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Contractors surveyed projected they would grow their revenue nearly 13 percent in the next three years, citing several initiatives they felt were most critical to the growth of their firms. Adding more jobs topped the list (71 percent), followed closely by increased networking and word of mouth (63 percent) and hiring additional qualified field employees (54 percent). Yet despite this awareness, contractors did not overwhelmingly indicate they would act upon those growth tactics. For example, only 16 percent of respondents reported adding more jobs as most important for growth said they would actually do so in the upcoming year.

Conducted for Intuit (Nasdaq: INTU) by independent research firm Decipher, the study surveyed more than 500 contractors ranging in size from companies just starting out to century-old industry bellwethers in the United States. The results were announced today at the International Builders' Show, where more than 100,000 building professionals are attending the world's largest annual trade event for the construction industry.

Contractors are also struggling in the back office. Twenty-nine percent of respondents recognized they needed help managing multiple jobs better - tracking change orders and schedules - while 26 percent identified the lack of integration between their software systems as their greatest business management challenge. However, 38 percent of small companies - those with less than $3 million in revenue - reported their difficulties in making sure bills were paid and customers were submitting payments.

Contractors maintained steady industry growth projections year-over-year at 11 percent, just one point down from last year and estimate their gross profitability per job at 16.5 percent, one point up year-over-year.

"This is an aggressive and competitive industry, but one that has weathered almost every storm," said Andrew Morbitzer, marketing director for Intuit Construction Business Solutions. Last year, we found contractors' job profitability at risk, despite hopeful growth projections. While contractors this year reported consistent double-digit industry growth expectations and an urge to grow their own firms, the fact that only a small percentage actually plan to act on their goals exposes the industry's need for education on the topic of growth.

"Successful growth depends not on one thing alone, like adding more jobs, but the right combination of several elements, including management and financial acumen, integrated technology and working with the right partners," Morbitzer added.

The Intuit study also revealed several notable findings:

• Specialization: One in three contractor firms are considering or already specializing in niche trades, such as green building (36 percent), replacement (34 percent), disaster restoration (32 percent) or assisted living facilities (32 percent).



• Technology adoption: When purchasing technology, more than half of contractors (52 percent) described their companies as the Early Majority, carefully evaluating new products and implementing it only if it proves a benefit.



• Franchising: Ninety-two percent of contractors reported no plans to buy into a franchise in the next three to five years.