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Demolition Contractors Are Feasting Over High-profile Properties

Posted by Mike Jordan on May 3, 2019
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This is a great time for demolition contractors. In fact, in the past 2-3 years, there were some prominent properties in the Southeast Michigan that were torn down, in the process of being razed, or are facing the wrecking ball.

Just last week, the Detroit Pistons have confirmed the years of speculation that the team’s former home, which is at the Palace of Auburn Hills, will need to be demolished to make way for new buildings to rise in its place.

Did you know that there are more than 1,000 acres of land that house or housed name-brand developments in the said region were being cleared or are in line to be, making way for the new uses – this ranges from apartments, hotels, retails, office, R&D, and warehouse space?

Although, these areas were subject for demolition, some people will always associate their histories such as stadiums, auto plants, malls, steel mills, and etc.

To others though, their outcome is a result of certain factors such as:

  • Teams moving
  • Shopping trends have changed
  • Shift in the demographics
  • Industries dying and/or evolving
  • Urban planning priorities being reconfigured

Anyway, these changes and other factors proved to be very good for the demolition companies.

Some insight from the IBISWorld, a Santa Monica-based research company, made mention that the American demolition and wrecking industry has grown from $5.25 Billion in revenue from 2016 alone into an estimated $5.92 Billion just this year! There is a growth of 12.76%. However, this is only 7.14% lesser than the $6.37 Billion industry that was in 2009.

Brian McKinney, the founder and CEO of Detroit-based demolition contractor Gayanga Co., asked, “is there an uptick industry-wide?” McKinney said that his firm has grown from a revenue of $400,000 in 2017 just as a startup into $4 Million just last year! He has projected $10 Million this year as the company gets more and more contracts and gets diversified into things such as underground utility disconnections. There is more information about this article here at Crain Detroit.

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