NAICS 321918 Quarterly Industry Report
Other Millwork (including Flooring)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 321918Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 321918 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the millwork and flooring manufacturing sector, drawing on data from the U.S. Census Bureau[5] County Business Patterns and SBA[8] lending records. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 321918 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the other millwork (including flooring) industry.
Industry Definition & Overview
Other Millwork Including Flooring (NAICS 321918) encompasses establishments primarily engaged in manufacturing millwork products other than wood windows and doors, including wood moldings, trim, flooring, stair treads and railings, paneling, shutters, and ornamental woodwork. The industry produces both standard commodity millwork sold through building material channels and custom architectural products for residential and commercial construction projects. According to the U.S. Census Bureau[5], over 2,300 active domestic establishments employ approximately 33,000 workers, making this one of the largest subsectors within wood product manufacturing by establishment count.
Hardwood and softwood flooring manufacturing represents a major product segment, with solid strip and plank flooring competing alongside engineered hardwood flooring products that combine hardwood wear layers with plywood or composite substrates. Molding and trim products range from standard commodity profiles produced on high-speed molders to custom architectural profiles milled to designer specifications. Per Bureau of Labor Statistics[6] data, production employment includes molder operators, flooring manufacturing specialists, finishing technicians, and CNC operators programming custom profile cutters for architectural millwork projects.
The SBA Office of Advocacy[7] notes that small millwork shops represent the majority of establishments, competing through custom product capabilities, quick-turn delivery for local construction projects, and specialty species and finish options that mass producers do not offer. Most industry spans a wide range of operations from small architectural millwork shops producing custom stairwork and cabinetry trim to large-scale flooring and molding manufacturers operating high-volume production lines distributing through national retail and wholesale channels.
What's Included in This Industry
- Valuation multiples benchmarked to millwork and wood flooring manufacturers
- Revenue and EBITDA trends for molding, trim, flooring, and stairwork producers
- SBA lending data and financing terms for NAICS 321918
- Comparable transaction data from recent millwork and flooring company acquisitions
- Industry risk factors including housing market cyclicality and lumber cost volatility
- Workforce composition and labor cost benchmarks for millwork production
- Regional market analysis covering domestic millwork production centers
- Equipment valuation data for molders, CNC routers, and flooring production lines
- Growth projections tied to remodeling activity and hardwood flooring demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Wood Product Manufacturing | 321 |
| Industry Group | Other Wood Product Manufacturing | 3219 |
| NAICS Industry | Millwork | 32191 |
| National Industry | Other Millwork (including Flooring) | 321918 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 321911 | Wood Window and Door Manufacturing | Wood window and door manufacturers producing complementary building products that are installed alongside millwork, trim, and flooring in construction projects |
| 321912 | Cut Stock, Resawing Lumber, and Planing | Cut stock and planing operations providing dimensioned lumber components consumed by millwork manufacturers for molding and flooring production |
| 321113 | Sawmills | Sawmills producing the hardwood and softwood lumber that serves as the primary raw material for millwork and flooring manufacturing operations |
| 337110 | Wood Kitchen Cabinet and Countertop Manufacturing | Wood kitchen cabinet manufacturers consuming crown molding, trim profiles, and decorative millwork as finishing components in cabinet installations |
| 423310 | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers | Lumber and millwork wholesalers distributing molding, trim, and flooring products to building material retailers and construction supply accounts |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 7.2% | 108 |
| 2 | Texas | 6.9% | 104 |
| 3 | New York | 5.9% | 89 |
| 4 | Pennsylvania | 5.7% | 86 |
| 5 | Florida | 5.3% | 80 |
| 6 | Ohio | 4.2% | 64 |
| 7 | North Carolina | 4.2% | 63 |
| 8 | Georgia | 4.0% | 61 |
| 9 | Wisconsin | 4.0% | 61 |
| 10 | Indiana | 3.8% | 57 |
% Of Establishments
0%
7%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
128
Total SBA Loans
$188.2M
Total Loan Volume
$1.5M
Average Loan Size
14 yrs
Average Loan Term
8.98%
Average Interest Rate
3,264
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Millwork manufacturers seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 321918, which set the threshold at 500 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions, woodworking equipment, and working capital for lumber and finishing material inventory. Many CDC/504 loan program[12] offers long-term fixed-rate financing for facility improvements, molder and CNC equipment installations, and finishing line upgrades. Lenders evaluate product mix diversity, customer concentration between retail and custom channels, and equipment modernization level when underwriting transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Readycap Lending, LLC | 8 | $40.0M | $5.0M |
| 2 | South Central Bank, Inc. | 16 | $33.6M | $2.1M |
| 3 | United Community Bank | 8 | $26.4M | $3.3M |
| 4 | Busey Bank | 24 | $19.1M | $796K |
| 5 | First Interstate Bank | 16 | $16.5M | $1.0M |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a millwork or flooring manufacturer?
Millwork and flooring manufacturers typically trade at 4x to 7x EBITDA, with large-scale flooring producers commanding premium valuations due to brand recognition and retail distribution relationships. Custom architectural millwork shops may trade at lower multiples but offer strong margins on specialized products. Per U.S. Census Bureau[5] data, product mix between commodity and custom millwork heavily influences profitability and transaction pricing.
What SBA loan options are available for acquiring a millwork shop?
The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions and equipment purchases, while the CDC/504 program[12] finances facility improvements and major equipment installations. Lenders review customer concentration, product diversification, equipment condition, and backlog of custom orders during due diligence.
What equipment is needed for millwork manufacturing?
Core equipment includes high-speed molders for profile production, CNC routers for custom millwork, wide-belt sanders, flooring manufacturing lines with tongue-and-groove profiling equipment, finishing spray systems, and dust collection infrastructure. Per SBA[8] lending data, five-head molders and CNC woodworking centers represent the largest equipment investments, enabling both high-volume commodity and custom architectural product production.
How does the hardwood flooring market affect millwork manufacturers?
Hardwood flooring demand is driven by housing renovation activity, new home construction specifications, and commercial interior design trends favoring natural wood surfaces. Per U.S. Census Bureau[5] data, domestic flooring production competes with imported hardwood and engineered flooring products, though American-made solid hardwood flooring maintains consumer preference in premium residential applications.
What are the main cost drivers for millwork manufacturers?
Lumber costs typically represent 40-60% of production costs for commodity millwork, with skilled labor, finishing materials, tooling and blade maintenance, and dust collection operations comprising additional major cost categories. Per Bureau of Labor Statistics[6] data, custom architectural millwork requires higher-skilled labor commanding premium wages compared to commodity molding production operations.
How does custom millwork differ from commodity production?
Custom architectural millwork involves made-to-order products designed for specific projects, requiring detailed shop drawings, CNC programming for unique profiles, and finishing to architectural specifications. Commodity millwork includes standard molding profiles, flooring dimensions, and trim products manufactured for inventory and distributed through wholesale and retail channels at lower margins but higher volumes.
What growth opportunities exist for millwork manufacturers?
Growth opportunities include premium hardwood flooring for high-end residential markets, exterior composite decking and trim products blending wood fibers with polymers, custom stairwork and architectural elements for luxury construction, and prefinished millwork products that reduce installation labor at job sites. Per U.S. Census Bureau[5] housing data, remodeling expenditures continue driving demand for upgrade millwork and flooring products.
What workforce challenges do millwork manufacturers face?
Key challenges include recruiting skilled molder operators and CNC programmers for precision woodworking, training finishing technicians on stain, lacquer, and conversion varnish application systems, and retaining experienced craftspeople for custom architectural millwork production. Trade school partnerships and in-house apprenticeship programs help address the skilled woodworker shortage affecting the broader wood products industry.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]SBA sba.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
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