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asked in Estimation by (1.2k points) | 121 views

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Scope clarification:

A house contractor is one who either builds a home entirely or is doing a decent size remodel.

It does not cover handy men, specialty contractors who can only do one thing (tile laying etc) = The scope is for General contractors.

Population of the USA = 300 Mn.

Avg members / house hold = assumption = 4

So number of house holds = 75 Mn.

To account for a lot of other variants  of house holds with < 4 members = adding another 20% = rounding to 90 Mn.

Assuming that these houses were built in the last 30 years, New houses built / year = 3 Mn.

I am making an assumption that for every home that is built in a year there are another 4 homes that are remodelled / some work is done requiring a contractor.

So total capacity of work done in a year  by General contractors is = 3 Mn new homes/ year + 12 Mn remodeling homes/year

A contractor can do 1 or 2 new homes in a year, plus 2 remodelling in a year.

For simplicity I will assume we will need 1.5 Mn contractors to do the 3 Mn new homes and 6 Mn rmodeling , and another 3 Mn contractors to do the rest of the 6 Mn remodeling.

In total we will need 1.5 Mn + 3 Mn = 4.5 Mn Contractors.
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