Framing Contractors


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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 12,200 framing contractors in the US erect the structural framing and sheathing in buildings, using primarily wood. Single family homes account for 49% of industry sales. Other types of projects include apartment buildings and commercial buildings (stores, restaurants, gas stations, parking garages).

Vulnerability to Trends in the Housing Market

The framing contracting industry is primarily dependent on upstream demand from the residential construction industry, which is cyclical and sensitive to economic conditions.

Dependence on Skilled Labor

Framing contractors rely on a skilled labor force willing to perform physically demanding work in all types of weather conditions.

Industry size & Structure

The average framing contractor operates out of a single location, employs 7 workers, and generates about $1.4 million annually.

    • The framing contracting industry consists of about 12,200 establishments that employ about 83,500 workers and generate about $16.6 billion annually.
    • The industry is fragmented. Most firms are small, independent operators; over 70% of firms generate less than $500,000 annually.
    • The framing stage accounts for 20.5% of construction costs, the second highest cost category, after interior finishes, according to the National Association of Home Builders (NAHB). Of the detailed items in new home construction, framing and trusses accounted for the largest share of costs (18.4%).
                            Industry Forecast
                            Framing Contractors Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Nov 5, 2024 - Residential Construction Wages Spike
                            • 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. In September, there were 288,000 construction sector job openings 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 stronger 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 improvements to be supported by improving existing home sales and higher home values, which will boost spending for necessary replacement and discretionary remodeling projects.
                            • Home builder confidence in the single-family market rose in October amid moderating inflation and an expectation of easing mortgage rates in the coming months, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose two points to 43 in October 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 32% of builders have reduced home prices to lure potential buyers off the sideline. The average price reduction in October was 6%, up from 5% the previous month. In October, 62% of builders used sales incentives to entice buyers, up from 61% in September.
                            • The market share of completed single-family homes framed with wood decreased in 2023, according to National Association of Home Builders analysis of Census Bureau housing data. Wood framing’s market share of single-family home completions dropped to 93% in 2023 from 94% in 2022. Wood framing held a 90% share in 2019. Concrete framing had a 7% share of single-family completions in 2023, up 1% from the year before. Steel framing for single-family homes is uncommon in the US, and its market share was less than half a percent in 2023. Framing methods other than wood are primarily used in the South, where homebuilding is more likely to be subject to housing resiliency requirements.
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