Residential Construction Contractors
Brief Excerpt from Industry Overview Chapter:
Companies in this industry construct and renovate residential buildings. Major companies include DR Horton, KB Home, Lennar, NVR Construction Limited, and PulteGroup (all based in the US), as well as Country Garden (China), Daiwa House (Japan), and Desarrolladora Homex (Mexico).
Demand is driven by population growth and economic growth. The profitability of individual companies depends on efficient operations and securing favorable building locations. Large builders enjoy economies of scale in purchasing. Small companies can compete effectively by specializing in a certain type of home or by focusing on a specific geographic area. The US industry is highly fragmented: the 50 largest firms generate 11% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are new homes for-sale and residential remodeling. New homes for-sale account nearly 45% of the industry revenue, followed by residential remodeling with over 20%, and new single-family homes and multifamily buildings, each accounting for 20% and 13%, respectively. Companies generally specialize in either single-family or multifamily work.
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