NAICS Code 238 - Specialty Trade Contractors

NAICS 238 - Specialty Trade Contractors

NAICS 23 - Construction
NAICS 11 - Sector 11--Agriculture, Forestry, Fishing and Hunting NAICS 21 - Sector 21--Mining NAICS 22 - Sector 22--Utilities NAICS 23 - Sector 23--Construction NAICS 31 - Sector 31-33--Manufacturing NAICS 42 - Sector 42--Wholesale Trade NAICS 44 - Sector 44-45--Retail Trade NAICS 48 - Sector 48-49--Transportation and Warehousing NAICS 51 - Sector 51--Information NAICS 52 - Sector 52--Finance and Insurance NAICS 53 - Sector 53--Real Estate and Rental and Leasing NAICS 54 - Sector 54--Professional, Scientific, and Technical Services NAICS 55 - Sector 55--Management of Companies and Enterprises NAICS 56 - Sector 56--Administrative and Support and Waste Management and Remediation Services NAICS 61 - Sector 61--Educational Services NAICS 62 - Sector 62--Health Care and Social Assistance NAICS 71 - Sector 71--Arts, Entertainment, and Recreation NAICS 72 - Sector 72--Accommodation and Food Services NAICS 81 - Sector 81--Other Services (except Public Administration) NAICS 92 - Sector 92--Public Administration
- NAICS 238 - Specialty Trade Contractors
  NAICS 236 - Construction of Buildings NAICS 237 - Heavy and Civil Engineering Construction NAICS 238 - Specialty Trade Contractors NAICS 233 - Building, Developing, and General Contracting NAICS 234 - Heavy Construction NAICS 235 - Special Trade Contractors

The Specialty Trade Contractors subsector comprises establishments whose primary activity is performing specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) involved in building construction or other activities that are similar for all types of construction but that are not responsible for the entire project. The work performed may include new work, additions, alterations, maintenance, and repairs. The production work performed by establishments in this subsector is usually subcontracted from establishments of the general contractor type or operative builders but, especially in remodeling and repair construction, work also may be done directly for the owner of the property. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work. Establishments primarily engaged in preparing sites for new construction are also included in this subsector.

There are substantial differences in types of equipment, work force skills, and other inputs required by specialty trade contractors. Establishments in this subsector are classified based on the underlying production function for the specialty trade in which they specialize. Throughout the Specialty Trade Contractors subsector, establishments commonly provide both the parts and labor required to complete work. For example, electrical contractors supply the current-carrying and noncurrent-carrying wiring devices that are required to install a circuit. Plumbing, Heating and Air-Conditioning contractors also supply the parts required to complete a contract.

Establishments that specialize in activities primarily related to heavy and civil engineering construction that are not normally performed on buildings, such as the painting of lines on highways are classified in Subsector 237, Heavy and Civil Engineering Construction.

Establishments that are primarily engaged in selling construction materials are classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade, based on the characteristics of the selling unit.

Industry trends:

The Specialty Trade Contractors industry (NAICS 238) is witnessing several notable qualitative trends. One major trend is the increased adoption of sustainable construction practices and green building materials. This shift is driven by growing environmental concerns, regulatory pressures, and demand from eco-conscious clients. Contractors are integrating energy-efficient systems and materials that reduce carbon footprints and operational costs.

Another significant trend is the rise in technology adoption, particularly in the form of Building Information Modeling (BIM), drones, and robotics. These technologies are enhancing project accuracy, reducing labor costs, and improving safety on job sites. As the industry continues to digitize, companies that fail to integrate these tools may find themselves at a competitive disadvantage.

The labor market remains a critical challenge, with skilled labor shortages prompting companies to invest in workforce development and training programs. This shortage is also accelerating the trend towards modular construction and prefabrication, methods that can minimize on-site labor requirements and shorten project timelines.

Looking ahead, the economic recovery post-pandemic is expected to drive growth in the sector, with increased investments in infrastructure projects and residential construction due to low-interest rates and government stimulus packages. However, supply chain disruptions and material costs are likely to be ongoing concerns that could impact profitability and project schedules.