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 35,700 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 $700,000 annually.

    • The paint and wall covering contractor industry consists of about 35,700 establishments that employ about 207,600 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
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Jan 17, 2024 - Paint, Coating Price Growth Eases
                            • Producer prices for paint, coatings, and adhesive manufacturers were flat in Q4 2023 compared to the same period in 2022. However, painting and wall covering contractors’ materials costs are up significantly compared to pre-pandemic levels. Employment in the painting and wall-covering contracting industry increased slightly in Q4, year-over-year, but was consistent with seasonal trends. Painting and wall-covering wages saw nominal growth in Q4 2023 compared to the same time in 2022.
                            • The value of US commercial construction starts is expected to be mixed in 2024, depending on project type, according to a recent forecast by Dodge Construction Network. Marking a potential record level of activity for the sector, manufacturing construction will rise 16% to $112 billion in 2024, supported by the CHIPS and Science Act and the Inflation Reduction Act. Amid a pullback in planned investments by major warehouse builders Walmart and Amazon, the value of warehouse construction is expected to decline 11% in 2024 to about $44 billion. Low occupancy and weaker demand will reduce office construction spending to about $37 billion in 2024, down 6% compared to 2023. Office projects will be mostly confined to alterations to existing buildings. Speculative office construction, where offices are built before securing a tenant, has become less common.
                            • Pressures, including high interest rates and a shortage of new homes available to purchase, are prompting housing bulls on Wall Street to construct entire build-to-rent communities, according to The Wall Street Journal. In Q3 of 2023, large landlords that own between 100 and 1,000 homes purchased just 1% of homes sold in the US, compared to 3% for all of 2022, according to John Burns Research and Consulting. Once a model that worked well when foreclosure rates were higher, industry watchers suggest that finding and managing investment homes individually has become too time-consuming, costly, and inefficient. While the build-to-rent community market is still small – about 900 neighborhoods in the US, according to the Urban Institute – the National Association of Home Builders believes that soon 10% of new homes will be build-for-rent.
                            • Amid a US housing shortage and lack of affordable homes, some local governments are changing their zoning regulations to allow for more density, according to The Wall Street Journal. In some rapidly growing cities, housing has become scarce, and middle-class workers, teachers, police, and firefighters often cannot afford to live where they work. So-called upzoning rules are either in place or are being considered in Dallas, Boston, metros in Northern Virginia, Minneapolis, and Portland, Oregon. In 2023, zoning rules in Austin, Texas, were changed to allow up to three housing units on a single lot. However, housing industry observers point out that rezoning’s impact on affordability remains unknown. Attempts to change zoning to increase housing density have sometimes led to community backlash.
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