Drywall Installers in the US Industry Market Research Report Now Available from IBISWorld
Though the housing construction market’s struggles caused demand for drywall contractors to plummet, a recovery is on the way. Housing starts are anticipated to rise in the coming years, stimulating demand for industry services. Continuing government subsidies for energy-efficient home insulation projects will also keep operators busy. Demand from the commercial building market will accelerate as well. For these reasons, industry research firm IBISWorld has added a report on the Drywall Installers industry to its growing industry report collection.
Los Angeles, CA (PRWEB) September 24, 2012
As the real estate market endured its worst downturn since the Great Depression, demand for drywall installers contracted sharply during the recession. Over this period, industry revenue is expected to decrease at an annualized 6.0% to about $34.5 billion. The Drywall Installers industry is composed of companies that install drywall panels, apply plaster to interior walls of homes or buildings and install other forms of insulation. According to IBISWorld industry analyst Austen Sherman, “demand for the industry’s services primarily depends on the level of activity in the residential, commercial and industrial real estate markets, all of which faced severe declines in demand during the past five years.” The residential real estate market fared the worst, with the number of housing starts expected to fall at an annualized rate of 11.6% during the five years to 2012. Further, the value of nonresidential construction is projected to decrease at an average of 5.4% annually over the same period.
The Drywall Installers industry has a low level of market share concentration, as the four largest firms account for only a small fraction of total industry revenue. The majority of industry operators are small firms that operate within a local or regional sphere, employing less than five people. Because these small firms were not able to spread operating costs over an increasingly shrinking revenue base, from 2007 to 2012, the number of companies offering industry services is projected to decline at an average annual 3.0% to an estimated 18,678 companies. The industry´s larger participants on the other hand, such as KHS&S Contractors and Performance Contracting Group, operate on a national basis and with lower income fluctuations. Nonetheless, As contracts became scarce and price-based competition heightened, the industry’s average profit margins dropped from 3.4% in 2007 to an estimated 2.2% in 2012. “During this period, the government provided tax credits to homeowners investing in energy-efficient upgrades, like insulation work, which helped keep some operators afloat,” says Sherman. Over 2012, recovery in the economy is expected to spur activity in the residential and nonresidential real estate markets, leading to an estimated 4.7% growth in revenue for the year.
Over the next five years, the Drywall Installers industry will benefit from the improvement in the real estate market, which will renew demand for industry services. From 2012 to 2017, industry revenue is forecast to increase at an average annual rate of 4.5% to an estimated $43.0 billion. Although not expected to reach prerecession levels, housing starts are projected to rise at an annualized 10.8% over the next five years, to about 1.2 million units. The majority of this growth will take place early during the five-year period, before settling into a more sustainable, long-term growth rate. However, the industry will likely face intensifying competition from general contractors and do-it-yourself homeowners, limiting the industry’s growth potential over the next five years. For more information, visit IBISWorld´s Drywall Installers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that are primarily engaged in drywall, plasterwork and building insulation work. Plasterwork involves applying plain or ornamental plaster, as well as installing lath. Industry operators are contracted for work on new buildings, additions, alterations, maintenance and repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/9/prweb9932401.htm