Industry Spotlight: Plumbers in the US

The plumbing industry provides essential services that are critical to both construction and ongoing building maintenance across the United States. Plumbers install, maintain, and repair piping systems in a variety of settings, with nonresidential construction—such as office buildings, hospitals, factories, power plants, retail stores, and schools—representing the largest market segment. Residential services, while smaller in share, remain a steady source of demand given the essential nature of plumbing for repairs, renovations, and system upgrades.

In recent years, the nonresidential construction market has rebounded strongly after a challenging period, driven in part by federal policies and rising e-commerce activity. While warehouse construction has slowed from previous highs, demand from data center projects in 2024 has helped fill the gap. Federal legislation, including the CHIPS Act, has contributed to increased activity in commercial and industrial building projects, providing new opportunities for plumbing contractors. However, high mortgage rates have weighed on residential demand, with the market slowing significantly until rate cuts in 2024 began to ease conditions.

Plumbing remains a regulated industry with barriers to entry that include required training, licensing, and experience. These requirements vary from state to state, reinforcing the localized nature of the business. Industry associations and unions support plumbers through training programs, advocacy, and job opportunities. The sector also benefits from the constant need for repair and maintenance work, which helps stabilize demand even during construction downturns.

Financially, the plumbing industry generated an estimated $158.6 billion in revenue in 2024, with growth projected through 2029 before leveling at around 2.6% annually. The industry employs over 736,000 workers, with employment expected to grow at 2.9% annually over the next five years. Approximately 132,000 plumbing businesses operate nationwide, generating an average annual revenue per business that supports profit margins of 4.3%. This translates to about $51,685 in profit per business, with total industry profits from 2019 to 2024 reaching $6.8 billion.

Key performance drivers include nonresidential construction trends, interest rate movements, and the ongoing need for system repairs and replacements. The replacement of aging or hazardous piping materials also supports consistent demand. Companies that can adapt to changing market conditions, diversify their service offerings, and leverage strong relationships with general contractors will be well-positioned to capture opportunities across multiple sectors.

Looking ahead, plumbing contractors will need to balance the cyclical nature of construction with the steady base of maintenance and emergency repair work. Those who invest in workforce development, embrace emerging technologies, and align with high-growth market segments such as data centers and sustainable building projects will have an advantage. Partnering with advisors like Blue Sky Exit Planning can help plumbing businesses benchmark performance and position for long-term success.

For a deeper dive into the key takeaways and to see how your business compares to industry benchmarks, contact Joe at Joe@blueskyexitplanning.com.

Citation:Pigott, M. (2024). 23 Construction in the U.S. IBISWorld Industry Reports. https://my.ibisworld.com/

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