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
Mar 7, 2025 - White House Begins Investigation of Canadian Lumber Imports
- Trade strife threatens to increase lumber prices, which could pinch framing contractor margins if they can’t be passed on to home builders. On March 1, the Trump administration initiated an investigation into whether US imports of Canadian lumber posed a national security threat, according to The New York Times. The inquiry could enable President Trump to enact fresh tariffs on lumber imports from Canada on top of a 25% tariff on all Canadian imports that went into effect on March 4. The White House claims the US has the timber resources to be self-sufficient in its lumber needs, but US sawmills can’t compete with imports dumped unfairly on the US market. Industry observers suggest that lumber prices will likely rise if increased lumber supply can’t offset the tariffs. White House officials said lumber supply is a national security issue because the US military is a significant lumber consumer.
- Raids by Immigration and Customs Enforcement (ICE) are prompting some foreign-born workers to stay home from their workplaces, disrupting key industries that rely on migrant workforces, including construction, according to The Wall Street Journal. The Trump administration has said that while it is focusing on undocumented people with criminal backgrounds, anyone in the country illegally faces increased risk. According to an analysis of US Census Bureau data by the American Immigration Council, undocumented immigrants make up about 14% of the US construction sector’s workforce. The Associated General Contractors of America said it had received anecdotal reports of rising absenteeism from member firms in several locations, including Florida, Georgia, Oklahoma, and Texas. Labor disruptions reduce construction firms’ ability to deliver projects on time.
- Home builder confidence in the single-family market moved lower in January 2025 amid rising tariff concerns and high mortgage rates and home prices, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell five points to 42 in February from 47 the previous month. Any HMI reading over 50 indicates that more builders see conditions as good than poor. Builders are concerned that tariffs on imports from Mexico and Canada could increase costs. Builders have relied on price cuts to attract buyers, but the strategy may be weakening as high interest rates keep more would-be buyers on the sideline. In February, 26% of builders said they cut prices compared to 30% who did so in January.
- The total value of nonresidential building construction starts decreased 18% in January 2025 from December, according to Dodge Construction Network. Commercial starts fell 41% amid weak office and hotel construction starts. An uptick in healthcare and recreational projects helped drive a 4% rise in institutional starts, while manufacturing starts were down 16%. January’s nonresidential building starts were off by 22% compared to a year earlier. Dodge’s associate director of forecasting Sarah Martin said, “After robust data center starts in November and December, total office starts fell back in January to more historically typical levels and drove a sizable piece of the month-to-month decline. However, most nonresidential sectors saw weakness over the month. Ongoing labor shortages and high material costs will continue to pose risks to the sector, along with concerns over tariffs and stricter immigration enforcement. Projects are likely to continue moving through the planning queue slowly, until the Federal Reserve resumes cutting rates in the back half of the year.”
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