My shop has 12-foot tall ceilings. From the ceiling down 8 feet, I've hung white faced pegboard, because it's a ton easier than sinking a nail into the wall every time I want to hang something up; vintage signs, valve covers, intake manifolds, aluminum bell housings, tools, extension cords, broom/shovel/dust pan, etc. etc. etc.
From the floor up 4 feet, I'm putting bright-finish corrugated steel. I found a local siding supplier (Jefferson, Georgia), that sells it for a few bucks per linear foot, cut to size. I've lost my notes, but it's going to cost me about $150 to do my 32x40 shop.
I've got a pallet rack in the shop, that takes up almost half of the back wall (12-feet long, 10 feet high); behind the whole rack I put 1/4-inch plywood and painted it white. Heavy things go on and under that shelf, and when they get slid back, they'd poke through drywall: engines on dollys under the shelf, transmissions on the shelf, etc.
The white pegboard is also nice because you don't have to mud the seams, sand and paint it. Put it up with 2-inch long deck screws screwed every 2 feet (or less) directly into the existing holes in the pegboard. The flared head holds in the hole very nicely, and they flush sink that way. You won't be able to pound a nail into easily, and if you try screwing in between the holes, it looks horrible and doesn't work real well anyway.
By the time you figure in all the supplies (tape, mud, sanding stuff), paint and especially time, I don't think pegboard is much more expensive at all. You'll feel it when you buy 24 sheets of pegboard versus 24 sheets of drywall, but I think it averages out by the end of the project. And like I said--once the pegboard is hung, you're done and can enjoy the light-reflective surface.
Brad
OSB here too.
