I never really thought about grouping Procore with the other two, but that makes sense. I wonder if you have done any work on understanding to what degree Procore may be able to disrupt the home improvemnet and Pro space that has been dominated by HD. To a certain degree Procore is creating a new customer acquisition channel for contractors and of all stripes and while many of them may have defaulted to HD in the past - because they have done the best job catering to the pros - that space is beginning to get disrupted by the specialty projcets space. Procore is in effect inserting itself in the middle of the relationship between the customer and their suppliers. In addition to all of the tools Procore is building to enable a contractor to operate their business, they are also building a marketplace of suppliers. One can only imagine that if someone could build a great 3PL and software logistics layer ( QXO?), Procore could then corral all suppliers to compete on price inside their marketplace. You are seeing this with a company called Knowde in the chemical space. Home Depot rather than Lowes seems to stand head and shoulders above the rest - they have invested billions into their tech stack, ecommerce and logistics to create a best of breed solution that also happens to have the best footprint in the nation. While HD and Lowe's for that matter were able to avoid being Amazoned, could the verticalized technology that Procore provides combined with the changes in habits of Millenials as well as the types of homes being built create the next challenge to the home improvement sector and its giants?
What an insightful way of looking at the topic. Great work, Jackie!
great post!
I never really thought about grouping Procore with the other two, but that makes sense. I wonder if you have done any work on understanding to what degree Procore may be able to disrupt the home improvemnet and Pro space that has been dominated by HD. To a certain degree Procore is creating a new customer acquisition channel for contractors and of all stripes and while many of them may have defaulted to HD in the past - because they have done the best job catering to the pros - that space is beginning to get disrupted by the specialty projcets space. Procore is in effect inserting itself in the middle of the relationship between the customer and their suppliers. In addition to all of the tools Procore is building to enable a contractor to operate their business, they are also building a marketplace of suppliers. One can only imagine that if someone could build a great 3PL and software logistics layer ( QXO?), Procore could then corral all suppliers to compete on price inside their marketplace. You are seeing this with a company called Knowde in the chemical space. Home Depot rather than Lowes seems to stand head and shoulders above the rest - they have invested billions into their tech stack, ecommerce and logistics to create a best of breed solution that also happens to have the best footprint in the nation. While HD and Lowe's for that matter were able to avoid being Amazoned, could the verticalized technology that Procore provides combined with the changes in habits of Millenials as well as the types of homes being built create the next challenge to the home improvement sector and its giants?