Plumbing, Heating, and Air-Conditioning Contractors — Business Survival Rate

An estimated 65% of plumbing, heating, and air-conditioning contractors businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.4%.

65%
5-Year Survival Rate
+4.1%
Net Growth Rate
177,201
Total Firms
12,921
Annual Firm Deaths

Is Plumbing, Heating, and Air-Conditioning a Good Business to Start?

With a 65% five-year survival rate, plumbing, heating, and air-conditioning contractors has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 8.4% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)10.5%
Exit Rate (closures)8.4%

Net positive: more businesses opening than closing (+2.1 pp spread).

Job Creation & Destruction

15.7%
Job Creation Rate
11.6%
Job Destruction Rate
+4.1%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 2,369,218 workers across 177,201 firms.

Want to know how much plumbing, heating, and air-conditioning contractors businesses actually make?

See full revenue benchmarks for Plumbing, Heating, and Air-Conditioning Contractors →

Frequently Asked Questions

What percentage of plumbing, heating, and air-conditioning contractors businesses fail?
Approximately 35% of plumbing, heating, and air-conditioning contractors businesses fail within their first 5 years. The annual closure rate is 8.4%, with 12,921 firms closing permanently in 2023.
Is the plumbing, heating, and air-conditioning contractors industry growing or shrinking?
The plumbing, heating, and air-conditioning contractors industry is currently growing with a net job creation rate of +4.1% per year. New businesses are entering at 10.5% while 8.4% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.