We saved the Top 50 Pavement Repair contractors for last for a reason. Without a doubt, this sector of the business is the single most consistent financially, even if it isn't on the same scale as the Paving Top 50 in terms of overall sales grosses. The pavement repair-only sales topped out at $285,633,743 for 2024, and that's pretty amazing. When I tell you that it's a down-step from last year's $315 million, you might find "amazing" to be a strange categorization, but when put into the same greater context that we've been putting the other Top 50 lists into this year, it becomes much clearer.
View The Top 50: Pavement Repair
I've been trying to play a bit of detective with the data we received this year from the surveys, really hoping to find some sort of understanding to the patterns. That might be a fools errand, but, if nothing else, it is going to help me make the survey better as the years go by. While, in some ways, I've been left scratching my head more than seeing things clearly, but with this category I think it's safe to say this: Pavement repair work is a sure-bet.
As other parts of the industry have seen weird fluctuations, downward trends, or completely unpredictable shifts, the Pavement Repair Top 50 exhibits the most consistent numbers. There might be years that people put off sealcoating their properties, which usually means striping dips too, and there are going to be stretches where commercial property managers keep postponing resurfacing work. However, what they can't really afford to wait on, is getting their liabilities taken care of.
Let's take a look at the last ten years:
- 2024 - $286 million
- 2023 - $315
- 2022 - $248
- 2021 - $205*
- 2020 - $217
- 2019 - $209
- 2018 - $265
- 2017 - $165
- 2016 - $255
- 2015 - $269
*Pandemic/shutdowns
This is pretty significant. Over the course of the past decade, this sector has remained steady, and growing at an average rate of 6.41% annually. That's nothing to ignore, and it should inform your business, as well, and even more so if you live in cold weather climates where hot mix isn't available for several months out of the year.
During those winter months, you should absolutely be offering repair services that utilize things like asphalt reclaimers and recyclers, hot boxes, and infrared heaters. Those can work all year round, and they are obviously services that continue to be in demand and growing.
Total Sales Pavement Repair Top 50
The total gross sales for the Top 50 Pavement Repair contractors came in at $1,543,627,669. Compare that number to the total sales for all the sales by the Pavement Repair 50 for 2023 $1.672 billion and $1.22 billion in 2022, and all of these are significantly higher than 2021's reported figure of $1.045 billion. While, yes, it is another small contraction, the trajectory and the trend is still upward.
The average rate of change from four years ago to now is an eye-popping 67.72% and year-over-year growth stands at a healthy and respectable 15.22%. Again, it bears repeating that this sector is a good investment if you are looking for dependable ways to grow your business further.
Profit Margins
The restructuring of the profit margin percentages seems to have effected this category more than the others. Last year, it was very top heavy, like the other groups were, as well. And then the middle three rangers were all within two percentage points of one another, or just a single contractor. Those middle profits were the most common. This year, they are weighted at the top a little less heavy, and then they bulge back out towards the bottom third.
- 36% of contractors (18 companies) reported profit margins greater than 20%, and 18% (9) ranked in the 16-20% range
- That means 54% were in the highest range of profits, compared to 2023 which saw 56% in the above 15% range
- 14% of contractors (7) reported profits in the 10-15% range, compared to 16% in 2023, another drop of 2%
- 16% of contractors (8) fell into the 6-9% profit range, and 2% in the lowest bracket at less than 5% profit margins
These fluctuations might be explained by increased material costs, and pricing not keeping pace. I expect that next year, these profit margins will slide back upwards.
Types of Work
- 72% of the Pavement Repair Top 50 completed work on driveways at an average rate of 8% of their job mix composition
- Only 8% of this Top Contractor category completed highway work, the lowest of all list groups, at an average rate of 13% of their job mix
- 100% of the contractors completed some parking lot work at an average rate of 74% of their job mix
- 72% of contractors also did residential street or roadwork at an average rate 23% of the job mix
Types of Clients
- All 50 of the Pavement Repair Top 50 completed work for commercial and/or industrial customers at an average rate of 60% of client mix composition
- 78% of contractors on the list completed some municipal work at an average rate of 8% of client mix
- 94% of the Top 50 did work for multi-family residence or HAOs at an average rate of 22% of client mix
- 62% of companies worked for single-family residence at an average rate of 10% of client mix
Fleet Replacement
- 6% of the Pavement Repair Top 50 contractors reported it would require between $250K - $500K to fully replace their fleets
- Another 6% said that it would require twice that, between $500K - $1 million
- 18% stated that it would take between $1 million - $2 million
- and the remaining 20%, the largest group besides the Paving Top 50, would need more than $2 million to fully replace their fleets
