News & Opinions
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From Floor to Ceiling, Construction Companies Growing
Mary Ellen Biery/ Forbes / May 12, 2013
Private companies working on everything from the foundation to the roof of buildings are generating double-digit sales growth as the construction sector strengthens, according to data from Sageworks, a financial information company.
The majority of U.S. construction companies are privately held, so their performance is critical to the overall industry and the economy. The Private Company Report by Sageworks, a monthly update on the health of private companies in America, shows that several categories of construction posted mid-teen percentage sales increases in the 12 months ended March 2013.
Thursday’s U.S. housing starts report will give the next government-generated glimpse into the housing market, but the National Association of Home Builders expects single-family housing starts in 2013 to number 672,000, up 23 percent from 2012.
Meanwhile, among private companies tracked by Sageworks, general contractors, construction management firms and design/build firms tied to residential building (NAICS code 2361) are currently posting the strongest growth, generating a roughly 21 percent sales increase. Nonresidential builders posted a 14.3 percent gain over the last 12 months. These categories are especially important because these companies tend to be involved in bigger, higher-dollar projects, and they are often key customers for suppliers and key employers for many of the other construction industries. Both are outpacing growth among privately held companies overall, too.