## APPENDIX A. DETAILED DATA FOR EQUIPMENT PRICE MARKUPS

TABLE OF CONTENTS

**A.1 INTRODUCTION** 

**.......................................................................................................... A­1** 

**A.2 DETAILED**  **WHOLESALER COST**  **DATA**

**................................................................. A­1** 

**A.3 DETAILED MECHANICAL CONTRACTOR DATA................................................. A­2** 

**A.4 DETAILED**  **GENERAL CONTRACTOR**  **COST DATA..............................................**  **A­2**

**A.5 ESTIMATION**  **OF WHOLESALER**  **AND CONTRACTOR**  **MARK­UP STANDARD** 

**DEVIATIONS**

**................................................................................................................ A­3** 

LIST OF TABLES

**Table A.2.1**  **Disaggregated Costs**  **and Expenses**  **for Wholesalers.** 

**............................................ A­1** 

**Table A.3.1**  **Mechanical Contractor**  **Expenses and**  **Markups Used**  **To Scale**  **the**

**Incremental Markups** 

**....................................................................................... A­2** 

**Table A.4.1**  **General Contractor**  **Expenses and**  **Markups........................................................... A­3** 

**Table A.5.1**  **Wholesaler Incremental**  **Markup Standard**  **Deviation............................................ A­4** 

**Table A.5.2**  **Mechanical Contractor**  **Baseline Mark­ups**  **by State,**  **2002**

**................................... A­5** 

**Table A.5.3**  **General Contractor**  **Baseline Mark­ups**  **by State,**  **2002**

**......................................... A­6** 

**A­i**

## APPENDIX A. DETAILED DATA FOR EQUIPMENT PRICE MARKUPS

A.1 INTRODUCTION

**This appendix**  **provides further**  **details on**  **information presented**  **in Chapter**  **6,**

**markups for**  **equipment price**  **determination.**

A.2 DETAILED WHOLESALER COST DATA

**Based on**  **data provided**  **in the**  2007 Profit Report (2006 Data) **of the**  **Heating Air** 

**conditioning &**  **Refrigeration Distributors**  **International (HARDI),**  **Table 6.4.1**  **of**

**Chapter 6,**  **section 6.4,**  Estimation of Wholesale Mark­ups **shows wholesaler**  **revenues and** 

**costs in**  **aggregated form.**  **Table A.2.1**  **below provides**  **the complete**  **breakdown of**  **costs**

**and expenses**  **as provided**  **in the**  2007 Profit Report (2006 Data)

**. The**  **column labeled** 

**“Scaling” in**  **Table A.2.1**  **indicates which**  **expenses the**  **U.S. Department**  **of Energy**  **(DOE)**

**assumed to**  **scale with**  **only the**  **baseline markup**  **and which**  **it scaled**  **with both**  **the**

**baseline and**  **incremental markups.**  **As described**  **in Chapter**  **6, section**  **6.4, only**  **those**

**expenses that**  **scale with**  **baseline and**  **incremental costs**  **are marked­up**  **when there**  **is an** 

**incremental change**  **in equipment**  **costs.**

Table A.2.1 Disaggregated Costs and Expenses for Wholesalers.

Item Percent of Revenue Scaling

Cost of Goods Sold 73.1%

Gross Margin 26.9%

Payroll Expenses 14.9% **Baseline**

**Executive Salaries**  **& Bonuses**  **2.0%**

**Sales Executive**  **Salaries &**  **Commissions 1.1%** 

**Outside Sales**  **Salaries &**  **Commissions 2.2%** 

**Inside/Counter Sales/Wages**  **2.8%**

**Warehouse Salaries/Wages**  **1.7%**

**Delivery Salaries/Wages**  **0.7%**

**All Other**  **Salaries/Wages &**  **Bonuses 2.1%** 

**Payroll Taxes**  **1.0%**

**Group Insurance**  **1.0%**

**Benefit Plans**  **0.3%**

Occupancy Expenses 3.1% **Baseline**

**Utilities: Heat,**  **Light, Power,**  **Water 0.4%** 

**Telephone 0.3%** 

**Building Repairs**  **& Maintenance**  **0.2%**

**Rent or**  **Ownership in**  **Real Estate**  **2.2%**

Other Operating Expenses 5.0% **Baseline &**  **Incremental**

**Advertising &**  **Promotion 0.7%** 

**Insurance (business**  **liability &**  **casualty) 0.2%** 

**Depreciation 0.4%** 

**Vehicle Expenses**  **1.1%**

**Personal Property**  **Taxes/Licenses 0.1%** 

**Bad Debt**  **Losses 0.3%** 

**All Other**  **Operating Expenses**  **2.2%**

Total Operating Expenses 23.0%

Operating Profit 3.9% **Baseline &**  **Incremental**

**Other Income**  **0.5%**

**Interest Expense**  **1.0%**

**Other Non­operating**  **Expenses 0.0%** 

Profit Before Taxes 3.4%



### A­1**Source: Heating,**  **Air­conditioning &**  **Refrigeration Distributors**  **International. 2007.**  **2007 Profit**  **Report (2006**  **Data).**

**Note: The**  **wholesaler costs**  **and expenses**  **are percentage**  **values as**  **opposed to**  **the per**  **dollar of**  **sales revenue**  **values shown**  **in**

**Table 6.4.1.** 



## A.3 DETAILED MECHANICAL CONTRACTOR DATA

**Based on**  **data in**  **the 2005**  **edition of**  **Financial Analysis**  **for the**  **HVACR**

**Contracting** Industry, **published by**  **the Air**  **Conditioning Contractors**  **of America** 

**(ACCA), Tables**  **6.5.1, 6.5.2,**  **and 6.5.3**  **of Chapter**  **6, section**  **6.5,** Estimation of

Mechanical Contractor Markups **provide mechanical**  **contractor revenues**  **and costs**  **in**

**aggregated form**  **by ‘Cost**  **of Goods**  **Sold’ and**  **‘Gross Margin.’**  **The** Financial Analysis

**report did**  **not provide**  **a more**  **disaggregate tabulation**  **of these**  **costs and**  **expenses. As**  **in**

**section A.2,**  **the gross**  **margin category**  **was assumed**  **to scale**  **only with**  **the baseline** 

**markup.**

**The more**  **disaggregated breakdown**  **of costs**  **used to**  **scale the**  **incremental markup** 

**are shown**  **in Table**  **A.3.1 by**  **both dollar**  **value and**  **percentage terms.**  **As the**  **ACCA data** 

**were used**  **to calculate**  **the baseline**  **markup, only**  **the categories**  **in the**  **‘Scaling’ column** 

**that scaled**  **with both**  **the baseline**  **and incremental**  **markups are**  **marked.**

Table A.3.1 Mechanical Contractor Expenses and Markups Used To Scale the

Incremental Markups

Item Dollar Value Percentage Scaling

Total Cost of Equipment Sales $77,482,735 66.01%

**Cost of**  **materials, components,**  **and supplies**  **$37,813,136 32.21%** 

**Payroll, construction**  **workers $25,619,932**  **21.83%**

**Cost of**  **construction work**  **subcontracted out**  **to others**  **$12,462,622 10.62%** 

**Cost of**  **selected power,**  **fuels, and**  **lubricants $1,587,045**  **1.35%**

Gross Margin $39,898,412 33.99%

Payroll Expenses $19,648,990 16.74%

**Fringe benefits,**  **all employees**  **$9,326,660 7.95%** 

**Payroll, other**  **employees $10,322,330**  **8.79%**

Occupancy Expenses

**Rental cost**  **for machinery,**  **equipment, and**  **buildings +** 

**Purchased communication**  **services** $2,926,539 2.49%

Other Operating Expenses $2,969,716 2.53% **Baseline &** 

**Incremental Depreciation**  **charges during**  **year $1,666,352**  **1.42%**

**Cost of**  **repairs to**  **buildings and**  **other structures**  **+ Cost**  **of**

**repairs to**  **machinery and**  **equipment $1,303,364**  **1.11%**

Net Profit Before Income Taxes $14,353,167 12.23% **Baseline &** 

**Incremental**

**Source: U.S.**  **Census Bureau.**  **2002. Plumbing,**  **Heating, and**  **Air­Conditioning Contractors:**  **2002. Report**  **EC02­231­238220, Table**  **4.**

**Detailed Statistics**  **for Establishments:**  **2002.**

**Note: General**  **contractor costs**  **and expenses**  **are first**  **presented as**  total dollar **values and**  **than converted**  **to** percentage **values. This**  **is**

**in contrast**  **to the**  per dollar of sales revenue **values shown**  **in Table**  **6.5.4.**



## A.4 DETAILED GENERAL CONTRACTOR COST DATA

**Based on**  **U.S. Department**  **of Census**  **data, Table**  **6.6.1 of**  **Chapter 6,**  **section 6.6,** 

General Contractor Expenses and Markups **shows general**  **contractor revenues**  **and costs** 

**in aggregated**  **form. Table**  **A.4.1 below**  **shows the**  **complete breakdown**  **of costs**  **and**

**expenses provided**  **by the**  **U.S. Department**  **of Census.**  **The column**  **labeled “Scaling”**  **in**

**Table A.4.1**  **indicates which**  **expenses DOE**  **assumed to**  **scale with**  **only the**  **baseline**

**A­2**

## markup **and which**  **scaled with**  **both the**  **baseline and**  **incremental markups.**  **As described** 

**in Chapter**  **6, section**  **6.6, only**  **those expenses**  **that scale**  **with baseline**  **and incremental** 

**costs are**  **marked­up when**  **there is**  **an incremental**  **change in**  **equipment costs.** 

**DOE defined**  **the relative**  **standard deviation**  **as the**  **standard deviation**  **as a**  **percent**

**of the**  **baseline markup.**  **The wholesaler**  **relative standard**  **deviation is**  **8.6 percent,**  **the**

**general contractor**  **relative standard**  **deviation is**  **9.0 percent,**  **and the**  **mechanical**

**contractor for**  **residential and**  **light commercial**  **construction is**  **7.9 percent**  **of their** 

**respective baseline**  **markups. The**  **fact that**  **the mechanical**  **contractor relative**  **standard**

**deviation is**  **7.9 percent**  **of the**  **baseline markup**  **implies that**  **the standard**  **deviation for**  **the**

**replacement and**  **new markets,**  **relative to**  **their respective**  **baseline markups,**  **is also**  **3.1**

**percent.**

**DOE also**  **assumed that**  **wholesaler, general**  **contractor, and**  **mechanical contractor** 

**incremental markups**  **have the**  **same relative**  **standard deviation**  **as wholesaler,**  **general**

**contractor, and**  **mechanical contractor**  **baseline markups.**  **It used**  **this assumption**  **to**

**calculate the**  **standard deviation**  **of wholesaler,**  **general contractor,**  **and mechanical** 

**contractor incremental**  **markups.**

Table A.4.1 General Contractor Expenses and Markups

Item Dollar Value Percentage Scaling

Total Cost of Equipment Sales $187,494,802 77.54% **Baseline**

**Cost of**  **materials, components,**  **and supplies**  **$36,592,170 15.13%** 

**Payroll, construction**  **workers $16,516,884**  **6.83%**

**Cost of**  **construction work**  **subcontracted out**  **to others**  **$132,835,992 54.94%** 

**Cost of**  **selected power,**  **fuels, and**  **lubricants $1,549,756**  **0.64%**

Gross Margin $54,310,758 22.46%

Payroll Expenses $19,517,206 8.07% **Baseline**

**Fringe benefits,**  **all employees**  **$6,823,998 2.82%** 

**Payroll, other**  **employees $12,693,208**  **5.25%**

Occupancy Expenses

**Rental cost**  **for machinery,**  **equipment, and**  **buildings +** 

**Purchased communication**  **services** $3,737,333 1.55% **Baseline**

Other Operating Expenses $2,747,096 1.14% **Baseline &** 

**Incremental Depreciation**  **charges during**  **year $1,318,065**  **0.55%**

**Cost of**  **repairs to**  **buildings and**  **other structures**  **+ Cost**  **of**

**repairs to**  **machinery and**  **equipment $1,429,031**  **0.59%**

Net Profit Before Income Taxes $28,309,123 11.71% **Baseline &** 

**Incremental**



### Source: **U.S. U.S.**  **Census Bureau.**  **2002. Commercial**  **and Institutional**  **Building Construction:**  **2002.**

**Report EC02­231­236220,**  **Table 4.**  **Detailed Statistics**  **for Establishments:**  **2002.**

**Note: General**  **contractor costs**  **and expenses**  **are first**  **presented as**  total dollar **values and**  **than converted**  **to**

percentage **values. This**  **is in**  **contrast to**  **the** per dollar of sales revenue **values shown**  **in Table**  **6.6.1.**



## A.5 ESTIMATION OF WHOLESALER AND CONTRACTOR MARK­UP

STANDARD DEVIATIONS

**DOE used**  **U.S. Census**  **survey data**  **to estimate**  **PTAC/PTHP equipment** 

**wholesaler, general**  **contractor, and**  **mechanical contractor**  **markup distributions.**  **In the** 

**case of**  **wholesalers, survey**  **data were**  **available only**  **at the**  **national level.**  **In the**  **case of** 

**mechanical and**  **general contractors,**  **the survey**  **data include**  **state­level heating,** 

**A­3**

## ventilating, **and air­conditioning**  **(HVAC) total**  **value of**  **work, number**  **of firms,**  **cost of** 

**goods sold,**  **cost of**  **subcontract work,**  **cost of**  **materials, and**  **construction payroll**  **as shown** 

**in Table**  **A.5.2 and**  **Table A.5.3.** 

**DOE estimated**  **the size**  **of the**  **baseline markup**  **distribution from**  **the standard** 

**deviation of**  **across­state markups.**  **The wholesale**  **markup standard**  **deviation is**  **0.06, the** 

**general contractor**  **markup standard**  **deviation is**  **0.07, and**  **the mechanical**  **contractor**

**markup standard**  **deviation is**  **0.06. DOE**  **assumed that**  **new construction**  **and replacement** 

**market mechanical**  **contractor markups**  **have the**  **same relative**  **standard deviation**  **as that** 

**developed from**  **the baseline**  **markups for**  **all contractors.** 

Table A.5.1 Wholesaler Incremental Markup Standard Deviation

Number of Firms Sales ($000) Cost of Goods Sold ($000) Gross Margin ($000)

**5180 $17,715,524** 

**Cv for**  **4237**

**= 1.6%**  **$12,789,493 $4,627,533** 

**Cv for**  **4237**

**= 7.7%** 

**Since Cv** 

**= σ**  **/ μ,**  **σ =**  **Cv /**  **μ =**  **0.077 /**  **1.37**

**= 0.06** 

**Where:**

**Cv**

**= Coefficient**  **of variation** 

**σ =**  **Standard deviation** 

**μ =**  **mean value**  **[from Table**  **X.4.1]**

**Sources: U.S.**  **Census Bureau.**  **2005. Sector**  **42: Wholesale**  **Trade: Subject**  **Series ­ Misc**  **Subjects: Gross**  **Margin and**  **its Components** 

**for Merchant**  **Wholesalers for**  **the United**  **States: 2002**  **@ http://factfinder.census.gov/servlet/IBQTable?_bm=y&­geo_id=&­** 

**_skip=0&­ds_name=EC0242SXSB06&­_lang=en**

**U.S. Census**  **Bureau. 2005.**  **Annual Report**  **for Wholesale**  **Trade: 2002­2003.**  **Report BW(MSBO)/04­A.** 

**http://www.census.gov/svsd/www/msbo2003.pdf**

**U.S. Bureau**  **of Census.**  **2005. Table**  **4. Estimated**  **Coefficients of**  **Variation of**  **Annual Sales,**  **End­of­Year Inventories,**  **Purchases,**

**Gross Margins,**  **and Gross**  **Margin/Sales Ratios**  **for Merchant**  **Wholesalers, excluding**  **Manufacturers' Sales**  **Branches and**  **Offices**

**(MSBOs) @**  **http://www.census.gov/svsd/www/atstable4.txt**

**Notes: The**  **data are**  **at the**  **national level.** 

**NAICS 4237**  **applies to**  **Hrdwr, plumb**  **& heat**  **equip &**  **supp merchant**  **wholesalers and**  **42373 applies**  **to Warm**  **air heating**  **& AC**  **equip**

**merchant wholesalers.** 

**Cv**

**= coefficient**  **of variation.** 



### A­4

## Table A.5.2 Mechanical Contractor Baseline Mark­ups by State, 2002

State Number of

Firms Value of

Construction

($000) Cost of

Subcontract

Work ($000) Cost of

Materials

($000) Construction

Payroll ($000) Baseline

Markup

**Alabama 1,425**  **1,490,919 151,240**  **547,075 308,967**  **1.48**

**Arizona 1,510**  **1,958,430 141,885**  **776,733 420,945**  **1.46**

**Arkansas 1,045**  **799,157 65,491**  **305,198 154,099**  **1.52**

**California 7,272**  **12,346,970 1,172,183**  **4,018,408 2,701,227**  **1.56**

**Colorado 2,015**  **2,354,183 235,012**  **821,432 547,419**  **1.47**

**Connecticut 1,321**  **1,580,361 156,607**  **505,340 320,528**  **1.61**

**Delaware 306**  **460,330 42,001**  **150,096 112,360**  **1.51**

**Florida 5,069**  **6,255,428 616,097**  **2,270,555 1,263,030**  **1.51**

**Georgia 2,534**  **3,436,673 380,819**  **1,226,368 653,972**  **1.52**

**Hawaii 280**  **358,921 36,053**  **129,870 65,305**  **1.55**

**Idaho 594**  **546,349 47,466**  **211,341 133,160**  **1.39**

**Illinois 3,848**  **6,112,025 605,868**  **1,770,254 1,504,166**  **1.58**

**Indiana 1,867**  **2,964,787 418,904**  **869,816 753,388**  **1.45**

**Iowa 1,066**  **1,189,684 133,934**  **428,842 265,529**  **1.44**

**Kansas 966**  **1,236,292 155,011**  **431,331 264,876**  **1.45**

**Kentucky 1,219**  **1,357,063 121,960**  **469,639 307,205**  **1.51**

**Louisiana 1,469**  **1,439,726 174,283**  **497,169 291,819**  **1.49**

**Maine 458**  **393,322 36,149**  **138,587 76,034**  **1.57**

**Maryland 2,024**  **3,902,613 583,237**  **1,251,986 797,428**  **1.48**

**Massachusetts 2,520**  **3,531,662 503,155**  **1,038,151 713,798**  **1.57**

**Michigan 3,051**  **4,334,221 492,957**  **1,338,229 957,980**  **1.55**

**Minnesota 1,635**  **2,860,054 280,556**  **958,849 599,935**  **1.55**

**Mississippi 655**  **754,652 70,985**  **283,993 132,824**  **1.55**

**Missouri 1,816**  **2,538,706 276,621**  **849,770 581,090**  **1.49**

**Montana 432**  **356,269 44,987**  **135,009 68,332**  **1.43**

**Nebraska 683**  **819,918 90,582**  **321,124 177,052**  **1.39**

**Nevada 498**  **1,093,329 78,259**  **350,851 236,089**  **1.64**

**New Hampshire**  **531 535,046**  **52,209 179,259**  **123,215 1.51** 

**New Jersey**  **3,551 4,210,275**  **466,668 1,230,617**  **949,465 1.59** 

**New Mexico**  **599 543,713**  **51,116 191,757**  **104,423 1.57** 

**New York**  **5,750 7,561,952**  **949,038 2,335,220**  **1,595,864 1.55** 

**North Carolina**  **2,978 3,231,394**  **339,388 1,127,518**  **684,958 1.50** 

**North Dakota**  **272 291,850**  **34,971 105,405**  **66,002 1.41** 

**Ohio 3,514**  **4,611,590 502,061**  **1,470,907 1,037,116**  **1.53**

**Oklahoma 1,158**  **906,621 77,207**  **341,921 185,111**  **1.50**

**Oregon 1,031**  **1,440,390 132,523**  **506,559 332,135**  **1.48**

**Pennsylvania 3,653**  **5,929,629 639,074**  **1,766,004 1,193,465**  **1.65**

**Rhode Island**  **397 490,872**  **60,217 171,994**  **99,426 1.48** 

**South Carolina**  **1,472 1,395,359**  **111,394 518,386**  **327,238 1.46** 

**South Dakota**  **337 333,758**  **22,754 141,297**  **58,708 1.50** 

**Tennessee 1,370**  **2,292,875 201,748**  **846,426 459,475**  **1.52**

**Texas 5,653**  **8,061,607 807,501**  **2,889,320 1,746,739**  **1.48**

**Utah 892**  **1,010,317 113,775**  **353,958 202,682**  **1.51**

**Vermont 282**  **208,056 19,987**  **77,251 43,158**  **1.48**

**Virginia 2,547**  **3,036,417 254,085**  **1,074,309 700,273**  **1.50**

**Washington 1,602**  **2,344,257 222,282**  **773,211 543,668**  **1.52**

**Wisconsin 1,839**  **2,578,014 193,399**  **941,806 617,852**  **1.47**

Average Baseline Markup

Standard Deviation 1.51

0.06

**Sources: U.S.**  **Bureau of**  **Census. 2005.**  **2002 Economic**  **Census Construction**  **Geographic Area**  **Series. Reports**  **EC02­23A­AL,**

**EC02­23A­AZ, EC02­23A­AR,**  **EC02­23A­CA, EC02­23A­CO,**  **EC02­23A­CT, EC02­23A­DE,**  **EC02­23A­FL, EC02­23A­GA,** 

**EC02­23A­HI, EC02­23A­ID,**  **EC02­23A­IL, EC02­23A­IN,**  **EC02­23A­IA, EC02­23A­KS,**  **EC02­23A­KY, EC02­23A­LA,**  **EC02­**

**23A­ME, EC02­23A­MD,**  **EC02­23A­MA, EC02­23A­MI,**  **EC02­23A­MN, EC02­23A­MS,**  **EC02­23A­MO, EC02­23A­MT,**  **EC02­**

**23A­NE, EC02­23A­NV,**  **EC02­23A­NH, EC02­23A­NJ,**  **EC02­23A­NM, EC02­23A­NY,**  **EC02­23A­NC, EC02­23A­ND,**  **EC02­**

**23A­OH, EC02­23A­OK,**  **EC02­23A­OR, EC02­23A­PA,**  **EC02­23A­RI, EC02­23A­SC,**  **EC02­23A­SD, EC02­23A­TN,**  **EC02­23A**

**TX, EC02­23A­UT,**  **EC02­23A­VT, EC02­23A­VA,**  **EC02­23A­WA, EC02­23A­WI.** 

**Notes: The**  **Census Bureau**  **withheld data**  **for some**  **states.**

**Markups may**  **vary across**  **states for**  **several reasons,**  **including differences**  **in firm**  **size.**



### A­5

## Table A.5.3 General Contractor Baseline Mark­ups by State, 2002

State Number

of Firms Value of

Construction

($000) Cost of

Subcontract

Work ($000) Cost of

Materials

($000) Construction

Payroll ($000) Baseline

Markup

**Alabama 633**  **4,087,391 2,224,073**  **648,488 257,100**  **1.31**

**Arizona 647**  **4,793,249 2,824,778**  **554,056 238,438**  **1.33**

**Arkansas 339**  **1,764,890 891,847**  **361,034 121,985**  **1.28**

**California 4,179**  **27,905,058 16,477,915**  **3,569,406 1,859,722**  **1.27**

**Florida 1,900**  **11,708,047 6,593,086**  **1,727,883 556,589**  **1.32**

**Georgia 1,335**  **10,267,854 5,885,254**  **1,879,470 551,798**  **1.23**

**Kansas 341**  **1,947,757 1,026,208**  **410,497 135,895**  **1.24**

**Kentucky 527**  **2,199,782 1,182,207**  **383,228 184,386**  **1.26**

**Louisiana 513**  **2,909,041 1,410,150**  **703,189 247,488**  **1.23**

**Maryland 872**  **6,675,194 3,829,059**  **766,415 422,357**  **1.33**

**Massachusetts 786**  **8,075,207 5,233,003**  **1,114,320 430,337**  **1.19**

**Michigan 1,237**  **6,501,437 3,372,219**  **1,009,192 436,199**  **1.35**

**Minnesota 748**  **6,161,105 3,771,957**  **1,030,060 428,143**  **1.18**

**New Hampshire**  **153 1,123,795**  **709,159 168,953**  **75,195 1.18** 

**New Jersey**  **1,191 7,134,900**  **3,823,338 959,859**  **549,231 1.34** 

**New Mexico**  **265 1,111,735**  **585,306 189,063**  **100,363 1.27** 

**New York**  **2,147 16,092,933**  **7,732,253 2,214,809**  **1,103,423 1.46** 

**North Carolina**  **1,053 6,123,409**  **3,212,008 1,143,321**  **387,044 1.29** 

**North Dakota**  **164 346,507**  **151,554 94,777**  **39,360 1.21** 

**Ohio 1,354**  **6,956,588 3,743,681**  **1,226,315 600,282**  **1.25**

**Oregon 614**  **2,998,924 1,762,863**  **577,844 338,286**  **1.12**

**Pennsylvania 1,419**  **10,114,293 5,579,230**  **1,612,363 697,391**  **1.28**

**Texas 2,890**  **17,578,086 8,870,626**  **2,817,907 961,374**  **1.39**

**Virginia 851**  **6,287,509 3,781,530**  **928,059 402,428**  **1.23**

**Washington 929**  **5,086,570 2,947,223**  **836,605 449,325**  **1.20**

**West Virginia**  **200 419,620**  **155,537 110,001**  **58,024 1.30** 

**Wisconsin 595**  **4,867,473 2,460,336**  **1,030,059 479,144**  **1.23**

Average Baseline Markup

Standard Deviation 1.27

0.07

**Sources: U.S.**  **Bureau of**  **Census. 2005.**  **2002 Economic**  **Census Construction**  **Geographic Area**  **Series. Reports**  **EC02­23A­AL,**

**EC02­23A­AZ, EC02­23A­AR,**  **EC02­23A­CA, EC02­23A­FL,**  **EC02­23A­GA, EC02­23A­KS,**  **EC02­23A­KY, EC02­23A­LA,** 

**EC02­23A­MD, EC02­23A­MA,**  **EC02­23A­MI, EC02­23A­MN,**  **EC02­23A­NH, EC02­23A­NJ,**  **EC02­23A­NM, EC02­23A­NY,** 

**EC02­23A­NC, EC02­23A­ND,**  **EC02­23A­OH, EC02­23A­OR,**  **EC02­23A­PA, EC02­23A­TX,**  **EC02­23A­VA, EC02­23A­WA,** 

**EC02­23A­WV, EC02­23A­WI.** 

**Notes: The**  **Census Bureau**  **withheld data**  **for some**  **states.**

**Markups may**  **vary across**  **states for**  **several reasons,**  **including differences**  **in firm**  **size.**



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