New York, NY (PRWEB) May 09, 2014
The Soundproofing Contractors industry is composed of a number of small nonemploying operators that specialize in the installation of foam, board, electronic and other soundproofing materials for residential, commercial, industrial and institutional spaces. According to IBISWorld Industry Analyst Jeremy Edwards, “The industry is highly reliant on new construction, particularly in nonresidential markets.” Consequently, the industry experienced a rapid decline as construction markets dried up over the past decade. However, nonresidential construction has been rising since 2011, as increasing corporate profit and improving business sentiment has fueled new private investment. Additionally, firms have continued to invest in new industrial equipment and machinery, which has driven demand for soundproofing materials to insulate the rooms that house equipment and the equipment itself. Residential markets are also improving and have driven demand for more basic soundproofing equipment; however, competition from other building-finishing contractors has mitigated growth in this market. Overall, industry revenue is expected to rise at an average annual rate of 4.2% to $4.0 billion over the five years to 2014. Strong construction in 2014 will continue to aid industry revenue, which is forecast to grow an additional 3.4% that year.
Industry profitability has also been on the rise. Profit margins were severely depressed, and represented only 0.6% of revenue in 2009. However, in 2014, profit margins are expected to account for 3.3% of total revenue, as a growing construction market allows providers to increase prices. Increasing profitability has also encouraged new players to enter the industry. Over the five years to 2014, the number of industry establishments is expected to increase an annualized 0.7% to 17,903, with 4.2% growth expected in 2014 alone.
Over the next five years, the industry is expected to continue returning to pre-recession levels. Growth is forecast to be strongest over the next two years, when private investment in machinery and equipment, nonresidential and residential construction markets is strongest. “Low interest rates and improving business confidence will inspire new investment and construction, which increase demand for soundproofing services,” says Edwards. Additionally, technology is expected to improve as firms provide more electronic and environmentally friendly solutions to clients. As a result, industry revenue is forecast to grow at an average annual rate of 3.0% to $4.6 billion over the five years to 2019.
This industry exhibits a low level of market share concentration. The majority of soundproofing contractors are non-employers or employers of less than five people servicing local markets in proximity. Although several large participants, such as the Performance Contracting Group and KHS&S, operate throughout the United States, these still comprise a negligible portion of the total industry, with most having a market share of less than 1.0% each. The industry's low level of concentration is unlikely to change over the next five years, with the majority of operators expected to remain non-employers by 2019.
For more information, visit IBISWorld’s Soundproofing Contractors in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
The Soundproofing Contractors industry installs soundproofing materials on residential, commercial, industrial and institutional spaces.
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.