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Remodeling contractors with more than $1 million in annual revenue accounted for more than 57 percent of the industry's annual billings, according to Harvard University's Joint Center for Housing Studies' tabulations of 2002 census data.
Only 12.1 percent of the country's remodeling firms generated more than $1 million per year, however, and they employed just 41 percent of the industry's manpower. So the nation's largest remodelers are producing the most revenue — and highest profit margins — per employee, in the industry.
The report, released at Harvard's Remodeling Futures Conference in November, also revealed that the number of remodeling contractor establishments increased from 401,000 in 1997 to more than 530,000 in 2002. Most of the new companies that had entered the industry were self-employed contractors (77 percent) versus those with payrolls (33 percent).
Harvard reported that the remodeling market reached $280 billion in 2005, nearly double what it was in 1995.
Two Elected to Hall of Fame
The nation's leading remodeling economists, Gopal Ahluwalia and Kermit Baker, recently were inducted into the Remodelors Council National Remodeling Hall of Fame. As vice president of research at NAHB, Ahluwalia analyzed the remodeling market for more than 20 years. At one time, he was the only economist researching the industry and offering analysis. Baker leads the Remodeling Futures program at Harvard's Joint Center for Housing Studies. His research topics include why homeowners remodel and demographic/regional drivers of remodeling. |
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Lead Safety Update
An NAHB Lead-Based Paint Task Force presented to the EPA in November results of its study on lead safety at five residential projects. The study showed houses have less of a lead-dust hazard after remodeling than before remodeling, except when a worker performs uncontrolled sanding or sanding using a power tool without a vacuum attachment. The EPA's final rule on lead safety is not expected until 2008. |
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Results 
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