The Commercial Construction Market
Commercial construction remains the largest component of the U.S. construction industry, and collectively the industry generates annual revenues in excess of $450 billion, with the majority of the revenues being obtained by local contractors, a majority of which claim annual revenues of less than $1 million.
Vital factors that make Construction a compelling entrepreneurial choice.
Expanding Markets
Demand for commercial construction is expected to increase over the next decade. Replacement of many industrial facilities has been delayed for years, and other structures will need extensive remodeling. Healthcare facilities and residential homes for the elderly will be necessary to meet the requirements of an aging population. Replacing and renovating schools in particular will further energize the market.
Additionally, refitting existing shopping malls, creating new shopping precincts and rebuilding from storm damaged buildings might provide opportunities for growth in the future.
| PRODUCT / SERVICES | SHARE | ||
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General contractor or design-builder on building projects | 65% | |
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Remodeling contractors | 17% | |
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Construction management services on building projects | 8% | |
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Other nonbuilding construction activities | 7% | |
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Other business activities secondary to construction | 3% |
High Government Spending
Despite current and projected deficits, government spending on infrastructure projects should remain high during the next decade. Construction and renovation of schools, which is funded at the both the state and federal levels, should steadily support the health of the commercial construction industry.
Improved Construction Technology
Computer technology, from bookkeeping programs to specific industry-related software, has greatly reduced costs and errors in construction. New building methods and the increased availability of pre-fabricated materials have helped to reduce costs and promote efficiency.
Diversification into Homebuilding / Remodeling
As firms grow in size and capability, more commercial builders are diversifying into residential markets. With higher profit margins available, non-commercial markets hold a strong appeal for firms. Residential markets may also retain profitability in economic climates where commercial building suffers.
Why Winmar is the right choice
With so many indicators building the case for construction, one question naturally comes to the forefront: how does one materially participate in the market, while avoiding the pitfalls and high costs of the construction market learning curve? Building a Winmar Construction Franchise of your own allows you to benefit from decades of combined experience, while substantially reducing your knowledge learning curve and avoiding costly missteps that can impact new, or inexperienced entrants to the lucrative, but complex construction industry.
Please Note: There are some states that require registration prior to having any detailed discussions regarding opening new locations. If you are interested in one of these states listed below, we can take your name and contact information, and then notify you when we become registered.
California, Washington, Utah, North Dakota, South Dakota, Nebraska, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Maine, Rhode Island, Connecticut, Maryland, Virginia, North Carolina, South Carolina, Georgia, Hawaii, New York