Steel Framing
Industry: Steel Framing
Naics: 238120
Private Company Multiples
Industry Overview
The Steel Framing industry has faced significant challenges over the past five years. Industry revenue has declined at a 1.0% CAGR, reaching $22.5 billion in 2024, with a modest 0.6% increase in that year.
The industry's performance is closely tied to macroeconomic trends and relies heavily on a broad range of downstream demand. Steel framing companies' success fluctuates with the value of both residential and non-residential construction.
In the five years to 2024, nonresidential construction was initially impacted by the pandemic but later recovered due to rising corporate profits. Conversely, residential construction performed well for most of the period until recently, when high interest rates discouraged investment.
Profit has been volatile during this period due to fluctuating demand from the construction market and unstable steel prices, creating an uncertain operating environment.
Looking ahead, falling interest rates and more stable steel prices are expected to have mixed effects on industry performance. Construction markets are projected to return to growth, while slightly rising steel prices will likely contribute to increased steel framing revenue as contractors can raise prices.
Industry revenue is forecast to grow at a 1.2% CAGR, reaching $23.9 billion by 2029.
Key Financial Metrics
Income Statement Benchmark
