Drywall, Plaster, Acoustic & Insulation Contractors Industry Overview

Excerpt from Drywall, Plaster, Acoustic & Insulation Contractors Report

The drywall, plaster, acoustic, and insulation contractor industry in the US includes about 18,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $25 billion. Major companies include APi Group, The Brock Group, Irex, KHS&S, and Performance Contracting Group. About 60 percent of the companies in the industry are small, with fewer than five employees.

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. Small companies can compete effectively by specializing in either residential or commercial work. Residential contractors have competition from a large number of independent workers. The industry is labor-intensive: average annual revenue per employee is about $120,000.

Products, Operations & Technology

New construction accounts for about 70 percent of industry revenue, renovations for about 20 percent, and maintenance and repair about 10 percent. Commercial construction, including office buildings, retail space, schools, apartments, hospitals, and hotels, accounts for 60 percent of revenue; single-family residential construction accounts for the rest.