Contractor Profits up 54%
CSDA Contractor Profits up 54% According to
The results of a recent CSDA contractor member survey have provided further encouragement to an industry that is already experiencing an upturn in growth and profits.
The survey found that the average estimated sales volume for respondents’ companies in 2015 is $2,695,906, up from an average of $2,663,690 reported by companies in 2008 when the last survey was conducted. Flat sawing accounts for 26.3% of total sales with core drilling close behind at 23.4%. Additional concrete services like selective demolition, ground penetrating radar and polishing represent 14.2% of the total sales. More contractors are adding new services and creating additional revenue streams than ever before.
Operating statement information showed direct operating costs had decreased from 2008, with an average of $904,720 for operator/labor costs and $169,308 for diamond tools. Selling expenses including salaries, advertising and travel expenses averaged $121,942 while general and administrative expenses including managers, office and dispatch wages averaged $555,251. Meanwhile, the average profit among all the 2015 respondents combined was $322,126, up a staggering 54% from the 2008 respondents’ average. In short, successful contractors have learned to do more with less.
With regards to personnel, there are an average of 22.3 full-time-equivalent employees at members’ companies with 9.7 of these employees being sawing and drilling operators. The hourly wage for a typical operator who works 41.7 hours per week is $24.87. Dispatchers make an average hourly wage of $22.85 and estimators make $27.56. A typical manager works an average of 46.7 hours a week. An impressive 97.1% of companies responded that they have a written safety and environmental health program in place, with 85.7% having a safety supervisor.
In terms of business structure and general operations, it was found that 48.6% of respondents are S-Corporations with a further 29.7% being C-Corporations. Of the respondents with additional locations, 70% have two or more branches. Over half the work performed by respondents is renovation work, 25 percent is related to new construction and 15 percent is on highways, airports, bridges, dams and power plants. The majority of contractors that completed the survey are located in the Midwest, representing 37% of respondents.
These comprehensive survey results were compiled from a healthy response rate of almost 40%, which gives the association a strong set of findings about the industry. Members of the press are welcome to a full copy of the results including the executive summary. Call Russell at the CSDA office at 727-577-5004 or email firstname.lastname@example.org.