Plasterboard manufacturers produce gypsum-based plaster products for use in construction. This includes plasterboard products that are faced or reinforced with paper or paperboard and non-reinforced plaster products.
The healthy construction industry of pre-recession Britain created a prosperous environment for the plasterboard manufacturing sector. Financial security, high levels of disposable income and easy capital access meant residential and commercial building projects were booming and the demand for plasterboard was high.
When the economic downturn struck in 2008, it devastated the whole construction industry. Demand for plasterboard fell and revenue for the industry plummeted as a result.
Intervention from the government helped to keep the industry afloat by pouring public funds into new building projects but this policy was dropped when the coalition Government come into power.
The marketshare concentration in the plasterboard manufacturing industry is extremely high with the three major manufacturers estimated to account for 90.9% of the total annual revenue for the industry. Outside of the three main players, other businesses operating in the industry are relatively small that cater to niche markets. Only a small number of establishments have a workforce of over 50. They tend to be the larger multinationals that generate annual revenue of more than £5.0 million.*
* Based on data from ‘Building Plaster Product Manufacturing in the UK: Market Research Report‘ by Ibis World