Finish Carpentry Contractors

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 30,200 finish carpentry contractors in the US build and install specialty carpentry products used to finish buildings. Services include the installation of cabinets, countertops, doors, windows, door and window frames, garage doors, millwork, molding, trim, paneling, decks, shelving, and stairs. Projects include work on single-family homes, commercial buildings (stores, restaurants), office buildings, apartment buildings, health care and institutional buildings, and educational buildings. Most firms are small, independent operators that serve a local market.

Seasonality Of Demand

The volume of work for finish carpentry contractors varies throughout the year and is influenced by seasonal factors.

Dependence On General Contractors

Finish carpentry contractors are often part of a team of specialty contractors hired by a general contractor.

Industry size & Structure

The average finish carpentry contractor operates out of a single location, employs 4-5 workers, and generates about $912,000 annually.

    • The finish carpentry industry consists of 30,200 establishments that employ 140,100 workers and generate $27 billion annually.
    • The industry is highly fragmented. Most firms are small, independent operators that serve a local market.
    • About 26% of carpenters are self-employed, according the Bureau of Labor Statistics. Most self-employed carpenters work in residential construction.
                          Industry Forecast
                          Finish Carpentry Contractors Industry Growth
                          Source: Vertical IQ and Inforum

                          Coronavirus Update

                          May 11, 2022 - Homebuilder Sentiments Drops
                          • Homebuilder sentiment, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, decreased to 77 in April 2022 from 79 in March, marking the fourth consecutive monthly decline. Higher materials costs and rapidly rising interest rates are making housing less affordable, which is weighing on builder confidence. Builders report that sales traffic and current sales conditions are at their lowest levels since summer 2021. Higher mortgage rates and supply chain disruptions have unsettled the US housing market, especially for potential first-time homebuyers.
                          • Lumber traded at $918 per thousand board feet on May 2, 2022, down significantly from the record high of $1,686 per thousand board feet on May 7, 2021, but well above pre-pandemic levels. Lumber prices may continue to moderate as the housing market cools due to high home prices and rising interest rates.
                          • Rapidly rising home prices have increased homeowner equity which is expected to boost residential remodeling spending through 2022, according to the Leading Indicator of Remodeling Activity (LIRA) report released in April 2022 by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 15.8% year over year to $406 billion in the second quarter of 2022. On a year-over-year basis, Q3 remodeling spending levels are forecast to rise 19.7%, then drop slightly to 17% growth in Q4. Year-over-year growth will slip further in Q1 2023 to 15.1%. Home improvement spending is projected to taper off beginning in the third quarter of 2022 amid rising financing, materials, and labor costs and concerns about a possible economic slowdown.
                          • Total construction spending increased 0.1% in value month over month on an adjusted basis and 11.8% in value year over year on an unadjusted basis in March 2022, according to the US Census Bureau. Residential construction spending increased 1% month over month and 17.8% year over year in March. Nonresidential construction spending declined 0.8% month over month and increased 5.8% year over year in March.
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