According to recent research conducted by consulting group Consumer Specialists, the average National Association of the Remodeling Industry member contractor business exceeds industry norms, employing more workers, having higher sales volumes and averaging more sales per employee.
Almost all respondents (95 percent) reported individual business ownership, with 4 percent owned by holding corporations and 1 percent by an employee stock ownership plan. Research found that 85 percent of businesses are owned by the original owner. Time in business was nearly identical between the groups, with the average NARI member in business for 19.7 years and the average non-member in business for 20.9 years.
Researchers found a broad range of operation methods, with 79 percent of general contractors, though 42 percent reported being the sole contractor on their projects. Ten percent reported also acting as a distributor of a national product line. Most commonly, respondents owned businesses with one location, at 92 percent. Only 7 percent reported having two business locations.
Almost all respondents (99 percent) reported doing business remodeling or repairing existing homes, and 37 percent reported working on renovating commercial buildings. Few reported doing business in a new commercial building. In the residential remodeling sector, 80 percent of respondents said they offer more than one type of remodeling service, but only 7 percent reported offering five or more services. The majority of members reported doing at least some of the design work for their projects, with 56 percent reporting some design is done in-house and some is outsourced. About one-third of respondents (33 percent) reported that all design work is done in-house.
"Surveys like this help our leaders to proactively respond to changes in the market and changing member needs," said Dan Jaggers, chairman of NARI's Strategic Planning and Research Committee. "The data also demonstrates the strengths of NARI members to withstand challenges in the economy."
Ninety percent of respondents reported that they employ fewer than 18 people, most ranging in age from 24 to 54 years old. NARI member businesses most frequently (53 percent) offer health insurance for their employees. Of those businesses that offer health insurance, 86 percent reported that they subsidize 40 percent or more of the cost of health insurance.
"NARI intends to dig deeper into the data collected in order to better serve members," Jaggers said. "We have areas to explore to help NARI offer educational content that will help members be even better in business. This is just the tip of the iceberg."
To locate a NARI chapter in your area, go to http://nariremodelers.com.