Property Play: Saint-Gobain North America's chief talks building materials of the future

Speakers

Mark Rayfield — CEO, Saint-Gobain North America

Interviewer — Host, Property Play

Summary

Saint-Gobain, a 350-year-old French giant, is "doubling down" on North America, having invested $7 billion over the last 5-6 years.
The US housing market is fundamentally underbuilt, with a shortage of approximately 4 million homes relative to population growth.
The "lock-in effect" of low mortgage rates is actually neutral-to-positive for materials companies: if people don't move, they renovate (50% of Saint-Gobain's business is renovation).
Commercial real estate is bifurcating: Class A buildings remain full while Class C empties, driving a renovation boom to upgrade acoustics and lighting in offices.
The CEO is not worried about a Data Center bubble, viewing it as a strong growth segment requiring specialized waterproofing and cooling materials.

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
SAINT-GOBAIN /NORTH AMERICAN BUILDING MATERIALS	LONG	Mark Rayfield CEO, Saint-Gobain North America	The company is aggressively expanding in North America (plants in Montreal, Florida, Georgia) because the region is "underbuilt." There is a structural shortage of 4 million homes. Whether the market is fluid (people moving) or frozen (people locked into 3% mortgages), demand for materials persists. If people move, they renovate the new house; if they stay, they renovate their existing home to add office space/bedrooms. 50% of the company's business is renovation/remodeling. Current build rate is 1.3 million homes, which is better than 2019 but still lagging behind the 4 million needed. Labor shortages in construction and manufacturing; potential for "overshooting" the cycle in specific sub-sectors.	—
DATA CENTER INFRASTRUCTURE	LONG	Mark Rayfield CEO, Saint-Gobain North America	Data centers are a growing component of the commercial segment (approx. 35% of commercial business). Beyond just chips and servers, data centers require massive physical infrastructure: fast-curing foundations, advanced waterproofing to protect assets, and thermal insulation for cooling. Local manufacturing is critical here because these projects demand speed—they cannot wait for imports. Saint-Gobain has 140 manufacturing sites to supply these centers quickly. The sector tends to follow a "sine wave" pattern where builders overshoot demand (similar to multi-family recently), leading to a correction, though the CEO is not currently worried.	—
COMMERCIAL OFFICE RETROFITS	LONG	Mark Rayfield CEO, Saint-Gobain North America	There is a distinct split in the office market. "A buildings are always full and the C buildings aren't." To compete, landlords must renovate Class B/C buildings into Class A environments. This isn't just about coffee machines; it requires upgrading "building science" elements like acoustics (sound-dampening walls/ceilings) and electrochromatic glass (natural light without glare/heat) to improve worker productivity and comfort. Data suggests better acoustics lead to less stress and absenteeism in schools and offices, driving demand for high-performance materials. Owners "flipping" buildings may cut corners on long-term quality upgrades.	—
SUSTAINABLE & RESILIENT HOUSING	LONG	Mark Rayfield CEO, Saint-Gobain North America	There is a shift from just "sustainability" (low carbon) to "resilience" (weatherproofing against climate change). As weather events become more extreme, the market values homes that can survive hurricanes, hail, and floods without needing repair. This drives demand for specialized, durable materials (e.g., specific siding, waterproofing systems) rather than generic commodities. 40% of greenhouse gas emissions come from the built environment, driving regulatory and consumer pressure for better materials. Political headwinds or a pullback in green mandates, though "resilience" remains in demand regardless of politics.	—