If you’re considering investing in a franchise, you want to ensure there’s enough work to go around. The restoration industry focuses on services such as water removal, biohazard cleanup and reconstruction, and it has remained a reliable industry despite the past couple of decades. But how big is the damage restoration industry? The sector is worth about $7.1 billion, a number that’s projected to rise because of the intensity and frequency of natural disasters.
The restoration industry is not only large but also recession resistant. The economic climate doesn’t affect this type of enterprise—PuroClean services are always in demand. Plus, as a property restoration Franchise Owner, you get to follow a model that has demonstrated profitability as a valuable investment for business professionals and entrepreneurs.
Water Damage Restoration Industry Statistics
Current restoration industry statistics highlight the widespread occurrence of water damage and affirm the consistent need for professionals like “The Paramedics of Property Damage®” to rectify these situations. For example, around 23.7 million properties in the United States face the threat of flooding. Over the course of a 30-year mortgage, homeowners in the 100-year floodplain have more than a 1 in 4 chance of having their house flood.
Expenses related to water damage claims have also experienced significant growth. According to the Insurance Information Institute (III), 40.7% of property damage occurring in 2022 came from wind and hail and 27.6% came from water damage and freezing. Damages caused by flood losses have risen from an average of $6 billion to $10 billion per year.
While not all water damage is severe, even a minor leak can lead to substantial waste and costly repairs. Around 10% of homes with leaks lose 90 gallons of water daily. A leaky faucet alone can shed 3,000 gallons of water annually. Yearly water loss from a typical household leak equates to 600 showers or 270 laundry loads.
Of course, all that water must go somewhere. Just one inch of water on the floor of a small home can add up to $25,000 in expenses. In their lifetime, a homeowner is highly likely to seek out remediation services due to water and flood damage.
Fire Damage on the Rise
The restoration industry covers far more than just water damage. According to the III, the average claim for property damage was $15,570 but going as high as $83,991 for damage caused by fire and lightning. The US Fire Administration reports that the average annual property loss from 2018 to 2020 due to residential fires was $230 million.
With changing weather, wildfires also continue to be a threat. In 2023, wildfires consumed 2,693,910 acres nationally, and 90% of wildfires in the US were caused by humans. Most of the homes that burn down due to wildfires are caused by embers blown by the wind, and homes that are closer than 15 ft. apart are more likely to burn in clusters. With many more people living in tight urban areas, one wildfire can quickly create a devastating impact.
Remediation covers a variety of natural and human-made disasters and assists both residential and commercial customers. The industry is large and helps many people in what can be an extremely stressful situation.
Recession Resistant Franchises in the Restoration Industry
With the frequency of property damage incidents, PuroClean’s recession-resistant franchise emerges as an exceptionally secure investment prospect. Recent research from III indicates about 522,500 structures reported a fire in 2022, with about 73% affecting residential properties. Moreover, nearly 32 million homes—valued at $8.5 trillion—face potential damage from hurricanes and wind.
Also, with a growing number of aging homes nationwide, vulnerability to malfunctions and deterioration is rising. The median age for a house is 40 years, but it varies significantly across the 50 states. For instance, New York has the oldest median age of 62 years. The second leading trigger of homeowner insurance claims is non-weather-related water damage. Primary culprits include water pipes, plumbing drains, toilets, water heaters and washing machines, all of which become more unstable as they age.
The demand for swift, well-informed and comprehensive property damage repair and restoration remains steadfast. This unwavering demand solidifies our franchise as recession-resistant and an increasingly attractive choice for savvy investors who want to offer recession resistant jobs.
How Profitable is Owning a Franchise in the Restoration Industry?
The profitability of a PuroClean franchise stems from the ability of our Franchise Owners to harness diverse revenue streams through the range of services they provide, which include the following:
- Fire and smoke damage restoration
- Reconstruction services
- Air duct and vent cleaning
- Tile and grout cleaning
- Water damage restoration
- Mold removal
- Biohazard cleanup services
- Commercial services
Acquiring a PuroClean franchise is akin to obtaining a pre-built business equipped with a recognized brand name and proven business procedures. Some advantages of our franchise business model include immediate brand recognition, continuous training and assistance, entry to an existing customer base and support for marketing and advertising efforts.
So, how big is the restoration industry? It’s an industry that continues to grow despite the world’s challenges, all while helping the local community. The versatility in both services and clientele allow Franchise Owners to diversify their revenue and continue to succeed. Contact us today to discuss the potential of working in this field and exploring a PuroClean property restoration franchise opportunity in your community. You can also download a free franchise information kit to learn more.