wholesaler, Edmonton, Alta., Released its latest Home Services Economic Report: Record Growth Fuels Labor Shortage. The report features expert insight and aggregate proprietary data from over 100,000 home cleaners, landscapers, HVAC technicians, window cleaners and plumbers who use the Jobber platform.
“Despite the current labor shortage and fluctuating availability of materials, homeowner demand for home services remains at an all time high and businesses are experiencing positive revenue growth,” said Sam Pillar, CEO and co-founder of Jobber. “Once the supply chain disruptions subside and material costs drop to pre-pandemic levels, we expect growth to improve further.”
Consumer spending continues to drive home service revenue growth, which outperformed all other categories, including grocery and general merchandise stores in the third quarter. Long-term sustainable growth is expected through the fourth quarter and through 2022.
The number of new homes under construction and new building permits issued continued to exceed pre-pandemic levels, with no signs of slowing down. Bill sizes have seen an increase in all major home service segments including cleaning, contracting and green, which includes landscaping, lawn care and other outdoor services. air. Despite supply chain challenges and labor shortages, planned new work continued to show positive year-over-year growth across all segments. Growth in cleaning was fueled by a 21% increase in contract jobs.
While the labor shortage has affected home services less than other categories, the need for skilled workers impacts the rate at which service companies can book new jobs. This gap creates opportunities for both new entrepreneurs and workers looking to pursue careers in home services.
Service providers who increased their workforce were able to schedule more work due to increased consumer demand and increase their income at a much faster rate. The ratio of hires to vacancies has dropped significantly, suggesting that the current demand for talent is not being met. The outsourcing segment posted positive year-over-year new job growth in the third quarter of 2021, but was hit the hardest by labor shortages.
While the growth of the home care category has shown resilience, there continue to be emerging and rapidly changing economic trends that home service providers must adapt to. While new scheduled jobs have experienced positive growth, this growth has been slower year over year; Rising material costs, material scarcity and labor shortages are starting to limit the number of jobs service providers can hire. Prices for paints and coatings manufacturing, as well as HVAC and commercial refrigeration equipment rose, while gasoline and diesel prices hit record highs in the last quarter. Steel mill products are the hardest hit, growing 122% over January 2020 prices. In the third quarter, lumber and lumber costs returned to levels seen earlier in the year. which still represents an increase of 24% compared to January 2020.
“No matter what obstacles stand in their way, home service companies continue to persevere and outperform almost every other major category,” said Abheek Dhawan, vice president of business operations at Jobber. “This is a testament to the incredible resilience of home services and the essential nature of the services provided by these professionals. One of the main takeaways from this report that we want readers to take away is that the best time to open a home service business or pursue a career in the trades is now. “