Procurement Market Intelligence Report
Drywall
Sourcing Guide & Market Intelligence
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Drywall Global Overview
Definition
Summary
This report is intended to assist buyers of drywall, also commonly referred to as sheetrock. Used to make interior walls, drywall is composed of gypsum plaster sandwiched between two sheets of paper. Drywall may also be referred to as wallboard, plasterboard, or gypsum board and can be procured from national and regional distributors, as well as big-box retailers. This report does not include manufacturers as a supplier because the majority of end users purchase drywall from distributors and retailers.
This Report Includes:
- Regular Drywall
- Type X Drywall
- Mold-Resistant Drywall
- Soundproof Drywall
Not in this Report:
- Acoustic Panels
- Insulation
- Ceiling Tiles
- Other Building Materials
Global Drywall Procurement Trends
Discover the top international trends affecting procurement in the global Drywall market.
Warning Trends
Tariffs to negatively impact building and construction components and supplies sector
- The Trump Administration’s reciprocal tariffs, which impose higher tariffs on all products imported from most foreign nations, are set to take effect on August 7, after the rates were finalized on August 1. As a result, most construction material import sources face higher tariffs, including Mexico (25.0%), Canada (35.0%), Turkiye (15.0%), and China (54.0%).
- According to Realtor.com, about 70.0% of the softwood lumber and drywall gypsum (used for drywall) used in residential construction is imported from Canada and Mexico, respectively. According to the New York Times, drywall prices could rise by 22.0%. Other products like wood utility poles, medium-density fiberboard, particleboard, plywood, wood veneers, and wood pulp will also see higher prices as a result.
- The Yale Budget Lab estimates that construction inputs like cement could see a 3.5% increase in price with higher tariffs on imports. Turkiye, Canada, and Mexico, which account for over 65.0% of US imports, face tariff rates of 10.0%, 25.0%, and 25.0%, respectively.
- Specific steel and aluminum tariffs of 50.0% on all US imports are also negatively affecting buyers of building and construction components and supplies like sheet metal, automatic sliding doors, garage doors, ladders, posts and bollards, and more. In 2024, 23.0% of all steel used in the United States was imported from foreign countries such as Canada and Mexico.
- US manufacturers reliant on imported plastic resins from countries like China will not be impacted by tariffs as key resins, like polyethylene, polypropylene, and PET, will be exempt from the reciprocal tariffs. Other construction components and supplies that are compliant with the United States-Canada-Mexico Agreement will be exempt from tariffs.
Global Drywall Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 23,160 |
| #2 Oceania & Southeast Asia | 11,900 |
| #3 China | 5,310 |
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2
Geography Drilldown - US
Average Cost of Drywall
United States
2026 Market Pricing$300.00 to $XXX,XXX.XX
per projectAverage Price
Prices in the Drywall market range from $300.00 to $XXX,XXX.XX, depending on Type of Drywall, Thickness, Buyer's Location and Purchase Volume. For example, lower prices are associated with Regular drywall (non-fire rated) ($100 to $300 per msf), whereas higher prices are associated with Type X drywall ($400 to $500 per msf).
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Drywall Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Drywall market, prices in the US have grown 3.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Drywall
Total cost of ownership is High in the Drywall market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Negotiated Before
Installation
Transportation
Billed During
Hardware
Disposal
Maintenance
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.5 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Gypsum Product Manufacturers
- Stone, Concrete & Clay Wholesalers
- Roofing, Siding & Insulation Wholesalers
2nd
Tier Suppliers
- Mineral & Phosphate Miners
- Paperboard Mills
- Stone Miners
- Laminated Plastics Manufacturers
Biggest Drywall Suppliers in the US by Revenue
The largest Drywall vendors by revenue in the US are PrimeSource Building Products Inc., Home Depot, inc. and Builders Firstsource, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Home Depot, inc. | International | ATLANTA | >10,000 | 5-10 | ||||
| CRH PLC | Global | DUBLIN 16 | >10,000 | 5-10 | ||||
| Builders Firstsource, Inc. | National | IRVING | >10,000 | 5-10 | ||||
| American Builders & Contractors Supply Co Inc. | National | Beloit, WI | >10,000 | 5-10 | ||||
| Gms inc. | International | TUCKER | 1,001-10,000 | 5-10 | ||||
| Lowes Companies Inc. | International | MOORESVILLE | >10,000 | < 5 | ||||
| Koch Industries Inc. | Global | Wichita, KS | >10,000 | < 5 | ||||
| HD Supply Holdings Inc. | Global | Atlanta | >10,000 | < 5 | ||||
| Rew Materials | National | Lenexa, KS | 101-250 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Drywall market is 6.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The average vendor in this market operates with a moderate degree of risk due to low profit margins and a heavy reliance on the strength of the construction sector. Furthermore, average profit margins are declining.
The top four drywall suppliers account for an estimated 25.0% of total market revenue, signifying a low degree of market share concentration. Market share concentration has been rising as large distributors have increasingly acquired smaller firms to expand their product lines and geographic scope.
Complications with the gypsum supply chain, such as Chinese tariffs, put a great deal of risk on market vendors and their upstream suppliers. However, manufacturers that have vertically integrated supply chains, including mining, manufacturing, and distribution, are able to mitigate this risk, resulting in a moderate supply chain risk overall.
The US is a net importer of plaster boards, meaning buyers may be able to leverage the availability of foreign vendors to gain greater buying power. However, both imports and exports of plaster boards are relatively low because the cost of transporting the product is high in comparison to their price.
Supplier Information
American Builders & Contractors Supply Co Inc.
American Builders & Contractors Supply Co Inc. is a private company operating nationally in the manufacturing and wholesale trade sectors. The company's offerings include drywall. Founded in 1982, the company is currently headquartered in Beloit, Wisconsin, United States of America with an estimated employee... Subscribe to learn more
Builders Firstsource, Inc.
Builders Firstsource, Inc. is a public company operating nationally in the wholesale trade sector. The company's offerings include drywall. Founded in 1998, the company is currently headquartered in Dallas, Texas, United States of America with an estimated 29000 employees. Subscribe to learn more
CRH PLC
CRH Public Ltd. Co. is engaged in the global material business. It organizes its business into three segments: the Americas Materials Division, which produces and supplies building materials and services for construction projects in the US and Canada, including cement, aggregates, ready-mixed concrete, and... Subscribe to learn more
Gms inc.
GMS Inc. is a specialty building products supplier and distributor for commercial and residential end markets. It markets wallboards, suspended ceiling systems, and steel framing, as well as complementary construction products, including tools and fasteners, insulation, exterior insulation finishing systems... Subscribe to learn more
Home Depot, inc.
Home Depot, Inc. is a home improvement retailer offering building materials, home improvement products, lawn and garden products, décor products, and related services under national and proprietary brands. Its proprietary brands include, among others, HDX®, Husky®, Hampton Bay®, Home Decorators Collection®,... Subscribe to learn more
HD Supply Holdings Inc.
HD Supply Holdings, Inc. distributes industrial equipment, components, and parts for the maintenance, repair & operations (MRO) and specialty construction markets. It organizes its business into two reportable segments: Facilities Maintenance, which distributes MRO products, provides value-add services, and... Subscribe to learn more
Koch Industries Inc.
Koch Industries Inc. is a private company operating globally in the manufacturing, wholesale trade and information sectors. The company's offerings include warehouse management systems, corrugated boxes, drywall, resilient flooring, injection molding services. Founded in 1940, the company is currently headquartered... Subscribe to learn more
Lowes Companies Inc.
Lowe's Companies, Inc. is a home improvement retailer for maintenance, repair, remodeling, and decorating markets. Its product portfolio includes appliances, seasonal & outdoor living, lumber, lawn & garden, kitchen & bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, Subscribe to learn more
PrimeSource Building Products Inc.
PrimeSource Building Products Inc. is a private company operating globally in the manufacturing and wholesale trade sectors. The company's offerings include drywall and industrial fasteners. Founded in 1932, the company is currently headquartered in Irving, Texas, United States of America with an estimated... Subscribe to learn more
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Procurement Management KPIs for the Drywall Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Delivery In Full On Time Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Planning and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value |
|
Total revenue Number of orders |
The average order value represents the revenue generated from the average order. The average order value can be used to assess a company’s ability to provide large volumes of product. The average order value can help the buyer determine the vendor's typical client size in comparison to their own size. |
| Delivery In Full On Time Rate |
|
Number of deliveries Number of deliveries in full Number of on-time deliveries |
The delivery-in-full-on-time rate measures how likely a vendor is to deliver the agreed-upon quantity of product by a certain delivery deadline. Deliveries that are delayed or have a shortage of materials can inconvenience the buyer or result in operational losses. |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Supply Chain Risk
How have rising gypsum costs affected your pricing?
How often do you reevaluate list prices in relation to fluctuations in commodity prices?
Competition
How do you maintain a competitive advantage in your business?
What is your reputation among customers and how have you developed your reputation?
Shipping
How close are your facilities to various manufacturers and/or distribution outlets?
How are transportation costs factored into drywall prices? Is there a potential for extra expenses such fuel surcharges?
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Drywall RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their operations, including type of construction projects, to help prospective vendors understand buyers’ general drywall needs.
Buyers should provide a detailed description of their operational structure, including to whom vendors will report.
Statement Of Need
Buyers should list the type of drywall required (i.e., non-fire rated, Type X). If more than one type of drywall is required, buyers should list all the types being procured.
Buyers should list the dimensions and quantity of the drywall they require.
Project Budget
Buyers should explicitly state the amount of the award.
Buyers should describe the desired type of supply contract, including the desired payment terms.
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