Pavement Repair Tops $141 million

As we pointed out last year, pavement repair has become an important service of the pavement maintenance business (due partly to what we termed “the go-to option for cash-strapped property owners”) and this year’s list reaffirms that statement.

The 2014 Pavement Repair 75 reached $141,152,385 in repair-only sales, ranking it third among Pavement’s five Top Contractor categories and very close to the #2 Sealcoating list which generated more than $150 million in sealcoating-only sales.

While it’s not surprising that none of the Pavement Repair 75 generate all their sales from repair work, there is one contractor that reports 92% of sales from repairs. Other than that, the highest percentage of repair sales is 58% with most companies reporting significantly less than that.

As contractors have discovered, providing services (cracksealing, patching, infrared etc.) that support their other primary pavement maintenance services enables contractors to generate more revenue from each job, making each stop in the field more profitable. That’s likely what’s happening with pavement repair sales as indicated by the fact that pavement repair services are offered by:

  • 64 of the Sealcoating 75
  • 63 of the Paving 75
  • 50 of the Striping 75
  • 10 of the Sweeping 25

Another way to look at this is to examine how many of the Pavement Repair 75 provide other pavement maintenance services, and the result is revealing: 73 of the Pavement Repair 75 provide paving services, 70 provide sealcoating, 63 provide striping and 59 provide sweeping services.

 

Where they work

Considering the types of work pavement repair work supports, it’s not surprising that the Pavement Repair 75 work across the pavement spectrum. The smallest number of contractors, 19, repair highway pavement, but 56 companies report work on streets or roads – even more than the 53 companies that report work on driveways. It’s no surprise that 73 of the Pavement Repair 75 report that they repair parking lot pavement.

And the Customer Mix reinforces that breakdown:

  • 73 work for commercial/ industrial customers
  • 52 work for state/local agencies
  • 63 work for multi-family residential customers
  • 42 work for single-family residential customers

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