Formwork Construction Business Plan

Concrete Fabricators, Inc.

This business plan was created with Business Plan Pro software, the fastest way to prepare a complete business plan.

With Business Plan Pro, you can open this plan (or any of the 500 others included in the product) and quickly customise it to match your business. Or you can use the software's step-by-step wisard to easily create a custom business plan from scratch. Learn more »

Market Description

4.0 Market Description

Target Markets and Market Description (information provided by Standard & Poor's)

The housing industry has proceeded at a red-hot pace for several years running. An all-time record was set in 1998, when 886,000 new-site, single-family homes were sold. That represented a 10% gain from the robust total of 804,000 homes sold in 1997, and an 8.1% rise from the prior record of 819,000 units in 1977. Single-family housing construction accounted for approximately £48 million of the total £125 million generated in the industry.

Home sales were strengthened even further during the first ten months of 1999. In that period, new single-family home sales increased by 4.8% on a year-to-year basis, to 791,000 units, according to the U.S. Department of Commerce. Through October, 1999, seasonally adjusted sales had exceeded 800,000 on an annualised basis in every month since the start of 1998.

The record-setting string of home sales since the second half of 1997 has forced builders to pick up the pace of their construction activity. During 1998, total starts increased by 9.7% to 1.62 million units. Starts for single family units moved up 12% for the year, and those of multi-family units were ahead by 1.5%. As an indication of building activity at year-end 1999, housing starts in November, 1999 came in at a seasonally-adjusted annual rate of 1.6 million units.

4.1 Target Markets

Market size statistics--Single-family housing construction

General contractors primarily engaged in construction (including new work additions, alterations, refurbishing, and repair) of single-family houses:

Estimated number of U.S. establishments	218,276
Number of people employed in this industry	831,158
Total annual sales in this industry	£125 million
Average employees per establishment	4
Average sales per establishment	£.6 million

Market size statistics--Residential construction, nec

General contractors primarily engaged in construction (including new work additions, alterations, refurbishing, and repair) of residential buildings other than single-family houses. This includes hotels, motels, apartments, and multi-family homes:

Estimated number of U.S. establishments	25,201
Number of people employed in this industry	114,523
Total annual sales in this industry	£26 million
Average employees per establishment	5
Average sales per establishment	£1.1 million

Market size statistics--Heavy construction, nec

General and special trade contractors primarily engaged in the construction of heavy projects not elsewhere classified. This includes canal, drainage system, athletic and recreation facilities, land preparation, rock removal, waste, water and sewage treatment plants, and trenching construction:

Estimated number of U.S. establishments	16,914
Number of people employed in this industry	211,440
Total annual sales in this industry	£51 million
Average employees per establishment	13
Average sales per establishment	£3.2 million

Market size statistics--Bridge, tunnel, and elevated highway construction

General contractors primarily engaged in the construction of bridges, viaducts, elevated highways, and highway, pedestrian and railway tunnels:

Estimated number of U.S. establishments	1,414
Number of people employed in this industry	43,899
Total annual sales in this industry	£14 million
Average employees per establishment	34
Average sales per establishment	£13 million

Market size statistics--Highway and street construction

General and special trade contractors primarily engaged in the construction of roads, streets, alleys, public sidewalks, guardrails, parkways, and airports:

Estimated number of U.S. establishments	19,694
Number of people employed in this industry	302,944
Total annual sales in this industry	£66 million
Average employees per establishment	16
Average sales per establishment	£3.8 million

Market size statistics--Nonresidential construction, nec

General contractors primarily engaged in the construction (including new work additions, alterations, refurbishing, and repair) of nonresidential buildings other than industrial buildings and warehouses. This includes commercial, institutional, religious, and amusement and recreational buildings:

Estimated number of U.S. establishments	44,505
Number of people employed in this industry	540,550
Total annual sales in this industry	£205 million
Average employees per establishment	12
Average sales per establishment	£5 million

4.1.1 Market Analysis

The Market Analysis table and chart represent the estimated number of single-family homes, other residential units, and commercial buildings within the state of Oklahoma. This information is derived from estimates given by the U.S. Census Bureau and represents the total number of possible clients within the local reach of Concrete Fabricators.

Market Analysis

Market Analysis
Potential Customers	Growth	2000	2001	2002	2003	2004	CAGR
Single Family Housing	4%	1,094,541	1,132,850	1,172,500	1,213,528	1,256,012	3.50%
Other Residential Housing	3%	670,848	687,619	704,809	722,429	740,490	2.50%
Commercial Construction	2%	82,623	84,275	85,961	87,680	89,434	2.00%
Total	3.07%	1,848,012	1,904,744	1,963,270	2,023,637	2,085,936	3.07%

4.2 Industry Analysis

Market Size Statistics--Concrete work

Special trade contractors primarily engaged in concrete work, including portland cement and asphalt.

Estimated number of U.S. establishments	30,214
Number of people employed in this industry	230,338
Total annual sales in this industry	£21 million
Average employees per establishment	8
Average sales per establishment	£.7 million

Establishments primarily engaged in manufacturing portland cement concrete, manufactured and delivered to a purchaser in a plastic and unhardened steel.

Estimated number of U.S. establishments	5,798
Number of people employed in this industry	89,662
Total annual sales in this industry	£19 million
Average employees per establishment	17
Average sales per establishment	£7 million

4.3 Untitled

Competition

Competitive threats come from other concrete fabrication companies in the area. Specifically, competitors include Jones Construction, James Boyd Construction, Jerry Manuel Construction, Quality Construction, and Charles Johnson, Inc.