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
Dec 9, 2024 - Construction Sector Braces for Tariffs, Immigration Crackdown
- Some building contractors are concerned that the Trump administration's promises of tariffs and a tougher stance on immigration could increase their costs and make their labor difficulties worse, according to The Wall Street Journal. Some industry observers suggest Trump’s plan to deport undocumented workers could cause labor shortages. In California, New Jersey, Texas, and Washington, DC, immigrants make up more than half of the construction workforce, according to the Harvard Joint Center for Housing Studies. Nationwide, undocumented workers make up about 13% of the construction sector’s workforce, according to the Pew Research Center. President-elect Trump’s proposed 25% tariffs on goods from Canada and Mexico could drive up construction costs for key inputs, including softwood lumber, cement, gypsum (used to make drywall), and iron and steel. However, some builders are optimistic that Trump’s deregulation plans could reduce construction costs.
- New single-family home sales declined 17.3% month-over-month and 9.4% year-over-year in October 2024, according to the US Department of Commerce. October’s new home sales were the weakest in nearly two years as hurricanes and high interest rates kept some potential buyers away, according to Reuters. Mortgage rates at the end of October rose to 6.72%, tracking the rise in 10-year Treasury yields. Concerns about inflation are leading some market observers to expect fewer Fed rate cuts in 2025. President-elect Trump’s plans to increase tariffs on imports, primarily from China, Mexico, and Canada, are also raising inflation fears. More robust home price growth may erode demand further; October's median new home sales price was $437,300, up 2.5% from September and 4.5% higher than a year earlier.
- In the third quarter of 2024, there were about 24,000 single-family built-for-rent (SFBFR) housing starts in the US, up 41% from the same period in 2023, according to National Association of Home Builders analysis of US Census Bureau data. During the four most recent quarters, 92,000 SFBFR homes began construction, which is up 31% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current four-quarter moving average market share is about 7.5%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory, high interest rates, and downpayment requirements in the for-sale market.
- The Dodge Momentum Index (DMI) decreased by 2.3% in November 2024 to 191.5 (2000=100), down from the revised October reading of 196. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component fell 4.6%, but institutional increased 2.5%. Dodge’s associate director of forecasting, Sarah Martin, said, “Throughout 2024, we’ve seen robust growth in nonresidential planning activity – but labor shortages and high construction costs have prevented those projects from moving through the planning process at a normal pace. The current backlog may be constraining demand for commercial planning in the short-term. Uncertainty over new tariff and immigration policies under President-elect Trump’s administration may also generate some pause with developers, although it’s a bit too early to tell if that’s the primary factor here. Overall, easing monetary policy will help alleviate the backlog of projects in the planning queue throughout 2025 and spur more demand for projects in the coming months.”
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