American Painting Contractor Magazine

October 2012

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Page 26 of 55

APC CONTRACTORS OPERATIONS SURVEY on to this article. This is a good issue to file away for when you are making annual plans for your company. It should help you see where there is opportunity and where there are pitfalls that can be avoid- ed. OK, enough instruction from me. Enjoy the survey, and feel free to email me with any questions or comments at ANNUAL REVENUE How does your company size up to others in the industry? In Graph 1 you can examine your business revenue trends compared to the rest of the paint- ing industry. We've divided company size into five categories based on annual revenues in 2011. In the chart below, you can see that 26 percent of contractors generated up to $49,999 in revenues – keeping exactly in line with our 2006 and 2009 survey results (kind of amaz- ing, really). The $50,000 to $99,999 bracket came close to doubling in size since 2009 – up to 21 percent from 12 percent in 2009. The medium bracket ($100,000 to $249,000) continued to grow, with a 4 percent increase, and the $250,000 to $1 million bracket saw an increase of 2 percent over 2009. The only group seeing a decline is the more than $1 million market, dropping a whopping 9 percent. GRAPH 1: 2011 REVENUE 26% Up to $49,000 (Small) 21% $50,000 to $99,000 (Small/Medium) 19% $100,000 to $249,000 (Medium) 23% $250,000 to $1 million (Medium/Large) 10% More than $1 million (Large) This graph shows the percentage of contractors in each of the five business-size categories. AMERICAN PAINTING CONTRACTOR • October 2012 27 How much dough is coming in through the door of the average painting business? THE MOST PROFITABLE MARKETS Chart 1 shows which markets are the most profitable for painting contractors. More than half reported the high-end res- idential market remained at the top of our list as the most profitable market and even saw a bump of 8 percent. The new- construction market did see an increase of 3 percent since 2009. Residential repaints leapt 1 percent, while industrial/commer- cial, decorative and paperhanging all decreased in the number of contractors reporting them as their biggest profit earners. Exterior wood finishing saw nice growth from a measly 2 percent in 2009 to 10 percent this year. CHART 1: MOST PROFITABLE MARKETS ■ 52% High-end Residential ■ 12% New Construction ■ 10% Exterior Wood Finishing ■ 9% Residential Repaint ■ 7% Decorative/Faux Finishing ■ 6% Industrial/Commercial ■ 2% Paperhanging ■ 2% Other

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