Anticipating and watching for the future trends to develop in the restoration industry could prove to be a very lucrative endeavor. A new generation of millennial workers and innovative apps are helping improve mobility and efficiency for restoration and remediation companies right now. Some of the leading factors shaping the restoration industry in 2018 include TPA, insurance, mold, competition, adjusters and employees. There’s also a great deal of organization restructuring and new tech innovations being introduced into the industry.
The Restoration Industry Right Now
Close to 50 percent of the restorers consider water mitigation to be their core business function. Around 10 percent focus on fire and approximately 6 percent specialize in mold remediation. Over 65 percent of the work done by restoration companies is residential and 25 percent is commercial. Close to 65 percent of the restoration professionals work as independent contractors, 29 percent operate as franchises and the remaining 7 percent are associated with industrial properties.
Restoration Businesses in the U.S.
Restoration professionals typically complete private jobs as twice as often as they do TPA work. Independent contractors complete close to 20 percent more private jobs than the franchises. Over 75 percent of the 10,000 restoration professionals surveyed by BNP’s Market Research Group during the spring of 2017 expected their revenues to increase in the following year. More restoration franchises expected declining revenues than the independent contractors who were surveyed.
Chemicals and Equipment Used
The chemicals currently used most often by restoration professionals includes antimicrobials, disinfectants, deodorizers and mold stain removers. Other popular products used by restorers include smoke removers, preventative coatings and sealers, fungicides and blast media. Approximately a third of the average restoration company’s budget each year is used on equipment. The most commonly used equipment includes PPE, moisture meters and air movers.
Managing in the Restoration Industry
Price, customer service and product quality are the leading determining factors for restoration companies making purchasing decisions. On an annual basis, finding skilled workers is the preeminent challenge for most organizations in the restoration industry. Actually retaining the skilled labor is another significant obstacle challenging close to half of the industry. Other near-term challenges for restorers also include competition from nationwide franchises and increasing wages for certified employees.
National Credentials for Disaster-Zone Restorations
There have been discussions about providing special credentials for anyone restoring disaster zones following major natural disaster. The conversation gained traction after Hurricane Katrina and resurfaces whenever a major disaster occurs. Emergency managers understand how imperative is it to have an organization or workforce of reliable occurs on-call at a moment’s notice. However, some say these credentials could bog down the restoration process and make fast-acting responders potential violators. After a record-setting 2017 hurricane season, this conversation may gain headway again in the near future.
Restoration companies today also have to account for the public’s increasing awareness and sensitivity to any materials that are hazardous to the body or environment. The number of legislative challenges and lucrative opportunities is reaching an all-time high for those working in the restoration industry.