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 570 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 35 workers, and generates about $11 million annually.

    • The prefabricated wood building manufacturing industry consists of about 570 companies which employ about 20,000 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 14, 2024 - Existing Home Sales Improve
                                  • Sales of existing US homes increased by 3% in January from December but were down 1.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand. Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year." Existing home sales are a demand driver for prefabricated wood buildings, such as sheds.
                                  • To cope with housing shortages and a lack of affordability, many municipalities are changing their zoning rules to encourage more housing development, according to NPR. Cities find their zoning rules rigid and outdated, making building new housing stock difficult and expensive. Some cities are changing their rules to allow more multifamily developments, including townhomes and apartments, and permitting accessory dwelling units (ADUs), which add a secondary structure on one lot. Some cities have also reduced lot-size requirements, encouraging greater density and the number of available housing units. Allowing more ADUs could increase demand for prefabricated wood dwellings.
                                  • Home sizes increased during the pandemic as families sought more space, and interest rates were near record lows. As interest rates have risen and homes have become less affordable, the trend is reversing, and homes are getting smaller, according to National Association of Home Builders (NAHB) analysis of Census Bureau data. In the fourth quarter of 2023, the median single-family home square footage was 2,156, which is the lowest since 2010. The NAHB suggests that smaller home sizes will likely persist amid continued affordability issues. Smaller home sizes could reduce storage space and help drive demand for prefabricated sheds and other outbuildings.
                                  • Prefabricated single-family homes (modular and panelized) accounted for just 2% of total single-family home sales in 2022, according to a recent analysis of Census Bureau Survey of Construction data by the National Association of Home Builders (NAHB). Market share for prefabricated homes has been falling in recent years despite high-level consumer interest. While low market share suggests there is plenty of room for future growth, the prefabricated home market peaked in 1998 with a market share of 7%. Prefabricated structures accounted for 2% of multifamily buildings in 2022.
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