one who interviews best. It’s the one the market already trusts to carry the weight.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction

Sources: McKinsey & Company (CEO transitions research); Leadership IQ, “Why New Hires Fail” (study of 20,000+ new hires); Center for American Progress turnover research; LinkedIn Talent Solutions; Associated Builders and Contractors 2026 workforce projections. Retention and time-to-hire figures are SnapDragon performance metrics.

The Hire That Has To Hold: A Note from Mark Barnard, CEO, SnapDragon Associates

June 4th, 2026

I have spent most of my working life around executive hiring, and there is a pattern I have watched play out more times than I can count.

A company decides it needs a leader. A regional VP. A head of operations. Someone to own a category that has been drifting for two quarters longer than anyone wants to admit. The search kicks off. Resumes come in. A short list forms. Everyone gravitates toward the candidate who interviews well and looks the part, the one who says the right things in the room and has the logos on the resume that make the decision feel safe. An offer goes out. The seat gets filled. And the organization exhales, because the hard part is finally over.

Except it is not over. It is barely the beginning.

Here is the number that I keep coming back to. According to the University of South Carolina’s Center for Executive Succession, more than 40% of externally hired executives are gone within 18 months, either because they walked or because they were asked to. Sit with that for a second. Almost half. Not entry-level roles, not seasonal hires, but the senior leaders that companies spend months and serious money to bring in. The people who are supposed to set direction and steady the ship are, more often than a coin flip would predict, no longer there a year and a half later.

40%+
Of externally hired executives are gone within 18 months, either because they walked or because they were asked to. Source: University of South Carolina Center for Executive Succession.

When I show that figure to a CEO or a board member, the first reaction is usually disbelief, followed by a quiet recalculation as they think about the last two or three senior hires they made. The number stops being abstract pretty quickly.

Where It Actually BreaksA Failure of Fit, Not a Failure of Search

So why does it happen? After enough years, I have stopped blaming the candidates. Most of them are talented, serious people who took a role in good faith. The failure almost always traces back to the same root, and it is not a failure of the search. It is a failure of fit. We have built an entire hiring culture around the resume and the interview, two of the least reliable predictors of whether a leader will actually hold up inside a specific company, with a specific team, at a specific moment in that company’s life. A candidate can be excellent and still be wrong for you. The interview rewards polish. The job rewards judgment under pressure. Those are not the same thing, and the gap between them is where most senior hires quietly come apart.

The Real MathWhat the Gap Actually Costs

The cost of that gap is not theoretical, and it is not small. Industry data puts the cost of executive turnover at up to 213% of the position’s annual salary once you account for the full picture.

213%
The cost of executive turnover, as a share of the position’s annual salary, once you account for the full picture. Severance and recruiter fees are the visible part, the part that shows up cleanly on an invoice.

The real damage is everything underneath. Strategy stalls for a year while the seat sits empty or occupied by the wrong person. Momentum that took eighteen months to build evaporates.

And here is the one that hurts the most: your strongest people start looking around, because nothing demoralizes a high performer faster than watching the wrong person get placed above them. You do not just lose the hire. You lose the bench you already had.

Even the conservative numbers tell the same story. The U.S. Department of Labor estimates that a bad hire costs at least 30% of that employee’s first-year earnings, and that is the floor, the most charitable accounting you can do. It only climbs as you move up the org chart. There is no version of this math where getting it wrong is cheap. The only honest question is how much of the outcome you are willing to leave to chance.

What Beats the OddsDiscipline, Not Luck

I am not writing this to scare anyone. I am writing it because I believe the failure rate is not inevitable, and the firms that consistently beat it are not lucky. They are disciplined. They treat a senior hire as a search that has to hold, not a seat that has to be filled. That distinction sounds small. It changes everything about how the work gets done.

It means doing more work before the offer than after it. It means understanding the team a leader is walking into, as well as how you understand the leader. It means being honest with both sides about what the role actually demands, including the parts that are hard to say out loud, instead of selling a version of the job that does not exist. And it means staying in the relationship long enough, after the handshake, to know whether the match actually took, rather than declaring victory at the signed offer and moving on.

In our world, the stakes for building materials are sharper than most. The right regional VP can define a market for a decade. The right category director can turn a flat line into the best-performing segment in the company. And the wrong one, in either seat, can cost you years you do not get back. These are not interchangeable hires. They are the decisions that determine which direction the whole business moves.

That is the work we do, and it is the only way I know to do it well. If you have a leadership seat coming open, or one you are quietly worried about, talk to us before the search begins. The conversation that prevents a bad hire is worth more than any search that produces one.

Mark Barnard

CEO, SnapDragon Associates

Talk to SnapDragon before you open your next executive search.

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The SnapDragon Standard

We don’t send offers hoping they work. We send offers knowing how they will land.

Leadership Architecture · Precision Search · Since 2004

Private Equity · Manufacturing · Distribution · Retail · Construction