The good news is that the Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) reports that man-hours were up slightly in 2005. In addition, many firms are experiencing improvements in profitability and balance sheet strength. Also, overhead expenses as a percent of revenue were lower and revenue per employee increased and reached a historical high.
Of course, how a contractor performed last year depended in large part on where in the United States he was located. Some contractors along the Gulf Coast had a tough time obtaining enough equipment in the wake of Hurricanes Katrina and Rita, while those in parts of the West were kept busy by record high temperatures throughout the summer.