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
Nov 12, 2024 - Modular Housing Gains Market Share
- 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.
- Sales of existing US homes decreased by 1% in September from August and were down 3.5% year-over-year, according to the National Association of Realtors (NAR). The median existing home price rose 3% in September to $404,500 compared to September 2023. NAR chief economist Lawrence Yun said, “Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing. There are more inventory choices for consumers, lower mortgage rates than a year ago, and continued job additions to the economy.” Existing home sales are a demand driver for storage sheds and other prefabricated wood buildings.
- 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 expected to improve in 2024 with a gain of 4.6%, then 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.
- Modular construction – including wood-framed buildings – makes up about 45% of construction in Sweden, and some industry observers think it’s a good model for the US, according to The New York Times. Labor productivity in site-built homes has fallen by half since the late-1960s, but industrialized housing could reverse the trend. Modular buildings could also help meet housing needs amid a rising shortage of skilled labor. Modular wood buildings also can help reduce carbon emissions. About 40% of global carbon emissions are due to construction, but in Sweden construction only accounts for 20% as many buildings are made using wood, a renewable resource. Like Sweden, the US has ample supplies of timber.
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