NAICS 238910 Quarterly Industry Report
Site Preparation Contractors
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 238910Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for Site Preparation Contractors (NAICS 238910) draws on data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], OSHA[8], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, earthwork construction analysts, and specialty trade investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the site preparation contractors industry.
Industry Definition & Overview
Site Preparation Contractors (NAICS 238910) encompasses establishments primarily engaged in site preparation activities such as excavating and grading, demolition of buildings and other structures, and septic system installation per the U.S. Census Bureau[4]. Earthmoving and land clearing for all types of sites (building, nonbuilding, mining) are included. Establishments primarily engaged in construction equipment rental with operator (except cranes) are also classified here. Work performed includes clearing, grubbing, rough grading, fine grading, excavation, backfilling, and compaction for building foundations, roads, utilities, and other construction projects.
Roughly 38,433 firms employ 395,285 workers generating $101 billion in revenue per Census Bureau[5] economic survey data, making this one of the largest specialty trade classifications by both firm count and revenue. Average hourly wages reach $37.04 per Bureau of Labor Statistics[6] data. Contractors range from small excavation firms with a single backhoe serving residential foundation and septic system markets to large earthmoving companies deploying fleets of bulldozers, scrapers, and excavators on highway, dam, and commercial development projects. National Utility Contractors Association (NUCA) represents excavation and utility contractors.
Per the SBA Table of Size Standards[7], the size standard is $19 million in average annual receipts. OSHA[8] excavation safety standards under 29 CFR 1926 Subpart P govern trench and excavation protection systems, with cave-in fatalities representing one of the most preventable construction hazards. EPA[9] stormwater regulations under the NPDES program require erosion and sediment control plans for sites disturbing one or more acres. State and local demolition permits govern building teardown activities including asbestos abatement requirements. Underground utility locate services (811 call-before-you-dig) and state excavation damage prevention laws protect existing buried infrastructure during excavation work.
What's Included in This Industry
- Land clearing, grubbing, and tree removal
- Rough and fine grading for building sites
- Excavation for foundations, basements, and utilities
- Building and structure demolition
- Septic system installation and repair
- Erosion control and stormwater management
- Backfilling, compaction, and soil stabilization
- Rock excavation and blasting
- Construction equipment rental with operator
- Earthmoving for roads, dams, and ponds
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Specialty Trade Contractors | 238 |
| Industry Group | Other Specialty Trade Contractors | 2389 |
| NAICS Industry | Site Preparation Contractors | 23891 |
| National Industry | Site Preparation Contractors | 238910 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 238110 | Poured Concrete Foundation and Structure Contractors | Poured Concrete Foundation and Structure Contractors build the foundations that site preparation contractors excavate for, with basement excavation, footing trench digging, and subgrade compaction performed by site contractors before concrete crews install formwork and place foundation concrete |
| 237110 | Water and Sewer Line and Related Structures Construction | Water and Sewer Line Construction installs underground utilities in trenches that site preparation contractors excavate, with utility trench excavation, bedding, and backfill operations performed by earthwork contractors supporting water and sewer pipe installation crews |
| 237310 | Highway, Street, and Bridge Construction | Highway, Street, and Bridge Construction requires earthwork and grading that site preparation contractors perform, with cut-and-fill operations, embankment construction, and subgrade compaction creating the roadway foundation before aggregate base and pavement placement by highway contractors |
| 237210 | Land Subdivision | Land Subdivision requires mass grading and earthwork performed by site preparation contractors as the first physical construction activity on every subdivision project, with topsoil stripping, rough grading to design elevations, and erosion control installation preceding all other site development work |
| 236220 | Commercial and Institutional Building Construction | Commercial and Institutional Building Construction subcontracts site preparation work including clearing, grading, and foundation excavation to earthwork firms, with site preparation representing the first construction activity on every building project and directly affecting foundation construction scheduling |
| 238990 | All Other Specialty Trade Contractors | All Other Specialty Trade Contractors perform outdoor construction work including fence installation, paving, and swimming pool construction that follows site preparation grading, with finished grade elevations established by site preparation contractors providing the reference for all subsequent outdoor construction activities |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 6.7% | 2,794 |
| 2 | California | 6.5% | 2,711 |
| 3 | Florida | 4.9% | 2,051 |
| 4 | New York | 4.5% | 1,861 |
| 5 | Pennsylvania | 4.3% | 1,805 |
| 6 | Washington | 3.8% | 1,588 |
| 7 | North Carolina | 3.8% | 1,581 |
| 8 | Ohio | 3.5% | 1,449 |
| 9 | Massachusetts | 3.0% | 1,276 |
| 10 | Michigan | 2.9% | 1,220 |
% Of Establishments
0%
7%
Source: County Business Patterns, U.S. Census Bureau[2]
SBA Lending Summary
440
Total SBA Loans
$159.1M
Total Loan Volume
$362K
Average Loan Size
9 yrs
Average Loan Term
10.35%
Average Interest Rate
3,075
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: Per the SBA Table of Size Standards[7], Site Preparation Contractors (NAICS 238910) has a size standard of $19 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support heavy equipment acquisition, fleet expansion, and working capital for qualifying site preparation contracting firms. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 49 | $15.0M | $307K |
| 2 | Northeast Bank | 47 | $11.3M | $240K |
| 3 | T Bank, National Association | 5 | $9.6M | $1.9M |
| 4 | TD Bank, National Association | 29 | $7.0M | $242K |
| 5 | Newtek Bank, National Association | 11 | $5.8M | $526K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for excavation contractors?
NAICS 238910 covers site preparation contractors performing excavation, grading, demolition, land clearing, and septic system installation per the U.S. Census Bureau[4], including construction equipment rental with operator.
What is the SBA size standard for site prep contractors?
The SBA size standard[7] is $19 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the site preparation industry?
Roughly 38,433 firms employ 395,285 workers generating $101 billion in revenue per Census Bureau[5] economic survey data, making site preparation one of the largest specialty trade classifications in the U.S. construction industry.
What OSHA standards govern excavation work?
OSHA[8] excavation safety standards under 29 CFR 1926 Subpart P require protective systems including sloping, shoring, or trench boxes for excavations deeper than 5 feet, with cave-in prevention representing the primary safety focus for trenching and excavation operations.
What is the 811 call-before-you-dig system?
State excavation damage prevention laws require contractors to notify 811 before digging to locate existing underground utilities per state one-call system requirements, with utility companies marking buried lines within a specified timeframe to prevent excavation damage to gas, electric, water, sewer, and communication infrastructure.
What environmental permits apply to site preparation?
EPA[9] stormwater regulations under the NPDES program require erosion and sediment control plans for construction sites disturbing one or more acres, with silt fencing, inlet protection, and stabilized construction entrances required to prevent sediment discharge from active grading and excavation operations.
What demolition permits are required?
State and local demolition permits govern building teardown activities per local building department requirements, with asbestos survey and abatement required before demolition of structures built before 1980 per EPA[9] National Emission Standards for Hazardous Air Pollutants regulations.
What equipment do site preparation contractors use?
Bulldozers, excavators, scrapers, motor graders, loaders, backhoes, compactors, and dump trucks represent the primary equipment per industry practice, with equipment selection based on project size, material type, haul distance, and production rate requirements for earthmoving and grading operations.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Census Bureau, Economic Census census.gov
- [2]U.S. Census Bureau, County Business Patterns census.gov
- [3]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]Census Bureau data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]OSHA osha.gov
- [9]EPA epa.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
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