Drywall and Insulation Contractors

The 19,495 Drywall and insulation contractors in the US perform drywall work, plaster work, and building insulation work for residential and nonresidential buildings. They may also install ceiling tiles, perform fireproofing work for buildings, and do framing or painting work. Work is performed for new building construction, renovations and additions to existing buildings, and maintenance and repair of existing installations.

Dependence on Construction Activity

Demand for drywall and insulation contractors is highly dependent on residential and nonresidential construction activity.

Reliance on Immigrant Workers

The construction industry in general and drywall and insulation contractors in particular, are highly dependent on immigrant workers to fill lower skilled positions.

Oct 8, 2026 - Residential Construction Spending Rises

• The US Census Bureau says construction spending increased in August, with both private residential and private nonresidential activity posting monthly gains. Private residential construction spending rose 1.1% from July to a seasonally adjusted annual rate of $882.3 billion, although it remained 4.8% below August 2025. New single-family construction spending edged up 0.2% from July but fell 3.5% year over year, and multifamily spending also rose 0.2% for the month while slipping 0.6% from a year earlier. For drywall and insulation contractors, the monthly improvements could support near-term demand across housing projects, while the year-over-year declines signal that residential construction remains below last year's pace.
• Construction starts normalized in August after a surge in major projects during July, according to Dodge Construction Network. Residential building starts declined 5.2% from July to a seasonally adjusted annual rate of $364 billion, with multifamily starts down 13.5% while single-family starts edged up 0.4%. Residential starts were down 1.8% year-to-date through August, reflecting a 4.6% decline in single-family starts and a 3.0% increase in multifamily starts. Over the 12 months ending in August, total residential starts decreased 2.4%, with single-family starts down 8.6% and multifamily activity up 8.7%. Weaker residential starts can limit future installation opportunities for drywall and insulation contractors, particularly in multifamily construction, although stable single-family activity provides some support.
• The National Association of Home Builders (NAHB) reports that remodeling is taking on a larger role in residential construction as an aging housing stock, aging-in-place demand, and record-high housing wealth support the market. The NAHB Remodeling Input Price Index showed nonlabor input costs rising 6.6% year over year in the second quarter, accelerating from 3.9% in the first quarter and marking an 11th consecutive quarter of increases. Average hourly earnings rose 2.3% year over year to $37.91, although NAHB noted that real earnings remained negative after inflation. Sustained remodeling activity can support project pipelines for drywall and insulation contractors, but faster material-cost growth may pressure margins and increase the importance of accurate bidding and purchasing.
• The New York Times reports that the 21st Century ROAD to Housing Act is the largest federal housing effort in a generation. Still, it is unlikely to quickly reduce rents or home prices because it provides little funding and leaves key decisions to state and local governments. The bipartisan law streamlines some housing programs, rewards cities that ease development rules, supports build-to-rent communities, and removes barriers to manufactured and modular construction. Its biggest effect may be signaling broad support for increasing housing supply, although zoning limits, permitting delays, interest rates, and long construction timelines will continue to constrain results. Any eventual increase in multifamily, single-family rental, manufactured, or modular housing could expand project opportunities for drywall and insulation contractors, but demand may grow slowly and vary widely by market.

Industry size & Structure

The average drywall and insulation contractor operates out of a single location and generates $3.1 million in annual revenue.

• The drywall and insulation contractor industry in the US consists of about 19,495 companies that employ 247,500 workers and generate $60 billion in annual revenue.
• The industry consists primarily of small companies - 62% of firms have less than five employees.
• Small firms may specialize in residential or commercial construction, while larger firms typically target both markets.
• Major US companies include KHS&S, Performance Contracting Group, Standard Drywall, Inc. and The Raymond Group.