Drywall, Plaster, Acoustic & Insulation Contractors
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Industry Overview
The drywall contractor industry in the US includes about 20,000 businesses with combined annual revenue of $25 billion. Large companies include Performance Contracting, KHS&S, and Acousti Engineering. Half of the companies in the industry are small with fewer than five employees. The average company has less than $500,000 of annual revenue.
New construction accounts for 80 percent of total industry revenue, the rest is from renovations. Commercial construction accounts for 65 percent of revenues, especially construction of office buildings, commercial space, schools, apartments, hospitals, and hotels; single-family residential construction accounts for the rest.
Competitive Landscape
Demand is driven heavily by new building construction. The profitability of individual companies depends on a steady volume of work, accurate job estimating, and good cost controls. Large companies have an advantage in bidding on large jobs. Companies usually specialize in either residential or commercial work. Residential contractors have competition from a large number of independent workers.
Products, Operations & Technology
Commercial contractors install the metal framing that underlies walls in commercial buildings and the gypsum wallboard that covers it. They also install other types of walls (such as moveable partitions or stone veneer), acoustic and specialty ceilings, and various types of insulation and fireproofing. Many commercial contractors are sales representatives for manufacturers of floor, wall or ceiling products, from companies such as USG, Armstrong, Johns Manville, and Sound Concepts.
Residential contractors install heat and sound insulation, ceilings, and interior walls in single-family homes. Walls and ceilings are typically made from various types of gypsum panels nailed into place over wood framing installed by the builder. Various finishing work hides joints and prepares the surfaces for painting. Insulation materials typically are fiberglass pads and foam panels, but may also be sprayed or loose materials like cellulose.
Both commercial and residential contractors may also do related work, like installing floors and painting.
Commercial contractors may operate an Internet site that allows potential customers to view projects and see samples of the types of materials they've worked with. Computer technology may be used in project cost estimating, materials ordering, and project coordination with the primary contractor.