The home services industry began 2022 with strong growth due to the home renovation trends from the previous year; however, factors such as rising material costs, labor shortages and inflation resulted in a slight decline in new work being scheduled in Q2 and Q3, according to Jobber’s Q3 Home Service Economic Report. The report also noted that the category as a whole is still outperforming most categories in terms of revenue growth.
Though contracting businesses were impacted by the previous factors listed, median revenue benefitted from rising prices, the report explains. While the contracting segment experienced the lowest growth rate in new work being scheduled compared to the other home services segments in Q3, year-over-year growth in revenue is still around 6% to 8%. At the start of 2022, businesses achieved a 15–20% year-over-year increase in revenue growth, dropping in Q3 as a result of a slowing economy, the report reveals. Despite these trailing headwinds, industry experts are cautiously optimistic as they look ahead to 2023.