The construction industry is a vital part of the United States economy. It employs millions of people and generates billions of dollars in revenue each year. In addition, the construction industry helps build our homes, businesses, and other infrastructure. As a result, it is responsible for creating many jobs and generating tax revenue.
The industry is worth over one trillion dollars in the United States, with more space for aspiring entrepreneurs. The most profitable businesses in construction are general contractors, home builders, construction equipment retailers, architectural firms, and more. Here is each market in detail.
General contractors are businesses that provide a wide range of services to their clients. For example, they may build schools, hospitals, office buildings, or houses. General contractors usually have a staff of employees who specialize in different aspects of construction.
The market is currently growing, and over now, over three million contractors in the country. The average contractor earns a profit of around fifteen percent. This means that they make fifteen dollars in profit for every one hundred dollars that a contractor spends on a project. When projects can cost over a hundred thousand each, they can pocket $15,000 in profit.
Additionally, the versatility of general contracting means that there is always a market for their services. Contractors can work on government projects, private projects, or both. They may also work on short-term projects or long-term projects.
Homebuilders are businesses that construct houses and sell them to individuals or families. Homebuilders usually purchase land, build houses, and sell them to customers.
The home building industry is currently worth over five hundred billion dollars. The average home builder earns a profit of around eight percent. This means that they make eight dollars in profit for every one hundred dollars that a home builder spends on a project. Homebuilders usually work on multiple projects simultaneously to maximize their profits.
Some home builders can also earn at a flat rate, depending on the agreement of the future homeowners. They can choose to pay them with whatever they’ve agreed on.
Moreover, because of the housing shortage in the United States, the demand for homebuilders is higher than ever. Homebuilders can construct houses for people looking to buy their first home, move to a new city, or downsize.
Construction Equipment Retailers
The two industries above wouldn’t have grown so profusely without construction equipment retailers. They are businesses that sell construction equipment to contractors and home builders.
The most popular items they sell are excavators, bulldozers, cranes, and other large machines. However, some look for transportation and delivery. As a result, many construction firms are also looking for cheap skid steer loaders for sale. They are known to deliver all sorts of equipment, and they can also help in other tasks like site clearing. They are the swiss knife of heavy construction equipment.
Construction equipment retailers have a good profit margin and massive space to grow.
An architectural firm is a business that provides architectural services to its clients. These services can include designing new buildings, renovating existing buildings, or both. Architectural firms usually have a staff of architects and other professionals who work together to create designs for their clients.
The architectural industry is currently worth over three hundred billion dollars. Architectures usually charge clients using a per square meter system. The bigger the project, the higher the price.
Additionally, the demand for architectural services is always high. This is because new buildings are constantly being constructed, and existing buildings are being renovated. This means that there is always a market for architectural services.
Property developers are businesses that buy land, develop it, and then sell it to other companies or individuals. For example, property developers usually purchase land, build new buildings, renovate existing buildings, and sell them to customers.
The property development industry is currently worth over seven hundred billion dollars. Some property developers spend a billion-dollar on projects but can gain millions of dollars.
Property developers usually work on multiple projects simultaneously to maximize their profits. Moreover, because of the ever-growing population, the demand for property developers is always high.
A construction manager is a professional who oversees the construction of a project. Construction managers ensure that a project is completed on time, within budget, and to the required standards.
The construction management industry is worth over one hundred and fifty billion dollars. Construction managers usually charge a percentage of the total project cost. The average construction manager earns a commission of around three percent.
Construction managers are in high demand because they play a vital role in the construction industry. It would be challenging to complete construction projects on time and within budget without construction managers.
These are the five most profitable businesses in construction. Each of them has a significant role in the industry and contributes to its growth. Without these businesses, the construction industry would not be as prosperous today.