Key Results
This group spent the most on materials, with 30.4% of direct costs for that segment, about 23% more than what was spent in 2007 — the biggest increase of all the groups. In fact, both the $250,000–to–$1 million and $2 million–to–$5 million groups spent less on materials in 2009 than in 2007. The $2 million–to–$5 million group spent 4.7% less on materials, which might partly be due to the fact that it also had the highest percentage of subcontractor expenses.
The $1 million–to–$2 million group showed the largest drop in “other” expenses under indirect costs — from 2.1% in 2007 to 0.7% in 2009 — which would indicate some belt-tightening. The group had the lowest increase in non-field–labor costs, increasing just 1.4% from 2007 to 2009.
More than half this group are S-corporations. In fact, an S-corporation structure is preferred by most remodeling companies over $1 million. But S-corporations are less popular in 2009 (51%) than they were in 2007 (58%), while C-corporations appear to be more popular, increasing by 6 points during those two years.
—Nina Patel
PROJECT TYPE by revenue
Top 10 project types that generate the most revenue, with percentage that chose that project type:
Additions, other 65.8%
Whole-house remodeling 60.5%
Kitchen remodeling 52.6%
Bath remodeling 50.0%
Additions, kitchen 39.5%
Handyman 26.3%
Additions, bath 23.7%
Other room additions 23.7%
Window/door replacement 18.4%
Siding replacement 15.8%