Booming Labor Alternative

Booming Labor Alternative

The prefab structural component manufacturer industry is booming, thanks in part to the lack of available labor.

In partnership with the Structural Building Components Association, we surveyed 15% of the industry volume and developed a Structural Building Components Index we will track going forward, starting with a solid 90 rating out of 100.

Here’s what we learned in our first survey:

  • Revenue has grown +18% year over year, comprised of 14% volume growth and 4% price growth.
    • Component volume grew +14% year over year, as builders increased their orders with Prefab Structural Component Manufacturers. Even though prefab is a labor shortage solution, prefab manufacturers felt constrained by lack of labor.
    • Cost per component grew only 4%, as manufacturers were not able to pass along all of the cost increases they likely experienced. This may have been partially attributable to cost overruns on projects whose prices were negotiated up front.
  • Components and equipment are hard to source. Materials, truss plates, and manufacturing equipment are in short supply. Component Manufacturers need more help from their suppliers to ramp up production.
  • Builders could have built even more homes if the prefab component industry were not hit by delays and cost overruns.

Here are 3 opportunities for more insight:

  • Industry Participant: Are you a manufacturer of structural building components? Sign up for our survey every quarter and receive the results as well as a complimentary metro-level report by contacting Chris Beard.
  • Executive Decision Maker: Need more detail? If you are an executive who wants to see the whole report every month, along with the rest of our research, email Kylie Raposa and we can make that happen quickly.
  • Industry Analyst: Want more insight for free? Follow our company on LinkedIn and Twitter, where we synthesize some of our latest report findings on housing and buildings products into actionable insights.

Congratulations to the industry for implementing solutions to build better homes with less labor.

Chris Beard If you have any questions, please contact Chris at (419) 215-1881 or by email.