Category: Industry Spotlights

Our latest industry spotlight examines Security Software Publishing in the US — an $82.6 billion industry that has grown at an 11.6% annual rate since 2021, carrying a 24.9% profit margin and drawing accelerating M&A activity. Browse the full presentation below, or download the PDF.

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Pest Control Industry Spotlight

Sabrina Riback

4 days ago

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The remediation and environmental cleanup services industry in the United States is dedicated to restoring contaminated sites, removing hazardous materials, and ensuring environmental safety across a wide range of projects. Companies in this sector work on cleaning up buildings, soil, and groundwater, as well as abating toxic materials and undertaking mine reclamation activities. These services include federally funded cleanup projects, though they exclude direct federal agency budgets for their own cleanup operations. Clients span government agencies, private corporations, and industrial operators seeking compliance with environmental and safety regulations.

In recent years, steady growth in chemical manufacturing and waste production has increased the demand for remediation services. Anticipated growth in public sector funding—particularly for environmental initiatives—will further boost opportunities for industry operators. Higher federal investments in environmental cleanup and defense spending are expected to generate substantial demand for qualified remediation services. Regulatory oversight is extensive, with federal and state licensing requirements mandatory for operation. Agencies such as the Environmental Protection Agency (EPA) play a pivotal role, especially through programs like Superfund and Brownfields, which provide significant demand and resources for industry projects.

Financially, the industry generated $24.2 billion in revenue in 2024, with growth expected to remain steady through 2029 before moderating to around 0.7% annually. The sector employs nearly 94,000 workers, with employment projected to grow by 1.3% per year over the same period. There are approximately 5,141 businesses in operation, with each generating an average annual profit of about $442,900. Profit margins have averaged 9.4% from 2019 to 2024, with total industry profit over that period reaching $2.3 billion.

Industry performance is influenced by infrastructure investment, mining activity, and environmental regulation. The Biden administration’s Infrastructure Investment and Jobs Act has allocated $55 billion to drinking water quality improvements and $21 billion for Superfund and Brownfield site cleanups, while the Inflation Reduction Act further expands funding for air and water quality projects. These initiatives, alongside large and often lucrative government contracts, are expected to bolster revenue and profit growth.

The sector’s prospects are also tied to developments in the energy market. Increased domestic oil and gas production, uncertainty in global energy markets, and the decommissioning of nuclear power reactors create steady demand for cleanup services. While the future of nuclear energy remains uncertain, decommissioning activities represent a growth opportunity for many firms in this space.

Looking ahead, remediation and environmental cleanup companies are well-positioned to benefit from both public and private sector demand, particularly as environmental regulations tighten and sustainability goals expand. Businesses that secure government contracts, invest in compliance capabilities, and maintain strong technical expertise will be best positioned to capture opportunities. Partnering with advisory firms like Blue Sky Exit Planning can help operators benchmark their performance and plan for long-term, sustainable growth.

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:Govdysh, A. (2025). 23 Remediation & Environmental Cleanup Services in the U.S. IBISWorld Industry Reports. https://my.ibisworld.com/

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Industry Spotlights

The pool services industry in the United States encompasses the installation, maintenance, repair, and renovation of swimming pools, spas, and related aquatic equipment. Contractors work across a range of settings, including residential backyards, commercial complexes, hotels, community centers, and recreational facilities. Services span new installations, additions, alterations, routine maintenance, and emergency repairs, making the industry a blend of both construction and long-term service work.

The COVID-19 pandemic, combined with low interest rates, fueled a boom in single-family home construction and, by extension, pool installations as consumers invested in home-based recreation. However, recent interest rate hikes have slowed this trend, particularly in the single-family housing market. Growth in multifamily construction has helped offset some of the decline, and anticipated interest rate cuts in 2025 are expected to rejuvenate demand for single-family pools.

Pool service contractors operate in a highly regulated environment that requires state licensing and adherence to strict safety codes. While government support is limited, private organizations such as the National Spa and Pool Institute and the Master Pools Guild offer resources, training, and networking opportunities for industry professionals. Compliance with safety and quality standards is critical to ensuring both customer satisfaction and operational legitimacy.

Financially, the industry generated an estimated $13.9 billion in revenue in 2024, with growth projected through 2029 before slowing to around 2.2% annually. The sector employs over 58,700 workers, with employment expected to grow 2% annually during the same period. There are roughly 16,841 businesses in operation, each generating an average profit of about $56,317 annually. Profit margins have remained steady at around 6.8%, with total industry profits from 2019 to 2024 reaching $948.4 million.

Market demand is driven by construction trends, discretionary consumer spending, and the ongoing need for maintenance and renovations as pools age. Renovations and upgrades, such as resurfacing, equipment replacement, and energy-efficient retrofits, are key revenue streams for many contractors. Seasonal factors also play a role, with demand peaking during warmer months in most regions.

Looking ahead, the pool services industry will need to adapt to shifting housing market conditions while capitalizing on long-term service contracts and renovation opportunities. Companies that diversify their offerings, maintain compliance with evolving safety standards, and build strong relationships with builders and property owners will be well-positioned for success. Partnering with advisory firms like Blue Sky Exit Planning can help pool service businesses benchmark performance and identify strategic growth paths.

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: O’Malley, M. (2024). 23899B Swimming Pool Construction in the U.S. IBISWorld Industry Reports. https://www.ibisworld.com/

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Industry Spotlights

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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Industry Spotlights

The pest control industry in the United States provides essential services for both residential and commercial clients, helping to manage and eliminate pests ranging from rodents and termites to mosquitoes and other insects. Providers offer a variety of solutions, including bird control, fumigation, and heat treatments, tailored to protect property, health, and safety. By addressing infestations and preventing future occurrences, pest control companies play a critical role in maintaining healthy living and working environments.

In recent years, volatile housing markets have influenced industry performance, as higher interest rates and fluctuating home prices have slowed residential transactions—a key source of demand for pest control services. The industry experienced more favorable conditions during the pandemic, but growth has since moderated. As interest rates normalize and economic stability improves, renewed consumer spending on home improvements and maintenance is expected to create fresh opportunities for pest control providers.

Climate change is also reshaping the industry’s operational scope. Warmer and wetter conditions are expanding pest activity into regions that previously experienced minimal demand, creating growth potential in formerly underserved, colder areas. At the same time, environmental regulations and licensing requirements remain strict, with pest control providers needing to meet rigorous federal and state standards to operate legally and effectively.

Financially, the industry is on solid ground. In 2024, revenue was estimated at $24.2 billion, with projected annual growth of 1.7% through 2029. The sector employs over 159,000 workers, with employment expected to grow 2.2% annually over the same period. The number of businesses—currently about 33,385—is forecast to rise by 3% in five years. Profit margins remain healthy at around 13%, translating to approximately $96,417 per business, with total industry profits reaching $3.2 billion from 2019 to 2024.

Key performance drivers include housing market trends, climate-related pest proliferation, and heightened consumer awareness of pest-related health risks. Seasonal weather variations also influence service demand—for example, termite treatments tend to drop during droughts or milder seasons. Companies that can adjust their operations to these shifts while maintaining compliance with environmental standards are best positioned to succeed.

Looking ahead, the pest control industry’s growth will depend on its ability to adapt to evolving climate patterns, economic shifts, and regulatory landscapes. Firms that diversify their service offerings, invest in environmentally friendly pest management solutions, and leverage technology for improved efficiency will be best equipped to capture market share. Strategic planning with advisory partners like Blue Sky Exit Planning can help pest control companies benchmark their performance and position for long-term growth.

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:Jozkowski, E. (2024). 56171 Pest Control in the U.S. Industry Report. IBISWorld Industry Reports. https://www.ibisworld.com/

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Industry Spotlights

The landscaping services industry enhances residential, commercial, and public spaces by designing, installing, and maintaining outdoor environments. Landscaping firms provide services ranging from lawn care, irrigation, and tree maintenance to hardscaping and outdoor renovations. These professionals work across diverse projects, improving private homes, corporate campuses, municipal parks, recreational facilities, and urban green spaces. By combining aesthetic appeal with functionality, the industry plays a significant role in shaping communities and supporting property values.

The COVID-19 pandemic initially spurred a boom in residential construction, driving higher demand for landscaping services as homeowners invested in outdoor living spaces. Low interest rates supported strong housing market growth, but as rates have risen, residential construction has slowed. Nevertheless, affluent households have continued to drive demand, seeking premium landscaping solutions such as high-end hardscaping, water features, and custom outdoor designs. These services command higher prices, boosting revenue for companies that cater to the upper market segment.

The industry has also faced challenges, particularly related to labor. Stricter labor regulations, increased restrictions on employing foreign workers, and closer monitoring of undocumented workers have constrained the available workforce. As a result, landscapers have had to adapt their hiring and retention strategies while maintaining service quality. Weather conditions also influence performance, with extreme wet, hot, or snowy seasons driving demand for specialized services like pest control, sprinkler installation, and snow removal.

Financially, the landscaping services industry remains strong. In 2024, annual revenue reached $158.9 billion, with growth projected to continue until 2029 before slowing to around 2.2%. The sector employs over 1 million workers, with employment growth expected to average 3.4% per year through 2029. There are approximately 657,000 businesses in the space, generating average annual revenue of $235,300 per company. Profit margins have remained steady at 9.5%, translating to around $22,354 in profit per business, with total industry profit from 2019 to 2024 reaching $15.1 billion.

Growth drivers for the industry include the outsourcing of landscaping by residential, commercial, and government clients, rising disposable incomes, and the expansion of high-earning households. In addition, the trend toward sustainable and environmentally friendly landscaping—such as native plantings, water-efficient irrigation, and pollinator-friendly gardens—presents opportunities for companies to differentiate themselves and appeal to eco-conscious consumers.

Looking ahead, the landscaping industry’s success will depend on its ability to balance demand for premium services with operational challenges, especially in labor availability. Firms that invest in skilled labor, embrace sustainable practices, and diversify service offerings are likely to capture market share and maintain profitability. Strategic support from advisors like Blue Sky Exit Planning can help landscaping companies benchmark performance, identify growth opportunities, and prepare 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:

Diment, D. (2024). 56173 Landscaping Services in the U.S. IBISWorld Industry Reports. https://my.ibisworld.com/

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Industry Spotlights

The heating and air-conditioning contracting industry is essential to the comfort, safety, and operational efficiency of homes, businesses, and industrial facilities across the United States. Contractors in this field install, maintain, and repair heating, ventilation, air-conditioning (HVAC), and refrigeration systems. Their work spans new installations, alterations, routine maintenance, and emergency repairs in a wide variety of structures, including residential properties, office buildings, manufacturing plants, and educational institutions.

In recent years, the impacts of climate change have become a major driver of HVAC demand. Hotter summers and changing weather patterns have increased the need for cooling systems, while extreme weather events highlight the importance of reliable heating. However, high interest rates have posed challenges for the industry, slowing construction activity and dampening demand for new installations, particularly in the housing market. The slowdown in residential construction has meant fewer opportunities for new HVAC system sales, although retrofits and replacements remain a steady source of revenue.

Federal incentives, particularly those provided under the Inflation Reduction Act, have helped offset some of these headwinds by offering tax credits and grants for installing energy-efficient HVAC systems. This has created opportunities for contractors to tap into the growing market for eco-friendly, high-performance systems. While nonresidential construction has seen mixed results—struggling in the office sector due to inflation and remote work trends—demand in healthcare, manufacturing, and other essential industries remains strong.

Financially, the HVAC industry is robust. In 2025, annual revenue is projected to reach $156.2 billion, with growth continuing through 2026 at a rate of about 2.6%. The sector employs more than 604,000 workers, with job growth expected to match revenue growth over the next five years. With around 117,000 businesses operating nationwide, the average revenue per company is supported by stable profit margins of 5.4%, equating to approximately $63,245 in profit per business. Total industry profit between 2019 and 2024 reached $7.2 billion, demonstrating consistent performance even through the COVID-19 pandemic.

Key drivers of industry performance include climate trends, government incentives, construction activity, and technological advancements in HVAC systems. Contractors who can integrate energy-efficient solutions, offer competitive financing, and adapt to changing regulatory and market demands will be best positioned for success.

Looking ahead, the industry’s future lies in balancing short-term operational needs with long-term strategic investments in sustainable technology. Companies that diversify their service offerings, maintain strong technical expertise, and align with evolving environmental standards will be well-placed to capture market share. Advisory support from firms like Blue Sky Exit Planning can help HVAC businesses benchmark their operations and position themselves for growth in an increasingly competitive marketplace.

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. (2025). 23822A Heating Air-Conditioning Contractors in the U.S. Industry Report. IBISWorld Industry Reports. https://www.ibisworld.com/

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Industry Spotlights

The damage restoration services industry plays a crucial role in helping residential and commercial property owners recover from a wide range of disasters, from natural calamities like floods and wildfires to more localized events such as mold infestations or water damage. Operators in this industry provide essential contracting services to repair and restore damaged property, safeguarding both the functionality and safety of structures. Their work spans emergency response, cleanup, and rebuilding efforts, making them indispensable in the wake of environmental and man-made crises.

In recent years, the growing impacts of climate change have significantly increased demand for restoration services. Rising temperatures, stronger storms, wildfires, and flooding events have driven more households and businesses to seek these services. However, repeated high-cost disasters have prompted some insurance and reinsurance companies to withdraw coverage from high-risk areas, limiting funding options for property owners. The onset of the COVID-19 pandemic further disrupted the industry, as high unemployment, inflation, and rising interest rates led to the postponement of nonessential restoration work. As financial conditions improve, an uptick in consumer spending is expected to support industry growth.

The industry is heavily shaped by environmental and safety regulations, particularly those from the Environmental Protection Agency (EPA) relating to mold remediation. These guidelines dictate cleaning procedures, protective equipment requirements, and operational best practices to ensure safe and effective restoration. Compliance with these regulations is both a necessity and a differentiator, as customers increasingly look for service providers who meet rigorous safety and environmental standards.

Financially, the industry is stable with steady growth prospects. In 2024, annual revenue was estimated at $7.1 billion, with a projected average annual growth rate of 1.5% through 2029. The sector employs over 112,000 people, with job growth expected to average 2% per year over the same period. The number of businesses—currently about 60,020—is forecast to rise by 3.1% in the next five years. Profit margins have held steady at around 6.3%, translating to about $7,443 per business, with total industry profits reaching $446.7 million from 2019 to 2024.

Demand drivers include climate-related events, housing market growth, and general economic conditions that influence consumers’ ability to afford restoration services. An increase in housing activity typically correlates with higher demand for damage restoration, as newly purchased or renovated properties often require immediate or preventive repairs. The industry’s ability to quickly respond to these needs is a key factor in sustaining customer trust and market share.

Looking forward, the damage restoration services industry is well-positioned for steady growth but faces challenges tied to insurance coverage limitations, climate volatility, and economic fluctuations. Companies that can streamline operations, maintain regulatory compliance, and expand service offerings to meet emerging risks will be better positioned for success. Partnering with advisors like Blue Sky Exit Planning can help restoration businesses benchmark performance, identify opportunities, and strategically position themselves for long-term value creation.

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). 56171 Damage Restoration Services in the U.S. Industry Report. IBISWorld Industry Reports. https://www.ibisworld.com/

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Industry Spotlights

The cabinet and vanity manufacturing industry is a quiet powerhouse in the U.S. economy, crafting the kitchen cabinets, bathroom vanities, and countertops that define modern living spaces. These products, primarily made from wood and wood coverings, flow through a network of wholesalers, outfitters, and home improvement retailers to reach households and businesses across the country. While the past few years have brought economic turbulence, the industry is positioned for steady growth as demand for home upgrades and renovations rises.

Economic swings have shaped the recent story of this sector. Low interest rates and strong disposable incomes initially fueled a boom in residential upgrades, but 2022’s surge in inflation and interest rates tapped the brakes. Still, the long-term outlook remains positive. Declining import competition, an uptick in housing starts, and increased private spending on home improvements are all expected to lift demand. For manufacturers ready to innovate and adapt, opportunity is on the horizon.

Industry associations, including the National Association of Manufacturers, the Cabinet Makers Association, and the National Kitchen and Bath Association, are helping to lead the way. These organizations provide members with valuable market intelligence, advocate for legislative reforms, and promote best practices for environmental compliance and worker safety. This commitment to quality and responsibility resonates with today’s consumers, who increasingly expect sustainability and ethical production from the brands they buy.

By the numbers, the industry is on solid footing. In 2025, cabinet and vanity manufacturers are projected to generate $29.9 billion in revenue, with annual growth of 1.9% anticipated through 2029. The sector supports over 105,000 jobs, a figure expected to grow at about 1.5% annually. With roughly 5,886 businesses in operation, average revenue per company is an impressive $3.7 million, supported by steady profit margins around 10.2%.

Market demand is being driven by consumers’ desire for personalized, high-quality interiors. Homeowners are willing to invest in design, craftsmanship, and customization—areas where domestic manufacturers excel. As more homeowners opt to renovate rather than relocate, the market for cabinets, vanities, and related products will continue to expand, creating room for innovative players to differentiate themselves.

For business owners in the space, the message is clear: there’s growth ahead, but competition will be fierce. The companies best positioned to succeed will be those that track industry benchmarks, embrace operational efficiency, and invest in marketing their unique value. Strategic planning, whether for scaling operations or preparing for an eventual sale, can make all the difference. Advisory partners like Blue Sky Exit Planning can help align business performance with industry opportunities.

Looking forward, the cabinet and vanity manufacturing sector stands at the crossroads of tradition and innovation. Rooted in craftsmanship but driven by modern market demands, it offers a blend of stability and potential that’s rare in today’s business landscape. For owners, that’s an invitation to think strategically, act decisively, and shape the future of their businesses while the market momentum is in their favor.

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

*Partial example from a different industry

Citations

Alexia, Z. (2025). 33711 Cabinet & Vanity Manufacturing in the US IBISWorld Industry Reports https://my.ibisworld.com/

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Industry Spotlights