Construction Material Distribution

Construction material distributors supply lumber, building materials, and construction products to contractors, builders, and construction companies.

With construction industry massive and materials essential, distribution generates revenue of $350,000-$1,200,000+ with 20-35% margins.

The business requires yard and warehouse space, inventory investment, delivery trucks and forklifts, contractor credit program, and supplier relationships.

Services include lumber and building material inventory, contractor pricing and accounts, job site delivery, takeoff and estimation support, material procurement, and payment terms.

Revenue through markup on wholesale costs.

Success factors include strategic location near construction activity, providing contractor credit terms, delivering to job sites efficiently, technical knowledge and takeoff support, and building contractor relationships.

Marketing focuses on contractors, builders, and construction companies.

With construction activity strong and materials distribution essential in 2025, building material distribution offers construction opportunities serving trades with high capital requirements as barrier.