Water Restoration Benchmarks: How Does Your Business Compare?

May 11

In the fast-moving world of water restoration, it’s easy to focus on the next job and lose track of the bigger picture. But if you want to grow profitably and avoid cash flow surprises, you need to know how your numbers stack up—not just against last year, but against the industry as a whole.

That’s where water restoration benchmarks come in.

Why Benchmarks Matter

Most contractors look at their profit and loss statements and ask, “Is this good?” But without a point of comparison, you’re just guessing.

Benchmarks give you context. They show how your performance compares to similar companies—so you can spot weak spots, highlight strengths, and make data-backed decisions.

Core Benchmarks for Water Restoration Businesses

At Kiwi Cash Flow, we compile anonymized KPI reports each month from restoration contractors across the country. Here are some of the key numbers we track—and why they matter:

🔹 Labor as a % of Revenue

Target: 20–30%
Why it matters: Too high and your margins are squeezed. Too low, and you may be understaffed or overworking your team.

🔹 COGS (Subs + Materials)

Target: 30–40% of revenue
Why it matters: High COGS could mean poor estimating or scope creep. Low COGS might mean you're missing expenses or underinvesting in quality.

🔹 Overhead %

Target: Under 40%
Why it matters: This reflects your fixed costs—admin staff, rent, insurance, vehicles, etc. Keeping it lean is key to profitability.

🔹 Net Profit Margin

Target: 15–20%+
Why it matters: This is what you keep after all expenses. It’s your bottom line—and the real measure of a healthy business.

🔹 Average Job Size

Why it matters: Larger average jobs usually mean higher efficiency. Tracking this over time helps identify growth or pricing issues.

How Does Your Restoration Business Compare?

If you're not tracking these KPIs—or if you're not sure what’s “normal”—you’re operating in the dark.

By comparing your numbers to industry benchmarks, you can:

Identify which areas need attention (labor, overhead, margins, etc.)
Track progress over time as you improve operations
Make confident hiring and pricing decisions backed by real data
Avoid surprises that come from hidden financial trends

Get Your Own Benchmark Report

We offer a free monthly benchmark project for restoration contractors. You send us a few basic numbers—we compile the KPIs and send you back a clean report showing how your business stacks up.

Participation is totally anonymous, takes just a few minutes, and gives you insights you can act on.

🔗 Learn more and sign up here: https://www.kiwicashflow.com/benchmarking-project

Stop guessing. Start comparing.
Your numbers mean more when you can see the full picture.

Michele Gray