Great American Group Observes Rising Lumber Prices and Margin Compression in the Building Materials Market -Rising lumber pricing, combined with difficulty implementing price increases to customers, results in short-term margin declines, but the industry remains ahead of last year- Business Wire WOODLAND HILLS, Calif. -- February 5, 2013 Despite margin compression at the distributor level, Great American Group, Inc. (OTCBB: GAMR) notes that the overall construction industry experienced a strong push at the end of 2012. Great American Group’s latest Building Materials and Woodworking Equipment Monitor notes that demand for lumber has been spurred by tight supplies and strong residential construction numbers. However, due to the steep upward trajectory of market pricing, distributors have had a difficult time adjusting selling prices to customers. "While domestic demand continues to be strong, and there remains mild optimism for continued growth in 2013, tightness of supply in the market appears to be the primary driver of commodity pricing,” said Bill O’Brien, senior project manager for Great American Group’s Industrial Appraisal division. Although margin compression remains a short-term concern, Great American Group analysts are optimistic for the construction industry. The pace of nonresidential construction has been modest in comparison to the residential market, but certain private enterprises are expected to buoy the nonresidential segment, despite budgetary constraints in the public sector. “Publicly-funded projects are likely to disappoint, while privately-funded building is expected to catalyze a somewhat humble increase in overall nonresidential spending," O’Brien said. “Major growth is forecast in markets that exhibited strong trending to end 2012, including construction related to offices, power, lodging, healthcare and manufacturing.” Great American Group’s premier Building Materials and Woodworking Equipment Monitor is available at www.greatamerican.com/news_media/downloads/Jan_2013_Building_Materials_Monitor.PDF For more information about asset disposition, valuation and appraisal services available through Great American Group, visit www.greatamerican.com. About Great American Group, Inc. (OTCBB: GAMR) Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com. Contact: Media Contacts: Great American Group Michelle Kahan, Director of Marketing 818-884-3737 firstname.lastname@example.org Mulberry Marketing Communications Christina Bereta, Account Executive 312-664-1532 email@example.com
Great American Group Observes Rising Lumber Prices and Margin Compression in the Building Materials Market
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