Plumbing, Heating, and Air-Conditioning Contractors Revenue Benchmarks
The average plumbing, heating, and air-conditioning contractors business in the United States generates $2.4M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 104,776 plumbing, heating, and air-conditioning contractors businesses in the U.S., employing 1,124,239 workers with an average profit margin of 7.0%.
What Does a Plumbing, Heating, and Air-Conditioning Business Actually Do?
Businesses that install, service, and repair plumbing systems (water, drain, gas) and HVAC systems (heating, ventilation, air conditioning). Work includes new construction rough-in, replacement of aging systems, emergency repairs, and preventive maintenance contracts.
Who buys: Homeowners for repairs and replacements, general contractors on new construction and remodels, commercial building owners for maintenance.
How this is different: Also called 'PHC' or 'MEP' contractors. Different from HVAC-only or plumbing-only shops in most states.
Average Revenue
$2.4M
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$223K
per year
Total Businesses
104,776
in the US
Est. Owner Income
$168K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
31.6
firms per 100K people
How Much Do Plumbing, Heating, and Air-Conditioning Contractors Charge?
Plumbers and HVAC contractors charge by the hour, a flat service call fee, or by job.
| Service | Typical range |
|---|---|
Service call / diagnostic fee | $75–150 flat |
Hourly labor | $75–200/hour |
Emergency / after-hours | $150–400/hour |
Water heater install | $1,000–3,500 |
HVAC replacement (central) | $4,500–12,000 |
Toilet replacement | $250–600 |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete plumbing, heating, and air-conditioning business plan
A 12-section data-backed business plan for a plumbing, heating, and air-conditioning contractors business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the plumbing, heating, and air-conditioning contractors industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Materials & subcontractors | $38 | $905K | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $719K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $121K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $75K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $407K | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $168K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.5%
openings/year
Closure Rate
8.39%
closings/year
Net Job Growth
+4.08%
annual
Businesses Closed
12,921
in 2023
Firm Count Trend
Should You Start a Plumbing, Heating, and Air-Conditioning Business?
Startup Cost
$10K – $50K
Break-Even
2 months
5-Year Survival Rate
55.0%
Related Industries
Frequently Asked Questions
- What does a plumbing, heating, and air-conditioning contractors business do?
- Businesses that install, service, and repair plumbing systems (water, drain, gas) and HVAC systems (heating, ventilation, air conditioning). Work includes new construction rough-in, replacement of aging systems, emergency repairs, and preventive maintenance contracts. Homeowners for repairs and replacements, general contractors on new construction and remodels, commercial building owners for maintenance.
- How much do plumbing, heating, and air-conditioning contractors charge?
- Plumbers and HVAC contractors charge by the hour, a flat service call fee, or by job. See the pricing table above for typical rates by service type.
- How much does the average plumbing, heating, and air-conditioning contractors make per year?
- The average plumbing, heating, and air-conditioning contractors business generates $2.4M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $168K per year at a 7.0% profit margin.
- How many plumbing, heating, and air-conditioning contractors businesses are there in the US?
- There are 104,776 plumbing, heating, and air-conditioning contractors businesses operating in the United States, employing a total of 1,124,239 workers.
- How much does it cost to start a plumbing, heating, and air-conditioning contractors business?
- Startup costs for a plumbing, heating, and air-conditioning contractors business typically range from $10K to $50K, with a 5-year survival rate of 55.0%.
Industry Growth & Survival
The plumbing, heating, and air-conditioning contractors industry is actively growing — adding jobs at a net rate of 4.1% per year. New establishments are opening faster than existing ones close (10.5% entry vs 8.4% exit), indicating healthy demand.
Approximately 65% of plumbing, heating, and air-conditioning contractors businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 12,921 firms in this industry closed permanently.
Industry Trend (2000–2023)
The plumbing, heating, and air-conditioning contractors industry has grown 24% since 2000 (from 143,261 to 177,201 firms).
See full historical statistics →Compare Plumbing, Heating, and Air-Conditioning Contractors revenue with other industries: