Glass and Glazing Contractors

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 6,500 glass and glazing contractors in the US install glass panes in prepared openings and perform other types of glass work for buildings. Projects include new installations, additions, alterations, maintenance, and repairs. Smaller operators generally specialize in residential projects and emergency glass repair. Commercial projects include interior projects, such as the installation of decorative room dividers, and exterior projects, such as the replacement of storefront windows.

Dependence On The Construction Industry

Demand for glass and glazing services is highly dependent on the health of the construction industry, which is cyclical and influenced by economic conditions.

Specialized Labor Shortage

Glass and glazing contractors struggle to find qualified glaziers, who are workers that cut glass and perform the physical installation process.

Industry size & Structure

The average glass and glazing contractor operates out of a single location, employs 12 workers, and generates about $2 million in annual revenue.

    • The glass and glazing contracting industry consists of about 6,500 firms that employ about 75,500 workers and generate $14 billion annually.
    • Small, independent companies operate within a limited geographical market.
    • Large firms that manufacture, design and install building exteriors, such as aluminum curtain walls, stone, and composite panels, often also work with glass products.
    • Large firms include Harmon, Karas and Karas Glass, and Giroux Glass.
                              Industry Forecast
                              Glass and Glazing Contractors Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Sep 6, 2024 - Developers Pull Back on Apartment Projects
                              • High interest rates have increased the costs for new multifamily construction and reduced property values, prompting some developers to halt or delay projects, according to The Wall Street Journal. Multifamily housing starts involving five or more units fell 21.8% in July compared to July 2023 and were down 41% from their April 2022 peak. The drop in starts follows a boom in apartment building that began during the pandemic. This year, about 610,000 apartment units are expected to come online, the most in any year since the 1980s, according to data firm CoStar. However, as financing new projects has become costlier, CoStar expects new apartment supplies to slip to fewer than 350,000 units in 2025 and 275,000 in 2026. The influx of new apartment building has created an oversupply in some regions, leading to lower property values and weak rent growth, which has reduced developer and investor appetite for new projects.
                              • The total value of nonresidential building construction starts increased 25% in July from June, according to Dodge Construction Network. The gain was led by a 33% increase in manufacturing projects, while commercial construction starts advanced 30% on stronger lodging and data center spending. Institutional starts grew by 18% in July over June, fueled by a robust uptick in healthcare projects. Dodge Construction Network chief economist Richard Branch said, “Construction starts showed great promise in July. However, the short-term remains questionable due to high interest rates. The Federal Reserve is likely to cut interest rates in September, which will, over time, make market conditions more conducive to moving projects forward. In the meantime, construction starts will likely remain volatile over the next few months.”
                              • Demand for building design services improved in July over the prior month, but architectural billings remain soft, according to an August report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 48.2 in July from June’s reading of 46.4. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 52.4 in July compared to 51.6 in June, and the index for the value of new design contracts increased to 46.5 from 45.6. The AIA’s Chief Economist, Kermit Baker said, "Architecture firms continue to face a billings slowdown. However, the emerging prospects of lower interest rates coupled with a modest uptick in project inquiries suggest that some dormant projects may be revived in the coming months.”
                              • New single-family home sales rose 10.6% month-over-month and were up 5.9% year-over-year in July 2024, according to the US Department of Commerce. July’s rise in home sales marked the biggest gain in more than a year as interest rates moved lower. For the week ending September 5, the average fixed-rate 30-year mortgage rate was 6.35%, down from 7.12% a year earlier. Housing industry observers expect mortgage rates to continue trending downward amid anticipated interest rate cuts by the Federal Reserve, according to Reuters. However, high home prices remain an obstacle for many would-be buyers. The median new home sales price in July 2024 was $429,800, up 3.1% from June but down 1.4 compared to July 2023.
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