Timothy Ellsberry, an Atlanta-based custom homebuilder, is impressed with Home Depot’s latest AI-infused efforts to attract professionals. Ellsberry joined Home Depot’s Pro program in late 2024. He told CNBC that he has reviewed but not yet adopted the company’s expanding digital tools suite — including AI-powered BluePrint Takeoffs , which launched back in November. The tool quickly generates takeoffs — or complete material and resource lists needed to draw up project quotes — and seamlessly allows contractors to directly buy everything from Home Depot. “As they build their program, I could see myself shifting away from the CRM [customer relationship management] that I’m using to a less expensive option because Home Depot is making those resources. They’re adding it more or less for free on their platform,” said Ellsberry, 38, founder and lead developer of ERP Legacy Developments, which operates in Home Depot’s backyard. Home Depot is also headquartered in Atlanta. “When they add tools to the bucket for us, it eliminates some of the extra costs on expenses that we have,” added Ellsberry, citing potential annual savings of $3,300 if he were to use Blueprint Takeoffs. As they build their program, I could see myself shifting away from the CRM that I’m using. ERP Legacy Developments Timothy Ellsberry In the midst of a slower-than-anticipated housing market recovery, which has pressured the stock, Home Depot has been aggressively moving to capture pro dollars. The hidden gem of its 2024 acquisition of SRS Distribution, the trade credit system, has positioned Home Depot to unlock a larger contractor customer base. Trade credit allows contractors to buy supplies and pay for them later. Layering in the power of AI in BluePrint Takeoffs, according to the company, can help pros grow their businesses. “We can get things back to a customer in a day or two, where it often took us seven, eight days or more,” said Michael Rowe, an executive vice president of Home Depot’s Pro business. “Your conversion opportunity goes up. So if you’re looking for a marker, it would be around conversion because that then leads to greater sales.” Rowe declined to share conversion metrics but told CNBC that Home Depot is seeing a “nice lift in engagement with the tool” as more takeoffs are being done. “[We] certainly expect that conversion to improve,” he said. The real question, however, is whether or not Home Depot’s new tools will result in higher margins for the home improvement retailer. Analysts are not convinced. “I don’t know if it necessarily helps with the margin rates,” said Mizuho’s David Bellinger, adding that it’s dependent upon what category of items are being sold. Home Depot’s margins have been pressured. “In the third quarter, our gross margin was 33.4%, flat compared to the third quarter of 2024, which was in line with our expectations,” said Chief Financial Officer Richard McPhail on the company’s latest earnings call. For the full year 2025, the…
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