Industry Insights: Building Products & Services – Winter 2026
Mezzo’s Winter 2026 Building Products & Services Industry Insights examines M&A activity, housing market dynamics, and macroeconomic trends shaping the sector outlook.
The building products industry is a diverse ecosystem that encompasses the manufacturing, distribution, and sale of materials used in construction and renovation. The diverse products include a wide range of products such as:
•Structural materials: Concrete, steel, lumber, and bricks.
•Insulation: Materials that provide thermal or sound insulation.
•Roofing: Shingles, tiles, and membranes.
•Windows, Siding, and doors: Various types of doors, siding, and window frames.
•Finishes and fittings: Paints, tiles, flooring, countertops, and cabinetry, including related install services.
•Plumbing and electrical supplies: Pipes, fixtures, wiring, and related hardware.
The Mezzo building products industry report leverages our deep understanding, knowledge, and experience with various economic indicators and trends analysis to provide our current view on the U.S. market. Dom Mazzone is a former executive at The Home Depot, so he and the Mezzo team are entrenched in the building products industry, regularly working on transactions and advising owners, chief executive officers, management teams, and private equity groups interested and working in the space.
Macroeconomic Perspective
The building products industry plays a critical role in supporting the construction of residential, commercial, and industrial buildings, as well as infrastructure projects like roads and bridges. It's essential for urban development, sustainability initiatives, and the overall economy.
In 2025, U.S. housing economic indicators presented a mixed but gradually improving backdrop over the second half of the year. Declining interest rates are beginning to ease pressure on buyers who have faced affordability challenges over the past several years. Unsold home inventory remains near 16-year highs, yet gradual home price declines suggest that listings may start to move more freely without prices dropping dramatically. Interest rate cuts are promising (albeit perhaps not stalled), potentially supporting renewed homebuyer activity and encouraging development, as modest price adjustments could unlock inventory and help rebalance the market. The struggles in the sector in 2025 are likely to continue in 2026. Changing trade and immigration policies have presented challenges throughout the year, but the housing market has proven resilient to these upward price pressures. President Trump’s recent focus on funds that purchase homes hopefully will not lead to any legislation or presidential actions that further chills the marketplace.
Industry Outlook
The building products and services sector is expected to remain under pressure in early 2026, as elevated material costs and residual effects of higher interest rates continue to weigh on activity. However, the recent decline in borrowing costs should help support renewed homebuying and residential construction activity, easing affordability pressures for buyers. In the non-residential segment, growth in data center development and sustained public infrastructure investment are likely to underpin demand, providing stability amid broader market headwinds. Together, these factors suggest that while challenges persist, the sector may begin to see gradual recovery and more balanced activity as the year progresses, supporting opportunities across both residential and commercial construction markets. In particular, the current macroeconomic environment where luxury, high-end products remain strong seems to apply in both residential and commercial buildings.
Public Company Information & Analysis
Public building products and services equities returns underperformed returns in the broader equity markets in 2025, reversing a multi-year trend of relative outperformance. The S&P 500 generated strong gains driven largely by an AI-led expansion concentrated in mega-cap technology and growth-oriented sectors. Conversely, building products and services stocks, like many other sectors, have lagged amid subdued housing demand and slower construction activity.
M&A Trends
Merger and acquisition volume in the building products and services space fell slightly in 2025 due in large part to a mid-year slowdown induced by trade policy changes and economic uncertainty. Throughout the second half of 2025, the building products and services M&A market showed significant signs of improvement as volume picked up and several meaningful transactions closed. M&A activity for the broader market remained relatively stable in terms of both volume and valuation. At Mezzo, we successfully closed nine transactions during the year, including two within the building products and services space, reflecting continued buyer appetite for high-quality assets. As for 2026, we already have two building products companies for sale under letter of intent and have been engaged by two others, including a building services business with over $20 million in TTM EBITDA, to begin a sale process. We are in discussions with several others for buy-side, financing, and sell-side assignments.
Mezzo was previously known as Mazzone & Associates.
Mezzo Advises Matter Surfaces on its Sale to Gerflor
Mezzo advised Matter Surfaces on its sale to Gerflor, supporting the company’s continued growth and expansion in the global surfacing market.
Mezzo is pleased to announce that it acted as exclusive financial advisor to Matter Surfaces (“Matter” or the “Company”) with respect to its sale to Gerflor Group (“Gerflor”).
Matter is a Massachusetts-based provider of branded architectural surface solutions and entryway systems for commercial use across a variety of end markets, with retail, corporate, education, hospitality, multi-family, and healthcare applications. The Company was founded in 1971 by Bob and Catherine Schiffmann as a provider of roll-out entryway mats for the local Boston market. In the five decades since its founding, Matter has developed into a leader in the specialty surfacing space with tens of millions of square feet of sustainable flooring installed across the United States and Canada.
Gerflor is a global provider of resilient flooring and surface solutions headquartered in Lyon, France, with operations in over 100 total countries.
“From the start, it was clear that Matter and Gerflor speak the same language: design-forward, customer-driven, and focused on delivering excellence,” said Benjamin Bachman, CEO of Gerflor North America. “This is not a story of change, but one of continuity and momentum. We’re excited to welcome the Matter team into the Gerflor family.”
Barry Hume, CEO of Matter Surfaces, added, “Joining Gerflor allows us to continue doing what we love most—serving our customers and supporting our associates—while gaining new opportunities to grow and scale. The Mezzo team led Matter and our shareholders through a complex negotiation during a period both when our company and industry have been rapidly evolving. Mezzo’s guidance and industry expertise proved invaluable in bringing this transaction to a successful outcome for all parties.” Mr. Hume will continue to lead Matter going forward.
Dustin Dawson, Director at Mezzo, noted, “It was a pleasure to work with the Schiffmann family, Barry, and the entire Matter Surfaces team. Matter is a premier brand in the sustainable surfacing space, led by a stellar management team. We’re excited to watch both companies thrive in their new partnership.”
Please contact Dom Mazzone or Dustin Dawson for further information.
Blank Rome LLP served as legal advisor to Matter on the transaction. The terms of the transaction were not disclosed.
About Matter Surfaces
Matter surfaces is an industry-leading provider of branded surfacing and entryway systems with facilities in Massachusetts, Georgia, and New York. Throughout the Company’s 50+ year history, it has prided itself on promoting thoughtful design, holistic wellness, responsible sustainability, and unmatched service. The Company’s talented team maintains an unwavering dedication to the quality and dependability of its products. For more information, please visit www.mattersurfaces.com.
About Gerflor
Gerflor is a global leader in innovative, resilient flooring and surface solutions. With more than 80 years of experience, Gerflor designs, manufactures, and markets decorative and eco-responsible interior surfaces serving commercial environments in over 100 countries. Gerflor’s extensive product line caters to commercial healthcare, education, sports, and industry spaces. For more information, please visit www.gerflorusa.com.
Mezzo was previously known as Mazzone & Associates. Transactions completed prior to April 2026 were executed under the Mazzone & Associates name.
Industry Insights: Building Products & Services – Summer 2025
Mezzo’s Summer 2025 Building Products & Services Industry Insights reviews M&A activity, highlighting stable deal volumes, macro-driven headwinds, and evolving investment dynamics across the sector.
The building products & services industry is a diverse ecosystem that plays a critical role in the construction and renovation sectors. It spans the manufacturing, distribution, and sale of a wide array of materials essential to residential, commercial, and industrial projects. This industry supports numerous product categories, including:
•Structural materials: Concrete, steel, lumber, and bricks.
•Insulation: Materials that provide thermal or sound insulation.
•Roofing: Shingles, tiles, and membranes.
•Windows, Siding, and doors: Various types of doors, siding, and window frames.
•Finishes and fittings: Paints, tiles, flooring, countertops, and cabinetry, including related install services.
•Plumbing and electrical supplies: Pipes, fixtures, wiring, and related hardware.
The Mezzo building products & services industry report leverages our deep understanding, knowledge, and experience with various economic indicators and trends analysis to provide our current view on the U.S. market. Dom Mazzone, a former executive at The Home Depot, brings firsthand expertise that informs our perspective. Together, he and the Mezzo team remain deeply engaged in the industry, regularly advising company owners, CEOs, management teams, and private equity firms on strategic transactions and investment opportunities within the building products & services space.
Macroeconomic Perspective
The building products & services industry plays a critical role in supporting the construction of residential, commercial, and industrial buildings, as well as infrastructure projects like roads and bridges. It's essential for urban development, sustainability initiatives, and the overall economy.
The U.S. housing market seems to have mostly shrugged off immigration and tariff uncertainty as the housing market index, consumer confidence index, and unemployment remain relatively stable (see p. 6 for more details). Nevertheless, affordability remains a key challenge for the U.S. housing market as the 30-year fixed-rate mortgage rate and effective federal funds rate remain at relative 10-year highs (see p. 5 for more details). While continued softness in the U.S. economy may indicate signs of contraction in new construction, there continues to be region-specific growth in new construction in places like southeastern Florida, Arizona, and Texas. Furthermore, consumer spending on renovations is likely to grow as demand for housing continues to ease and supply builds. These macro drivers collectively underpin a general continued optimism for the industry, although we see some softness in the near term.
Industry Outlook
The building products & services industry-specific outlook notes continued softness in the industry in general. Higher interest rates and high prices causing softness in demand play a critical role in supporting the construction of residential, commercial, and industrial buildings, as well as infrastructure projects like roads and bridges. Housing and construction are essential for urban development, sustainability initiatives, and the overall economy.
Public Company Information & Analysis
Public companies in the building products & services industry have outpaced the S&P 500 over the past few years. The broad impact and volatility created by new tariffs will likely impact both the Building Products & Services Index and the broader 500 Index similarly, so the two indices will likely move closer in tandem with each other.
M&A Trends
The building products & services industry merger and acquisition deal counts have remained relatively constant for the past few years, as have valuations. However, the uncertainty around tariffs and softness in housing starts negatively impacted transaction numbers in the 2nd quarter of 2025 and are likely to continue to negatively impact the M&A marketplace. Nevertheless, at Mezzo, we’ve already closed three transactions in the first quarter of 2025 and are on track to do the same in the second quarter of 2025. We are continuing to build a pipeline of strong building products & services companies we will take to market over the next 3 to 12 months, which we expect to close at or above the expectations we have discussed with our seller clients.
Investment Considerations & Forecasts
The building products & services industry is navigating a complex landscape shaped by shifting market forces and evolving policy. While federal initiatives like the IIJA and CHIPS Act have recently supported construction demand, waning government support and high interest rates are slowing growth—conditions that could reverse if rate cuts materialize. Profit margins remain vulnerable to raw material volatility and newly imposed tariffs, favoring companies with efficient operations and strong supplier networks. Regionally, demand is uneven, with the Southern U.S. predicted to show more resilience. Meanwhile, AI adoption is transforming the industry, enhancing project efficiency and sustainability while offsetting margin pressures—making tech-savvy companies especially well-positioned. Construction is local so this section of this edition of Industry Insights includes local data and forecasts.
Mezzo was previously known as Mazzone & Associates.
Industry Insights: Building Products & Services – 2023
Mezzo’s Building Products & Services Industry Insights examines evolving M&A trends and valuation dynamics across the sector, as companies navigate shifting demand, rising interest rates, and continued divergence between new construction and renovation activity.
The building products and services industry is a crucial component of the construction and renovation sector, and it encompasses a wide range of products (e.g. materials, flooring, insulation, windows) and services (e.g. product installation, electrical, plumbing, HVAC, fire protection). The industry has experienced volatility in recent years, driven by factors such as COVID lockdowns, supply chain issues, and rising interest rates. In this report, we will be taking a closer look at the current trends, challenges, and opportunities in this sector.
Market Trends & Valuations
Overall, valuations in the building products and services segments have softened since 2021 and have been impacted by softening demand and an uncertain outlook after record growth across the segments in late 2020, 2021, and the first half of 2022. Although housing inventory continues to lag behind, fundamentals around new construction have softened since summer 2022. Businesses more reliant on new construction (re: Builders) have been hit the hardest on valuation, while operators focused on remodel and renovation remain bullish of continued activity in 2023. The average EV/EBITDA valuation multiples for building services are currently trading at 11.55x, a 9.6% premium over building products companies, which are trading at 10.55x.
Mezzo was previously known as Mazzone & Associates.