Home Service Category Remains Resilient as Economy Slows
Category shows positive revenue growth that outpaces inflation and outperforms other major categories
TORONTO, Nov. 9, 2022 /CNW/ - Jobber, the leading provider of operations management software for home service businesses, today released its latest Home Service Economic Report: Q3 2022 Edition. The report features expert insights and proprietary data aggregated from more than 200,000 residential cleaners, landscapers, HVAC technicians, electricians, plumbers, and more, who use Jobber.
"The Home Service category has shown an incredible ability over the last few years to navigate tough challenges impacting every sector across the globe, from supply chain disruptions to labor shortages and rising material costs," said Sam Pillar, CEO & co-founder of Jobber. "While these challenges are expected to linger, Home Service is once again showing strong stability and good revenue growth compared to other categories. The future looks bright in this category."
Although the economy has slowed down across many categories in Q3 2022, the impact on Home Service has not been as significant. There are numerous positive signals that demonstrate resilience in the category.
- An Appetite for Home Service: Consumer spending on Home Service has been strong and was second only to Restaurants in Q3 2022, outperforming other major categories, including Automotive, Grocery, Clothing, and more.
- Growth Rates Show Stability: Although 2022 isn't seeing the same ultra-high growth rates as last year, most of 2022 has still had healthy median revenue growth rates of 7-10% year-over-year.
The ability to pay for services digitally has become an expectation among consumers. The pandemic and the need for social distancing boosted digital payment adoption in Home Service over the past couple of years—a trend that continues to grow.
- Digital Adoption: Digital payments represented 40% of total payments collected in Q3 2022.
- Cleaning Leads the Pack: Cleaning businesses experienced the highest adoption of digital payments.
- Contracting Catching Up: Historically, Contracting has been the slowest segment to adopt digital payments but now shows a similar trend as Green businesses, which collected more digital payments in peak season.
While continued supply chain issues and a slight slowdown in demand contributed to declines in new work being scheduled in Q3 2022, revenue growth in the Cleaning, Green, and Contracting segments continued to be positive.
- Cleaning: Cleaning businesses, which include industries such as residential cleaning and pressure washing, experienced positive revenue growth through the first three quarters of 2022.
- Green: The Green segment, consisting of lawn care, landscaping, and other related outdoor services, experienced a decline in new work scheduled in Q3 2022 - while median revenue growth was around 7-8% the same quarter.
- Contracting: Contracting, made up of construction contractors, plumbers, and electricians, experienced the biggest impact to new work being scheduled in Q3, but median revenue still grew 6–8% compared to last year.
"Year-over-year growth in 2022 is relatively lower than in 2021, which was boosted by pandemic-related home improvement trends. Even with this slowdown, the category continues to grow at a very healthy rate of around 10%," explained Abheek Dhawan, VP, Business Operations at Jobber. "What we're seeing is the Home Service category normalizing after pandemic-related volatility. Home Service remains a priority for consumers compared to other categories like Clothing Stores and Automotive. Even with macroeconomic uncertainty, we see a positive outlook for Home Service."
To download the Jobber Home Service Economic Report: Q3 2022 Edition, visit: https://getjobber.com/home-service-reports/november-2022/
Jobber is an award-winning operations 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 provide 5-star service at scale. Jobber's 200,000 home service professionals have served over 27 million households in more than 60 countries. The company continually ranks as one of Canada's fastest-growing and most innovative companies by Canadian Business and Macleans, The Globe and Mail, Fast Company, and Deloitte. For more information, visit: https://jobber.com/.
Sean Welch
PAN Communications for Jobber
[email protected]
+1 407-734-7330
Elana Ziluk
Senior Public Relations Manager, Jobber
[email protected]
+1 416-317-2633
SOURCE Jobber
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