The gypsum industry in the USA has shown declining shipments and profits for 18 months now. The extended period of growth in construction driven by easily available mortgage funds was indeed unsustainable. Gypsum board shipments are now down over 30% and the near future prospects are not good with housing starts and permits down 50% from two years ago. House sales and prices continue to fall and there are 18 more months of sub-prime mortgage adjustments and foreclosures to deal with. Consumer confidence is also dropping, resulting in a slowdown in renovation activity.

The gypsum industry continues through tumultuous times, continuing to grow in spite of a wide range of market and legal issues.  This paper will update the progress the industry is taking towards providing a stable supply of value added building systems, with comments on which companies show the best evidence of making this necessary transition.