Industry Analysis & Industry Trends
The Home Builders industry experienced a dramatic decline in revenue stemming from the subprime mortgage crisis, the bursting real estate bubble and the collapse of credit markets. Following the cyclical pattern of boom-and-bust that is traditional of economic cycles, improvements in the general economy will support industry growth. The industry will also benefit from improvements in housing demand, lending activity and real estate values over the five years to 2019... purchase to read more
Industry Report - Industry Investment Chapter
This industry has a low level of capital intensity since it relies on labor for the majority of industry operations and activities. The principal services provided by industry participants are project management and trade skills, neither of which have a high capital component. The industry is labor intensive, with wages accounting for about 31.7% of total industry revenue, including about 20.0% related to subcontractor costs.
A key measure of an industry's capital intensity is the ratio of labor costs (i.e. employee compensation) to depreciation charges because it indicates the amount of industry revenue absorbed by labor inputs and capital inputs. Industry depreciation charges account for only about 1.0% of industry revenue over the long term... purchase to read more