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State of the
INDUSTRY
Study
The wall and ceiling industry has some great things going for it yet some major challenges.
By John Wyatt
State of the
INDUSTRY
Study
The wall and ceiling industry has some great things going for it yet some major challenges.
By John Wyatt
Recently, W&C conducted a survey on where we stand as an industry.
State of the
INDUSTRY
Study
The wall and ceiling industry seems to be holding consistent from last year’s results. But will it continue? Here are the highlights.
W&C recently conducted our annual State of the Industry study which went out to our subscribers. Where are we at as an industry at from last year and overall? Is labor still a challenge? What about the supply chain issue? What are the latest concerns our contractors, architects and distributors have today?
The purpose of the Walls & Ceilings State of the Industry Study is to identify current business conditions, trends and issues in the wall and ceiling industry. Clear Seas Research, in conjunction with W&C, has again conducted the SOI Study in order to obtain detailed information on industry professionals’ outlook on the wall and ceiling industry as a whole.
Specifically, this research seeks to identify:
- Influential factors and key challenges facing the industry
- Change in product sales for 2023 and into 2024
- Company information including number of employees and gross annual sales
- Demographic profile of wall and ceiling industry professionals
Respondent Profile
Out of those surveyed, 53 percent identified as subcontractors; 24 percent architects and 5 percent distributors. Regionally, the survey was divided up into four regions: the West (including Alaska and Hawaii); South; Midwest, and Northeast.
31%
Commercial new construction
27%
Commercial
new construction
26%
residential repair/remodeling
24%
Commercial new repair/remodeling
18%
residential
new construction
Business Revenue
The majority of commercial business revenue comes from new construction, while residential business revenue is split relatively evenly between new construction and repair.
- Commercial new construction: 27 percent
- Commercial new repair/remodeling: 24 percent
- Residential repair/remodeling: 26 percent
- Residential new construction: 18 percent
Overall Business Conditions
Almost half of respondents report an increase in 2023 annual revenue, compared to 2022, with an even greater proportion of respondents expecting growth in the next two years.
Cost of Doing Business
Almost all respondents indicate the cost of doing business will increase in 2024 as compared to 2023.
Top Business Challenges in 2024
The majority of respondents indicate the current economy, increased building material costs, labor costs, and lack of qualified workers are major issues for their business in 2024. Nearly one-third chose the current economy as their single greatest business challenge.
Almost all respondents indicated an increase in material pricing over the past 12 months.
Product Sales
On average, drywall accounts for over one-quarter of product sales, while insulation and ceilings combined account for another one-quarter of sales. Insulation and ceilings are tied in second place, with steel framing a solid fourth.
Change in Material Pricing
Over four-in-five respondents indicate an increase in material pricing over the past 12 months.
- Prefabrication/Panelization
- Automation/Robotics
- BIM
- Artificial Intelligence
- Insulation
- Estimation/Project Management Software
- 3-D Modeling
- Laser Scanning
- Light-weight Materials
- Acoustics
Most Promising Technology/Development
When those surveyed were asked what products/technology were considered to be on their radar, many supplied written responses. Among those that were referenced are:
Managing Everyday Fire Safety Responsibilities
Owners, as well as design and construction teams, are tasked with maintaining fire and life safety during renovations at health care facilities.
Ceilings with Stucco, EIFS and DAS
Specification writers should think more about inexperienced installers.
Goley Insulation at 50
This Illinois-headquartered insulation company celebrates half a century.