Drywall & Insulation Supply
Distributors supplying drywall and insulation to construction contractors.
Market snapshot
These figures describe Building Materials & Construction Supply (5.4.1), the segment that Drywall & Insulation Supply sits within. They are not figures for Drywall & Insulation Supply on its own.
- Market size
- ~$431B
- Growth
- ~9.7%CAGR (2017–22, nominal)
- Companies
- ~16,884 firms
72.3% of firms have fewer than 20 employees: 12,207 micro-businesses, below most mandates.
- 20–99
- 3,16168%
- 100–499
- 94120%
- 500+
- 57212%
The figure spans production as well as distribution. Cement, ready-mix, gypsum and cut stone account for roughly a quarter of it, and nothing else in the taxonomy claims those codes. That matters when reading the economics: the producers are capital-heavy with real fixed assets, while the yards beside them are working-capital businesses. Growth was the second fastest here on materials inflation, not volume.
NAICS 327120, 327310, 327320, 327331, 327332, 327390, 327410, 327420, 327991, 423310, 423320, 423330, 423390. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
Business model & economics
Revenue model
Construction-materials resale to builders and contractors
Key economics
- Revenue per firm
- $25,517,677
- Revenue per employee
- $798,716
- Employees per firm
- 31.2
- Recurring revenue
- Moderate–High
- EBITDA margin
- Thin, price- and volume-driven
- Capex intensity
- Moderate
recurring builder/contractor reorder
Characteristics
- Scale-driven: payroll is only 9% of revenue, so the cost base is assets, not headcount
- Deep strategic-buyer pool: 572 firms exceed 500 employees, so a scaled asset has trade buyers
- Scaled distributors plus fragmented regional yards.
- Growth inflated by 2021–22 lumber/materials prices.
- One of the most active distribution roll-up arenas.
NAICS 327120, 327310, 327320, 327331, 327332, 327390, 327410, 327420, 327991, 423310, 423320, 423330, 423390. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
M&A deal context
Who’s acquiring
- National building-products distributors
- PE-backed distribution platforms
- Regional pro-dealer consolidators
What’s driving deals
- Aggressive roll-up of regional yards.
- Construction-cycle and pricing dynamics.
- Scale in purchasing and logistics.
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