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I have a picture that includes this building that I'm trying to locate from 1958:

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I believe the signage reads: Bristol Yards / Frankford Supply Co.

I believe this is in New Jersey, otherwise Pennsylvania. It is next to this waterway and bridge, travelling toward New York City from Valley Forge:

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Neither suggestion here appears correct to me.

Looking on Ancestry.com, I'm not seeing a way to search for businesses, just people. How might I search business directories from this time period to locate the address or at least city of this business?

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On the main search page on Ancestry there is a search box called "Keyword" if you use that to search for "Frankford Supply" you will find several references to newspaper want ads mentioning Frankford Supply in Bristol, PA. You can also search Newspapers.com. One of the articles I found there is this one

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from The Bristol Daily Courier (Bristol, Pennsylvania) 30 Jan 1953, Fri Page 8. It shows that Frankford supply is on the way from Valley Forge to New York City on the Pennsylvania side just before you cross the Delaware into New Jersey. North of Green Lane on Route 13 would put it somewhere in here.

I think the answer you were already given is correct.

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