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 39,120 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 8-12 workers, and generates $1-3 million annually.

    • The concrete and masonry contracting industry consists of about 39,120 firms that employ 390,800 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 Construction Group.
    • Large masonry contracting companies include Western Specialty Contractors, McGee Brothers, and Sun Valley Masonry.
                              Industry Forecast
                              Concrete & Masonry Contractors Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              May 8, 2023 - Construction Markets Mixed
                              • North American construction spending is set to decline by 1% in 2023 compared to 11% growth in 2022, according to FMI’s second-quarter 2023 North American Engineering and Construction Outlook. However, spending will be mixed among several construction segments. Higher interest rates and a potential recession are forecast to reduce single-family residential construction spending to 0% growth or lower in 2023. The single-family market is projected to remain weak through 2026. However, several nonresidential segments are projected to see spending growth of 10% or more in 2023, including lodging, commercial, and manufacturing. Other segments will experience spending growth of 5% or more, including multifamily, office, healthcare, amusement and recreation, manufacturing, highway and street, sewage and waste disposal, and water supply. Spending growth will be between flat and 4% for education, religious, communication, power, and public safety.
                              • The Dodge Momentum Index (DMI) decreased 5.1% in April 2023 to 180.9 (2000=100), down from the revised March reading of 190.6. 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 dropped by 8%, and institutional rose by 0.3%. Commercial planning weakened across several segments, including office, retail, and hotel projects. In the institutional sector, healthcare and amusement gains were largely offset by slower planning growth for education projects. Dodge’s associate director of forecasting said, “On par with our expectations, the Dodge Momentum Index continued to recede in April due to declining economic conditions and ongoing banking uncertainty. Weaker commercial planning is driving the DMI’s decline, as it is more exposed to real-time economic changes than the largely publicly funded institutional segment.”
                              • Top tech firms Amazon, Google, and Microsoft are expected to ramp up their spending on data center development in the race to be the leader in artificial intelligence (AI), according to Bisnow. After ChatGBT was introduced late in 2022, big tech firms are making significant investments to bring generative AI technology into their products. They also want to offer AI-enabled cloud infrastructure to their customers. The enormous computing power needed to develop and operate generative AI products is well beyond the capabilities of traditional cloud offerings. To support the burgeoning AI economy, the tech giants are jockeying for land near inexpensive sources of electricity to build new data centers despite layoffs and cutbacks in other areas of their businesses.
                              • Tight existing home inventories continue to push buyers into the new home market, which helped move home builder confidence higher in April, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 45 in April 2022, although the HMI remained in bearish territory. Any HMI reading over 50 indicates that more builders see conditions as good than poor. About a third of the currently available housing inventory is new construction, compared to a historical norm of about 10%. Buyers are also drawn to the new-home market by builder sales incentives, and the average home price reduction in April was 6%. The NAHB said that while acquisition, development, and construction (AD&C) lending conditions have tightened, there are not yet significant signs that volatility in the regional banking market has worsened conditions for home builders and land developers.
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