A Wireless Estimator survey recently completed by 262 wireless infrastructure contractors has provided a wealth of information regarding carrier payment terms and other industry concerns that will be detailed in additional reports next month.
However, the first evident troubling or possibly beneficial data unveiled is that new contractors are not entering the business as they did four years ago when Wireless Estimator also obtained through a vetted contractor survey the average number of years that 278 companies had been in business.
As detailed in the chart above, 25% of all contractors in 2014 had been in business from 1 to 3 years, but today that number has significantly declined to just 6%.
According to company owners and carriers, the primary reason for the decline is generally more stringent entry-level requirements and a maturing industry.
One mid-sized contractor who has been in business for 25-plus years said that it has become “harder and harder to enter the industry since profit margins aren’t there to support growth.”