The green, cleaning, contracting, and construction segments show positive revenue growth
TORONTO, May 31, 2023 /PRNewswire/ – worker the leading provider of operations management software for home service businesses, released its latest today Home Service Economic report: 1st quarter 2023 edition. The report features expert insights and proprietary data collected from more than 200,000 cleaners, landscapers, HVAC technicians, electricians, plumbers, and more who use Jobber.
“While no industry has been immune to the recent global economic turmoil, the past and current performance of Home Service companies demonstrate their ability to adapt quickly and sustain positive sales growth,” said Sam Pillar, CEO and co-founder of Jobber. “As many of these companies provide essential services, they are much less affected by market conditions. The outlook for this sector remains good.”
Predict future performance
Recessions and economic slowdowns affect industries in different ways. For the first time, the report examines how home service businesses performed during past economic disruptions to predict future performance. The report found that:
- While spending on housing maintenance remains stable regardless of the economy, spending on home improvement shows higher growth but with more volatility.
- During economic slowdowns, discretionary spending slows down, while replacement spending is more resilient in both minor and major recessions.
Braving global market conditions
While economic factors and recessions hit many industries in the first quarter of 2023, the Home Service category has continued to show resilience in the face of the economic slowdown.
- Stay stable: Median sales growth is slowing, but still up about 3% in March compared to last year, which was a historically high growth year.
- Big picture: Based on a two-year compound annual growth rate (CAGR), median revenue grew 10-20% between the first quarter of 2021 and 2023, which is pretty healthy.
Revenues continue to rise
The first quarter of 2022 saw exceptionally strong year-over-year revenue growth, with sales up 20-30% as the economy continues to recover from the pandemic. Even compared to this phenomenal quarter, the Home Service business is in all segments—Green, Cleaning, Contracting, and Construction—in the first quarter of 2023 have successfully maintained positive year-over-year revenue growth.
- Vegetable: The green segment, which includes lawn care, landscaping, and other related field services, saw revenue growth of approximately 5-10% in the first quarter, boding well as we enter the busy summer season.
- Cleaning: Median sales growth remained positive for the Cleaning segment, despite a drop in planned new business in February and March after a positive month of January.
- to contract: Contracting, which includes electrical, craft, HVAC, plumbing, and other non-construction services, benefited from greater pricing power to generate 12% year-over-year revenue growth in January before leveling off in February and March.
- Build: Construction companies posted year-over-year revenue growth in the first quarter, despite a drop in planned new work.
“While we expect home maintenance spending to remain stable for the rest of this year, home improvement spending may experience more volatility,” he said. Abheek Dhawan, VP, Operations at Jobber. “Despite fluctuating demand, Home Service companies are adapting to the changing macroeconomic environment by leveraging increased pricing power in line with inflation to sustain sales growth. Based on historical performance during past recessions, forecasts We believe that the future for the category will remain positive in any case.” of economic uncertainties.”
To read or download the Jobber Home Service Economic Report: 2023 Q1 edition, please visit: get jobber
Jobber is an award-winning operations management platform for small home service businesses. Unlike spreadsheets or pen and paper, Jobber keeps everything in one place and automates day-to-day operations so small businesses can run smoothly and provide five-star service at scale. Jobber is used by more than 200,000 home service professionals to serve more than 27 million properties in more than 60 countries. The company consistently ranks as one of Canada’s fastest-growing and most innovative companies by Canadian Business and Macleans, The Globe and Mail, Fast Company, and Deloitte.