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Plumbing in the US
IBISWorld, Aug 2009, Pages: 34
This industry comprises firrms primarily engaged in installing and maintaining plumbing fixtures, fittings, and equipment, ranging from work on household pipes and drains, to installation of gas cooking and heating appliances, bathroom and toilet fixtures, and venting systems. This includes new work, additions, alterations, and maintenance and repairs. Emergency repair work, such as the unclogging of drains, or repairing burst water mains, represents a significant source of industry revenue and helps stabilize the industry from fluctuations in installation demand. Establishments operating as plumbing contractors may also supply plumbing appliances (e.g., faucets), and typically also supply pipe and coupling products used on projects.
Competing over your pipes
Competitive conditions have intensified across all plumbing markets over recent years although the regional housing construction market has been most severely impacted by the onset of economic recession and the fallout from the collapse of the subprime mortgage finance market. The industry derives around 30% of its annual revenue from installation work on new housing and a further 35% comes from alterations and repairs to existing homes. Between the 2005 cyclical peak in the housing construction cycle and the current cyclical trough, the value of new housing construction has fallen by 50%, and the number of housing starts has plummeted by 63%, thereby significantly eroding the revenue base for many contractors.
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