Demand for carpentry services crashed in line with housing investment during the recession.
Los Angeles, CA (PRWEB) August 27, 2013
The Carpenters industry is made up of contractors that provide specialist framing carpentry services, including the construction of wooden framing and permanent foundations, wall installations and wooden beam and truss installations. Carpenters also perform finish carpentry services, such as on-site construction and the installation of doors, windows, stairs, shelving, cupboards, cabinets and decks. Most of the revenue generated by carpentry contractors is derived from subcontracting services to a prime building contractor, while other projects involve contracting directly with the client (typically the building owner, occupier or property manager). According to IBISWorld industry analyst Matthew MacFarland, carpenters face their steepest competition from unskilled do-it-yourself (DIY) homeowners in the housing alterations and additions market and from other skilled tradespeople in the new building construction market (e.g. general building contractors' staff).
The Carpenters industry has a particularly low level of market share concentration, even by comparison with other building and construction trade industries. Contractors tend to shift across to become general building contractors when they attain a significant scale and seldom continue to undertake work solely in the carpentry contracting industry. Many of the establishments in this industry are one- or two-person operations with owner/partners comprising a significant proportion of the industry's workforce.
Like many construction-related fields, the Carpenters' industry was significantly affected by the economic recession. “The collapse of the housing market in 2007 brought construction activity to a halt across most markets,” says MacFarland. “Industry revenue declined from 2007 through 2010, plunging by as much as 21.7% in 2009.” The past two years have displayed highly encouraging signs for the industry, however, with the housing market's recovery boosting industry demand. As a result of this recent growth, industry revenue only fell at an annualized rate of 0.1% over the five years to 2013. Revenue is estimated to jump 14.0% in 2013 to $43.0 billion, an almost complete recovery to its 2008 level.
IBISWorld projects industry revenue will continue to recover in the five years to 2018, underpinned by anticipated robust growth in total residential construction. Pent-up demand and better economic conditions will drive new housing construction, while lower unemployment, improved corporate profit and increased spending will also create a greater need for carpentry services in retail, office, hospitality and industrial spaces. For more information, visit IBISWorld’s Carpenters in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments primarily engaged in framing, carpentry and finishing work. The carpentry work performed includes new work, additions, alterations and maintenance and repairs. Activities performed by establishments in this industry range from the installation of doors and windows to paneling, steel framing work and ship joinery.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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