The most recent in the Improving America’s Housing series, this report also addresses changes in the structure of the remodeling industry. Despite recent industry concentration, remodeling firms remain very fragmented, as self-employed contractors not only account for a majority of businesses in the industry, but also for most of the recent growth. In lieu of consolidation, many remodeling contractors have become more specialized. Among the larger companies, specialization has led not only to stronger revenues, but also to more stable receipts. “By specializing, remodeling firms can achieve efficiencies even if their revenues do not reach the levels of traditional scale economies,” notes Kermit Baker, director of the Remodeling Future Program.