Framing 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 12,200 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.
Industry size & Structure
The average framing contractor operates out of a single location, employs 7 workers, and generates about $1.4 million annually.
- The framing contracting industry consists of about 12,200 establishments that employ about 83,500 workers and generate about $16.6 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 20.5% 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 (18.4%).
Industry Forecast
Framing Contractors Industry Growth
Recent Developments
Jul 8, 2024 - Social Media Influencers Boost Interest in Skilled Trades
- Some young workers in the skilled trades are finding a wide following for their social media posts that chronicle their day-to-day activities on the job site, according to The Wall Street Journal. Interest in the skilled trades among Gen Z is growing as many younger workers look for employment that doesn’t involve taking on large amounts of debt and offers competitive wages. In 2023, enrollment in vocation-focused community colleges increased by 16%, marking the highest level since the National Student Clearinghouse began tracking the metric. For many younger job seekers, skilled tradespeople posting about their work on social media sites is their first exposure to the trades, and construction insiders report that such posts can help in recruitment.
- Mortgage rates fell slightly in June 2024 but remained elevated, according to Freddie Mac. The average 30-year fixed-rate mortgage was 6.92% in June compared to 7.06% in May. Despite the slight monthly drop, average mortgage rates remain 21 basis points higher than a year earlier, keeping many would-be homebuyers on the sidelines of the housing market. By the end of 2024, the National Association of Home Builders (NAHB) expects the 30-year mortgage rate to fall to about 6.66% and further moderate to just under 6% by the end of 2025. The NAHB also projects that the Federal Reserve will cut the federal funds rate by 25 basis points at its meeting in December 2024 and that the Fed will cut rates an additional six times in 2025.
- New single-family home sales fell 11.3% month-over-month and 16.5% year-over-year in May 2024, according to the US Department of Commerce. May new home sales saw the sharpest monthly decline since September 2022 as elevated interest rates and high home prices depressed demand. The median US home price in May was $417,400, up 3.2% from April and 4.9% higher than May 2023.
- The recent What Home Buyers Really Want Study by the National Association of Home Builders offers insight into the type of community homebuyers would prefer to live in. The study showed that survey respondents most valued three key community attributes: convenience, walkability, and a suburban feel. The most highly ranked community feature was proximity to retail space (70% of respondents), followed by near a park (66%), walking/running trails (66%), a walkable community (65%), and a suburban feel (64%).
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