Home Service Businesses Thrive Despite Economic Turmoil:
Jobber’s 2023 Q1 Economic Report Reveals Promising Outlook
Jobber, the leading provider of operations management software for Home Service businesses, has released its highly anticipated Home Service Economic Report: 2023 Q1 edition. The report offers valuable insights and proprietary data from over 200,000 professionals in the residential cleaning, landscaping, HVAC, electrical, plumbing, and other home service industries. Despite the recent global economic challenges, the report highlights the resilience and positive revenue growth within the sector. This blog post will delve into the key findings and predictions outlined in the report.
Predicting Future Performance
In an effort to assess future performance, Jobber’s report examines the historical performance of home service businesses during previous economic disruptions. The findings shed light on the varying impacts of economic downturns on different sectors within the industry:
- Home maintenance spending remains stable regardless of the economy.
- Home improvement spending exhibits higher growth rates but with increased volatility.
- Discretionary spending tends to slow during economic slowdowns, while replacement spending shows more resilience in both minor and major recessions.
Defying Global Market Conditions
Despite the economic challenges faced in Q1 2023, the Home Service category has displayed remarkable resilience in the face of the economic slowdown. The report highlights the following key observations:
- Median revenue growth has slowed but still recorded an approximate 3% increase in March compared to the previous year, which was a historically high growth year.
- On a two-year compound annual growth rate (CAGR), median revenue grew between 10-20% from Q1 2021 to 2023, signifying a healthy growth trajectory.
Revenues Continue to Rise
The report showcases the sustained growth in year-over-year revenue for Home Service businesses across different segments in Q1 2023:
- Green segment: Lawn care, landscaping, and related outdoor services experienced Q1 revenue growth of approximately 5-10%, indicating a positive outlook as the busy summer season approaches.
- Cleaning segment: Despite a decline in new work scheduled in February and March following a positive January, median revenue growth remained positive.
- Contracting segment: With electrical, handiwork, HVAC, plumbing, and other non-construction services, this segment utilized increased pricing power to generate a remarkable year-over-year revenue growth of 12% in January, which then leveled off in February and March.
- Construction segment: Despite a decrease in new work scheduled, construction businesses were able to grow their revenues year-over-year in the first quarter.
Jobber’s Home Service Economic Report: 2023 Q1 edition presents an optimistic outlook for the Home Service industry, showcasing its resilience and sustained revenue growth in the face of economic challenges. The report indicates that while home maintenance spending remains stable, home improvement spending may experience more volatility. However, Home Service businesses are adapting to the shifting macroeconomic environment by leveraging increased pricing power in line with inflation to maintain revenue growth. Based on historical performance during past recessions, the report predicts a positive future for the Home Service category, regardless of economic uncertainties.
To access the complete Jobber Home Service Economic Report: 2023 Q1 edition, please visit: Jobber Report
Jobber is an award-winning operations management platform designed for small home service businesses. The platform streamlines day-to-day operations and automates various tasks, allowing businesses to run smoothly and deliver exceptional service at scale. With over 200,000 home service professionals utilizing Jobber in more than 60 countries, the company has been recognized as one of Canada’s fastest-growing and most innovative companies by renowned publications.