Movin On Up
Retrofit is no longer a trend or emerging, it’s business as usual:
• Along with the reduction in project sizes, the split between projects in new versus existing homes is growing wider – 73% of projects are in existing homes in 2011 compared to 67% in 2010.
Owners are committed to running companies that are more strategic, durable, and profitable:
• The percentage of companies perform job costing (analyzing and recording labor and materials by project) has increased from 51% in 2011 to 62% in 2012.
• Owners reported on the profit-improving efforts they made in 2011 – 80% sold more upgrades and add-ons, 74% standardized their operational processes, 69% changed at least one product line, and 68% standardized installation processes.
Controlling operating expenses continues to be one of the biggest hurdles to profitability for ESCs:
• Unprofitable companies report operating expenses at 52.4% of net revenue.
• The good news is that many have recognized the issue. 68% of ESCs reported reducing overhead to improve company profitability in 2011.