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During the recession, the collapse of the housing market and the ensuing credit crisis brought both residential and commercial construction to a halt and severely constrained demand for industry services; however, as construction markets, especially those in the nonresidential sector, continue to recover, operators will enjoy favorable demand and steady revenue growth. For these reasons, industry research firm IBISWorld has updated a report on the Glass & Glazing Contractors industry in its growing industry report collection.
New York, NY (PRWEB) February 14, 2014
Operators in the Glass and Glazing Contractors industry install glass curtain walls, windows, doors, room dividers and other glass products in residential and commercial buildings. They also tint and repair glass structures and install window panes (of all types). The level of new construction, repair and renovation activity across key building markets determines demand for industry services. During the recession, the collapse of the housing market and the ensuing credit crisis brought both residential and commercial construction to a halt and severely constrained demand for industry services. Despite subsequent improvement in demand, the industry has yet to recover in full, and revenue is expected to decline at an annualized 1.4% to about $11.6 billion in the five years to 2014. Still, this includes forecast growth of 8.1% in 2014 in light of strong commercial and office space construction and improving institutional construction, which together account for the majority of industry revenue.
According to IBISWorld Industry Analyst Amal Ahmad, About three quarters of industry revenue is derived from work on office space and commercial and institutional buildings, whether new or under renovation, and the remainder is derived from work in the housing market. The industry's largest contractors tend to specialize in the installation of glass curtain walls and exterior facades on office buildings and other commercial property, which usually constitute large and lucrative contracts. Smaller operators tend to specialize in residential markets and in emergency glass repair. Still, operators across the board have constrained prices, and thereby profit margins, to maintain competitiveness in a highly competitive and fragmented industry. Companies are also increasingly relying on solid working relationships with past clients to keep crews busy and on word of mouth to maintain share in tight local markets.
As construction markets, especially those in the nonresidential sector, continue to recover, operators will enjoy favorable demand and steady revenue growth. IBISWorld expects revenue to grow in the five years to 2019, largely due to the rapid emergence of new office and retail structures and increasing preference for glass exteriors, says Ahmad. Although operators will have to deal with modest profit margins, high competition and growing environmental concerns about the use of glass in buildings, these concerns are unlikely to offset favorable industry development over the next five years.
For more information, visit IBISWorlds Glass & Glazing Contractors in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Glass & Glazing Contractors industry select, cut and install glass panels for large windows, glass doors, skylights, curtain walls and sunroom additions in all types of buildings; they also install window panes. The glasswork performed includes new work, additions, alterations, maintenance and repairs. This industry does not install, tint or repair automotive glass and it does not install prefabricated window units.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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