The Home Service category shows strong resilience in the face of economic uncertainty, reaching 20 months of positive revenue growth
TORONTO, February 9, 2022 /CNW/ – Jobber, the leading provider of home service management software, today released its latest economic report on Home Services: 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 the trades an attractive option for entrepreneurs, people in retraining and young adults entering the labor market,” 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.”
Raking in the Green: 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 grown steadily since June 2020. Median year-over-year revenue grew at a faster pace in the fourth quarter of 2021, although new work expected in the fourth quarter of 2021 slowed, showing 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 has 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 payment technology adoption 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%.
Skilled worker trends: Retirements open up more opportunities for those just starting their careers
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 grow, so that job vacancies far exceeded the number of vacancies.
“It’s 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, 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, go to: https://getjobber.com/home-service-reports/february-2022/
Jobber is an award-winning business management platform for small home service businesses. Unlike spreadsheets or pen and paper, Jobber keeps track of everything in one place and automates day-to-day operations, so small businesses can deliver 5-star service at scale. Jobber’s more than 160,000 home service professionals have served more than 12 million homes in over 47 countries. The company consistently ranks among the from Canada fastest growing and most innovative companies by Canadian Business and Macleans, The Globe and Mail, Fast Company and Deloitte. For more information, visit: https://getjobber.com/.
PAN Communications for Jobber
Public Relations Manager, Jobber