For the 2007 Business Benchmarking survey, we received the most responses from remodeling companies in the under–$250,000 group. This year, it’s the $250,000–to–$1 million group that accounts for more than a third of total responses.
Three-quarters of the $250,000–to–$1 million category identified kitchen remodeling as the most revenue-generating project — the highest of all the groups.
Companies in the $250,000–to–$1 million category also indicated the highest spending for insurance — 3.7% of costs, compared with a range of 1.4% to 2.1% for the rest of the groups. The 3.7% is a higher percentage than any of the groups spent in 2007. That year, the over–$5 million group was at the top, with 2.6% of direct expenses for insurance.
Just as in 2007, remodelers in the $250,000–to–$1 million category are more diverse in the legal form of their companies than any of the other groups: 45% are S-corporations, 24% are LLCs, 19% are sole proprietorships, 10% are C-corporations, and 2% are partnerships. In fact, this is almost exactly the same distribution as seen in 2007.
PROJECT by revenue
Top 10 project types that generate the most revenue, with percentage that chose that project type:
Kitchen remodeling 75.7%
Bath remodeling 68.2%
Whole-house remodeling 49.5%
Additions, other 38.3%
Additions, kitchen 32.7%
Additions, bath 26.2%
Window/door replacement 18.7%
Other room additions 15.9%