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

                              Nov 9, 2023 - Nonresidential Projects Drive Construction Spending Growth
                              • Nonresidential and residential construction spending have posted steady growth in 2023. However, while nonresidential spending was up year-over-year in mid-2023, residential spending was down over the same period as high interest rates and home prices have curbed demand. Employment growth for concrete and masonry contractors was up slightly in Q3 2023 compared to a year earlier. Amid competition for skilled workers, concrete and masonry wages have been rising steadily in 2023. However, producer prices for concrete and masonry contractors have flattened in recent months, which could pinch margins as wage and other costs have risen.
                              • North American engineering and construction spending is forecast to rise by 5% in 2023 compared to the 12% growth seen in 2022, according to FMI’s fourth-quarter 2023 North American Engineering and Construction Outlook. Overall growth in 2023 will be supported by double-digit gains in key segments, including manufacturing (up 58%), multifamily (+18%), and lodging (+16%). Other segments expected to post strong growth include healthcare (+9%), public safety (+9%), amusement & recreation (+8%), educational (+8%), office (+8%), transportation (7%), and commercial (+6%).
                              • The total value of construction put in place increased by 0.4% in September 2023 compared to the prior month, according to the US Census Bureau. Spending for nonresidential projects increased 0.3%, and residential spending rose 0.6%. Within the nonresidential segment, spending growth was led by educational projects, with an increase of 1.8% in September compared to August, followed by amusement and recreation (+1.3%), conservation and development (+1.3%), and power (+0.9%). In commenting on September construction spending, Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “While some private categories, including power, commercial and amusement and recreation saw healthy month-over-month increases, publicly financed construction accounted for more than 72% of September’s rise. Given increased federal infrastructure spending and exorbitant financing costs for private construction, that dynamic should remain firmly in place over the coming months.”
                              • Construction starts for apartment buildings are declining amid high interest rates, tight lending standards, stagnant rent growth, and signs of overbuilding in some markets, according to The Wall Street Journal. In August 2023, the multifamily sector added 334,000 fewer new units compared to a year earlier, according to the US Census Bureau. Some forecasts suggest that more new apartments are set to come online in 2023 and 2024 than at any time since the 1980s. The wave of new multifamily space is driving up vacancy rates and putting downward pressure on rent growth. Meanwhile, banks have cut back on lending to help support their distressed loan portfolios and have increased interest rates on the construction loans they approve.
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