Do you want to know how much money you can make yearly operating skid steers? If YES, here are 3 factors that determine the profit margin for skid steer operators.
The Bureau of Labour Statistics, or BLS, classified Skid Steer operators as construction equipment operators, and also states that their income potential tends to vary a lot, depending on the number of clients they service and the geographical areas in which they work.
However, the annual wage for a skid steer operator ranges from $37,828 to $48,683. Self-employed skid steer operators are known to pay themselves salaries from the profits they earn.
Net earnings of self-employed skid operators depend on many factors such as the hours worked, the prevailing local market rate for their services, and how much they pay for skid steer rental or to maintain their equipment. The minimum educational requirement for this job is typically a high school diploma or GED.
Since skid steer operators run loaders, they may also require special operator licenses, according to reports. Meanwhile, a good number of these operators get training on construction jobs before starting their own skid steer businesses.
Other important qualifications for skid steer work are hand-eye coordination, physical strength and stamina, and mechanical and business skills.
Have it in mind that the average earnings for construction equipment operators such as skid steer operators vary by geographic location. Reports have it that incomes were highest in the state of New York where construction equipment operators earned $83,840per year, as of May 2019, according to the BLS.
The second highest paying state was Illinois where construction equipment operators earned $79,330 per year. While other states with attractive wages included Hawaii, New Jersey, and California with reported average incomes of $78,500, $78,120, and $75,440, respectively.
Note that salaries and incomes were lowest in the Southern states of Tennessee, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, and Alabama where construction equipment operators averaged somewhere between $22,980 and $43,480 per year. Kansas and Oklahoma also paid under $43,480, but cost-of-living should be taken into consideration.
Although construction equipment operators annually averaged $54,210, average yearly earnings for pile-driver operators were $70,230, as of May 2019, according to the BLS. These Pile-drivers tend to earn more since they operate bigger machines that drive steel, concrete, and wooden piles into the ground for walls, bridges, and piers. These jobs require commercial driver’s licenses.
Warehouses may also leverage modified versions of skid steer loaders. However, individuals who operate these loaders fall under the “material moving workers, all other” category,” according to the BLS. Reports have it that they earned average incomes of $36,770 in 2019, which were more in line with the earnings of self-employed skid steer operators.
Experts envisage a 4 percent increase in employment for all construction equipment operators, including skid steer operators, from 2019 to 2029, which tracks the 4 percent national rate for all occupations. Note that expected spending for building bridges and sewer systems may increase demand for all construction equipment operators.
Nonetheless, there are a few factors that will influence the amount any skid steer business can make in the United States.
Factors That Influence the Amount a Skid Steer Business Can Make
A skid steer business that has very little competition in its service location or in the overall services they provide, can get a generous markup. If they have so much competition, the business and service markup and profit margin are more likely to remain the same or depend more on the other factors mentioned below.
In this business, the more clients a skid steer business has, the more money it can make. Nonetheless, also have it in mind that a client who gives you a lot of business is expected to get a more favorable billing rate, which means the markup can also be lower.
- Local standards
Just like it was stated above, note that the service’s geographical location will also dictate what kind of markup the business can get. For instance, skid steer businesses in the Indianapolis area will charge less than the same business offering the same services in Chicago.
The income range of any service region will ultimately affect the exact fee a business will charge and that will affect the general income of the business.
The use of skid steers goes above and beyond your expectations, and when you depend on this equipment, you will enjoy a reliable, durable, fuel-efficient, and high-performing machine. Companies across the country, from construction to landscape, and HDD to tree care, have already discovered this winning machine.