Framing Contractors Industry Profile

The US framing contractors industry includes about 10,000 companies with combined annual revenue of about $9 billion. No major companies dominate the industry, which is highly fragmented.

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. Small companies compete based on quality service and local reputation. The industry is labor-intensive: average annual revenue per employee is about $135,000.

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 services include framing for new construction (85 percent of industry revenue) and remodeling and repair (15 percent). Single-family homes account for 65 percent of framing contractors' business.

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 roof are created by assembling framing elements, typically two-by-four or two-by-six lumber, at consistent intervals. These studs provide a stable frame to which the walls are attached. Once the studs are raised, the roof is constructed using horizontal joists, trusses, and rafters. The roof is usually formed with pre-manufactured ...