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

                          Coronavirus Update

                          Nov 3, 2021 - Loss Of Jobless Benefits may Not Boost Employment
                          • Many employers hoped that termination of federal pandemic unemployment insurance in September would encourage people to look for work. Some economists warn, however, that the move may be futile because they don't think that those benefits were the driving force behind the worker shortage. The simple answer is that people can't or don't want to work at the jobs that are available, said economist Kyle Anderson. Reasons range from fear of COVID-19, child care needs at home, mismatch of skills between the worker and the job, changing career interests, and early retirement. All of that has also resulted in a smaller number of people who are working or looking for work, causing the unfilled jobs.
                          • Redecorating edged out renovating during 2020, according to the 2021 Houzz & Home report. About 55% of respondents said that they redecorated during 2020 versus 53% who said they renovated. Plans for 2021 differ, however: About 56% of Houzz’s homeowner group cited renovation versus 47% who planned to redecorate.
                          • The Q3 2021 Houzz Renovation Barometer, which tracks the residential renovation market, reveals that construction professionals were at their busiest during Q2 since the Barometer was launched in 2015. “Heightened activity is not without its challenges," said Marine Sargsyan, Houzz senior economist. "Supply chain delays, extreme weather patterns, rising product and material costs, and labor shortages create major headwinds for the industry. Specifically, more than nine in ten construction businesses report labor shortages, including carpenters, laborers, framers, cabinet specialists and plumbers."
                          • Homebuilder sentiment, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, increased to 80 in October from 76 in September, which was up from 75 in August. Sentiment is still below the 83 reading of May. A reading of more than 50 indicates a positive outlook; a reading under 50 indicates a negative outlook. Sentiment was its lowest level in 13 months in August. “Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” said NAHB Chairman Chuck Fowke.
                          • Over 44% of home improvement plans in the US have been delayed due to supply shortages and skyrocketing material costs, according to market research firm, Cardify.ai.
                          • Lumber traded at $573 per thousand board feet on November 2, down from the record high of $1,686 per thousand board feet on May 7 but up from $462.20 per thousand board feet on August 17. Lumber prices have oscillated widely during the coronavirus pandemic, falling from the mid-$400s in January 2020 to $264 in late April 2020 before surging to $948 in September. The price then dropped to $495 in late October before starting a fairly steady climb to the record set on May 7, 2021. Reduced mill production coupled with rising demand from DIY projects and ongoing construction projects is contributing to elevated lumber prices.
                          • Total construction spending decreased 0.5% in value month over month on an adjusted basis but increased 7.9% in value year over year on an unadjusted basis in September, according to the US Census Bureau. Residential construction spending decreased 0.4% month over month but increased 19.2% year over year in September. Nonresidential construction spending decreased 0.6% month over month and 1.2% year over year in September.
                          • Employment in the specialty trade contracting industry increased 2.4% year over year in September but was down 1.2% compared to September 2019.
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