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Site Preparation Contractors Industry Profile Excerpt
| SIC Codes: 1629, 1711, 1794, 1795, 1799 NAICS Codes: 238910 Page Length: 10-12 Last Quarterly Update: 11/10/2008 View Sample Industry Profile |
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The site preparation contractor industry includes over 30,000 businesses with combined annual revenue of $37 billion. Major companies include units of Jacobs Engineering Group, URS Corporation, and Granite Construction, and giants Bechtel and Fluor. Most firms are privately owned. The industry is fragmented: over 75 percent of businesses are small, with fewer than 10 employees. In addition to corporations of various sizes, many independent site prep contractors operate as sole practitioners, without incorporation or permanent employees.
COMPETITIVE LANDSCAPE
Construction and demolition projects drive demand for site prep contractors. The profitability of individual companies depends on accurate bidding and optimal deployment of personnel and equipment. Large companies have advantages in servicing multiple types of projects simultaneously. Small companies can compete effectively by subcontracting their services to larger firms, specializing by type of work, or becoming a preferred contractor for local builders and developers. Average annual revenue per employee for a typical company is a low $130,000, because the work is labor-intensive.
Small firms often compete with solo owner-operators who hire temporary workers and rent equipment as needed.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are land clearing and excavation, preparation for construction, and demolition. Excavation services account for 60 percent of industry business, heavy construction for 30 percent, and wrecking and demolition, 8 percent. Other services include preparing for water, sewer, and pipeline construction, and support for oil, gas, and mining operations.
Most firms specialize in preparation work for buildings or infrastructure projects. ...
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