Site Preparation Contractors — Business Survival Rate
An estimated 58% of site preparation contractors businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.4%.
Is Site Preparation a Good Business to Start?
With a 58% five-year survival rate, site preparation contractors is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.
The annual exit rate of 10.4% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+3.7 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 752,955 workers across 68,453 firms.
Want to know how much site preparation contractors businesses actually make?
See full revenue benchmarks for Site Preparation Contractors →Frequently Asked Questions
- What percentage of site preparation contractors businesses fail?
- Approximately 42% of site preparation contractors businesses fail within their first 5 years. The annual closure rate is 10.4%, with 5,825 firms closing permanently in 2023.
- Is the site preparation contractors industry growing or shrinking?
- The site preparation contractors industry is currently growing with a net job creation rate of +3.1% per year. New businesses are entering at 14.2% while 10.4% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.