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Sustainable Building Material Manufacturing in the US - Market Research Report (2013-2028)

Zach Ruthven Zach Ruthven New York, United States Last Updated: September 2023 NAICS OD6580

Revenue

$83.8bn

2023

$83.8bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

1m

Businesses

7,557

Wages

$XX.Xbn

Sustainable Building Material Manufacturing in the US industry analysis

The industry produces building materials used to create structures certified by the Leadership in Energy and Environmental Design (LEED). These buildings adhere to specific standards related to energy savings, water efficiency, carbon emissions reduction and indoor environment quality. LEED buildings are also evaluated on the materials used during construction, with an emphasis on sustainable products and meeting renewable energy goals. States, counties and cities have tightened building codes to promote the use of energy-efficient products and sustainable materials, which has supported the industry. Tax subsidies and operating cost savings have also emboldened this trend, especially in light of the rapid expansion of LEED buildings. These boons to the industry have been offset recently struggling construction markets, with nonresidential construction disrupted by the pandemic and residential markets hampered by high interest rates.Technological advances have facilitated healthy demand for sustainable materials. For example, synthetic products used to mimic wood, stone or other natural resources have decreased in cost and are easier to install and maintain than traditional materials. These products, however, frequently come with a lower price tag and durability relative to their traditional counterparts. In 2020, due to the pandemic, demand from nonresidential construction plummeted, while private spending on home improvements rises, increasing demand from residential construction. This dynamic has largely reversed itself as high interest rates have dissuaded residential construction spending, while nonresidential markets begin to recover. Overall, revenue for the industry will decline at a CAGR of 2.4% to $83.8 billion in 2023, including an expected pitfall of 2.3% in 2023 alone. Industry profit, measured as earnings before interest and taxes, is expected to account for 4.9% of revenue in 2023.The industry is anticipated to fare better moving forward, as both residential and nonresidential construction markets normalize. Industry revenue is projected to incline at a CAGR of 1.6% to $90.6 billion in 2028. Demand from commercial construction projects to produce LEED-certified buildings will likely drive the use of sustainable materials, as property owners, developers and regulators place a greater emphasis on cost savings, environmental protection, and energy conservation.

Trends and Insights

  • Government entities at all levels have invested in sustainable building construction and renovations. Government incentives and tax credits for Energy Star-certified products have further encouraged consumers to renovate their homes.
  • Demand from residential markets flourished during the first half of the current period taking advantage of heightened levels of spending on home improvement during a time of accommodating interest rates. As rates have risen demand from this market has waned.
  • The distribution of establishments in the industry is largely concentrated in the Southeast, Western, Mid-Atlantic and Great Lakes regions. The concentration of industry players in these regions mirrors traditional unsustainable material manufacturers because many of these companies operate specialized divisions that focus on sustainable products.
  • Manufacturers primarily compete based on product innovation, quality, reliability, and price. Research and development to advance products can create a point of differentiation and give enterprises a competitive edge.

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Industry Statistics and Trends

Market size and recent performance (2013-2028)

Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated $83.8bn in 2023.

Trends and Insights

Consumers and businesses have become more energy-conscious in light of rising energy costs

  • The United States has been amid a green revolution due to a heightened emphasis on environmental efforts and growing concerns regarding carbon dioxide emissions and climate change.
  • Additional trends and insights available with purchase
Sustainable Building Material Manufacturing in the US
Revenue (2013-2028)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Government incentives provide foundational support for industry growth

  • Industry manufacturers are expected to continue to benefit from growing consumer sentiment toward energy-efficient products and sustainable materials.

Biggest companies in the Sustainable Building Material Manufacturing in the US

Company
Market Share (%)
2023
Revenue ($short_0)
2023
Profit ($short_0)
2023
Profit Margin (%)
2023

There are no companies that hold a large enough market share in the Sustainable Building Material Manufacturing in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

Sustainable Building Material Manufacturing in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Structural building materials, Interior building materials and Exterior building materials. Structural building materials is the largest segment of the Sustainable Building Material Manufacturing in the US.

Trends and Insights

The diversity of structural building materials enables them to cast a wide net

  • Structural building materials are expected to account for 32.0% of revenue in 2023. Structural building materials include a diverse set of sustainable products from recycled metal and plastics to concrete and other stone materials, all used to produce a variety of beams in different scales and sizes.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Sustainable Building Material Manufacturing industry produces building materials used during the construction and renovation of Leadership in Energy and Environmental Design (LEED)-certified building structures. Such buildings use sustainable materials that reduce building water, energy and other resource needs. Sustainable materials are more efficient than traditional products because they reduce pollution, waste and environmental degradation.

What's included in this industry?

Manufacturing green or energy-efficient windows, doors and skylightsManufacturing green or energy-efficient sealing and insulationManufacturing wood-plastic composite and engineered lumberManufacturing concrete (insulated concrete forms, dimension stone and recycled stone)Manufacturing sustainable structural materials (recycled metal, other non-toxic products, reusable or recyclable)Manufacturing sustainable interior materials (e.g. linoleum and trass)Manufacturing sustainable exterior materials (e.g. panels made from paper flakes, compressed earth block and adobe)Manufacturing plumbing components and fixtures made of recycled materialsManufacturing building materials made of recycled or renewable plant materials (e.g. bamboo)

Companies

Purchase this report to view all major companies in this industry.

Related Terms

GREEN BUILDING CONSTRUCTIONSUSTAINABLE DESIGNLEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGNSOLAR HEAT GAIN COEFFICIENT (SHGC)

Industry Code

NAICS 2017

NAICS 327120 - Sustainable Building Material Manufacturing in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Government entities at all levels have invested in sustainable building construction and renovations. Government incentives and tax credits for Energy Star-certified products...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2013-2022) and forecast (2023-2028)
  • Employees, including historical (2013-2022) and forecast (2023-2028)
  • Businesses, including historical (2013-2022) and forecast (2023-2028)
  • Profit, including historical (2013-2023)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Demand from residential markets flourished during the first half of the current period taking advantage of heightened levels of spending on home improvement during a time of a...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2023
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2023
  • Major market segmentation in 2023
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The distribution of establishments in the industry is largely concentrated in the Southeast, Western, Mid-Atlantic and Great Lakes regions. The concentration of industry play...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2023

Tables

  • Number and share of establishments in each state in 2023
  • Number and share of revenue each state accounts for in 2023
  • Number and share of wages each state accounts for in 2023
  • Number and share of employees in each state in 2023

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Manufacturers primarily compete based on product innovation, quality, reliability, and price. Research and development to advance products can create a point of differentiati...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2018-2023
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

In 2023, Armstrong World Industries announced its acquisition of BOK Modern, a company that works in the design and development of interior and exterior architectural metal sy...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2019 through 2023
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2023

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    The value of construction plummeted in 2022 as housing starts slowed and private spending on home improvement declined. This coincided with a hike in interest rates and assoc...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2013-2028) 
    • Assistance historical data and forecast (2013-2028) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    An emphasis on product innovation and research and development has led to an expansion in wage costs. During the pandemic, operations were temporarily suspended, but employee...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
    • Investment vs. share of economy

    Data tables

    • Industry Multiples (2016-2021)
    • Industry Tax Structure (2016-2021)
    • Income Statement (2016-2021)
    • Balance Sheet (2016-2021)
    • Liquidity Ratios (2016-2021)
    • Coverage Ratios (2016-2021)
    • Leverage Ratios  (2016-2021)
    • Operating Ratios (2016-2021)
    • Cash Flow & Debt Service Ratios (2013-2028)
    • Revenue per Employee (2013-2028)
    • Revenue per Enterprise (2013-2028)
    • Employees per Establishment (2013-2028)
    • Employees per Enterprise (2013-2028)
    • Average Wage (2013-2028)
    • Wages/Revenue (2013-2028)
    • Establishments per Enterprise (2013-2028)
    • IVA/Revenue (2013-2028)
    • Imports/Demand (2013-2028)
    • Exports/Revenue (2013-2028)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2013-2028)
    • IVA (2013-2028)
    • Establishments (2013-2028)
    • Enterprises (2013-2028)
    • Employment (2013-2028)
    • Exports (2013-2028)
    • Imports (2013-2028)
    • Wages (2013-2028)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Sustainable Building Material Manufacturing in the US industry in United States in 2024?

    The market size of the Sustainable Building Material Manufacturing in the US industry in United States is $83.8bn in 2024.

    How many businesses are there in the Sustainable Building Material Manufacturing in the US industry in 2023?

    There are 7,557 businesses in the Sustainable Building Material Manufacturing in the US industry in United States, which has declined at a CAGR of 0.9 % between 2018 and 2023.

    Has the Sustainable Building Material Manufacturing in the US industry in United States grown or declined over the past 5 years?

    The market size of the Sustainable Building Material Manufacturing in the US industry in United States has been declining at a CAGR of 2.4 % between 2018 and 2023.

    What is the forecast growth of the Sustainable Building Material Manufacturing in the US industry in United States over the next 5 years?

    Over the next five years, the Sustainable Building Material Manufacturing in the US industry in United States is expected to grow.

    What does the Sustainable Building Material Manufacturing in the US in United States include?

    Manufacturing green or energy-efficient windows, doors and skylights and Manufacturing green or energy-efficient sealing and insulation are part of the Sustainable Building Material Manufacturing in the US industry.

    How competitive is the Sustainable Building Material Manufacturing in the US industry in United States?

    The level of competition is moderate and steady in the Sustainable Building Material Manufacturing in the US industry in United States.

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    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in the US include: 

    • US Census Bureau
    • US Bureau of Labor Statistics
    • US International Trade Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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