Pipe up: Accelerating downstream construction markets will boost industry performance

The Plumbing Service Franchises industry's performance is directly linked to building construction markets and consumer spending levels, both of which have expanded over the five years to 2017. Consequently, over the five years to 2017, IBISWorld expects that industry revenue will increase. The industry also benefits from stable demand from homes and businesses that need repair and maintenance of water delivery systems. Maintenance work accounts for a sizable share of the industry and is a stable source of revenue when construction markets fluctuate. The Plumbing Service Franchises industry is expected to continue expanding over the five years to 2022. Accelerating downstream construction markets and expanding economic activity will boost industry performance over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$983m
Annual Growth 12-17
2.5%
Forecast Growth 17-22
Profit
Employment
4,339
Businesses
451

Industry Threats & Opportunities

  • The industry’s performance is directly linked to construction markets and consumer spending levels
  • Construction spending rebounded from unprecedented historical lows resulting in steady industry expansion
  • Downstream construction markets are expected to continue growing, benefiting the industry
  • Industry Report - Industry Investment Chapter

    The Plumbing Service Franchises industry has a low level of capital intensity, reflecting the industry's reliance on skilled labor rather than on technology or heavy equipment. For every $1.00 spent on labor, the average operator invests $0.03 in capital costs. The majority of capital investment comes with the initial startup costs of opening a new franchise location. Capital costs vary for each location and each franchisee, with most franchisors offering different financing options based on the capital requirements of each new establishment.Capital expenses mainly consist of vehicles and rudimentary tools, which are usually accumulated in an apprenticeship or can also be rented. Som...purchase to read more.

    Additional Insights for the Plumbing Service Franchises Industry

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

  • Proximity to key markets
  • Business expertise of operators
  • Aggressive marketing/franchising - given the high level of competition
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Plumbing Service Franchises industry impact industry performance..

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    What's in this report

    What is the Plumbing Service Franchises Industry?

    This industry operates franchised plumbing service companies. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margins earned by franchisees.

    Industry Products
  • General plumbing services
  • Sprinkler installation services
  • Mechanical contracting services
  • Steam and pipefitting services
  • Industry Activities
  • Drain construction, cleaning or repairing
  • Repair of installed plumbing
  • Septic tank installation
  • Gas plumbing
  • Solar hot water systems installation
  • Steam fitting and piping contracting services
  • Interior and outdoor sprinkler system installation
  • Hot water systems installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of private nonresidential construction
  • Value of residential construction
  • Private spending on home improvements

  • Current Performance
  • The franchise appeal
  • Strong downstream construction markets
  • Repair work
  • Chart: Revenue Growth

  • Industry Outlook
  • Expanding construction activity
  • Industry structure
  • Going green
  • Table: Plumbing Service Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plumbing Service Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Plumbing & Heating Supplies Wholesaling
  • Real Estate and Rental and Leasing
  • Remodeling
  • Consumers

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

  • Products & Services
  • General plumbing services
  • Mechanical contracting services
  • Sprinkler installation services
  • Steam and pipefitting services
  • Other
  • Chart: Plumbing Service Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Existing Residential Building Market
  • Healthcare, Educational and Public Safety Buildings
  • Manufacturing and Industrial Buildings
  • Other
  • Office Buildings
  • Retail and Storage Spaces
  • New Residential Building Market
  • Chart: Major Market Segmentation for the Plumbing Service Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Franchise fees, marketing costs, and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Plumbing Service Franchises

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plumbing Service Franchises Industry

  • Industry Globalization
    Chemed Corporation, The Dwyer Group, Clockwork Home Services, Inc, Rooter-Man,
  • Table: Chemed Corporation - financial performance
  • Table: The Dwyer Group - financial performance
  • Table: Clockwork Home Services, Inc - financial performance
  • Table: Rooter-Man - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plumbing Service Franchises Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plumbing Service Franchises Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Franchisee
  • The party in a franchising agreement that is purchasing the right to use a business's trademarks, associated brands and other proprietary knowledge to open a branch.
  • Hydronic
  • The use of water as the heat-transfer in heating and cooling systems.
  • Leadership In Energy And Environmental Design (Lee
  • 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).
  • Royalties
  • Ongoing fees paid to the franchisor by franchisees in respect of ongoing training and support services provided, usually a percentage of revenue
  • Steam Fitting
  • The installation and maintenance of equipment for ventilating, heating or refrigerating.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plumbing Service Franchises Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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 Plumbing Service Franchises:
    • 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 Plumbing Service Franchises 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 Plumbing Service Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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