The contractor industry is constantly evolving. As new technologies and methods are developed, the contractor industry changes to accommodate these advances. To stay ahead of the curve, entrepreneurs need to understand the current contractor industry trends, statistics, and facts.
This article provides an overview of the contractor industry as it stands today, as well as a look at what the future may hold.
Current Contractor Industry Statistics and Facts
First, let’s take a look at some current contractor industry statistics and facts.
Contractor Industry Current Market
- The contractor industry is currently worth an estimated $1 trillion.
- The contractor industry employs approximately 10% of the American workforce.
- There are approximately 2 million contractor businesses in the United States.
Types of Contractors
- There are three main types of contractors: general, specialty, and sub-contractors.
- General contractors are responsible for the overall coordination of a project.
- Specialty contractors are responsible for specific tasks on a project.
- Subcontractors are hired by general or specialty contractors to complete specific tasks.
- General contractors make up the most significant portion of the contractor industry, with approximately 60% of businesses falling into this category.
- Contractors help with various services, including but not limited to construction, remodeling, home improvement, landscaping, and plumbing.
- The most common service contractor businesses provide construction, making up approximately 30% of the contractor industry.
Revenue and Profit Margin
- The contractor industry has a revenue of $1 trillion.
- The profit margin for contractor businesses is between 3-5%.
- The average revenue for a contractor business is $1 million.
- This means that the average profit for a contractor business is between $30,000 and $50,000.
Average Service Charges
- The average contractor charges between $50 and $200 per hour for their services.
- The average contractor charges between $500 and $5,000 for a project.
- Construction contractors typically charge between $50 and $100 per hour.
- Home improvement contractors typically charge between $75 and $200 per hour.
- Landscaping contractors typically charge between $100 and $200 per hour.
- Plumbing contractors typically charge between $200 and $300 per hour.
Future Trends and Outlook for the Contractor Industry
- Now let’s look at future trends and outlooks for the contractor industry.
- The contractor industry is expected to grow by 3% in the next year.
- This growth is due to an increase in construction projects, as well as an increase in demand for contractor services.
- The contractor industry is expected to grow as more people remodel their homes and businesses.
- There is also a growing trend of people hiring contractors to help with home improvement projects, such as adding a deck or pool.
- The contractor industry is expected to be worth $1.2 trillion by 2025.
Conclusion
As you can see, the contractor industry is a vital part of the American economy and is expected to continue to grow in the future. So, if you’re an entrepreneur considering starting a contractor business, now is a great time to start. With a strong understanding of the industry trends, statistics, and facts, you’ll be well on your way to success.