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 9, 2024 - Industry Growth to Rebound in 2025
                              • Sales growth in the commercial building contractor industry is expected to bounce back after sluggish demand in 2023 and 2024. The industry’s year-over-year sales increased by 7.5% in 2022, then slowed to 2.4% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to drop to 2% in 2024, then rise 6.4% in 2025. The industry will then see solid and steady average annual growth of about 6.3% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
                              • The Dodge Momentum Index (DMI) increased 6.1% in April 2024 to 173.9 (2000=100), up from the revised March reading of 164.0. 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 improved by 12.6%, but institutional declined by 6.3%. Dodge’s associate director of forecasting, Sarah Martin, said, “The Dodge Momentum Index (DMI) saw positive progress in April, alongside a deluge of data center projects that entered the planning stage. Outsized demand to build Cloud and AI infrastructure is supporting above-average activity in the sector. Most other categories, however, faced slower growth over the month. Across these industries, it’s likely that owners and developers are grappling with uncertainty around interest rates and lending standards, thus delaying their decisions to push projects into the planning queue. If interest rates begin to tick down in the latter half of 2024, more substantive growth in nonresidential planning activity should follow.”
                              • On May 2, the average fixed-rate for a 30-year mortgage rose to 7.22%, marking the fifth consecutive week that rates have crept higher, according to Freddie Mac. The spate of weekly interest rate increases came amid the spring home-buying season. Freddie Mac says one-third of annual home sales occur between March and June. Freddie Mac also noted that some buyers may have adjusted to the higher-rate environment, as recently released data suggest that pending home sales were at their highest level in a year. However, the National Association of Homebuilders (NAHB) estimates that if the average fixed-rate for a 30-year mortgage had remained at levels last seen in February 2023 (under 6.25%), an additional 4.5 million US households would be able to afford a median-priced new home.
                              • Home remodeling spending is expected to continue to soften in 2024, but the rate of the slowdown will moderate by the first quarter of 2025, according to the Leading Indicator of Remodeling Activity (LIRA) report released in October by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to decrease by 3.4% to $468 billion in the second quarter of 2024 compared to Q2 2023. In the third quarter of 2024, remodeling spending will drop quarter-over-quarter to $453 billion, down 7.4% from Q3 2023. Spending will then decline to $449 billion in Q4 2024, down 6.6% from Q4 2023. In the first quarter of 2025, year-over-year spending is forecast to drop 2.6% to $451 billion. While the remodeling market is cooling compared to the highs seen during the pandemic, the Joint Center expects improvements will be supported by a stabilizing housing market, improved materials costs, and the rising age of US housing stock.
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