Pipe dream: Expanding downstream construction markets will bolster revenue growth

The Plumbing industry in Canada is one of many subcontracting industries essential to the residential and nonresidential building markets, as plumbers are needed to both install systems for new construction and to repair and maintain the systems of existing structures. Residential renovation, in particular, has been a major source of revenue for the industry over the past five years. Maintenance and repair of existing equipment also account for a significant share of revenue, lending a stable source of revenue to the industry when construction markets fluctuate. Therefore, over the five years to 2019, industry revenue is expected to increase...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 14-19
1.0%
Forecast Growth 19-24
Profit
Employment
65,769
Businesses
14,109
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry benefited from steady demand for long-term facilities’ maintenance and repairs
  • The housing construction market’s rapid expansion resulted in a sharp upswing in demand
  • As businesses increase capacity, industry demand will also increase
  • Industry Report - Starting a New Business Chapter

    Barriers to entering the Plumbing industry in Canada are moderate. The industry is highly fragmented, with no operator accounting for more than 5.0% of industry revenue. There are few start-up costs incurred to open a plumbing business other than a vehicle, as well as the requisite tools and materials. Additionally, operators must obtain permits and contractors must be licenced to work in the industry.Since plumbers typically compete in a narrow geographic market, already-established operators benefit from a strong reputation, experience and connections with building managers as well as general contractors. Additionally, facilities management companies, which operate across numerous subcontractor industries (e.g. plu...purchase to read more.

    Additional Insights for the Plumbing Industry

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

  • Having a good reputation
  • Ability to accommodate environmental requirements
  • Ability to vary services to suit different needs
  • IBISWorld analysts also discuss how external factors such as Housing starts and Per capita disposable income in the Plumbing industry impact industry performance..

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    What's in this report

    What is the Plumbing Industry?

    This industry installs and services plumbing fixtures, fittings and equipment. Industry activities include work on household pipes and drains, installation of gas cooking and heating appliances and work on bathroom and toilet fixtures and venting systems. Emergency repair work (e.g. unclogging drains or repairing burst water mains) represents a significant source of industry revenue. Contractors may also supply plumbing appliances, pipes and coupling products for projects.

    Industry Products
  • General plumbing services
  • Mechanical services
  • Sprinkler services
  • Steamfitting and piping services
  • Other services
  • Industry Activities
  • Gas plumbing
  • Gas appliance repair
  • Repairing installed plumbing
  • Septic tank installation
  • Drain construction, cleaning or repairing
  • Indoor and outdoor sprinkler system installation
  • Steamfitting and piping contracting services
  • Solar hot water systems installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Per capita disposable income
  • Residential renovation expenditure
  • Value of nonresidential construction
  • Value of residential construction

  • Current Performance
  • Scope of work
  • Repair work
  • Downstream markets
  • Industry structure and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets stabilize
  • Industry structure and profitability
  • Table: Plumbing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Industrial Building Construction in Canada
  • Commercial Building Construction in Canada
  • Municipal Building Construction in Canada

  • Key Selling Industries
  • Electricians in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
  • Tool & Hardware Wholesaling in Canada

  • Products & Services
  • General plumbing services
  • Mechanical services
  • Sprinkler services
  • Steamfitting and piping services
  • Other services
  • Chart: Plumbing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Existing residential construction
  • Healthcare, education and public safety buildings
  • Manufacturing and industrial buildings
  • Other
  • Office buildings
  • Retail and storage spaces
  • New residential construction
  • Chart: Major Market Segmentation for the Plumbing Industry

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

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Plumbing 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 Plumbing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Housing starts (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hydronic
  • The use of water as the heat-transfer in heating and cooling systems.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • Nonpotable
  • Water that has not been treated, examined or approved by authorities as safe for consumption.
  • Plumbing Fixture
  • An apparatus for distribution, storage and flushing of water and waste, designed for the end user (e.g. toilets, showers, sinks and more.)
  • Steamfitting
  • The installation and maintenance of equipment for ventilating, heating or refrigerating.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plumbing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Plumbing:
    • 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 Plumbing 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 Plumbing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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