Expanding downstream construction markets will bolster industry performance
New York, NY (PRWEB) December 09, 2014
From unclogging drains in houses to installing high-pressure industrial steam pipes, the Plumbing industry's activities span a wide range of work. Contractors in the industry hold specific certifications to install, service and repair all types of pipes and drainage systems (e.g. faucets, ovens and toilets) for the catchment and distribution of water, liquids, gases and waste products. According to IBISWorld Industry Analyst Omar Khedr, "the industry is one of many subcontracting industries essential to the residential and nonresidential building markets, and plumbers are needed both to install systems for new construction and to maintain the systems of existing structures."
Because the industry's performance is closely linked to building markets and consumer spending, which determine the extent to which households renovate kitchens and bathrooms, fluctuations in construction markets have caused a heightened level of demand volatility. Although the industry benefited from steady demand for long-term facilities' maintenance and repairs that could not be put off (e.g. burst pipes or clogged drains) demand for services has been volatile. The industry's pool of customers contracted sharply in 2009, then expanded strongly, before stagnating and slowly recovering again. At the same time, slow per capita disposable income kept household spending on expensive home improvement projects constrained, cutting into demand for plumbing upgrades. "Despite these challenges, throughout these past five years, industry operators benefited from rising residential renovation expenditures that provided a stream of new projects," says Khedr. Furthermore, because the industry started this period at a very low level, the industry's strong recovery. which lasted until 2013, is expected to cause industry revenue to increase in the five years to 2014.
From 2014 to 2019, expanding downstream construction markets and increasing economic activity are forecasted to bolster the industry's performance. Single-family home construction is also anticipated to rise along with housing demand, resulting in increased demand for industry services during this period. Moreover, commercial construction is also anticipated to grow as rising consumer spending encourages businesses to expand their facilities. As a result of these trends, industry revenue is forecast to rise during the next five years.
For more information, visit IBISWorld’s Plumbing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Plumbing industry installs and services plumbing fixtures, fittings and equipment. Industry activities include work on household pipes and drains, installation of gas cooking and heating appliances and work on bathroom and toilet fixtures and venting systems. Emergency repair work (e.g. unclogging drains or repairing burst water mains) represents a significant source of industry revenue. Contractors may also supply plumbing appliances, pipes and coupling products for projects.
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