TORONTO, ON. — Jobber, a leading provider of home service management software, today released its latest Home Services Economic Report: 2021 Review. The report features expert insights and aggregated proprietary data from more than 160,000 residential cleaners, landscapers, HVAC technicians, window cleaners, plumbers, etc., who use Jobber.
“The performance of the Home Service category has made trades an attractive option for entrepreneurs, those seeking a career change and young adults entering the workforce,” said Sam Pillar, CEO and co-founder of Jobber. . “2021 has been a remarkable year as it has demonstrated how essential the Home Service category is with its strong growth and unprecedented consumer demand.”
Home service outperforms most other categories
Spending on home services outpaced most major categories, such as food and beverage stores, clothing stores and restaurants, throughout 2021, with growth surpassing pre-pandemic levels . Home services revenue growth has been increasing steadily since June 2020. Median year-over-year revenue grew at a faster pace in Q4 2021, although new work expected in Q4 2021 slowed, which shows that companies were able to earn more per job.
- Contract Segment Price Increase: Contracting activities benefited from higher prices with revenue growth of 12% in the fourth quarter of 2021.
- Contract jobs are growing the cleaning segment: Recent growth in scheduled new jobs in the Cleaning segment was driven by a 16% year-over-year increase in contract jobs.
- New work for the green segment stands out: The green segment, which includes outdoor services such as pressure washing, lawn care and landscaping, saw strong growth in new work planned for 2021, while other segments slowed.
The active real estate market, accentuated by the desire to buy homes before rising mortgage rates, continued to create momentum and demand for home services.
- New houses cannot bridge the gap: The US real estate market is nearly four million homes short of buyer demand; the supply of newly built units has not been able to meet this ever increasing demand.
- Buyers looking to older homes: With limited supply, buyers are turning to older homes or choosing to invest in their current home; thus, spending on home improvement and maintenance is heading for double-digit growth in 2022.
Payments Tech: pay now or later?
Home service businesses have their own unique dynamics related to collecting payments. Some businesses like the immediate cash flow, while others prefer to accept checks for a big job so they don’t have to pay credit card transaction fees. That said, data from Jobber indicates that adoption of payment technology is on the rise.
- Growth of online payments: Online payments grew to 39% of all payments processed across all home service segments.
- Green segment catch-up: Green businesses, which had the lowest percentage of online payments before the pandemic, have seen rapid adoption, climbing to over 35%.
Opportunities open to retirement
The challenge of hiring skilled workers remains prevalent, despite a significant opportunity of earning potential for those who choose to enter home service.
- Impact of retirement: Half of the people who left the workforce in 2021 were 55 and over, accelerating the retirement rate – a macro trend that also impacted home service.
- Job vacancies remain unfilled: The ratio of hires to vacancies continued to increase, so that job vacancies far exceeded the number of vacancies.
“It is a testament to the resilience of the home services category that revenue growth can be sustained even in the face of drastic talent shortages,” said Abheek Dhawan, vice president of business operations at Jobber. “With demand for home services at an all time high, the category remains ripe with opportunities for those wishing to enter.”
To download the Jobber Home Service Economic Report: 2021 Review, visit: https://getjobber.com/home-service-reports/february-2022/