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The Impact of Building Suppliers on Smart Cities of the Future

In the 1950s, less than 30 percent of the world’s population lived in urban environments. By 2040, experts predict this figure will rise to 65 percent. Each week, more than 1.3 million people move into major cities.  Over 500 cities now have a million people or even more.y. With these trends in urbanization, a push for developing “smart cities” for the future exists.  It involves an array of considerations that focus on sustainability and safety.

Transportation, building construction, and urban energy use are obvious areas of concern for smart cities. At the heart of all of these areas are building products and materials. But what impact do building products and their suppliers having on smart cities? The following offers a bold look at the role building suppliers and distributors have on these ecosystems in the future.

Smart Cities and Sustainability

In regard to smart cities, the capacity to maintain high levels of sustainability is important. However,  sustainability refers to much more than environmental issues. Economic, social, health, as well as environmental sustainability, will be critical for smart cities of the future.

A significant part of smart cities of the future will involve networks and social engagement. Wireless connectivity, web-based systems, and mobile devices will enhance data and information analytics. These will drive sustainability in a variety of areas as well as safety. But at the same time, the materials used to construct our smart cities will play a significant role. The smart cities of tomorrow will require anything from built-in sensors to enhanced durability, and innovations in building products.

Innovative Building Products of the Future

Smart Cities powered by BlueLinx and other Wholesale Building Supply Distributors
Builders FirstSource, ABC Supply and BlueLinx are Paving the Way

As we move into an era of urbanization and sustainability, several new building products offer exciting opportunities for progress. Consider concrete for example.  It remains one of the most popular building products on the planet. It’s durable, hardens in normal climates, and is inexpensive. However,  concrete production accounts for five percent of the world’s greenhouse gas emissions.  Recent innovations have introduced a new product called “zerocrete.” This building product is not only free from zero carbon dioxide emissions, but it is resistant to corrosive decay as well.

Other innovative building products include shape metal alloys, which retain their shape. Composed of nickel and titanium, shape metal alloys are more stable, weigh less, and are highly durable. These building products are ideal for buildings and bridges as well as construction needs in space. Other innovative building products include electric sensors made of piezo-ceramic materials used to monitor structural integrity. Likewise, fiberoptic monitors are finding increased applications is monitoring metal corrosion. Notably, these building products offer both economic and environmental sustainability for smart cities of the future.

Supplying Smart Cities of the Future

As smart cities evolve, a key part of the sustainability ecosystem will involve building products and their suppliers. Building supplier and distribution companies adopting sustainability practices today will likely be those well aligned to meet these needs.  It does not only involve improving existing operations but also investing in new technologies moving forward.  Considering this, here are a few of today’s top building suppliers who appear to be moving in that direction.

  • Bluelinx Holdings Inc. – In addition to being a Forestry Stewardship Council (FSC) certified supplier of building products, Bluelinx is committed to sustainability. The Atlanta based company actively researches new ways of pursuing an eco-conscious materials and distribution processes. Bluelinx is recognized as a major supplier of roofing, insulation, lumber, vinyl and other building products.  Bluelinx’s annual revenues of $2.4 billion put it in a good position to be a major player in smart cities construction. They recently completed an acquisition of  Cedar Creek, a leading building products wholesale distributor that will create one of the largest wholesale distributor companies in the world with combined revenues exceeding  $3.2B.
BlueLinx Holdings CEO Mitchell Lewis discusses Cedar Creek Acquisition
Mitchell Lewis, BlueLinx Holdings, INC CEO
  • ABC Supply Co. Inc. – Despite being a family-owned business, ABC Supply Co. has estimated annual revenues in excess of $7.2 billion. Likewise, the company is committed to sustainable building products with a focus on durability, energy efficiency, and environmentally-friendly practices. ABC Supply boasts over 700 branches throughout the country and is one of the largest wholesale distributors of building products and largest of roofing supplies. These building products include roofing, windows, gutters, doors and more. They are also the owners of the Verizon Indy Series AJ Foyt ABC Supply Racing team, driven by Tony Kanaan, which they have sponsored for 14 years.
  • Builders FirstSource – Operating in 40 states, Builders FirstSource offers a vast number of sustainable building products. These include trusses, lumber, energy-efficient windows as well as dozens of other building products. The Dallas based company has $7.4 billion in revenues with more than 15,000 associates in 40+ states. In fact, Builders First Choice is one of the largest U.S suppliers of building products with a focus on new residential construction, repair, and remodeling.
Builders FirstSource CEO Chad Crow
Chad Crow, CEO Builders FirstSource, Explains Company’s Growth

The Essential Role of Sustainable Building Product Suppliers

Smart cities of the future must not only meet urban population trends, but they must also invest in sustainable efforts. This includes building products that focus on innovations and offer economic and environmental sustainability. It also requires building suppliers that support socially responsible behaviors from its customers. Building products that are inherently more durable and utilize fewer resources will be essential in this regard. Likewise, the value will also be given to building products that advance the Internet of Things (IoT), safety, and monitoring of decay. Building suppliers who make these building products accessible will be those with a competitive advantage over time. And they will be the ones that become entrenched as part of the ecosystem advancing smart city development.

The Applied Materials Company: Down, But Definitely Not Out

Like a prizefighter hit hard and knocked to the canvas, the Applied Materials company, based in Austin, Texas,  has taken some lumps lately.

While profitable for the better part of a decade, it recently had a drop in stock price. It is down 37.4% after hitting its all-time high of $62.40 per share in March 2018. This resulted in lower revenue estimates for the third and fourth quarters of 2018. It also prompted firms like Deutsche Bank, Citi and Goldman Sachs to look less favorably on the semiconductor company, and the sector itself.

But like any seasoned scrapper with an iron chin, the Applied Materials company could soon rise and start swinging again. In fact, that is what President and CEO Gary E. Dickerson believes is happening as he touts, “We are firing on all cylinders, that is fueling our business. That is something we’ve never seen in the history of our company.”

Applied Materials Company CEO Gary Dickerson Quote

Thank the development of new innovations like autonomous vehicles, artificial intelligence, sensor technology, autonomous vehicles, memory power, and the Internet of Things (IoT) for that.

The Applied Materials Company at a Glance

The Applied Materials company provides manufacturing equipment, services, and software to the semiconductors and display-related industries. It chiefly develops, manufactures, and sells equipment used in the creation of microchips. The Applied Materials company supplies this equipment to global chipmakers like Intel, Micron, and Samsung. The semiconductor production equipment segment accounted for 65% of Applied Materials’ revenue in 2017.

Applied Global Services, along with Display and Adjacent Markets are two of its other business sectors.

While the semiconductor production equipment-side takes part in the fabrication of wafer-thin microchips and related aspects of that process, AGS handles installation, support, and maintenance.

Display and Adjacent Markets handles the various manufacturing processes of displays and monitors.

As a cornerstone of the semiconductor production equipment industry, Applied Materials might have a bullish future ahead.
Despite fits of market decline, the Applied Materials company could likely face growth with the rise of AI and IoT devices.

An Optimistic Future 

While the public impression on the Applied Materials company is not particularly in its favor, experts believe the company can return to its top spot by 2019. The Applied Materials company has a history of continually surpassing market expectations. Besides, it also has a history of long-term uptrend earnings revision.

Firms like the Applied Materials company are expected to flourish as more companies dip their feet in the artificial intelligence, big data, autonomous vehicles, and IoT sectors. All these next-gen tech companies need powerful, robust microchips to power devices, machines, and even autonomous vehicles.

One of Applied Material’s strengths is its customer-centric research and development. This allows the company to glean valid insights from the market to inform and propel the developments of its manufacturing materials.

A Wealth of Opportunities as Devices are Getting Smarter

The top tech companies are investing in AI technology to capture the needs of the market in the near future.

The Compound Annual Growth Rate (CAGR) of the AI market may increase to 50.5 percent between 2017 and 2021. Likewise, software for big data and analytics will multiply its CAGR by about 11.2 percent between 2018 and 2022. Plus, the IoT market’s CAGR could grow up to 7.39 percent between 2018 and 2023.

Applied Materials company CEO Gary Dickerson on Power of AI

All the companies in this space aim to handle tons and tons of data, and this requires cutting-edge technology in the world of semiconductors. The Applied Materials company is one such supplier that will undoubtedly benefit from expanded investments in research and development, its memory business and in manufacturing its equipment.

The Applied Materials company also has a presence in the photovoltaic market. It carries a range of technologies and systems required in the fabrication of photovoltaic panels. These are instrumental in converting sunlight into electricity. With the world more inclined to use green, renewable, and sustainable energy, the demand for solar panels will only grow.

Beyond the Present for the Applied Materials Company

While the valuation and the stock price of the Applied Materials company are down, experts believe now is the right time to buy their shares. The semiconductor industry will only grow as IoT, high-performance computing and AI become even more prevalent in all devices and machines.

After all, the world needs powerful microchips to work, travel, connect, and learn.

Beyond doubt, companies like Applied Materials act as the backbone of various tech. Without them, the world won’t have smartphones, laptops, smart technology, and advancements in medicine, science, and automobiles. Thus, regardless of which tech company comes out on top, each of them will always require the power of the microchip.

Hence, suppliers such as the Applied Materials company will be a wise bet to invest in or work with.

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