Painting & Wall Covering 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 37,000 painting and wall covering contractors in the US apply paint, stain, coatings, and wall coverings to walls, buildings, bridges, and other structures. Companies may specialize in a particular type of application, such as residential, industrial, or decorative painting. Other services include pressure washing, deck finishing, wood staining, drywall finishing, and exterior waterproofing/sealing.
Risk Of Injury And Illness
Workers are constantly working at heights that require ladders, scaffolding, lifts, or harnesses.
Dependence On The Construction Industry And Economy
Demand for painting and wall covering services is closely tied to the health of the construction industry, which is influenced by the state of the economy.
Industry size & Structure
The average paint and wall covering contractor operates out of a single location, employs 6 workers, and generates about $676,000 annually.
- The paint and wall covering contractor industry consists of about 37,000 establishments that employ about 205,000 workers and generate about $25 billion annually.
- The industry is highly fragmented; the majority of firms are small, independent operators. Many painting and wall covering contractors are self-employed.
- Large companies, such as the Brock Group, offer industrial painting as part of a larger portfolio of services.
Industry Forecast
Painting & Wall Covering Contractors Industry Growth
Recent Developments
Jan 17, 2025 - Nonresidential Building Construction Planning Improves
- The Dodge Momentum Index (DMI) increased 10.2% in December 2024 to 212 (2000=100), up from the revised November reading of 192.3. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 14.2%, and the institutional portion increased by 2.5%. Dodge’s associate director of forecasting, Sarah Martin, said, “Commercial activity rebounded strongly in December, thanks to a re-acceleration in data center and warehouse planning activity. Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”
- Among specific construction trades, painting and wallcovering contractors employ some of the highest percentages of immigrant workers, according to National Association of Home Builders analysis of US Census Bureau data. More than half (51%) of painters and paperhangers in the US are immigrants. More than 40% of painting and wall covering contractors say they’ve experienced labor shortages. Nationwide, foreign-born workers account for about 25% of construction trade employment, but reliance on immigrant labor is much higher in some states. Immigrants account for more than 40% of the total construction trade employment in California and New Jersey and about 38% in Florida and Texas. Some contractors are concerned that the Trump administration's promises of tariffs and a tougher stance on immigration could increase their costs and make their labor difficulties worse, according to The Wall Street Journal. However, some builders are optimistic that Trump’s deregulation plans could reduce construction costs.
- According to some industry insiders’ estimates, the 2024 housing market may have been the slowest in nearly 30 years as high mortgage rates and home prices combined with extremely low housing inventories have kept homeowners locked in place and would-be homebuyers priced out of the market, according to The New York Times. The National Association of Realtors estimates that four million homes were sold in 2024, marking the second straight year of historically weak activity, and the slowest home sales since 1995. Market observers note that the housing crisis is a product of weak supply. Builders have struggled amid lingering pandemic-era problems, including high borrowing, labor, and materials costs. Freddie Mac estimates the housing shortage equals about 3.7 million homes. The outlook for 2025 remains uncertain as home prices and mortgage rates are expected to remain stubbornly high.
- Multifamily developers’ confidence was mixed in the third quarter of 2024, according to the National Association of Home Builders (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose two points in Q3 2024 to 40 compared to the third quarter of 2023. The Multifamily Occupancy Index decreased by seven points to 75 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, regulations, and land availability. The NAHB forecasts that multifamily construction activity will remain weak for about another year amid a significant volume of projects under construction. Multifamily construction is expected to return to more robust growth near the end of 2025.
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