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
Sep 11, 2024 - Existing Home Sales Rise
- Sales of existing US homes increased by 1.3% in July from June but were down 2.5% year-over-year, according to the National Association of Realtors (NAR). The July rise followed four consecutive months of declines. The median home price rose 4.2% in June to $422,600. NAR chief economist Lawrence Yun said, "Despite the modest gain, home sales are still sluggish. But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates." Existing home sales are a demand driver for storage sheds and other prefabricated wood buildings.
- Lower lumber prices combined with higher producer prices for prefabricated wood buildings could indicate that manufacturers of prefabricated wood buildings margins are in a healthy position. US commodity prices for softwood lumber were down 1.8% in July compared to June and were 13.1% lower than they were in July 2023. Producer prices for prefabricated wood buildings increased 0.7% in July compared to the same period a year earlier.
- 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.
- The prefabricated wood building manufacturing industry is expected to return to stronger sales growth in 2025 after sluggish performance in 2023 and 2024. The industry’s year-over-year sales growth slowed to 1.3% growth in 2023 after a rise of 10.2% 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 slightly in 2024 with a gain of 2.7%, then see average annual growth of about 4.6% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
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