Concrete & Masonry Contractors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 41,000 concrete and masonry contractors in the US generate revenue by charging fees for pouring, forming, and finishing concrete foundations and structures and laying brick and stonework. Common concrete projects include the construction of foundations, walls, sidewalks, beams, columns, and panels. Common masonry projects include the installation of walls, siding, fireplaces, patios, fences, and walkways using brick, stone, concrete block, or veneers. Concrete and masonry contractors are specialty contractors, and may work with general contractors as part of a larger project.
Dependence on General Contractors
In many cases, concrete and masonry contractors act as subcontractors to a general contractor, who bids on and manages a construction job and disburses payment.
Dependence on Construction Industry and the Economy
Demand for concrete and masonry work is highly dependent on the state of the construction industry, which is cyclical and vulnerable to economic factors.
Industry size & Structure
The average concrete or masonry contractor operates out of a single location, employs 9-10 workers, and generates $1-3 million annually.
- The concrete and masonry contracting industry consists of about 41,000 firms that employ 405,000 workers and generate about $76 billion annually.
- Most companies operate on a regional or local basis.
- Large concrete contracting companies include Baker Concrete Construction, Structural Group, and CECO Concrete Construction.
- Large masonry contracting companies include Western Specialty Contractors, McGee Brothers, and Sun Valley Masonry.
Industry Forecast
Concrete & Masonry Contractors Industry Growth
Recent Developments
Nov 8, 2024 - Architecture Billings Remain Weak
- Demand for building design services remained soft in September, according to an October report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) was flat at 45.7 in September. Any reading of 50 or more indicates growth in architectural billings. September was the twentieth consecutive month to see a downward trend in billings. The score for new project inquiries dropped to 51.6 in September compared to 52.4 in August, but the index for new design contracts increased from 47.3 to 48.3. The AIA’s Chief Economist, Kermit Baker said, “Despite recent rate cuts by the Federal Reserve, many clients remain on the sidelines with regard to proceeding on planned projects. And while new project opportunities also emerge, clients are cautious about which to pursue. Fortunately, architecture firms report backlogs of 6.4 months on average, which remain above pre-pandemic levels and are an indication that there is existing work in the pipeline.”
- North American construction and engineering spending in 2024 is expected to grow by about 5%, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. With growth of 29%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), amusement and recreation (10%), transportation (5%), educational (4%), and religious (2%). Commercial construction spending is expected to decline 8% in 2024 amid weaker demand for warehousing space. Lodging construction spending is forecast to drop 6%, and stubbornly high office vacancies will continue to weigh on new office construction, which is projected to see spending rise by 1% in 2024. Despite favorable demographic trends, project delays for some private hospital developments will cap healthcare construction spending growth at 1% in 2024. Amid moderating interest rates, single-family construction spending is forecast to rise 5% in 2024 as new home affordability remains competitive with existing home prices. Multifamily spending is expected to decline by 4% in 2024 amid a recent wave of fresh inventory. The rise in available apartment units has contributed to flat or falling rents in some metros, prompting developers to pause new projects.
- The wages of residential building workers posted a year-over-year increase of 9.9% in September after jumping 10.8% in August, according to analysis of Bureau of Labor Statistics data by the National Association of Home Builders (NAHB). Wages in residential construction have been rising even as the number of job openings in the construction sector have fallen. There were 288,000 construction sector job openings in September compared to 328,000 in August. Wages in the residential building construction industry have been rising amid overall wage growth and a shortage of skilled labor in the construction market.
- Home remodeling spending is expected to resume more robust growth by the middle of 2025, according to the Leading Indicator of Remodeling Activity (LIRA) report released in October by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to decrease 2.1% to $469 billion in the fourth quarter of 2024 compared to Q4 2023. In the first quarter of 2025, remodeling spending will drop 2.1% from Q1 2024 to $454 billion. Spending will then rise to $473 billion in Q2 2025, up 0.6% from Q2 2024. In the third quarter of 2025, year-over-year spending is forecast to increase by 1.2% to $477 billion. The Joint Center expects remodeling activity to be supported by improving existing home sales and higher home values, which will boost spending for necessary replacement and discretionary home improvement projects.
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