Framing Contractors

The 12,500 framing contractors in the US erect the structural framing and sheathing in buildings, using primarily wood. Single family homes account for 49% of industry sales. Other types of projects include apartment buildings and commercial buildings (stores, restaurants, gas stations, parking garages).

Vulnerability to Trends in the Housing Market

The framing contracting industry is primarily dependent on upstream demand from the residential construction industry, which is cyclical and sensitive to economic conditions.

Dependence on Skilled Labor

Framing contractors rely on a skilled labor force willing to perform physically demanding work in all types of weather conditions.

Sep 8, 2026 - Construction Spending Remains Weak

• The total value of construction put in place fell 0.5% in July 2026 compared to June, according to the US Census Bureau. Spending for most types of nonresidential structures was weak in July. Office projects, which include data centers, saw the strongest growth with a 2.9% rise in July over June, followed by communication (+0.4%) and public safety (+0.1%). Educational and healthcare project spending declined by 0.4% and 0.5%, respectively, while amusement and recreation spending dropped by 0.3%. Commercial and lodging spending were both flat, and manufacturing spending was down 1%. Private residential construction spending was down 1.3% in July as single-family spending dropped 3.2% and multifamily rose 0.2%. The Associated General Contractors of America (AGC) said three segments are propping up the construction sector: data centers, power projects, and highways. However, the AGC suggests these three areas are under pressure from labor shortages, political headwinds, and a lapse in highway funding.
• The US industrial real estate market remains active, but new development faces shifting demand, rising vacancies, and growing resistance to data center construction, according to a recent report by Yardi Matrix. National industrial rents rose 5.4% year over year in July, while vacancy reached 9.3% as the market continued adjusting to a recent supply wave. About 427.6 million square feet of industrial space was under construction, and Yardi Matrix expects 2026 starts to increase for a second consecutive year. However, state and local opposition to data centers could delay or cancel some large projects. For framing contractors, continued industrial construction could support demand for interior framing, partitions, and structural framing work, while project delays or cancellations would reduce bidding opportunities in affected markets.
• The Wall Street Journal reports that investors are increasingly buying aging hotels that need renovations as property prices fall and new hotel construction slows. According to MSCI data cited by the Journal, US hotel sales rose 28% in the first half of 2026 compared with a year earlier. Lower borrowing costs, improving hotel revenue, and discounted property prices are helping attract buyers, while major hotel brands are becoming more aggressive about enforcing renovation requirements. Many owners have delayed upgrades because of debt burdens and limited cash. Increased hotel renovation activity could support demand for framing contractors on projects involving reconfigured guest rooms, expanded common areas, new partitions, and other structural interior improvements. New hotel room supply is growing just 0.5% this year, well below the historical average of 1.6%, making acquisitions and renovations more attractive than new development.
• Fitch Ratings lowered its 2026 outlooks for US homebuilding and North American building products to deteriorating, citing weak affordability, mortgage rates near 6.5%, soft consumer sentiment, and slower housing turnover. Fitch expects new home sales to fall 2.5% in 2026, single-family starts to decline 4.5%, and remodeling demand to remain constrained, especially for big-ticket discretionary projects. The slowdown could reduce demand for new construction, renovations, and resale-driven upgrades in the hardware, plumbing, and HVAC equipment markets. However, repair, maintenance, and nondiscretionary categories, including plumbing repair, roofing repair, coatings, HVAC replacement parts, and essential equipment, should prove more resilient. Distributors may face lower volumes, margin pressure from inflation, and cautious customer spending, partly offset by nonresidential activity in data centers and power infrastructure.

Industry size & Structure

The average framing contractor operates out of a single location, employs 7 workers, and generates about $2.1 million annually.

• The framing contracting industry consists of about 12,500 establishments that employ about 85,100 workers and generate about $26.3 billion annually.
• The industry is fragmented. Most firms are small, independent operators; over 70% of firms generate less than $500,000 annually.
• The framing stage accounts for 16.6% of construction costs, the second highest cost category, after interior finishes, according to the National Association of Home Builders (NAHB). Of the detailed items in new home construction, framing and trusses accounted for the largest share of costs (13.6%).