The enclosed report focuses on the Building Products industry. In this report, we discuss how and why millennials' entrance into the housing market has been a disappointment thus far. Although a disappointment to many, our company spotlight features a company that has benefitted from millennials' preference to rent, rather than buy, at a young age.

Additionally, we discuss the macro-economic drivers of the industry, public company valuation metrics, M&A valuation metrics, and the M&A outlook for this dynamic industry. The report also includes Cherry Tree's Building Products Performance Index.

Our industry spotlight focuses on Building Products M&A activity and overall industry performance in the second quarter of 2016. Despite lethargic growth and labor shortages, economic indicators such as consumer confidence and housing starts helped improve the outlook for the building products industry. Heading into the second half of 2016, low mortgage rates, rising housing prices, and high levels of consumer confidence continue to suggest a nice expansion in the industry.