The Harvard Joint Center for Housing Studies, Housing Perspectives (JCHS) released a new analysis on how the recession resulted in increased fragmentation in the remodeling industry according to the U.S. Census Bureau’s 2012 Economic Census and Nonemployer employer Statistics.

The analysis found that residential and remodeling contractors had gone from 652,00 in 2007 to 716,000 by 2012 and an overall increase of almost 10%. The primary drive of growth points to an increase ins elf-employed remodelers that saw double digit growth with 11% for special trades and a 17% increase for general remodelers.

The remodeling industry experienced increased fragmentation during the market downturn, especially among smaller contractors. Larger-scale firms did lose some of their concentration gains of the boom years, but there is evidence that the remodeling industry continued to concentrate at the very top of the market. The top 50 largest companies increased their share of industry receipts even during the downturn, a considerable advantage of scale.
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