Industry data from Sageworks show that residential builders and remodelers make up one of the fastest-growing groups of privately held companies in the U.S. Privately held building construction companies had average sales growth of 17.5 percent for the 12 months ended Aug. 31, based on a recent financial statement analysis. The category includes general contractors, builders and design-build firms for both single-family and multi-family buildings, and it includes both new construction and remodeling.
 
“Aside from the strong sales growth, these companies have a relatively healthy 4.6% net profit margin, rare for an industry that typically sees razor thin, or even negative, margins,” said Sageworks analyst Tim McPeak.
 
The increases among builders, along with sales growth at private home furnishings retailers and reports of soaring heavy-duty pickup truck sales, reflect the continued housing recovery, which some economists expect will continue.
 
Scott Cresswell, a partner with The Bonadio Group, a CPA and consulting firm that has seven offices across western and upstate New York, said that sales volume has been strong enough that some construction firms are facing a shortage of skilled workers.