Investment in the US building materials and distribution industry continues to heat up: warehouse expansion and regional competition under reindustrialization.

I. Core Observation: Why Is Investment in Building Materials Distribution Continuously Stable?

According to data from Industrial SalesLeads, from January to May 2026, the building materials manufacturing and distribution industry in the United States and Canada initiated a total of 212 capital projects, with May alone covering a variety of project types ranging from warehouse construction to equipment upgrades. This figure is not an accidental surge, but rather reflects the structural demand within the ongoing reindustrialization cycle of U.S. manufacturing and construction.

1. Drivers: Construction Industry Boom and Supply Chain Restructuring

Residential and non-residential construction activities in the U.S. remained at high levels in 2026, particularly driven by immediate demand from data centers, warehousing and logistics, and infrastructure projects. Simultaneously, lessons learned from supply chain disruptions in previous years have prompted building materials manufacturers and distributors to accelerate localized warehousing layouts to reduce reliance on long-distance transportation and overseas imports. For example, USG's $1.2 billion investment in a new manufacturing and warehouse complex in Orange, Texas, is a typical embodiment of this "production close to the market" strategy.

2. Investment Types: Renovations and Expansions Dominate, New Construction a Supplement

Among the May projects, renovations/equipment upgrades accounted for 29, while expansions and new constructions each accounted for 10. This indicates that modernization of existing facilities remains the mainstream, with companies tending to address demand by enhancing production capacity and automation levels rather than building entirely new facilities. This aligns with corporate caution regarding capital expenditure under the current interest rate environment, but large-scale individual projects (such as USG's $1.2 billion) also show that leading companies are willing to bet on long-term competitiveness.

II. Regional Competition: Which States Are Rising?

The top five states for project distribution in May were: Florida (5), Georgia (4), Ohio (4), Texas (3), and Indiana (2). This is no coincidence:

• Florida: Continuous population inflow, strong demand for residential and commercial construction, and multiple deep-water ports facilitating building material imports and distribution.
• Georgia: The Port of Savannah is a key logistics hub on the East Coast, combined with Atlanta's road and rail networks, attracting distribution center layouts.
• Ohio: Deep manufacturing heritage, proximity to the automotive and home appliance industrial belt, and relatively lower labor costs.
• Texas: Low energy costs, a business-friendly environment, coupled with vast industrial land reserves, making it the top choice for large-scale manufacturing projects. USG's project in Orange is located in southeastern Texas, adjacent to chemical and port infrastructure.
• Indiana: Located in the heart of the Midwest with a developed highway network, it is a traditional distribution hub for building materials and metal products.

This regional distribution indicates that building materials investment is concentrating along the "Sun Belt" and Midwest logistics corridors, rather than spreading across the entire country. In the future, the infrastructure and labor supply of these states will become leverage to further attract investment.

III. Equipment Demand and Automation TrendsMay procurement data show that 80-89% of projects involve lighting, compressed air, HVAC, and security network equipment; 70-79% involve material handling, forklifts, loading docks, and conveyor belts. These configurations are highly aligned with a common goal: improving operational efficiency and automation in warehouses and factories. In particular, the widespread demand for material handling equipment indicates that companies are shifting from traditional manual warehousing to semi-automated, high-density storage models. Additionally, only 40-49% of projects mention floor coatings, and 25-35% mention manufacturing equipment or control systems—this reveals that the first phase of investment focuses more on shells and infrastructure, with equipment upgrades to follow in subsequent phases.