Spruced up: The industry will grow as construction markets regain their prerecessionary strength

Despite some up-and-down performances, the residential construction market followed an overall trend of recovery over the five years to 2017. While demand from nonresidential construction clients has fared poorly in recent years, rising housing starts are expected to boost industry revenue. Moving forward, industry revenue will continue to grow, but at a much slower rate. With falling unemployment and a brighter outlook ahead, developers and individuals alike will once again be willing to invest in new units. However, potential further increases in the interest rate, with the 30-year mortgage expected to increase, may potentially erode new home affordability and dampen demand for housing starts...read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 12-17
7.0%
Forecast Growth 17-22
Profit
Employment
144,013
Businesses
80,337
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Revenue and profit margins have fluctuated with volatile demand from residential and nonresidential construction markets
  • Although the industry posted strong growth, there was a lag in new companies and employment
  • Corporate profit growth is expected to boost demand for industry services
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the Wood Framing industry are consistent with those of other specialist construction trades. Mainly, to operate in this industry, new entrants must have a working knowledge of local building codes and regulations to prevent malpractice. Oftentimes, local building codes are designed to conform to conventional construction provisions; however, local authorities are increasingly demanding more stringent structural designs. These codes can vary depending on local factors, including weather and seismic activity.The high level of competition serves as the main deterrent for new entrants in the Wood Framing industry. Wit...purchase to read more.

    Additional Insights for the Wood Framing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wood Framing Industry are

  • Having a good reputation
  • Ability to compete on tender
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Wood Framing industry impact industry performance..

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    What is the Wood Framing Industry?

    This industry comprises establishments engaged in platform and balloon framing, fastenings, foundation laying, truss-framed and plank and beam construction, using wood-based products. Contracted work typically includes new construction, alterations, maintenance and repairs and additions. This industry excludes finish carpentry and framing using steel, precast concrete or nonwood products.

    Industry Products
  • Floor framing
  • Structural wall framing
  • Nonstructural wall framing
  • Roof framing
  • Stair framing
  • Front porch framing
  • Industry Activities
  • Constructing and installing balloon frames
  • Constructing and installing platform frames
  • Constructing and installing truss frames
  • Constructing and installing roof and ceiling frames
  • Constructing and installing plank and beam frames
  • Constructing and installing floor framing
  • Constructing and installing exterior and interior wall frames
  • Fireproofing concealed spaces in wood framing
  • Installing footings to support foundations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of private nonresidential construction
  • Value of residential construction
  • year conventional mortgage rate
  • Price of sawmill lumber

  • Current Performance
  • Revival of residential construction activity
  • Input prices and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing expectations
  • Moderate nonresidential construction
  • Industry operations
  • Table: Wood Framing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Framing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Home Builders
  • Apartment & Condominium Construction
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Finance and Insurance
  • Heavy Equipment Rental
  • Industrial Machinery & Equipment Wholesaling
  • Lumber Wholesaling

  • Products & Services
  • Structural wall framing
  • Front porch framing
  • Roof framing
  • Floor framing
  • Nonstructural wall framing
  • Stair framing
  • Chart: Wood Framing Industry Products and Services Segmentation

  • Demand Determinants
  • Demand from the residential building market
  • Substitute products

  • Major Markets
  • Single-family houses, detached
  • Multifamily units
  • All other buildings
  • Single-family houses, attached
  • Stores, restaurants and other commercial buildings
  • Educational buildings
  • Office buildings
  • Farm buildings
  • Chart: Major Market Segmentation for the Wood Framing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Wood Framing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wood Framing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Framing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wood Framing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Center
  • refers to the space between two vertical beams
  • Joist
  • A horizontal support that runs between foundations, beams, floors and walls.
  • Top Plate
  • a horizontal unit connecting vertical beams on the top
  • Trusse
  • Structure with five or more triangle-shaped wooden pieces that bear weight.
  • Why buy this report?

    The Wood Framing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wood Framing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wood Framing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wood Framing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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