2016 Pavement Top Contractor: Paving 75 Sales Volume Dips from 2015 Totals

Contractors making up the 2016 Paving 75 reported a drop in the total of paving-only sales to $712,793,701 from more than $875 million in last year’s list. That 2016 sales number is still higher than the $621 million reported in 2014, but it’s an 18% decline over last year.

This is the third consecutive year the list comprises 75 contractors, which indicates some stabilization. But the sales decline in an economy where contractors generally were busy throughout 2015 begs the question, “What happened?”

Certainly some of the pent-up demand from the Great Recession was bid and completed in 2014, which likely drove up the 2015 paving-only totals. That not only could have set the bar higher for 2016, but it could mean there were fewer jobs (and fewer large-scale jobs) up for work in 2015 – in other words the 2016 paving-only sales totals might be more realistic. That’s difficult to say with only a few years of data, but it should become clearer in the years ahead.

Another possible reason for the sales decline, is that contractors who make up the Paving 75 list change year to year because participation is voluntary. So there’s a good chance some of the contractors with higher paving-only sales opted not to participate this year. When this list gets compiled in 2017, it will be interesting to see where that total of paving-only sales lies.

As in previous years, few of the Paving 75 (Asphalt Contractors Inc., 20%; Harding Group 28%; Magic Seal LLC, 20%; Palmetto Corp., 3%; Richard’s Paving Inc., 18%) produce their own hot mix asphalt. These percentages have been included in the “Other” category which also encompasses such work as concrete, snow removal, drainage and landscaping. Essentially this Paving 75 is a list of laydown specialists and it’s been that way since the start of the survey.

Almost the same as last year, the companies who provide paving also provide sealcoating, with 88% of the list offering sealcoating services (though 25% generate less than 10% of sales from sealcoating). And 16% rely on paving for 75% or more of sales though only one company relies 100% on paving. As far as striping is concerned, 28% of the list offer no striping services and another 55% generate less than 10% from striping. Most likely that’s because striping work is so different from paving that paving contractors prefer to put the mat down and get out of the way for the striping pros.

Pavement repair services generate sales for 62% of the Paving 75, though 25% generate less than 10% of sales from pavement repair. This figure might be the most difficult to capture as many contractors lump paving and pavement repair together when costing and bidding. (But note the change in the 2016 Pavement Repair list, page 32, which for the first year reached 75 companies.)

Click here to view the Paving 75 Top Contractor list.

Where Pavers Work

If the first four years of this survey have proven anything it’s that the paving audience is heavily weighted toward off-road paving. This year 15% of the companies on the list generate 100% of sales from parking lot work and another 20% generate 90% or more of sales from parking lot work. Still, 60% generate sales from paving streets or roads and 39% pave driveways (21% generate 5% or less of sales from driveways).

The Paving 75’s Clients

• 74 contractors work for commercial and/or industrial clients (99%)
• 65 work for multi-family housing clients (87%)
• 45 work for municipal clients (60%)
• 42 work for single-family homeowners (56%)

Contractors who participated in the 2016 Top Contractor survey can expect to receive the annual detailed analysis and report in August. Contractors who miss out on this year’s report can participate in the 2017 Top Contractor which will be open online from January 1 through April 30, 2017.