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 fewer than 20 workers, and generates about $7-8 million annually.

    • The prefabricated wood building manufacturing industry consists of about 570 companies which employ about 19,000 workers and generate about $4.4 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 10, 2023 - Modular Homebuilders Help Communities Combat Homelessness
                                  • Some prefabricated wood building manufacturers are helping communities by providing safe, affordable shelters to house people experiencing homelessness. California-based Connect Homes is a modular home builder that has branched out to offer factory-made housing for the homeless through contracts with municipalities, according to Business Insider. California helps fund such programs through its $3.75 billion Homekey program, which works to expand affordable housing options and temporary shelter for the unhoused. Pallet Shelter, based in Washington, is a public benefit corporation that specializes in building modular shelter pods for the homeless, according to Building Design & Construction. Since its founding, Pallet has delivered 2,800 shelter pods to more than 60 cities in 16 states.
                                  • Prefabricated wood building manufacturers may enjoy better margins as lumber prices continue to drop compared to the record highs seen during the pandemic. In early March, lumber futures were trading around $411 per thousand board feet compared to about $454 a month earlier. In March 2022, lumber futures traded at $1,195 per thousand board feet. High interest rates have pushed up mortgage costs which have had a cooling effect on the US homebuilding industry and have reduced lumber demand and pricing. Some industry watchers note that when lumber prices fall, producers typically curtail production to push prices back up, according to
                                  • In January, the World Economic Forum released a statement touting the benefits of sustainable timber building, including pre-fabricated timber homes. Trees absorb large amounts of carbon, which stays stored even when trees are cut down and made into wood. Mass-timber construction can capture the same amount of carbon that is emitted by the building of an equivalent-sized structure made with traditional steel and concrete materials. Experts suggest that while mass-timber construction has not yet reached parity with concrete and steel in terms of economies of scale, it is getting close for buildings between six and 10 stories.
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