Home improvement Industry is Upbeat
Home improvement professionals remain highly confident about the state of their business and are expecting increased revenues over the next 12 months according to the results from the Q2 2017 HomeAdvisor Farnsworth Index*. More than three-quarters of the survey respondents (77.5%) said they expect their business revenue to grow, with mechanical and landscape companies anticipating the strongest revenue growth. The Q2 results reflect the typical strength of demand in the spring and early summer, with home improvement companies reporting that they are “busier” in the second quarter than they were in the previous quarter.
“Homeowners are opening their pocketbooks wider and commissioning bigger improvement projects as more than half (55.6%) of the businesses surveyed indicate that the average size of their projects has increased over the last 12 months,” said Brad Hunter, chief economist for HomeAdvisor. “We see a similar trend in HomeAdvisor’s internal data with an increased demand for discretionary improvement projects. Whereas four or five years ago, homeowners tended to do the bare minimum to keep their homes livable, deferring some of the less crucial projects, now they are feeling flush enough to indulge in some luxury.”
Despite feeling confident about the state of their business, home improvement professionals remain wary of finding enough skilled labor to support their business growth. Landscapers and remodelers express the most challenges with hiring skilled labor and have decreased confidence that they will have enough labor or will be able to hire enough labor over the next 12 months.
“A national shortage of skilled labor is one of the few headwinds facing the home improvement industry,” Hunter said. “The home improvement industry is growing rapidly regardless, but it would be able to grow even faster if not for the labor shortage.”
The HomeAdvisor Farnsworth Index serves as the definitive monitor in the home improvement industry to track business confidence among trade professionals and small businesses. The Index provides insights on new business leads and inquiries, volume and quality of job backlog, labor availability and costs, government and regulatory climate and the economy. The Index is informed by a quarterly survey of thousands of home professionals and small businesses across 13 business categories including remodelers, carpenters, painters, plumbers and roofers.
To view the complete Q2 2017 HomeAdvisor Farnsworth Index results, visit HomeAdvisor’s website.
About HomeAdvisor
HomeAdvisor is the operator of the largest home services marketplace across the globe, providing homeowners the tools and resources for home repair, maintenance and improvement projects. HomeAdvisor’s marketplace lets homeowners view average project costs using True Cost Guide, find local prescreened home professionals and instantly book appointments online or through HomeAdvisor’s award-winning mobile app, compatible with all iOS, Android and smart home devices such as Amazon Echo. Globally, HomeAdvisor owns the market leaders in Canada (HomeStars), Germany (MyHammer), France (Travaux.com), Netherlands (Werkspot), Italy (Instapro) and the UK (MyBuilder). HomeAdvisor is based in Golden, Colo., and is an operating business of IAC (NASDAQ: IAC).
About The Farnsworth Group
The Farnsworth Group is a custom market research firm with 30 years of expertise serving manufacturers and retailers in the building products, hardware, home improvement, lawn and garden industries. The Farnsworth Group provides actionable insights based on primary research and industry expertise to help clients evaluate the DIY and Contractor markets.
*Data included in the Q2 2017 HomeAdvisor Farnsworth Index is based on an online survey conducted by HomeAdvisor and The Farnsworth Group. The survey was conducted nationwide from May 11-26 among 1,582 respondents who work in at least one of the following 13 trade professions: remodeling, kitchen and bath, roofing, siding and windows, HVAC, plumbing, electrical, painting, carpentry, drywall, flooring, landscape and decking. Also, each respondent must have done at least 50 percent of their work on residential projects.
SOURCE HomeAdvisor
