Running a contracting business means making decisions with real numbers, not gut feelings. Whether you’re planning your next hire, adjusting your pricing formula, or figuring out where to spend your marketing dollars, solid data matters.
This article pulls together more than 50 statistics about the U.S. contractor industry. Every number comes from a named source. Some of these stats confirm what most contractors already feel in their day-to-day work. Others might surprise you.
Industry size and revenue
The U.S. construction industry is enormous, and it keeps growing.
According to the U.S. Census Bureau (2025), total construction spending in the United States reached approximately $2.1 trillion on an annualized basis. That figure includes both residential and nonresidential construction, public and private projects alike. To put it in perspective, construction accounts for roughly 4.3% of total U.S. GDP, according to the Bureau of Economic Analysis (2024).
According to the U.S. Census Bureau’s County Business Patterns data (2023), there are approximately 919,000 construction establishments operating in the United States. The vast majority of these are small businesses. According to IBISWorld (2024), the specialty trade contractors segment alone generates over $760 billion in annual revenue, making it the largest subsector within the construction industry.
Residential construction spending has been particularly strong. According to the U.S. Census Bureau (2024), private residential construction spending exceeded $900 billion annually. Remodeling and renovation work accounts for a significant share of that figure. The Joint Center for Housing Studies at Harvard University (2024) estimated that homeowner improvement and repair spending topped $420 billion.
According to Statista (2024), the U.S. construction market is projected to grow at a compound annual growth rate of 5.2% through 2028. Infrastructure spending through the Infrastructure Investment and Jobs Act continues to push public construction numbers higher. According to the Associated General Contractors of America (2024), 73% of contractors reported increased revenue compared to the previous year.
Revenue growth has been strong, but so has cost inflation. More on that in the financial challenges section below.
Workforce statistics
Labor is the single biggest topic in contracting right now. Everyone feels the squeeze.
According to the Bureau of Labor Statistics (2025), the construction industry employed approximately 8.2 million workers in the United States. That number has been climbing steadily since the recovery from the 2020 downturn, but demand for workers has grown even faster than the supply.
The BLS Occupational Outlook Handbook (2024) projects that construction and extraction occupations will add roughly 168,500 jobs per year over the next decade, factoring in both new positions and replacement needs from retirements. That is a growth rate of about 4% overall, which is on par with the average for all occupations.
Here is where the problem sits: there are not enough workers to fill those openings. According to Associated Builders and Contractors (2024), the construction industry needs to attract an estimated 501,000 additional workers on top of normal hiring just to meet demand. According to a survey by the Associated General Contractors of America (2024), 88% of construction firms reported difficulty filling hourly craft positions. That number has hovered above 80% for several consecutive years.
The workforce is also aging. According to the National Center for Construction Education and Research (2023), the average age of a construction worker in the U.S. is 42.3 years old. According to BLS data (2024), roughly 22% of the construction workforce is over 55. Retirements are accelerating, and younger workers are entering the trades at lower rates than in previous decades.
Average hourly earnings in construction tell part of the story, too. According to the Bureau of Labor Statistics (2025), the average hourly wage for construction and extraction workers was $34.53. That is up from $30.39 five years earlier, reflecting both inflation and the competitive pressure of labor shortages.
Women remain underrepresented. According to the BLS (2024), women make up approximately 11% of the construction workforce, though that figure has increased from around 9.9% in 2020. The share of women in construction management roles is somewhat higher, but field positions remain overwhelmingly male.
Technology adoption
Technology in construction has been a slow build, but adoption rates are finally climbing.
According to the JBKnowledge Construction Technology Report (2023), 72% of contractors reported using some form of construction management software. That is a significant increase from 56% in 2018. However, the type and depth of software use varies widely. Many smaller contractors still rely on spreadsheets and paper for core operations.
Mobile device use on job sites is now nearly universal. According to the same JBKnowledge report (2023), 93% of construction professionals use smartphones for work purposes, and 56% use tablets regularly on the job site. Photo documentation, communication with clients, and accessing plans are the most common mobile activities.
Field service management software adoption is growing but still has room to run. According to a report by Software Advice (2023), only about 38% of contractors with fewer than 20 employees use dedicated field service management tools. Among larger firms with more than 50 employees, adoption reaches closer to 68%. If you are still evaluating options, this list of the best apps for contractors covers the tools that other contractors actually use.
According to Dodge Data & Analytics (2023), 45% of contractors identified improving project scheduling and tracking as their top technology priority. Estimating and takeoff tools came in second at 31%. Only 15% of contractors surveyed said they were currently using any form of artificial intelligence or machine learning in their operations.
According to McKinsey Global Institute (2020), the construction industry ranks among the least digitized sectors globally, just above agriculture and hunting. That report is a few years old now, and adoption has picked up since, but the industry still lags behind manufacturing, retail, and financial services by a wide margin.
Building Information Modeling (BIM) use has grown significantly on commercial projects but remains relatively rare in residential contracting. According to Dodge Data & Analytics (2023), 73% of general contractors on commercial projects reported high or very high BIM usage, compared to about 26% of residential builders and remodelers.
Scheduling software is one of the fastest growing categories. According to a Grand View Research report (2024), the global construction scheduling software market is projected to grow at 9.4% annually through 2030. Contractors who adopt scheduling tools report fewer missed appointments and better crew utilization.
Marketing and customer acquisition
Getting work is not just about word of mouth anymore. The data shows how customer behavior has shifted.
According to HomeAdvisor (now Angi) (2023), 85% of homeowners research contractors online before making a hiring decision. Of those, 78% said online reviews were a major factor in choosing which contractor to contact. Word of mouth still matters, but it now coexists with a digital research process.
According to BrightLocal’s Local Consumer Review Survey (2024), 87% of consumers read online reviews for local businesses, including contractors. The same survey found that 73% of consumers only pay attention to reviews written in the last month. Old reviews lose their influence quickly, which means actively collecting new reviews is a constant need.
Google dominates how homeowners search. According to BrightLocal (2024), Google is the platform consumers trust most for local business reviews, with 81% of respondents saying they use it, ahead of Yelp at 53% and Facebook at 48%. Having a complete Google Business Profile with recent photos and reviews is more important than ranking on any other platform.
According to a survey by Thrive Analytics (2023), 63% of home services searches on Google happen on mobile devices. Speed and mobile friendliness of your website directly affect whether a lead contacts you or scrolls to the next result.
Yet many contractors still lack a basic web presence. According to the Small Business Administration (2023), roughly 28% of small businesses in the construction sector do not have a website. Among solo operators and very small firms, that number is even higher. If you are working on building your lead pipeline, this guide on how to get more customers covers what is actually working right now.
According to Angi (2023), the average cost per lead for home service professionals on their platform ranges from $15 to $85 depending on trade and market. Electricians and plumbers tend to see higher cost per lead than general handyman services. These costs have risen 20% to 30% over the past three years as competition on lead generation platforms has increased.
Business performance
Knowing your numbers is one thing. Knowing how they compare to other contractors in your trade is another.
According to the U.S. Census Bureau’s Annual Business Survey (2023), the median annual revenue for a construction firm with fewer than 20 employees was approximately $580,000. For solo operators with no employees, median revenue was closer to $110,000. The spread is wide, though. Top performers in the same size category can exceed $1.5 million annually.
Profit margins vary significantly by trade. According to Vertical IQ (formerly Sageworks) (2024), the average net profit margin for residential building contractors is approximately 6% to 9%. Specialty trade contractors, including HVAC, electrical, and plumbing, typically see slightly higher margins in the range of 8% to 12%. Painting and finishing contractors report net margins of 5% to 8% on average.
Those averages mask a big gap between well-run operations and the rest. According to the Construction Financial Management Association (CFMA) (2024), the top 25% of specialty contractors by profitability achieve net margins above 14%, while the bottom quartile operates below 3%. The difference usually comes down to accurate estimating, tight job costing, and consistent overhead management.
According to IBISWorld (2024), the average revenue per employee in the specialty trade contracting industry is approximately $178,000. Labor is the biggest expense line for most contractors, typically accounting for 40% to 50% of total project costs.
Average job values differ considerably by trade. According to HomeAdvisor (2023), the average home renovation project costs homeowners between $18,000 and $78,000, with a national average around $48,000. For smaller repair and maintenance jobs, the average ticket size is closer to $1,200 to $3,500.
According to the SBA Office of Advocacy (2024), construction businesses have a five-year survival rate of approximately 36.4%, which is below the overall small business survival rate of about 48%. Capital intensity, thin margins, and cash flow volatility contribute to the higher failure rate in construction.
Cash flow and financial challenges
Cash flow is the number one killer of otherwise profitable contracting businesses. The data backs this up.
According to the National Federation of Independent Business (NFIB) (2024), 32% of small construction business owners cited cash flow as their top financial concern. It ranked higher than finding qualified labor (28%) and higher than material costs (19%), though all three are interconnected.
Late payment is endemic. According to Rabbet’s Construction Payments Report (2023), the average payment cycle in construction is 83 days from invoice to receipt. That means contractors regularly float costs for nearly three months before getting paid. Subcontractors face even longer waits when payments flow down through general contractors.
According to CFMA (2024), 60% of construction firm failures involve cash flow problems as a contributing factor, even when the company’s backlog of work is healthy. Having a full schedule of jobs means nothing if you cannot collect fast enough to cover payroll and materials.
Material costs have been a major pressure point. According to the Bureau of Labor Statistics Producer Price Index (2025), prices for inputs to construction increased by approximately 36% cumulatively between 2020 and 2024. Lumber saw the most dramatic swings, but concrete, steel, copper, and PVC all experienced significant price increases during that period.
According to the Associated General Contractors of America (2024), 73% of contractors reported that rising material costs cut into their margins over the past year. Only 42% said they were able to fully pass those cost increases along to customers. The rest absorbed at least a portion of the increase.
Insurance costs are climbing too. According to the National Association of Home Builders (NAHB) (2024), the average general liability insurance premium for residential contractors increased by 12% year over year. Workers’ compensation rates have also risen in most states, driven partly by labor shortages pushing less experienced workers into roles with higher injury risk.
According to an Intuit QuickBooks survey (2023), 61% of small business owners in the trades said they spend more than 10 hours per month on bookkeeping and financial management tasks. Among those not using accounting software, the average jumps to 18 hours monthly. That is time not spent on revenue-generating work.
Growth trends
Several specific segments within contracting are growing faster than the overall market.
Specialty trade contractors are outpacing general construction. According to IBISWorld (2024), the electrical contracting segment is projected to grow at 4.8% annually through 2028, while plumbing contractors are projected at 4.1%. HVAC services are expected to grow at 5.3% annually, driven by both new construction and the replacement cycle for aging systems.
Green building and energy efficiency work is expanding rapidly. According to Dodge Data & Analytics (2023), 47% of contractors reported that more than 30% of their projects involved green building practices, up from 28% in 2018. The Inflation Reduction Act of 2022, with its tax credits for energy-efficient home improvements, has accelerated demand for heat pump installations, insulation upgrades, solar systems, and high-efficiency HVAC equipment.
According to the U.S. Energy Information Administration (2024), spending on residential energy efficiency retrofits is projected to exceed $80 billion annually by 2028. Contractors who specialize in weatherization, heat pump installation, or solar are positioned in one of the fastest growing niches.
Smart home and connected systems represent another growth area. According to Statista (2024), the U.S. smart home market reached $42 billion in 2024 and is projected to grow at 10.5% annually through 2029. Electricians and low-voltage contractors are increasingly handling smart thermostat installations, whole-home networking, security system setups, and integrated lighting controls.
The aging housing stock is a structural demand driver that does not get enough attention. According to the U.S. Census Bureau’s American Housing Survey (2023), the median age of owner-occupied homes in the United States is 41 years. Approximately 54% of the nation’s housing stock was built before 1980. Older homes need more repairs, system replacements, and code-compliance upgrades. Plumbers, electricians, roofers, and foundation specialists all benefit from this long-term trend.
According to the Joint Center for Housing Studies at Harvard (2024), homeowners aged 55 and older now account for more than half of all home improvement spending. That demographic is more likely to hire contractors rather than do the work themselves, and they tend to spend more per project.
According to the Census Bureau (2024), permits for accessory dwelling units (ADUs) have increased by more than 60% in major metropolitan areas since 2019. Changes to local zoning laws in states including California, Oregon, and Washington have made ADU construction a growing segment for small residential contractors.
Summary table
Here are the key statistics from this article in one place.
| Metric | Value | Source |
|---|---|---|
| U.S. construction spending (annual) | $2.1 trillion | U.S. Census Bureau (2025) |
| Number of construction establishments | ~919,000 | Census Bureau County Business Patterns (2023) |
| Specialty trade contractor revenue | $760 billion+ | IBISWorld (2024) |
| Construction industry employment | 8.2 million workers | Bureau of Labor Statistics (2025) |
| Additional workers needed annually | 501,000 | Associated Builders and Contractors (2024) |
| Firms reporting difficulty hiring | 88% | AGC (2024) |
| Average construction worker age | 42.3 years | NCCER (2023) |
| Average hourly wage (construction) | $34.53 | BLS (2025) |
| Contractors using management software | 72% | JBKnowledge (2023) |
| Smartphone use on job sites | 93% | JBKnowledge (2023) |
| Small contractors using field service software | 38% | Software Advice (2023) |
| Homeowners researching contractors online | 85% | Angi (2023) |
| Consumers reading online reviews | 87% | BrightLocal (2024) |
| Small contractors without a website | 28% | SBA (2023) |
| Median revenue (firms under 20 employees) | $580,000 | Census Bureau (2023) |
| Avg. net profit margin (residential contractors) | 6% to 9% | Vertical IQ (2024) |
| Avg. net profit margin (specialty trades) | 8% to 12% | Vertical IQ (2024) |
| Average payment cycle in construction | 83 days | Rabbet (2023) |
| Material cost increase (2020 to 2024) | ~36% | BLS Producer Price Index (2025) |
| Construction 5-year business survival rate | 36.4% | SBA (2024) |
| Median age of U.S. owner-occupied homes | 41 years | Census American Housing Survey (2023) |
| Smart home market (U.S.) | $42 billion | Statista (2024) |
| HVAC contracting projected growth rate | 5.3% annually | IBISWorld (2024) |
| Green building project involvement | 47% of contractors | Dodge Data & Analytics (2023) |
What to do with these numbers
Statistics are useful only when they change how you operate.
If 88% of contractors cannot find enough workers, you need a retention plan, not just a hiring plan. If the average payment cycle is 83 days, your cash reserves and billing terms need to account for that reality. If 85% of homeowners research contractors online before calling, your Google Business Profile and review collection process are not optional extras.
The contractors who pull ahead over the next few years will be the ones who treat their business like a business: tracking real numbers, comparing against industry benchmarks, and adjusting. Not every stat in this article will apply to your trade or market. But enough of them will that ignoring the data is not a competitive option.
Pick two or three numbers from this article that feel off compared to your own operation. Dig into why. That is where the real value sits.
The ProTradeHQ Team
We're veteran contractors and software experts helping the trade community build more profitable, less stressful businesses through practical systems that work in the field.