Snow Removal Business Overview

Snow removal businesses clear snow and ice from roads, parking lots, driveways, and walkways during winter weather. A business may specialize in residential clients and business accounts to clear driveways, sidewalks, walkways, streets, and parking lots.

Large-scale regional businesses usually accommodate industrial plowing needs, but there’s also plenty of demand for smaller, independently owned snow removal businesses hired by homeowners, retail businesses, commercial offices and facilities, and more.

Related: Checklist To Start A Business

How Do Snow Removal Businesses Make Money?

Snow removal businesses make money by providing services that clear snow and ice from residential, commercial, and public properties. These businesses cater to areas that experience significant snowfall, offering reliable services to maintain safety and accessibility. Revenue comes primarily from contracts and on-demand services, with additional income from specialized equipment and related services.

Industry Statistics

Snow removal operates under NAICS code 561730 – Landscaping Services. Here are some statistics about the industry:

Snow Removal Industry Size & Growth: The snow removal industry generated $27.9 billion in revenue last year. Over the past five years, the industry has grown by 3.1% annually. Growth projections remain positive due to increasing demand from commercial properties and new business construction, which expands the potential customer base for snow removal services. (IBISWorld)

Number of Snow Removal Businesses: There are approximately 108,000 snow removal businesses operating across various regions. The industry has a low concentration level, with most companies serving local markets. Brightview Holdings stands as the largest company in the industry but maintains a relatively small market share percentage, highlighting the fragmented nature of the market. (IBISWorld)

Snow Removal Profit Margin: Snow removal companies maintain strong profit margins of 25% – 35%. Businesses can charge premium prices for their services, particularly during severe weather events, which helps boost profitability. (IBISWorld)

States with Most Snow Removal Businesses: The Mid-Atlantic region contains the highest concentration of snow removal businesses, with New York and Pennsylvania leading in demand. These states experience frequent snowstorms, creating a consistent need for snow removal services. (Bureau of Labor Statistics)

Also See: Ideas for Naming a Snow Removal Business

Costs To Start a Snow Removal Business

Starting a snow removal business could range from $8,000 to $150,000. The lower end represents starting with a pickup truck and basic equipment, while the higher end includes multiple commercial plows and specialized equipment.

Here are the main costs to consider when starting a snow removal business:

Snow Equipment ($5,000 – $75,000): Snow plows, salt spreaders, and snow blowers form your core equipment. Used plows start around $3,000, while new commercial plows can reach $8,000. Additional equipment like snow pushers and salt spreaders expand service capabilities. Many start with a basic plow setup and add equipment as they grow.

Transportation ($2,000 – $60,000): While many start with their existing truck and a plow attachment, dedicated work trucks provide better reliability. Used trucks suitable for plowing start at around $10,000, while new trucks equipped for snow removal can cost more than $45,000.

Materials and Supplies ($500 – $10,000): Initial stock of salt, sand, and ice melt products prepare you for storm events. Storage solutions for materials and basic maintenance tools support operations. Proper storage bins or containers protect materials from the weather.

Business Insurance ($500 – $5,000): Snow removal requires specific insurance coverage for winter operations. Coverage protects against property damage and slip-and-fall incidents. Commercial auto insurance covers vehicles used for plowing.

These cost estimates are approximate, and actual expenses will vary based on your business model and scale of operations.

Additional Resources
Snow Magazine
Snow & Ice Management Association
Turf Magazine