Site Preparation Contractors Revenue Benchmarks
The average site preparation contractors business in the United States generates $2.5M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 38,433 site preparation contractors businesses in the U.S., employing 413,063 workers with an average profit margin of 7.0%.
What Does a Site Preparation Business Actually Do?
Site prep contractors get land ready for construction. Work includes excavation, grading, land clearing, tree and stump removal, erosion control, demolition of existing structures, and initial trenching for utilities. They own or lease heavy equipment like excavators, bulldozers, and skid-steers.
Who buys: General contractors, real estate developers, homeowners building new construction, and utility companies.
How this is different: Site prep is the phase between raw land and foundation work — separate from excavation-only, landscaping, or foundation contractors.
Average Revenue
$2.5M
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$230K
per year
Total Businesses
38,433
in the US
Est. Owner Income
$173K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
11.6
firms per 100K people
How Much Do Site Preparation Contractors Charge?
Site prep contractors quote by the hour, per acre, or per project depending on scope.
| Service | Typical range |
|---|---|
Hourly rate (skilled operator) | $50–150/hour |
Excavator with operator | $150–300/hour |
Bulldozer with operator | $150–350/hour |
Land clearing (per acre) | $1,500–5,000/acre |
Grading (per sqft) | $0.75–3.00/sqft |
Small residential lot prep | $3,000–15,000 typical |
Commercial pad prep | $20,000–150,000+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete site preparation business plan
A 12-section data-backed business plan for a site preparation 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 site preparation 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 | $935K | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $742K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $125K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $78K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $421K | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $173K | 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
14.17%
openings/year
Closure Rate
10.43%
closings/year
Net Job Growth
+3.06%
annual
Businesses Closed
5,825
in 2023
Firm Count Trend
Should You Start a Site Preparation Business?
Startup Cost
$25K – $150K
Break-Even
6 months
5-Year Survival Rate
52.0%
Related Industries
Frequently Asked Questions
- What does a site preparation contractors business do?
- Site prep contractors get land ready for construction. Work includes excavation, grading, land clearing, tree and stump removal, erosion control, demolition of existing structures, and initial trenching for utilities. They own or lease heavy equipment like excavators, bulldozers, and skid-steers. General contractors, real estate developers, homeowners building new construction, and utility companies.
- How much do site preparation contractors charge?
- Site prep contractors quote by the hour, per acre, or per project depending on scope. See the pricing table above for typical rates by service type.
- How much does the average site preparation contractors make per year?
- The average site preparation contractors business generates $2.5M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $173K per year at a 7.0% profit margin.
- How many site preparation contractors businesses are there in the US?
- There are 38,433 site preparation contractors businesses operating in the United States, employing a total of 413,063 workers.
- How much does it cost to start a site preparation contractors business?
- Startup costs for a site preparation contractors business typically range from $25K to $150K, with a 5-year survival rate of 52.0%.
Industry Growth & Survival
The site preparation contractors industry is actively growing — adding jobs at a net rate of 3.1% per year. New establishments are opening faster than existing ones close (14.2% entry vs 10.4% exit), indicating healthy demand.
Approximately 58% of site preparation contractors businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 5,825 firms in this industry closed permanently.
Industry Trend (2000–2023)
The site preparation contractors industry has grown 34% since 2000 (from 51,240 to 68,453 firms).
See full historical statistics →Compare Site Preparation Contractors revenue with other industries: