Contractor Statistics (2026): Industry Size, Licensing & Hiring Data

Industry size and survival

• There are more than 900,000 construction establishments in the United States. — Source: Associated General Contractors of America (AGC) (2024)
• The construction industry employs roughly 8 million people. — Source: U.S. Bureau of Labor Statistics (2024)
• Only about 35% of construction businesses survive their first five years — one of the highest failure rates of any industry. — Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics (2023)
• The construction industry needs several hundred thousand additional workers beyond its normal hiring pace to meet demand. — Source: Associated Builders and Contractors (ABC) (2024)
• The median age of a construction worker is about 42, and the pipeline of younger workers entering the trades has lagged retirements for a decade. — Source: U.S. Bureau of Labor Statistics (2023)

Pricing, markups, and deposits

• General contractors typically charge 10% to 20% of project cost as overhead and profit on top of subcontractor and material costs. — Source: National Association of Home Builders (NAHB) cost-of-doing-business studies (2023)
• Maryland law caps deposits on home-improvement contracts at one-third of the total contract price. — Source: Maryland Home Improvement Commission (MHIC) (2026)
• Experts and consumer agencies consistently recommend getting at least three written estimates before hiring — yet many homeowners hire from a single bid. — Source: Federal Trade Commission consumer guidance (2025)
• In Make It Livable quote reviews, the same DMV project scope routinely comes back with bids that differ by 40% or more between contractors. — Source: Make It Livable Second Look data (DMV) (2026)

Licensing in DC, Maryland & Virginia

• Virginia licenses contractors in three classes by project size: Class C (small jobs over $1,000), Class B (mid-size), and Class A (unlimited). — Source: Virginia Department of Professional and Occupational Regulation (DPOR) (2026)
• Maryland requires an MHIC license for home-improvement work, and the state maintains a Guaranty Fund that can compensate homeowners harmed by licensed contractors. — Source: Maryland Home Improvement Commission (MHIC) (2026)
• Washington DC requires a Home Improvement Contractor license (plus a surety bond) for residential improvement work. — Source: DC Department of Licensing and Consumer Protection (2026)

Common questions

What percentage of contractors go out of business?

Roughly two-thirds of construction businesses close within five years, per BLS business dynamics data. That's why warranty promises are only as good as the company behind them — check how long a contractor has operated under the same name and license.

How much deposit should a contractor ask for?

Maryland legally caps deposits at one-third of the contract price, and that's a sound rule of thumb everywhere in the DMV. Be cautious of any contractor asking for half or more up front, and never pay the full price before work begins.

How many estimates should I get before hiring?

At least three written estimates for any significant project. In our DMV quote reviews, bids for identical scopes routinely differ by 40% or more — a single bid gives you no way to know which end of that range you're on.