Back when my dad had his shop built, (which I now own), he installed corrugated tin from the foundation up to the 7-8' mark. This in my opinion is the most secure way to protect your insulation and wiring from the elements of a typical shop. There will always be sparks, flying debrit, and occasionally a tool or two. And is also flame resistant to a certain extent, where as wood is kind of scary down low. The tin will take more abuse than painted OSB, and requires NO maintinace once installed, unlike wood surfaces which attract and hold dust and dirt no matter what kind of paint is used. Just look at the color of my painted walls vs. the tin walls, pic 4. Kind of hard to tell from the pic, but the top right room I added on last year, for powder coating, I painted white to match the rest of the loft area is much brighter than the rest of it. One can still hang things on the tin by using rivets or self tapping screws. If needed hang pegboard to organize things even better.