3-Year Trend: BSCs Remain Optimistic, Seeing Gains in Profits
BSCs remain optimistic about growth in their business and are seeing overall increases in their profits and sales, according to the 2018 Building Service Contractor Market Study.
The study is a joint effort between Contracting Profits and BSCAI. It encompasses responses from nearly 300 BSCs about purchasing habits and market growth in the industry.
For the past three years, BSCs reported optimistic outcomes when it comes to their business conditions, and with good reason. The data points to increased growth over the past three years. In 2018 and 2017, in particular, 75 percent BSCs who took the Contracting Profits survey said they believe business will improve. Only 2 percent of BSCs in both years said they expected profits to decline.
Concurrently, nearly 50 percent of all respondents reported slightly higher profits in 2017 compared to 2016, following a trend of increased profitability. In 2016, 40 percent of respondents reported increased profits.
The report also highlights growth in different sectors of the industry, including purchasing and types of properties BSCs are servicing. Unsurprisingly, commercial buildings dominate the industry. In 2018, nearly 75 percent of all respondents said they focused primarily on office buildings and for property management firms.
Interestingly, between 2016 and 2018 there was a decrease in respondents who focused on transportation services, such as airlines, public transit stations and rail services. Only 5 percent of respondents said they had strong presence in those market segments, compared to the 8 percent of respondents in 2017 and 2016. This is not necessarily indicative of a loss of business for those types of clients: Respondents in all three years said they expected just over 30 percent in room for growth for those industry segments, consistent with other markets.
Lastly, it appears cost has become an increasing factor for customers. In 2016, only 1 percent of BSCs surveyed said they believed a low price was important to their customers. In 2017 that increased to 20 percent, and in 2018 it went up to 22 percent. At the top of the list for all three years, however, was a clean appearance.
To explore even more numbers, check out our infographic.