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Building Supply Index rises for Q1

5/23/2018
The BlueTarp Financial Building Supply Index for the first quarter 2018 hit an all-time high of 130.66, up from 128.84 in the fourth quarter 2017

The unadjusted view remains high at 125.67 – a 5.6% increase from Q1 2017.

Values below 100 on the index reflect recessionary or recovering performance while values above 100 reflect healthy economic activity.

Consumer confidence continues to be the main driver for the elevated index level, with that measure seeing an 8% increase from this time last year.

As a supplement to the Building Supply Index, BlueTarp conducts a quarterly survey of its contractors to gauge sentiment on the current and future state of the economy. BlueTarp reported that 60% of respondents expect the next 12-months to be “somewhat” or “significantly” improved.

Builders are encouraged by an increase in jobs and customer spend, driven by consumer confidence, as well as proposed tax breaks for businesses, BlueTarp said.

“It’s clear from the index and survey, business is good,” said Scott Simpson, president and CEO of BlueTarp. “I’m a broken record on this, but delinquencies remain hovering at a level where a disruption will trigger a new wave of bad debt – beware.”

The report represents trends from 120,000 pro customers and more than 2,000 building material suppliers across the United States. It also incorporates macro-economic drivers including: building permits, construction spend and consumer confidence as reported monthly by the Census Bureau and The Conference Board.

Based in Portland, Maine, BlueTarp Financial is a B2B credit management company serving more than 2,000 suppliers since 1998.

 
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