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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Oct 8, 2024 - Oversupply Curbs Life Sciences Construction
                              • According to a recent trend report by CBRE, developers are pulling back on new life sciences projects amid a glut of new supply coming online. Demand for life sciences lab and research space boomed during the pandemic, but speculative project demand has since slowed. About 72% of life sciences space currently under construction remains unleased. New life sciences space under construction peaked in the second quarter of 2023 at about 40 million square feet but fell to 21.2 million square feet in Q2 2024. A separate report by Gartner suggests development of life sciences space is also pressured by rising costs, which are up about 20% to 25% compared to pre-pandemic levels. Lead times for specialty lab equipment have also increased by about 10 to 20 weeks over the same period.
                              • The Dodge Momentum Index (DMI) decreased by 4.2% in September 2024 to 208.6 (2000=100), down from the revised August reading of 217.7. 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 institutional planning component improved by 5.2% in September, but commercial planning declined by 7.8%. Dodge’s associate director of forecasting, Sarah Martin, said, “Despite this month’s decline, the Dodge Momentum Index remains at very robust levels. A surge in data center activity drove much of the recent rapid growth in the DMI – so as planning for that sector moderated over the month, overall commercial planning fell back. By mid-2025, the Fed’s rate cuts should spur planning projects to reach groundbreaking more quickly – leading to stronger nonresidential activity as 2025 progresses.”
                              • Developers are feeling more optimistic about construction conditions, which may be leading to fewer project abandonments, according to recent data from ConstructionConnect. In September 2024, project abandonments fell 49.8% compared to the same period a year earlier. Abandoned projects are those that have a delayed bid date, been paused, or have been cancelled. Within the private sector, project abandonments fell 9.4% in September 2024 compared to September 2023, projects put on hold dropped 6.8%, and delayed bid activity was flat with a 0.1% decline. Public projects saw a 17.6% year-over-year drop in projects put on hold in September, and abandonments fell 5.5%. Developers are likely feeling more optimistic after the Federal Reserve cut interest rates by 0.5 percentage points on September 18.
                              • The percentage of new homes that have patios continues to climb, according to National Association of Home Builders analysis of Census Bureau Data. In 2023, 63.7% of new single-family US homes came with patios, which marked the eighth year in a row when the share of new homes with patios hit a record high. Fewer homes featured patios during the housing downturn between 2008 and 2011, but patios have since been on the rise. However, patios tend to have greater appeal based on region. In 2023, the West South Central region had the greatest share of new homes with patios at 81%, followed by South Atlantic (72%), Mountain (69%), East South Central (57%), and West North Central (47%). Patios are least common in New England (17% of new homes in 2023) and the Middle Atlantic region (20%).
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