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The US site preparation contractor industry includes about 40,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $70 billion. Major companies include Hayward Baker and Nuprecon. More than 75 percent of site prep contracting businesses have fewer than 10 employees. Many site prep contractors operate as unincorporated sole proprietorships, without 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 handling 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. Small companies 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, wrecking and demolition for 6 percent, and foundation work, 6 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 for infrastructure projects such as highways, sewer and water mains and facilities, and driveways. Construction of projects other than buildings accounts for about 60 percent of industry revenue; building projects account for about 30 percent.

Contractors use ...

• State job growth rose 1.1% in February 2012 from a year ago; national job growth rose 1.6%
• State unemployment averaged 6.1% in February 2012; the national average was 8.3%
• Personal income rose 4.3% to $376.1 billion in Q4 2011 from a year ago.
• Tax revenue increased 1.7% in Q4 2011 from a year ago.
• Exports rose 3.3% to $2.5 billion in the first two months of 2012 from a year ago.
• Venture capital investment in VA fell 31.2% to $66.9 million in Q4 2011 from a year ago.