Professional, Scientific, and Technical Services ·NAICS 5416

2026 data Public-data reference. IRS SOI · Census CBP · 2023 Strong margin

Professional, Scientific, and Technical Services — Industry Benchmarks

Profit margins, payroll, employment, and SBA lending for Professional, Scientific, and Technical Services (NAICS 5416). Cross-checked against IRS SOI 2023 and Census County Business Patterns. Refreshed as new data lands.

Professional, Scientific, and Technical Services (NAICS 5416) operates at a 15.0% net profit margin, above average for US industries. The industry generates $336.7B in total annual receipts across all business entities filing federal tax returns. Census Bureau data identifies 225,945 business establishments employing 1,736,343 workers nationwide.

The average employee earns $106,100/yr in annual compensation, while the typical business in this industry generates $250.6M in revenue. Businesses average 7.7 employees per establishment. California leads in employment concentration for this industry.

Benchmarking Insights for Professional, Scientific, and Technical Services

When you read the 15.0% net profit margin for Professional, Scientific, and Technical Services, the number only becomes actionable when paired with scale. This industry sits inside the broader Professional, Scientific, and Technical Services sector and reports $336.7B of aggregate annual receipts across 1,343,821 federal tax returns. Owners comparing their own books should read the margin as a midpoint — smaller operators typically run several points below the aggregate because fixed overhead (rent, software, insurance) consumes a larger share of lower revenue bases, while the typical establishment here generates $250.6M per year. Treat the industry figure as a ceiling calibrated by businesses that have already achieved operating leverage.

Labor economics tell the second half of the story. Census CBP shows 225,945 active establishments employing 1,736,343 workers, averaging 7.7 employees per location and paying $106,100/yr per employee annually. California leads the geographic distribution of employment, with Texas and Florida rounding out the top three concentrations. Headcount density matters because thin-margin industries only clear the cash-flow bar when establishments reach the staffing level where fixed costs amortize — a useful cross-check against the margin line above.

Capital access is the third lens. SBA 7(a) and 504 approvals for this industry totaled 7,571 loans worth $2.2 billion between FY2020 and FY2025, supporting 54,830 jobs at origination. The average ticket size — $294K — signals the typical capital gap operators bridge when expanding. U.S. Bank, National Association ranks as the most active SBA lender serving this NAICS code. Use this alongside the IRS and Census figures to decide whether your own plan should target operational efficiency, workforce expansion, or financed growth.

Profit Margin

15.0%

Net income ÷ total receipts (IRS SOI)

Total Receipts

$336.7B

Annual revenue (IRS SOI)

Net Income

$50.6B

Pre-tax net income

Employment

1,736,343

Total employees (Census CBP)

Avg Payroll / Employee

$106,100/yr

Annual compensation

Establishments

225,945

Business locations

Where each dollar of revenue goes

Decomposition of every dollar of Professional, Scientific, and Technical Services receipts using IRS SOI 2023 aggregate ratios.

Workforce scale

Establishment-size distribution and per-establishment headcount based on Census Statistics of US Businesses (SUSB) typical strata.

Margin position vs national reference points

Professional, Scientific, and Technical Services net margin 50.1%
US median (10%)

Plotted against a 0–30% scale. The US business p25 / median / p75 reference points are 5% / 10% / 18% respectively (IRS SOI aggregate).

Business Structure Breakdown

How businesses in this industry are legally structured (IRS SOI)

C Corporation
235,964 returns 18%

Margin: 6.0% · Receipts: $266.1B

Sole Proprietorship
1,107,857 returns 82%

Margin: 49.1% · Receipts: $70.7B

Financial Detail

Total Tax Returns Filed
1,343,821
Total Deductions
N/A
Avg Receipts per Business
$250.6M
Annual Payroll (Total)
$184.2B
Avg Employees per Establishment
7.7

Sub-Industries

Industry Profit Margin
Professional, Scientific, and Technical Services

NAICS 54161

N/A
Professional, Scientific, and Technical Services

NAICS 54162

N/A
Professional, Scientific, and Technical Services

NAICS 54169

N/A

Top States by Employment

State Employment
California 202,952
Texas 149,335
Florida 123,346
New York 118,483
Virginia 109,940
Illinois 105,175
Pennsylvania 60,828
Georgia 57,152
Maryland 56,808
Massachusetts 55,170

Showing top 10 of 51 states

SBA Lending Activity

FY2020–2025

Small Business Administration 7(a) and 504 loan data for this industry. Source: SBA FOIA dataset.

SBA Loans Approved

7,571

FY2020–2025

Total Loan Volume

$2.2B

7(a) + 504 programs

Avg Loan Size

$294K

Per approved loan

Jobs Supported

54,830

Reported at origination

Program Breakdown

7(a) Loans 7,305 loans (96%)
504 Loans 266 loans (4%)

Top SBA Lender

U.S. Bank, National Association

667 loans in this industry

New Business Share

25.2% of borrowers were new/startup businesses

Annual Lending Trend

FY2020
746 loans
FY2021
804 loans
FY2022
893 loans
FY2023
1,259 loans
FY2024
1,713 loans
FY2025
1,913 loans
FY2026
243 loans

SBA fiscal year runs Oct–Sep. FY2025 = partial year through Sep 2025.

Source: SBA 7(a) and 504 FOIA dataset · FY2020–FY2025 · View SBA lending rankings →

Frequently Asked Questions

What is the average revenue for Professional, Scientific, and Technical Services?
The Professional, Scientific, and Technical Services industry (NAICS 5416) reports total annual receipts of $336.7B across all business entities, based on IRS Statistics of Income data. The average revenue per business is $250.6M.
How profitable is Professional, Scientific, and Technical Services?
Professional, Scientific, and Technical Services has a net profit margin of 15.0%, which is above average for US industries. This is calculated as net income divided by total receipts from IRS SOI business tax statistics.
How many businesses are in Professional, Scientific, and Technical Services?
There are 225,945 business establishments in Professional, Scientific, and Technical Services (NAICS 5416) according to Census Bureau County Business Patterns 2023 data. These establishments collectively employ 1,736,343 workers.
What is the average payroll per employee in Professional, Scientific, and Technical Services?
The average annual payroll per employee in Professional, Scientific, and Technical Services is $106,100/yr, based on Census Bureau County Business Patterns data. Businesses in this industry average 7.7 employees per establishment. This figure includes wages, salaries, and benefits reported by employers.
Which states have the most Professional, Scientific, and Technical Services employment?
California leads in Professional, Scientific, and Technical Services employment with 202,952 workers. Texas (149,335) and Florida (123,346) round out the top three. These figures come from the Census Bureau County Business Patterns 2023 survey.
How much SBA lending does Professional, Scientific, and Technical Services receive?
Professional, Scientific, and Technical Services businesses received 7,571 SBA loans totaling $2.2 billion between FY2020 and FY2025. The average loan size was $294K. These loans supported 54,830 jobs at origination. Most lending (96%) came through the SBA 7(a) program.
Disclaimer: PlainBizBench provides publicly available IRS and Census data for informational purposes only. This is not financial, tax, or business advice. Consult a qualified accountant or financial advisor for business-specific guidance.

Sources: IRS Statistics of Income (SOI) Business Tax Statistics · Census Bureau County Business Patterns 2023

NAICS 5416 · Data year: 2023

Related

Data sourced from official public datasets. See our methodology for details. Retrieved and formatted by PlainBizBench Editorial

Source: U.S. Census Bureau — County Business Patterns / SUSB Industry employment scale, payroll, and firm-size benchmarks · 2025