Framing Contractors

The framing contracting industry includes over 14,000 companies with combined annual revenue of about $14 billion. This highly fragmented, local industry is composed of small, privately held companies. Over half of all framing contractors have less than five employees with average annual revenue of just over $200,000. Average annual revenue for the entire industry is about $1 million.

COMPETITIVE LANDSCAPE

Demand is driven heavily by new home construction. The profitability of individual companies depends on a steady volume of contracted work, accurate work estimation, and cost controls. Large companies have advantages in working in multiple geographies and may have relationships with high-volume production homebuilders such as Centex, Pulte, or DR Horton. Small companies compete based on quality service and local reputation. The industry is labor intensive: average annual revenue per employee is about $90,000.

The industry is defined as contractors using materials other than steel or concrete, so the work consists primarily of residential construction.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are framing services for new construction (85 percent of industry revenue) and remodeling and repair services (15 percent). Single family homes account for 77 percent of framing contractors business with multi-family units about 11 percent.

Framing is one of many steps in building a house and represents about 20 percent of the total construction cost. Framing begins once the building foundation is laid. The framing structure is bolted to the foundation with anchor bolts. The floors, walls, and ...