Prefabricated Wood Building Manufacturers
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 600 prefabricated wood building manufacturers in the US produce modular homes and commercial building units, log cabins, detached garages, sheds, sauna rooms, gazebos, wooden geodesic domes, and farm buildings such as barns, chicken coops and corn cribs. This industry does not include mobile home manufacturers, although some modular building manufactures also offer mobile homes and park models.
Variable Building Material Prices
Prefabricated wood building manufacturers rely on supplies of lumber, particle board, drywall, electrical wiring, plumbing fixtures, windows and doors, roofing and siding materials, insulation, flooring materials, cabinets, paint, and hardware.
Demand for Affordable Housing
Firms stand to benefit by working with land developers, lenders, and the government in creating affordable housing projects.
Industry size & Structure
A typical prefabricated wood building manufacturing firm operates out of a single location, employs about 37 workers, and generates about $11 million annually.
- The prefabricated wood building manufacturing industry consists of about 600 companies which employ about 22,000 workers and generate about $6.5 billion annually.
- Just 50 firms have 100 or more workers.
- The industry is somewhat concentrated: the 20 largest firms represent just 3.5% of the total number of firms but they control 59% of industry revenue.
- Large companies include Skyline Champion (modular homes), Southland Log Homes, Backyard Products (sheds, gazebos), Country Carpenters (barns and sheds), and JDM Structures (barns and sheds).
Industry Forecast
Prefabricated Wood Building Manufacturers Industry Growth
Recent Developments
Jan 10, 2025 - Largest US Apartment Operator Opens Modular Complex
- In December 2024, Greystar Real Estate Partners – the largest apartment owner in the country – opened a six-building, 312-unit complex assembled using modular construction methods, according to The Wall Street Journal. The development – called “Ltd. Findlay” – near Pittsburgh is Greystar’s first modular apartment project, as the company hopes the alternative method can speed construction in an industry often mired by delays. The project was built at Greystar’s factory in Knox, Pennsylvania, and the firm has six other modular projects in the works. Modular housing is built in factories and assembled on-site, which proponents suggest reduces construction time and labor and materials costs. While modular housing remains a small part of the overall market, it is gaining ground amid a shrinking construction labor force and rising costs.
- In the second week of January 2025, commodity prices for lumber – a key input for manufacturers of prefabricated wood buildings – were about $557 per thousand board feet - essentially unchanged from a month earlier, according to Trading Economics. Lumber prices were also flat on a year-over-year basis. Over the last year, commodity prices for lumber have seen some volatility as they rose as high as $606 in March or fell as low as $438 in July. A sluggish housing market and global economic uncertainty have kept lumber prices in check. These factors are expected to maintain downward pressure on lumber pricing despite potential tariffs and trade strife.
- Prefabricated wood building manufacturing industry revenue growth is expected to moderate in 2025 after a sluggish performance in 2023 and steadier gains in 2024. The industry’s year-over-year sales growth slowed to -1.4% growth in 2023 after a rise of 10.1% in 2022, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth in the prefabricated wood building manufacturing industry is estimated to have improved in 2024 with a gain of 4.6%, and is projected to slow slightly to 4% in 2025 before posting average annual growth of about 4.6% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In 2023, the total market share for new modular housing and panelized single-family homes increased slightly to 3% of all new single-family homes, according to recent National Association of Home Builders (NAHB) analysis of Census Bureau data. In 2022, modular housing and panelized single-family homes held a 2% share of the total new single-family home market. However, modular housing and panelized single-family home market share has been declining over time. In 1998, single-family modular homes held a 4% market share, and panelized homes had a 3% share. Despite the weak market share in recent years, there is the potential for more modular and panelized single-family housing demand amid the lack of productivity in the residential construction sector. In 2023, about 7% of multifamily buildings were constructed with modular and panelized methods, up from 2% in 2022, which marked the biggest jump in two decades.
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