Common Challenges Drywall Contractors Face in Texas

Nate Jones
Dec 1
3 min read

Running a drywall contracting business in Texas can be profitable, but contractors often face unique challenges that affect operations, profits, and client satisfaction. From cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso, each market brings its own hurdles, including labor shortages, material costs, and regulatory compliance.

This guide outlines common challenges and strategies for overcoming them so your drywall business can thrive.

1. Labor Shortages and Skilled Workforce

Finding and retaining skilled drywall installers is a top challenge in Texas, especially in high-demand cities like Austin and Dallas.

How to Overcome:

Offer competitive wages and benefits
Provide training programs or apprenticeships
Maintain strong relationships with subcontractors

Check Out: Texas Workforce Commission for labor resources.

2. Rising Material Costs

Drywall sheets, joint compounds, screws, and finishing tools fluctuate in price due to supply chain issues and market demand. Houston and San Antonio contractors may see different costs than those in El Paso.

How to Overcome:

Build relationships with multiple suppliers to secure better rates
Buy in bulk for large projects
Include material cost adjustments in contracts

3. Regulatory Compliance and Permits

While Texas doesn’t require a statewide drywall license, local permits and city-specific regulations in Houston, Dallas, Austin, and Fort Worth are mandatory for legal operation. Non-compliance can delay projects and incur fines.

How to Overcome:

Stay informed about local building codes and permit requirements
Maintain documentation of all permits on-site
Partner with experienced project managers or consultants

Read More: Houston Permitting Center

4. Safety and Jobsite Accidents

Drywall work involves lifting heavy panels, working on scaffolds, and handling power tools. Accidents can result in injuries, lawsuits, or costly downtime.

How to Overcome:

Implement strict safety protocols and training
Provide PPE to all employees
Schedule regular safety audits

5. Competition and Pricing Pressure

Texas cities like Dallas and Austin have competitive drywall markets, making it tempting to underbid jobs. Low pricing can hurt long-term profitability.

How to Overcome:

Focus on value-added services like soundproofing or decorative finishes
Highlight your professionalism and insurance coverage
Build strong client relationships for repeat business

6. Cash Flow Management

Delays in payments from commercial clients or large projects can strain cash flow, especially for small contractors.

How to Overcome:

Require deposits before starting projects
Use contracts with clear payment schedules
Maintain a reserve fund for emergencies

7. Insurance and Risk Management

Even with careful planning, drywall contractors face financial risks including property damage, employee injuries, and client disputes.

Essential Coverage Includes:

One Hampton Insurance, an independent Texas agency, helps drywall contractors in Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso get the right insurance to protect their business.

Final Thoughts

Running a drywall business in Texas comes with challenges, from labor and materials to safety and cash flow. By proactively addressing these issues, leveraging local resources, and protecting your business with insurance from One Hampton Insurance, you can overcome obstacles and grow a successful, profitable drywall contracting business.

Contact us today.