Government tax credits helped keep revenue afloat, despite the weakened construction sector
Los Angeles, CA (PRWEB) January 11, 2013
The Window Installation industry comprises contractors that provide specialist window framing and installation services. According to IBISWorld industry analyst Deonta Smith, “A large portion of industry operators' revenue is derived from home and commercial building renovation services.” While window installers enjoy an absence of international competition, they compete directly with unskilled do-it-yourself homeowners in the housing alterations and additions market and with other skilled tradespeople in the new building construction market (e.g. general building contractors and concreting contractors).
Like many construction-related fields, the Window Installation industry was significantly challenged during the past five years, largely due to the subprime mortgage crisis. Industry revenue declined at the downturn's onset, but demand for industry-related services picked up quickly by 2009, minimizing the recession's adverse effects on window installation companies. Due to the slight dip during the housing crisis, however, revenue for the industry is expected to grow modestly at an average annual rate of 2.8% to $6.7 billion in the five years to 2013.
The collapse of the housing market in mid-2006 brought construction activity to a screeching halt across most markets. The Window Installation industry’s revenue declined through 2008, plunging by as much as 28.9% in 2009. However, “government stimulus and incentives for energy-efficient measures led to increases in eco-friendly home and commercial remodeling activity, including installing windows that offer better insulation to reduce reliance on energy,” says Smith. Therefore, revenue turned a corner in 2009 and has been steadily climbing since. Industry revenue is expected to grow 2.2% in 2013 as a result of strong recovery in the residential housing market and a significant boost in consumer spending.
IBISWorld projects industry revenue will continue its upward trend in the five years to 2018, supported by robust growth anticipated in residential and nonresidential construction. Rising home prices and better economic conditions will boost the need for home remodeling activities, while improved corporate profit and increased spending will also create a greater need for window installation services for retail, office, hospitality and industrial spaces. As a result, industry revenue is expected to grow steadily over the next five years. Meanwhile, more industry operators are expected to enter the industry amid these positive conditions. Because the industry has a low market share concentration, dominated by a large number of small-scale player operating on a local basis, competition will only increase as more companies enter the market. For more information, visit IBISWorld’s Window Installation in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry install windows. The industry does not include work done by general building contractors or automotive glass installation companies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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