Cooling off: Falling demand from residential construction is causing short-term declines

The Insulation Services industry has endured volatile conditions since the late 2000s due to earlier government intervention policies, particularly the Commonwealth's Home Insulation Program (HIP). However, demand conditions have stabilised over the past five years, with trends in downstream building markets driving demand. Another factor supporting industry demand has been surging investment in heavy industrial structures, particularly in mineral and energy developments and where tighter regulations have governed the energy efficiency of new buildings.Industry revenue is expected to total $786.0 million in 2016-17, down by 9.8% on the previous year in response to investment slumping in the residential building market on the completion of major apartment developments...read more.

Industry Statistics & Market Size
Revenue
$786m
Annual Growth 12-17
1.7%
Forecast Growth 17-22
Profit
Employment
8,450
Businesses
3,900
Market Share of Companies

Industry Threats & Opportunities

  • Tighter regulation regarding energy efficiency in new buildings has supported industry demand
  • Industry profitability has declined due to the industry's intense competitive pressures
  • Regulations stipulating minimum insulation standards for new buildings will support the industry
  • Industry Report - Industry Products Chapter

    The industry installs and replaces thermal and acoustic insulation products on buildings, plant and transport equipment. The industry's principal service is installing batts and blankets into building ceiling and wall cavities. Cavity insulation in the walls and floors of new buildings is typically installed at the time of construction. The average home can have ceiling insulation installed in two to four hours.Fibreglass insulation servicesFibreglass insulation is the most popular product due to its efficiency and predominant use in residential housing while other materials dominate in different markets. Fibreglass insulation installation has strengthened marginally over the past five years, accounting for 46.0% o...purchase to read more.

    Additional Insights for the Insulation Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insulation Services Industry are

  • Having a high profile in the market
  • Vertical integration
  • Ability to franchise operations
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from commercial and industrial building construction in the Insulation Services industry impact industry performance..

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    What's in this report

    What is the Insulation Services Industry?

    Industry operators install, remove and reinstall insulation products for thermal and acoustical protection of buildings, industrial and transport infrastructure, pipes, and industrial equipment.

    Industry Products
  • Fibreglass insulation services
  • Polyester insulation services
  • Rock wool insulation services
  • Wool insulation services
  • Reflective insulation services
  • Cellulose insulation services
  • Industry Activities
  • Installing thermal and acoustical insulation
  • Thermal insulation application
  • Removing older insulation materials
  • Preparing areas for insulation
  • Installing insulation materials
  • Measuring and cutting insulation batts and blankets
  • Sealing insulation materials
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from residential building construction
  • Demand from commercial and industrial building construction
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from heavy industry and other non-building construction

  • Current Performance
  • Demand recovers
  • Profitability tightens
  • Participation stabilises
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and job growth
  • Stronger building investment
  • Environmental concerns and competition
  • Table: Insulation Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insulation Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Commercial and Industrial Building Construction
  • Institutional Building Construction
  • Integrated Logistics

  • Key Selling Industries
  • Ceramic Product Manufacturing
  • Glass Wool, Stone and Non-Metallic Mineral Product Manufacturing
  • Hardware Wholesaling
  • Synthetic and Natural Textile Manufacturing

  • Products & Services
  • Fibreglass insulation services
  • Rock wool insulation services
  • Cellulose insulation services
  • Reflective insulation services
  • Polyester insulation services
  • Wool insulation services
  • Chart: Insulation Services Industry Products and Services Segmentation

  • Demand Determinants
  • Construction and development
  • Government support
  • Environmental concerns

  • Major Markets
  • Residential building contractors and developers
  • Non-residential building contractors and developers
  • Engineering construction contractors and industrial operators
  • Renovation contractors and homeowners
  • Other industrial markets
  • Chart: Major Market Segmentation for the Insulation Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Insulation Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insulation Services Industry

  • Industry Globalization
    Kaefer Integrated Services Pty Ltd,
  • Table: Kaefer Integrated Services Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Insulation Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Insulation Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Energy Efficient Homes (Eeh)
  • A Federal Government program which mainly included subsidisation of the installation of insulation and solar hot water systems into existing homes.
  • Glass Wool
  • Material made from fibreglass that is used for insulation.
  • Home Insulation Program (Hip)
  • A program funded under the EEH to subsidise the installation of ceiling insulation for existing homes. Discontinued in April 2010 amidst the controversy of fraudulent behaviour and safety issues.
  • Mineral Wool Insulation
  • Fibreglass blankets or batts installed in ceilings and walls to provide thermal insulation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insulation Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Insulation Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Insulation Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Insulation Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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