Report Shows Insulation Industry Positively Impacts Our Economy and Our Environment

A report, “The Contributions of Insulation to the U.S. Economy in 2016”, released earlier this year, found that the insulation industry has significant, positive impacts on the American economy and the environment.

Published by the American Chemistry Council (ACC), the report found that in 2016 the insulation industry, which is composed of manufacturers, distributors, and installers, contributed more than $20 billion to the economy and supplied nearly 400,000 jobs in the U.S. Further, the total economic activity backed by the insulation industry provides $1.1 billion to local and state governments and $1.9 billion in federal tax revenues. 

The ACC also reported that the insulation industry indirectly contributes to the economy in a number of ways, including:

  • The purchase of raw materials, supplies, equipment, and services.
  • Insulation lowers energy consumption, thus, energy bills, which gives businesses and households more spending power. In fact, the U.S. Environmental Protection Agency’s (EPA) Energy Star program estimates that households and businesses could save up to 15% on heating and cooling costs by adding insulation.
  • The insulation industry provides hundreds of thousands of workers with wages.


“This report makes clear that the business of manufacturing, distributing, and installing insulation generates significant economic output and creates jobs across the country,” says Martha Gilchrist Moore, senior director of policy analysis and economics at ACC and the primary author of the report.

Insulation, which is available in a variety of forms, is used in homes and businesses to reduce heat loss or heat gain by providing a barrier between areas that have substantial temperature differences. Proper insulation also reduces outside noise, limits entryways for pests and pollen, and allows for better humidity control.

In addition to the economic benefits the insulation industry contributes to the U.S. economy, ACC also reported that proper insulation is “essential to the quest for energy independence by reducing energy consumption and reducing energy-related greenhouse gas emissions.”  

View the American Chemistry Council’s full report here.

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