SIC 2452 Prefabricated Wood Buildings and Components

SIC 2452

Companies that primarily make prefabricated wood buildings, sections, and panels make up the prefabricated wood buildings and components industry. Manufactured and mobile homes delivered to a site are not part of this industry. Companies that assemble panels and components on-site are classified in various construction sectors.

NAICS CODE(S)

321992

Prefabricated Wood Building Manufacturing

INDUSTRY SNAPSHOT

The prefabricated wood components industry includes many products, including pre-made panels and sections for chicken coops, farm buildings, geodesic domes, marinas, sauna rooms, hotel rooms, and decks. The industry is fragmented and entrepreneurial and is represented by a wide range of companies.

By far the biggest segments of this industry are modular single-family homes, multifamily units, and institutional buildings including hotels and motels, schools, hospitals, and prisons. In 2005 the total value of U.S. shipments surpassed $530 million, according to the U.S. Census Bureau. With a strong economy pushing construction booms in both residential and nonresidential building, prefabricated wood buildings and components manufacturers experienced steady growth in many areas, most notably in larger, upscale homes and upscale log homes. Apart from the economy, factors influencing the growth of this industry included the availability of wood, cost comparison with other alternative materials, such as metal and cement, advancements in design technology, and a move toward smaller classroom sizes in education. A more accepting attitude toward prefabricated wood buildings and components—the result of improvements in quality and flexibility—also was a key factor in driving sales for this industry.

ORGANIZATION AND STRUCTURE

The advantage of prefabricated wood building products is that they save builders money. Because large pieces of the structure come from a factory and are designed for quick and easy assembly on-site, builders reduce on-site costs, such as labor, workers' compensation, and insurance. Assembly-line production also allows prefab manufacturers greater quality control.

The largest segment of the prefab wood products industry is single-family homes. Homes built using prefab units are called component, or prefabricated, housing. Typical prefab housing products include roof trusses, wall frames, and floors. Many builders also use pre-made wall units complete with insulation, plumbing, wiring, ventilation systems, and doors.

Builders of both detached and attached homes with prefab products use a systems approach to building, which is a hybrid of site-built and manufactured housing. The four types of systems-built housing include precut homes, for which all lumber and materials come to the site already cut; panelized homes, for which the main wall panels are shipped to the site, often with plumbing and wiring already installed; sectional or modular homes, which are 80 to 90 percent complete when they leave the factory and have cabinets and flooring already installed; and log homes, which are factory-made kit homes.

BACKGROUND AND DEVELOPMENT

Assembling wooden building components off-site has been practiced for centuries. The modern concept of prefabrication, which mass produces uniform panels and components, dates back to the early 1900s. Builders of that period, often the homeowners themselves, bought lightweight, premade frames and trusses to simplify construction. The use of gasoline-powered trucks in those early years boosted sales of prefab products and allowed manufacturers to build larger, heavier components.

The fledgling prefab industry grew during the post-World War II economic boom. As the economy and population grew, housing starts soared. Also, government housing programs, such as the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT