Procurement Market Intelligence Report
Thermal Building Insulation
Sourcing Guide & Market Intelligence
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Thermal Building Insulation Global Overview
Definition
Summary
Thermal building insulation is used to seal and insulate a building to maintain the desired climate and improve energy efficiency. Thermal building insulation materials come in various forms, such as fiberglass, wool, plastic fiber, polyurethane or phenolic foams, insulation panels, and concrete block insulation. A wide range of buyers, including interior design firms and residential and nonresidential contractors, commonly purchase thermal building insulation products.
This Report Includes:
- Blanket Insulation
- Concrete Block Insulation
- Foam Insulation
Not in this Report:
- Acoustical Insulation
- Insulation Sealing Layers
Global Thermal Building Insulation Procurement Trends
Discover the top international trends affecting procurement in the global Thermal Building Insulation market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
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 Thermal Building Insulation Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 45,310 |
| #2 Oceania & Southeast Asia | 23,275 |
| #3 China | 10,390 |
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2
Geography Drilldown - US
Average Cost of Thermal Building Insulation
United States
2026 Market Pricing$0.31 to $XX.XX
per square footAverage Price
Prices in the Thermal Building Insulation market range from $0.31 to $XX.XX, depending on Insulation Use, Thickness, Performance, Special Features and Material. For example, lower prices are associated with Wall insulation, whereas higher prices are associated with Roof insulation.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Thermal Building Insulation Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Thermal Building Insulation market, prices in the US have grown 1.4% 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)
United States (2025-2028)
Compound Annual Growth Rate
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 Thermal Building Insulation
Total cost of ownership is Low in the Thermal Building Insulation 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. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Billed During
Storage
Disposal
Unforeseen
Emergencies
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.1 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 High, 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
- Sand & Gravel Mining Firms
- Urethane Foam Manufacturers
- Industrial Machinery & Equipment Wholesalers
2nd
Tier Suppliers
- Explosive Manufacturers
- Petrochemical Manufacturers
- Industrial Machinery Manufacturers
Biggest Thermal Building Insulation Suppliers in the US by Revenue
The largest Thermal Building Insulation vendors by revenue in the US are Knauf Insulation Kft., Owens Corning and Morgan Advanced Materials Plc. 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 |
|---|---|---|---|---|---|---|---|---|
| Owens Corning | Global | Toledo | >10,000 | 5-10 | ||||
| Huntsman Corporation | Global | THE WOODLANDS | 1,001-10,000 | 5-10 | ||||
| Johns Manville | Global | Denver, CO | 1,001-10,000 | 5-10 | ||||
| Basf Se | Global | Ludwigshafen, DE | >10,001 | < 5 | ||||
| Compagnie De Saint-Gobain | Global | Paris, FR | >10,001 | < 5 | ||||
| Dow Inc. | Global | MIDLAND, MI | >10,000 | < 5 | ||||
| W.W. Grainger, Inc. | Global | LAKE FOREST | >10,000 | < 5 | ||||
| Beacon Roofing Supply, Inc. | International | HERNDON, VA | 1,001-10,000 | < 5 | ||||
| Kingspan Group Plc | Global | Kingscourt, IE | >10,001 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Thermal Building Insulation market is 5.4% 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 falling, 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 top three suppliers of thermal building insulation products hold less than 30.0% of the market, which indicates a low level of market share concentration.
Vendors face moderate average risk in the market as they face high competition in the market, but low competition from substitutes.
The supply chain for thermal building insulation is subject to a high level of risk, which limits buyer power by raising the risk of price increases or supply disruptions.
As a net exporter in the thermal building insulation market, US buyers' procurement strategies are influenced by the advantage of having domestic suppliers and a surplus of goods to sell. This aids buyer power and gives buyers more leverage and bargaining power because they will have a wider pool of sellers to choose from, potentially leading to increased competition among suppliers, favorable pricing options, and better negotiation terms.
Supplier Information
Huntsman Corporation
Huntsman Corporation is a global organic chemical manufacturer that produces chemicals and chemical formulations for the aerospace, automotive, coatings and construction, construction products, durable and non-durable consumer products, electronics, insulation, packaging, power generation, and refining markets.... Subscribe to learn more
Johns Manville
Johns Manville is a private company operating globally in the manufacturing sector. The company's offerings include thermal building insulation. Founded in 1858, the company is currently headquartered in Denver, Colorado, United States of America with an estimated 7000 employees. Subscribe to learn more
Owens Corning
Owens Corning is a global manufacturer and distributor of residential and commercial building products. It organizes its business into four segments: the Roofing segment, which offers laminate and strip asphalt roofing shingles, roofing components, and oxidized asphalt; the Insulation segment, which sells... Subscribe to learn more
Allied Insulation Supply Company Inc.
Allied Insulation Supply Company Inc. is a private company operating regionally in the manufacturing sector. The company's offerings include thermal building insulation. Founded in 1969, the company is currently headquartered in Milwaukee, Wisconsin, United States of America with an estimated 75 employees.... Subscribe to learn more
Atlas Roofing Corporation
Atlas Roofing Corporation is a private company operating nationally in the manufacturing sector. The company's offerings include thermal building insulation. Founded in 1982, the company is currently headquartered in Atlanta, Georgia, United States of America with an estimated 5500 employees. Subscribe to learn more
Basf Se
Basf Se is a public company operating globally in the manufacturing, manufacturing and professional, scientific & technical services sectors. The company's offerings include pesticides, refining catalysts, plasticizers, preservatives, waterproofing coatings. Founded in 1865, the company is currently headquartered... Subscribe to learn more
Beacon Roofing Supply, Inc.
Beacon Roofing Supply, Inc. is a public company operating internationally in the manufacturing sector. The company's offerings include thermal building insulation. Founded in 1928, the company is currently headquartered in Herndon, Virginia, United States of America with an estimated 7478 employees. Subscribe to learn more
Carpenter Co.
Carpenter Co. is a private company operating globally in the manufacturing sector. The company's offerings include polyurethane foam and thermal building insulation. Founded in 1948, the company is currently headquartered in Richmond, Virginia, United States of America with an estimated 5500 employees. Subscribe to learn more
Compagnie De Saint-Gobain
Compagnie De Saint-Gobain is a public company operating globally in the manufacturing sector. The company's offerings include thermal building insulation and abrasives. Founded in 1900, the company is currently headquartered in Paris, France with an estimated employee count of over 10,000. Subscribe to learn more
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Procurement Management KPIs for the Thermal Building Insulation Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Cash Flow and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Regulatory Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Cash Flow |
|
Financial risk level |
Vendors with positive cash flow are preferred because it signifies a higher level of profitability and solvency of the vendor. These factors minimize the risk of a supplier abruptly exiting the market. |
| Customer Retention Rate |
|
Client testimonials Press reports |
Vendors with a higher customer retention rate indicate a higher quality of service. The customer retention rate can determine the extent to which a company’s customer base fluctuates over time. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Distribution
Will you provide a list of your domestic and international distribution facility locations?
What are your shipping rates to my facilities? Do shipping rates vary if I need products shipped to more than one location?
Competition
How do you win and retain business?
What sets your product apart from your competitors’ product?
Cost Containment
During the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
During the past three years, what percentage of your revenue has been dedicated to labor? Do labor costs fluctuate seasonally?
The ultimate prep for procurement negotations
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Thermal Building Insulation RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should explain why they are seeking thermal building insulation materials.
Buyers should provide information regarding the scope of the construction project.
Statement Of Need
Buyers should state the desired type of insulation composition (e.g. cellulose, fiberglass or rock wool) to be used to perform installation services.
Buyers should provide information regarding the scope of the insulation installation services being requested, including size and specifications of each structure.
Project Budget
Buyers should specify the total budget for the project.
Buyers should suggest the best method of billing.
The RFP process made easy
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Our Reports include:
- Opportunity assessment
- Market dynamics
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- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
