Overview

Piping up: Accelerating housing markets and green building regulations will boost demand

IBISWorld’s industry research report on Plumbers provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$105bn
Annual Growth
11-16
4.0%
Annual Growth
16-21
Profit
Employment
468,869
Business
116,584

Industry Threats & Opportunities

  • Residential construction is anticipated to rise, resulting in increased industry demand
  • Industry operators are expected to grow as a result of recovery in the real estate sector
  • As businesses increase capacity, industry demand will also increase
  • Industry Analysis & Industry Trends

    From unclogging household drains to installing high-pressure industrial steam pipes, the Plumbers industry's activities span a wide range of liquid and gas-conveying pipe work. Since the industry's performance is so closely linked to building markets and consumer spending, which determines the extent to which households renovate kitchens and bathrooms, housing market fluctuations led to a moderate increase in volatility over the past five years. Still, steady increases in the value of residential and nonresidential construction, consumer spending and corporate profit supported industry revenue throughout the period. Furthermore, the industry benefited throughout this period from steady demand for long-term facilities' maintenance and repairs, which consumers generally cannot put off.

    Industry Report - Industry Locations Chapter

    The geographic distribution of establishments in the Plumbers industry generally corresponds with the distribution of population and economic activity, reflecting the small-scale and localized nature of most contractors. The Southeast region accounts for 25.3% of industry establishments, which corresponds with the region's share of US population, 25.6%. Florida drives this region with 7.4% of industry establishments and reflects its highly developed residential construction market, especially its multifamily apartment building market. Overall, the region's large population drives the high concentration of industry establishments located there.

    The Mid-Atlantic region, which includes the populations of New York City and Philadelphia, accounts for 17.1% of industry establishments. The

    Additional Insights for the Plumbers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plumbers Industry are

  • Having a good reputation
  • Ability to accommodate environmental requirements
  • Holding on to maintenance contracts
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Plumbers industry impact industry performance..

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    Industry Products

    What is the Plumbers Industry?

    Industry contractors install and maintain 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 and coupling products for construction projects.

    Industry Products
    General plumbing services
    Mechanical services
    Building sprinkler system installation
    Steamfitting and piping services
    Lawn sprinkler installation
    Industry Activities
    Drain construction, cleaning or repairing
    Gas plumbing
    Gas appliance repair
    Hot water systems installation
    Repairing installed plumbing
    Septic tank installation
    Solar hot water systems installation
    Steamfitting and piping contracting services
    Interior and exterior sprinkler system installation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of private nonresidential construction
  • Value of residential construction
  • Per capita disposable income
  • Private spending on home improvements
  • Price of plastic materials and resin

  • Current Performance
  • Scope of work
  • Repair work
  • New construction lifting demand
  • Industry structure and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Expanding profit margins
  • Going green
  • Table: Plumbers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plumbers Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Land Development
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Electricians
  • Plumbing & Heating Supplies Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • General plumbing services
  • Mechanical services
  • Building sprinkler system installation
  • Steamfitting and piping services
  • Lawn sprinkler installation
  • Chart: Plumbers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Existing residential buildings
  • Healthcare, public safety and educational buildings
  • Manufacturing and industrial buildings
  • Other
  • Office buildings
  • Retail and storage spaces
  • New residential construction
  • Chart: Major Market Segmentation for the Plumbers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesThe industry is highly labor intensive; plumbing is primarily a learned skill that cannot be replaced by automated machinery or technology. IBISWorld estimates that total wages are expected to account for 21.6% of industry revenue in 2016. Like most of the service sector, the industry relies most heavily on the skills and knowledge of its technicians. Purchase costs can generally be altered in accordance with a given job’s needs, but wages are much less flexible, as full-time employees are paid a salary regardless of demand levels. In response to the heightened volatility across construction markets, operators have been hiring more contracted technicians, whose hours and pay are more flexible, to better respond to market demand.Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Plumbers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plumbers Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Plumbers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Plumbers Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Housing Starts (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Hydronic
  • The use of water as the heat transfer in heating and cooling systems.
  • Leadership In Energy And Environmental Design
  • An environmental building certificate program that was established under the US Green Building Council and certifies buildings that meet energy-efficiency and green requirements.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • Nonpotable
  • Water that has not been treated, examined or approved by authorities as safe for consumption.
  • Plumbing Fixture
  • An apparatus for distribution, storage and flushing of water and waste, designed for the end user (e.g. toilets, showers, sinks and more).
  • Steamfitting
  • The installation and maintenance of equipment for ventilating, heating or refrigerating.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plumbers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plumbers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plumbers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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