New York, NY (PRWEB) January 23, 2014 -- Demand for drywall installers has just begun to return from its steep recessionary decline after the real estate market endured its worst downturn since the Great Depression. Over the five years to 2013, industry revenue is expected to decrease at an annualized rate of 1.6% to $37.3 billion. The Drywall Installers industry consists of companies that install drywall panels, apply plaster to interior walls of homes or buildings and install other forms of insulation. Demand for the industry's services primarily depends on the level of activity in the residential, commercial and industrial real estate and construction markets, all of which faced severe declines in demand during the past five years.
From 2008 to 2013, the number of companies in the industry is projected to decline at an annualized rate of 2.9% to an estimated 17,758. According to IBISWorld Industry Analyst Nick Petrillo, “As contracts became scarce and price-based competition heightened, the industry's average profit margins dropped before bouncing back in 2013.” During this period, however, government tax credits that were provided to homeowners investing in energy-efficient upgrades, such as insulation work, helped keep some operators afloat. In 2013, a major resurgence in the housing market is expected to spur activity in vastly depleted single-family home building markets, leading to an estimated 10.6% growth in drywall installers' revenue for the year.
Over the next five years, the Drywall Installers industry will benefit from improvement in all its downstream markets, which include home builders, apartment and condominium construction, industrial building construction, commercial building construction and apartment rentals. From 2013 to 2018, industry revenue is forecast to increase. Furthermore, housing starts are projected to rise at an annualized 11.8% over the next five years to about 1.6 million units. Though the number of housing starts will not return to the oversaturated 2005 peak of almost 2.2 million units, the housing market is expected to continue to show signs of its much anticipated recovery. “As the housing market recovers, demand for housing construction and subsequently drywall installers will rebound,” says Petrillo. 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
Operators in the Drywall Installers industry primarily engage 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.
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About IBISWorld Inc.
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Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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