Restoration industry spotlighted by CNBC
Investors are taking interest in the restoration industry, which is considered a major growth industry, according to a restoration industry report by CNBC.
The restoration industry report, which uses Cleanfax survey data as part of its research, comes in the wake of recent natural disasters including three major hurricanes, which caused widespread wind and flooding damage, that caused disaster restoration professionals to pour into affected areas, even as those areas are still desperate for more assistance.
Joseph Roseman of financial advisory firm O’Dell, Winkfield, Roseman and Shipp, said in the report, “If you have the proper expertise and work ethic, this could be an opportunity to change your career trajectory in areas that are going to need help for many years to come.”
IICRC Vice Chair Craig Kersemeier said in the report that gross profit margins in the industry are upwards of 70 percent, and he pointed to the usually higher profit margin on commercial jobs due to faster insurance handling. The restoration industry report also looked at the TPA preference to work with preferred vendors, causing a growing trend towards franchising within the restoration sector — specifically citing the exponential growth of ServiceMaster over the last three years (its shares have almost doubled).
Especially interesting within the report, it recommends making investments in supporting industries like “transportation companies, such as Swift Transportation, a trucking company that could be benefiting from the flow of goods to disaster areas.”
The full article is available at www.cnbc.com/2017/09/26/investors-start-cleaning-up-with-disaster-recovery-boom.html