PODCAST:Odd Lots
TITLE:Brad Jacobs Plans to Make Billions in the Building Supply Industry
DATE:2023-12-28 00:00:00
URL:
MODEL:gpt-4-gizmo
In this episode of "Odd Lots," hosts Joe Weisenthal and Tracy Alloway interview Brad Jacobs, the founder of QXO, a company aiming to revolutionize the building supply industry. Jacobs, known for his success in creating and growing multiple billion-dollar companies, shares his insights on the building products distribution industry, which he identifies as ripe for technological advancement and consolidation.
Jacobs highlights that the building products distribution industry, worth $800 billion between North America and Europe, is largely fragmented with thousands of distributors. He sees significant growth potential and acquisition opportunities. Jacobs stresses the importance of technology in this industry, including enhancing customer interactions through digital platforms, improving pricing with AI and machine learning, optimizing inventory management, and automating warehouses.
He emphasizes that his strategy is not to raise prices for end customers but to lower procurement costs by leveraging scale to negotiate better rates with suppliers. Jacobs discusses the importance of thinking differently to succeed in business, investing in technology to create a competitive advantage, and his approach to due diligence, which includes working with a former CIA investigator to assess potential acquisitions.
The episode delves into various aspects of Jacobs’ business philosophy and strategy, focusing on how he plans to apply his successful formula to the building products distribution industry. Jacobs' approach includes focusing on fragmented industries, leveraging technology for efficiency, and capitalizing on scale for competitive advantage.
