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 39,200 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 7-11 workers, and generates $1-3 million annually.

    • The concrete and masonry contracting industry consists of about 39,200 firms that employ 369,500 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

                              Oct 12, 2022 - Nonresidential Building Construction Outlook Improves
                              • The Dodge Momentum Index (DMI) increased 9.6% in October 2022 to 199.7 (2000=100), up from the revised September reading of 182.2. The DMI 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 increased by 13%, and institutional rose by 2.9%. An increase in office and lodging projects boosted the commercial planning pipeline. The institutional sector was mixed amid a growing pipeline of recreation and education projects, but the number of healthcare and public planning projects declined. Developers and project owners continue to see healthy demand, despite recession concerns, although continued inflation, high interest rates and materials costs, and labor shortages have the potential to blunt the flow of new projects.
                              • New single-family home sales decreased 10.9% month over month and declined 17.6% year over year in September 2022, according to the US Department of Commerce. On a year-to-date basis, new home sales were down 14.3% in the first nine months of 2022 compared to the same period in 2021. According to Freddie Mac, on November 10, 2022, the US weekly average rate on a 30-year fixed mortgage was 7.08%. A year ago, the rate was just over 3%. Industry watchers expect new home sales to remain weak as the Fed uses interest rate hikes to bring down inflation.
                              • The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the third quarter of 2022 was 77, down 10 points from the third quarter of 2021, according to an October report by the National Association of Home Builders (NAHB). In the third quarter, 23% of remodelers said conditions were worse than they were three months earlier, 10% said they were better, and 67% said they were about the same. While the RMI reading for Q3 2022 dropped from a year earlier, overall conditions remained positive amid rising home equity, durable work-from-home trends, and aging housing stock. The NAHB expects a slight uptick in remodeling activity in 2023 as new home construction continues to slow.
                              • Inflation’s impact on materials deliveries and project budgets in 2023 is top-of-mind for commercial real estate developers, according to a recent report commissioned by real estate development software firm, Northspyre. About 60% of project managers surveyed said they expect inflation will have a “moderate to major” impact on their business. More than two-thirds said they anticipate inflation will cause them to think more strategically about their purchasing decisions, and 52% plan to be more selective when purchasing materials and selecting vendors. However, inflation grew more slowly in October, which may be a source of developer optimism, according to Construction Dive. October’s consumer price index rose 0.4% compared to the prior month and 7.7% from a year earlier, down from 8.2% year-over-year growth in September.
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