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
Jul 18, 2024 - Home Builder Confidence Wanes
- Home builder confidence in the single-family market dropped in July to the lowest level since December 2023 amid high mortgage rates and elevated builder financing costs, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell one point to 42 in July 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 31% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged for the thirteenth consecutive month.
- The number of building permits issued for privately-owned housing units, a demand driver for painting and wall covering contractors, increased 3.4% in June 2024 over May but declined 3.1% year-over-year. June’s monthly gain was primarily driven by a 19.2% uptick in permitting for housing projects with five or more units, while single-family permits were down 2.3%. June permitting for buildings with five or more units fell 6.5% compared to June 2023, and single-family permitting was off by 1.3% over the same period. Total housing starts grew by 3% month-over-month but fell 4.4% year-over-year in June. Starts increased 22% in June over May for projects with five or more units, while single-family starts declined 2.2% over the same period. Single-family starts rose 5.4% in June compared to a year earlier, but developments with five or more units saw starts decline by 23.4% from June 2023 levels.
- More designers, remodelers, and homeowners are using AI-enabled apps to make their decisions about home designs and remodeling, according to The Wall Street Journal. The developers of AI home design apps suggest the tools can save time and money by quickly visualizing dozens of designs and layout ideas, estimating costs, and coordinating interactions between the designer, contractors, and homeowner. Some apps are more focused on remodeling, enabling homeowners to sample different designs after uploading photos or drawings of their rooms. Other apps cater more to the design-build community by generating floor plans and managing project logistics.
- Total nonresidential building construction spending is projected to rise 6% in 2024 over 2023, according to FMI’s third-quarter 2024 North American Engineering and Construction Outlook. With growth of 28%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), educational (7%), and religious (7%). Some other segments of the nonresidential building sector face headwinds. Commercial construction spending is expected to decline 7% in 2024 amid weaker demand for warehousing space, high interest rates, and tighter lending standards. Lodging construction spending is forecast to drop 6% as consumer budgets tighten and hotel occupancies wane, especially near the market's lower tier. Stubbornly high office vacancies will continue to weigh on new office construction, which is projected to see flat spending in 2024. Despite high interest rates, single-family construction spending is forecast to rise 7% in 2024 as homebuilders reduce home sizes to improve affordability. Spending for multifamily is expected to decline by 1% in 2024 after projects in development peaked at 1 million units in mid-2023. Home improvement project spending will rise 4% in 2024 as homeowners primarily focus on maintenance and repairs amid high materials costs and interest rates.
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