Built to last: Improvements in the real estate market will boost demand for insulation contractors

Demand for insulation installers has shown steady signs of improvement from the steep declines that occurred amid the subprime mortgage crisis. Revenue for the Insulation Contractors industry has grown in line with improvements in both the residential and nonresidential construction markets, and as rebounding demand has eased price-based competition among contractors, profit margins have recovered over the past five years. Additionally, the industry has benefited from federal tax credits that encourage the installation of energy-efficient insulation. Although the real estate market is unlikely to reach its prerecessionary peak, continued improvements in downstream construction markets are expected to sustain industry growth over the next five years...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 11-16
3.2%
Forecast Growth 16-21
Profit
Employment
63,327
Businesses
26,807
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • As construction activity regains momentum, insulation contractors are anticipated to experience steady growth
  • Homeowners completed do-it-yourself projects as disposable incomes dwindled
  • The success of insulation contractors is largely dependent on the US housing market
  • Industry Report - Industry Key Buyers Chapter

    The Insulation Contractors industry exhibits low market share concentration, with no single operator claiming more than 5.0% of industry revenue. The industry is mostly composed of nonemployers and small operators that serve narrow, municipal markets. The industry's low barrier to access results in buoyant entrance, especially when construction activity picks up. Moreover, new opportunities in ecofriendly and alternative materials insulation have attracted hopeful entrants. Low market share concentration will likely continue going forward...purchase to read more.

    Additional Insights for the Insulation Contractors Industry

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

  • Ability to compete on tender
  • Proximity to key markets
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Housing starts and Private spending on home improvements in the Insulation Contractors industry impact industry performance..

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    What is the Insulation Contractors Industry?

    This industry consists of establishments primary engaged in installing insulation products for buildings. This industry does not include work performed by general building contractors.

    Industry Products
  • Fiberglass
  • Polyisocyanurate
  • Mineral wool
  • Polystyrene
  • Alternative insulation materials/ other
  • Industry Activities
  • Wall cavity and attic space insulation installation
  • Exterior insulation finish system installation
  • Roof insulation installation
  • Foam, panel, mineral wool, glass fiber, polystyrene board and urethane foam 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
  • Private spending on home improvements
  • Value of private nonresidential construction
  • Value of residential construction
  • Homeownership rate

  • Current Performance
    Strengthening housing marketProfit margins begin to recoverGovernment aids the industry
  • Chart: Revenue Growth

  • Industry Outlook
    Housing market stabilizesOther key marketsProfit continues to rise
  • Table: Insulation Contractors Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Third-Party Administrators & Insurance Claims Adjusters
  • Apartment Rental
  • Commercial Leasing
  • Public Administration
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Finance and Insurance
  • Glass Product Manufacturing
  • Heavy Equipment Rental
  • Manufactured Home Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Fiberglass
  • Polyisocyanurate
  • Mineral wool
  • Polystyrene
  • Alternative insulation materials/ other
  • Chart: Insulation Contractors Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term demand
  • Long-term demand

  • Major Markets
  • Industrial, government and other structures
  • Single-family houses
  • Apartments and attached family houses
  • Office buildings
  • Chart: Major Market Segmentation for the Insulation Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Insulation Contractors

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insulation Contractors Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Insulation Contractors 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 Insulation Contractors 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
    Cellulose
  • An organic compound that is mainly used to produce paperboard and paper products found in alternative insulation materials.
  • Hydrochlorofluorocarbons
  • Compounds used as refrigerants and in insulation foams, considered to be a safer alternative to ozone-depleting Chlorofluorocarbons.
  • Polystyrene
  • A synthetic and inexpensive polymer used to make most plastic containers and insulation materials.
  • Why buy this report?

    IBISWorld’s Insulation Contractors 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 Insulation Contractors:
    • 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 Insulation Contractors 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 Insulation Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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