Testing Laboratories Revenue Benchmarks
The average testing laboratories business in the United States generates $4.0M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 5,240 testing laboratories businesses in the U.S., employing 146,426 workers with an average profit margin of 22.0%. The average employee in this industry earns $93K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Testing Laboratories Business Actually Do?
Independent labs testing materials, products, water quality, environmental samples for compliance and R&D.
Who buys: Manufacturers, environmental firms, government agencies, product-safety-focused companies.
Average Revenue
$4.0M
per year
Profit Margin
22.0%
industry average
Revenue / Employee
$144K
per year
Total Businesses
5,240
in the US
Est. Owner Income
$883K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$93K
per year (BLS)
Market Saturation
1.6
firms per 100K people
How Much Do Testing Laboratories Charge?
Independent labs test materials, products, and environmental samples for compliance.
| Service | Typical range |
|---|---|
Water quality test | $50–300 |
Materials testing (concrete/soil) | $100–500 per sample |
Product safety compliance (per SKU) | $500–15,000 |
Full ISO 17025 accredited testing project | $5,000–100,000+ |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete testing laboratories business plan
A 12-section data-backed business plan for a testing laboratories 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 testing laboratories 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 |
|---|---|---|---|
Client-related expenses | $4 | $169K | Software licenses, subscriptions, printing, filing fees, travel billed to clients. |
Wages & benefits | $50 | $2.0M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $225K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $169K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $14 | $562K | Professional liability insurance, continuing education, tech, admin support. |
Net profit | $22 | $883K | 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
9.05%
openings/year
Closure Rate
8.48%
closings/year
Net Job Growth
+4.14%
annual
Businesses Closed
6,584
in 2023
Firm Count Trend
Should You Start a Testing Laboratories Business?
Startup Cost
$10K – $75K
Break-Even
1 months
5-Year Survival Rate
60.0%
Related Industries
Frequently Asked Questions
- What does a testing laboratories business do?
- Independent labs testing materials, products, water quality, environmental samples for compliance and R&D. Manufacturers, environmental firms, government agencies, product-safety-focused companies.
- How much do testing laboratories charge?
- Independent labs test materials, products, and environmental samples for compliance. See the pricing table above for typical rates by service type.
- How much does the average testing laboratories make per year?
- The average testing laboratories business generates $4.0M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $883K per year at a 22.0% profit margin.
- How many testing laboratories businesses are there in the US?
- There are 5,240 testing laboratories businesses operating in the United States, employing a total of 146,426 workers.
- How much does it cost to start a testing laboratories business?
- Startup costs for a testing laboratories business typically range from $10K to $75K, with a 5-year survival rate of 60.0%.
- What is the average salary in the testing laboratories industry?
- The average employee in the testing laboratories industry earns $93K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The testing laboratories industry is actively growing — adding jobs at a net rate of 4.1% per year. New establishments are opening faster than existing ones close (9.1% entry vs 8.5% exit), indicating healthy demand.
Approximately 64% of testing laboratories businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 6,584 firms in this industry closed permanently.
Employment & Wages
The average employee in the testing laboratories industry earns $92,860/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 11,471 establishments employing 174,645 people, the typical business has about 15 employees.
Industry Trend (2000–2023)
The testing laboratories industry has grown 0% since 2000 (from 82,400 to 82,804 firms).
See full historical statistics →Compare Testing Laboratories revenue with other industries: