American's Top Remodelers 2013: Compounding Growth
Remodelers continue growth year over year.
Earlier this year, we compiled our 2013 Market Leaders in more than 20 remodeling markets in the U.S. That list is composed specifically because the remodeling industry is generally a localized business, and it is important to know which firms complete the most jobs and earn the most revenue by market.
In order to gain a national perspective on the remodeling industry, Professional Remodeler publishes an annual list of America’s Top Remodelers.
This is the third year we’ve published America’s Top Remodelers and the list has grown from 150 firms last year to 231 this year. Of the top 50 companies, the majority represent the exterior replacement and full-service market segments. Insurance restoration, kitchen and bath, and design/build segments are also represented in the top 50. In previous years, maintenance and repair of homes drove a remodeling industry that was mired in recession. As homeowners began to reinvest in their homes in the last year, full-service and design/build firms have garnered more space at the top of our list.
Further evidence the remodeling market is stabilizing: 84 percent of the remodeling firms that make up the 2013 America’s Top Remodelers list expect to increase their revenue from 2012 to 2013. Of the 231 remodeling firms that generated a revenue of at least $1 million in order to be eligible for our 2013 America’s Top Remodelers list, 16 percent do not expect to exceed their 2012 revenue in 2013.
Also, the Harvard University Joint Center for Housing Studies (JCHS) noted this past July the housing market has strengthened over the last 18 months, which has translated into increased spending on home improvements. According to the JCHS released in October 2013, remodeling contractors have reported improving market conditions for the past four quarters; meanwhile, spending trends have continued to increase and the Leading Indicator of Remodeling Activity (LIRA) projects a continued strengthening of the market for the remainder of 2013 and into the first quarter of 2014.
By the numbers
For the first time, Professional Remodeler calculated the 2012 total remodeling revenue by firms on our America’s Top Remodelers list. The aggregate revenue from the 232 companies was $2.8 billion from 3,896,825 remodeling jobs. We also asked the companies on our list to predict their 2013 revenue, which totaled $3.2 billion—a year-over-year difference of $382 million.
Paul Davis Restoration leads all firms on our list with a revenue of $499,673,140. Three percent of the firms made greater than $50 million; 4 percent have revenue between $50-$25 million; 17 percent range between $25-$10 million; 16 percent between $10-$5 million; 22 percent between $5-$3 million; and the largest majority of revenue, 38 percent, fall between $3-$1 million.
Breaking down the type of remodeling firms, there are a total of 97 full service, 59 design/build, 44 exterior replacement, 17 insurance restoration, 14 kitchen and bath, and 2 commercial. California and Texas are the leading states where the firms are based, totaling 30 and 19, respectively.
Click here to see the 2013 America's Top Remodelers.