GOLDEN, Colo., Aug. 22, 2018 /PRNewswire/ — Home improvement professionals saw increases in both project size and revenue per project over the past 12 months and remain confident in their ability to grow their businesses over the next year, according to the Q2 2018 HomeAdvisor Farnsworth Index *.
“Home improvement is booming and business owners in this sector expect that to continue,” said Brad Hunter, chief economist for HomeAdvisor. “Our index shows 80 percent of the businesses surveyed expect to see revenue growth in the next 12 months, with exterior contractors â€“ siding, roofing, doors and windows â€“ most bullish of all. Meanwhile, higher home values continue to give homeowners the power and confidence to invest in their homes.”
“We are entering a critical time to observe contractor sentiment,” said Grant Farnsworth, Partner at The Farnsworth Group. “With labor challenges remaining, material costs continuing to rise and the unknown of tariff implications, contractors are on the front lines of feeling the effects of these market conditions. The HomeAdvisor/Farnsworth Index is an important industry measure to understand if, when and how these effects are impacting their business.”
Key Highlights from the Index:
All home pro groups surveyed are confident in their ability to get new business in the next six months, with exterior contractors (siding, roofing, doors and windows) the most confident of all. Landscapers were the only group that was less confident than a year ago, but are still optimistic.Pros expect their companies’ revenue to increase in the next 12 months — most expect revenue growth of up to 20 percent.Revenue per project is on the rise: most pros indicated their average revenue per project increased up to 10 percent.The labor shortage impact is real and growing. More than half the pros surveyed reported they experienced challenges hiring for jobs. If not for the labor shortage, the companies surveyed estimated they could increase their revenue up to 20 percent.
The HomeAdvisor Farnsworth Index is a quarterly survey of home professionals and small businesses across 13 home services professions and serves as a barometer of the health of the home improvement industry.
To request an interview with HomeAdvisor’s chief economist, Brad Hunter, please reach out to the media relations team. To view the complete Q2 2018 HomeAdvisor Farnsworth Index results, visit HomeAdvisor’s website.
HomeAdvisor Â® is a digital marketplace evolving the way homeowners connect with service professionals to complete home projects. With HomeAdvisor’s on-demand platform, homeowners can find and vet local, prescreened home service professionals; view average home project costs using True Cost Guide; and instantly book appointments online or through HomeAdvisor’s award-winning mobile app, which is compatible with all iOS, Android and virtual assistants, including Amazon Echo. HomeAdvisor is based in Golden, Colo., and is an operating business of ANGI Homeservices (NASDAQ: ANGI).
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 2018 HomeAdvisor Farnsworth Index is based on a nationwide online survey conducted by HomeAdvisor and The Farnsworth Group. The survey was conducted from June 13th to July 2nd 2018 among nearly 1,400 respondents who have performed at least 50 percent of their work in connection with residential projects and work in at least one of the following 13 home services professions: remodeling, kitchen and bath, roofing, siding and windows, HVAC, plumbing, electrical, painting, carpentry, drywall, flooring, landscape and decking.