The restoration industry plays a big role in maintaining the safety and integrity of properties affected by various disasters. From hurricanes to fires, the demand for disaster restoration services has surged, which shows the industry’s importance.
In this blog, we’ll explore key statistics and insights, providing a comprehensive overview of the market. We’ll delve into the market valuation in 2020, annual growth rates, and projected trends for the future.
Overview of Restoration Industry Statistics
In this section, we delve into key statistics of the restoration industry. To start our detailed analysis, let’s take a look at the industry statistics from 2020 and see how the numbers have changed.
Market Valuation in 2020
Statistic: The restoration industry in 2020 was forecasted period be valued at 210 billion USD.
In 2020, it reached a long-awaited milestone with a market valuation of 210 billion USD. The industry played a critical role in shielding us from the unpredictable. Its worth was, therefore, unquestionable. This was mainly due to events like hurricanes, wildfires, and accidents that could happen at any given time.
The market’s considerable size suggested a reality: there’s a service out there for almost everyone, regardless of their requirements. Natural disasters hit more often, and aging infrastructure is increasing.
As a result, people started recognizing the vital importance of rapid restoration services, driving the industry’s significant growth further forward.
Annual Growth Rate (2015-2020)
Statistic: Annual revenue growth % of the restoration industry between 2015-2020 was 1.5%.
The annual growth rate of 1.5% over those past five years may appear modest. However, expansion was happening at a steady rate, which demonstrated its ongoing growth. While market shocks and economic events could affect various industries, this sector remained untouched.
The growth of restoration technologies was likewise making all the difference. Sectors were ramping up their disaster defenses, investing in preparedness initiatives for future safety. In the event of these occurrences, disaster restoration services remained on standby to assist.
Restoration and Remediation Industry
Statistic: Cleaning and restoration alone account for approximately $80 billion of the industry’s revenue.
One of the industry’s most substantial components (around $80 billion) is cleaning and restoration. The higher standards of maintaining health and safety standards contribute to this high revenue number. This can be gleaned especially in highly public areas and commercial locations.
The high revenue from this segment can be linked to routine maintenance and emergency response to damages. Health issues associated with mold growth and fire damage are leaving a mark.
With people consistently clamoring for these services, the industry enjoys a predictable cash flow.
Number of Businesses in the USA
Statistic: There are about 115,350 businesses in the water damage repair and restoration industry in the USA.
The sheer number market size of businesses in the USA speaks to a dynamic industry. This large number indicates a fragmented market with numerous small to medium-sized enterprises (SMEs) alongside larger, established companies.
A flooded market means companies must fight to stand out. In doing so, they are motivated to offer better deals, superior services, and competitive pricing.
Projected Growth Rate (2021-2026)
Statistic: The average industry growth rate for the period 2021-2026 is projected at 2.3%.
A forecast for the restoration industry is emerging. A predicted 2.3% growth rate is now expected to grow between 2021 and 2026. Growth projections are pointing upwards.
Rapid urbanization and the steady decline of infrastructure are the common driving factors. Aside from this, the steady number of natural disasters driven by climate change is likewise growing.
Moreover, two factors drive restoration and remediation solutions. Firstly, regulators are becoming more strict with compliance with building codes and the like. Second, people are focusing on rebuilding or maintaining their property rather than starting anew.
Storm Damage Restoration Market
Statistic: The storm and wind damage restoration and market is estimated to reach $70 billion by 2027.
The storm damage restoration market is projected to grow significantly. By 2027, it is expected to reach $70 billion. The reason we’re seeing such substantial growth is that the Earth’s climate has changed dramatically. Storms and other natural disasters are happening more frequently and packing a bigger punch.
The spike in the number of storms, blistering heat, and record-breaking cold are noticeable. These are all symptoms of a change in climate behavior. This also impacts the demand for these remediation services, as more changes are anticipated, so is remediation.
Business Growth Plans
Statistic: About 78% of restoration business owners plan to grow their company in the next 12 months.
A large percentage of restoration business owners are optimistic about growth. Approximately 78% plan to expand their companies within the next year. A positive outlook like this can only mean that investors are feeling good about the developed economy and the market’s potential.
They are investing in cutting-edge tech and expanding their service offerings to give customers more of what they need. Growing the customer base and building support have become top priorities.
Revenue Ranges for Restoration Companies
Statistic: About 50% of restoration companies claimed their annual revenue is between $1 million and $5 million.
A substantial portion of restoration companies report significant revenues. Around 50% have annual revenues between $1 million and $5 million. The financial standing of businesses in this sector is reflected in this range.
Higher revenue ranges are often associated with larger, more established companies. These companies have robust service portfolios and a global market presence.
But success in the industry isn’t just about the big players. Companies with smaller revenues are making their mark within their vicinities.
Workforce Composition
Statistic: Around 65% of field technicians make up the average restoration company’s workforce.
Behind every successful restoration project, you’ll find a team of skilled field technicians. They make up about 65% of the average company’s employees.
A significant number of field technicians on the ground reveals the industry’s predominantly hands-on approach. When technicians have the training and support they need, they become more equipped with the needed on-site resolution.
Companies can’t afford to skimp on these critical investments. Concentrating on delivering top-notch service results in happy customers.
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FAQs About Restoration Industry
What are the main services provided in the restoration industry?
Key services in the restoration industry include water damage restoration services, fire and smoke damage restoration, and other services.
What challenges does the restoration industry face?
The restoration industry faces challenges such as high competition, regulatory compliance, market expansion, and a shortage of skilled labor. These challenges require companies to innovate and adapt to maintain growth and success.
How has the restoration industry evolved?
The restoration industry has evolved from basic repair services to include advanced restoration techniques and technologies for commercial properties. This evolution has been driven by increased frequency of natural disasters, stricter building codes, and advancements in restoration technologies.
What is the role of mold remediation services in the restoration industry?
Mold remediation services are essential in the restoration industry, as they address health hazards and structural damage caused by mold growth. These services ensure properties are safe and habitable after water damage and other disasters.
