Sealcoating 75 Sales Show 20% Increase

$150 million-plus total shows importance key pavement maintenance tool

Interestingly, the number of sealcoating participants in Pavement’s 2014 Top Contractor Survey jumped substantially, transforming the list from the Sealcoating 50 to the 2014 Sealcoating 75 (the same thing that happened in other industry segments).

However, that increase in the number of contractors did not receive a corresponding leap in total sealcoating-only dollars for the list. Sealcoating-only dollars for the 2014 Sealcoating 75 were $150,090,164 – up 20% from $124,447,617 last year, a substantial increase but not as substantial as we experienced in the other industry segments.

While it’s going to be difficult to determine why sealcoating-only sales didn’t jump as much percentage-wise as sales in other industry segments, the fact remains that sealcoating is an impact service that can generate significant revenue for contractors.

As most people in the industry know, sealcoating has been facing (more than) its share of price margin pressure – second possibly only to sweeping -- in recent years but when 75 companies can sell more than $150 million in service work it’s easy to realize sealcoating is a force to be reckoned with. (How the 2014 Sealcoating 75 handled their margins might be a different story and will be examined in the 2014 analysis due to survey participants in August.)

Sealcoating 75 contractors generated between 5% and 85% of their sales from sealcoating, indicating that this pavement maintenance service can be both the lifeblood of a company and a support service. As the range indicates, Sealcoating 75 contractors offer a variety of pavement maintenance services to their customers, with:

  • 63 companies offering paving
  • 66 companies offering striping
  • 16 companies offering sweeping
  • 64 companies offering pavement repair

Those figures indicate that these Sealcoating 75 contractors considered as a whole are full-service pavement maintenance contractors, with sealcoating as an integral part of that service package.

Highway work, not surprisingly, represents the smallest market with only 17 contractors indicating they perform sealcoating work on highways. The number jumps way up to 60 companies indicating they sealcoat roads and streets, and then all the way to 75 companies who sealcoat on parking lots, many to a very high degree. Driveway sealcoating represents work for 50 companies though by and large the percentage of driveway sealcoating work is small in most (but not all) instances.

 As far as Customer Mix goes:

  • 74 companies work for commercial/industrial customers
  • 56 companies work for state/local agencies
  • 56 companies work for multi-family customers
  • 41 companies work for single-family customers

 

 

 

 

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