Los Angeles, CA (PRWEB) August 27, 2012
Over the five years to 2012, the Painting and Decorating Franchises industry suffered a blow by the burst of the housing bubble and the subsequent recession. Prior to the downfall in the residential sector, the run-up in new housing starts was a boon for the industry. Nevertheless, a significant drop in demand followed. As the housing market collapsed and the economy crashed, says IBISWorld industry analyst Antonio Danova, activity in both the residential and commercial construction sectors plummeted, causing a severe decline in demand for painting services. As a result, industry revenue is expected to fall at an annualized rate of 5.3% to about $ 767.7 million over the five-year period.
In addition to falling demand from the industry?s two largest markets, many companies in the Painting and Decorating Franchises industry felt pressure from increased external competition and shifting construction trends. During the recession, many homeowners took to do-it-yourself (DIY) methods for home improvement needs as a cheaper alternative to hiring a painting service company, added Danova. Additionally, many new construction projects are incorporating materials like concrete and glass, which require less painting. Both of these factors contributed to declining demand for franchise painting and decorating firms over the past five years. With demand dwindling and revenue drying up, industry profitability was squeezed.
Over the next five years, the industry is poised for a return to growth. A strong forecast recovery in the housing market and increased construction activity on non-residential buildings like offices, factories and power plants will drive demand for painting services. In addition, homeowners returning to work and increasing their disposable income will likely substitute DIY home improvement projects in favor of professional painting services. These factors will contribute to growth over the five years to 2017. Moreover, with newly restored demand for painting services from residential and commercial markets, many opportunities for potential new franchisees to enter the industry will arise. As a result, the number of industry establishments is projected to grow. The industry is dominated by major player FirstService Corporation?s CertaPro franchise. Over the next five years, this companys dominance, the strong performance of major companies Fresh Coat Painters, Five Star Painting and Service Brands International and success of smaller painting and decorating franchises will contribute to increased concentration. For more information, visit IBISWorlds Painting and Decorating Franchises in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes franchised establishments that are primarily responsible for interior or exterior painting and wall covering. The work performed includes new work, additions, alterations, maintenance and repairs, but does not include interior design services.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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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