Business Results Survey: Workforce

Small workforce is the norm for remodelers

March 31, 2009

Small workforce the norm 

Despite growth in the market, remodeling remains an industry of relatively small companies. The average company reported three field employees and one office employee, not including the owner. A quarter of companies have no office employees, and 17 percent have no field employees. More than 90 percent of firms have less than five office employees, and 72 percent have less than five field employees.

Most companies make extensive use of trade contractors, with the average company subbing out 45 percent of labor. The biggest companies were the most likely to sub out their work, as firms with more than $3 million in revenue subcontracted 61 percent, compared with the 32 percent subbed out by companies under $500,000.

While most companies sub out at least some labor, 11 percent of firms reported using no subcontractors in 2008. At the other end of the spectrum, 16 percent used subcontractors for more than 90 percent of field labor.

Companies subcontract out a wide variety of services, but the most common were electrical, HVAC and plumbing, which were subcontracted by at least 80 percent of firms. Companies also frequently used trade contractors for other specialty trades, such as concrete, masonry and drywall. Many companies also sub their design services, with 54 percent reporting using outside architectural services and 29 percent farming out interior design.

To read more of our survey, click the links below:

Examining the depths of the downturn 

Revenues take a plunge

Labor is top expense 

Small workforce is the norm

The amazing shrinking job

Repeats and referrals dominate

Lean sales operations

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