Specialty contractors represent nearly $20 billion in premium

Framing contractors, followed by siding contractors, are predicted to have the strongest growth

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The specialty contractors market represents more than $19.5 billion in premium with small and middle market accounts making up the bulk of the business, according to data compiled by MarketStance, Middletown, Connecticut, making this an ideal niche for independent agents.

There are some 1.7 million non-employer enterprises in this market, providing more than $1.3 billion in premium; the 460,000 small commercial specialty contractors account for $11.2 billion; and the nearly 12,500 middle market businesses provide $6.6 billion. The 118 national accounts represent $376 million in premium, or only 1.9% of the total premiums written in this niche area.

There are seven subgroups in the specialty contractor niche that provide more than $1 billion in premium, led by plumbing, heating and air-conditioning contractors with $3.2 billion, followed by poured concrete foundation and structure contractors ($2.4 billion); electrical contractors ($2.0 billion); site preparation contractors ($1.8 billion); drywall and insulation contractors ($1.7 billion); roofing contractors ($1.5 billion); and masonry contractors ($1.1 billion).

Framing contractors represents the fastest growing subgroup with predicted annual employment growth of 3.7% through 2009. It is followed by siding contractors (3.0%); tile and terrazzo contractors (2.8%); poured concrete foundation and structure contractors (2.1%); and masonry contractors and site preparation contractors (both at 2.0%).

For additional information about this or other niche markets, contact MarketStance at (888) 777-2587 or e-mail at info@marketstance.com.