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Ever since homeownership was part of the American dream, there has been a rapid rise in homeowners renovating their homes. Historians can point out the rise of the home services industry to the end of the first World War. However, recent trends are shaping this rapid growth of home services and home improvement businesses recently. This hints that this is just the beginning of the rise of this industry for many years to come.
The home services sector comprises companies whose main objective is to restitute, renovate, and redesign residential buildings, although some also supply their services in commercial buildings. Some of these services are:
- Plumbing
- Moving and storage.
- Landscaping
- HVAC (Heating, Venting, and Air Conditioning)
- Flooring
- Concrete
With the rise of digital marketing and the explosion of online and mobile booking services, big companies like Amazon and Google are diving headfirst into the home services market, which is estimated at about $400 billion. Amazon Home Services alone covers over 655 types of home services!
This article will give you statistics about some types of home services and provide first-hand and useful facts.
Types of Home Services
Flooring
Flooring sales exceeded $19.5 billion in 2014 and climbed to $26.7 billion in 2020 due to a combination of renovations and repairs and new installations. In fact, only hardwood flooring sales exceeded $3.5 billion.
There are approximately 125,000 employees in the flooring sector alone, with an expected percentage growth increase of about 5% by 2024.
Carpet is one popular floor covering for residential and commercial buildings and represents close to 45% of the market. However, parquet floors have been making a comeback over the past decade, and industry players expect this to continue. Other popular floor covering types are ceramic tiles and elastic vinyl or linoleum floors.
Residential works account for sixty-five percent of carpet sales and the rest for commercial works.
The problem with floor coverings is seasonality, as most apartments are sold in the summer, and the vast majority of floor coverings are done immediately after the home is sold. Like other companies in the industry, the flooring market is very much linked to the real estate market; this means that a corresponding demand fall in the real estate market will be mirrored in the flooring market.
Likewise, the commercial market, which is important for wholesalers, depends on low occupancy rates as it requires offices ready for renovation.
HVAC/Plumbing
HVAC and plumbing services are often grouped as one industry. Plumbers install and repair bathroom and kitchen equipment and may also install gas appliances, while HVAC contractors repair and install air conditioners, ovens, and refrigeration systems. In 2020, the HVAC sector created 165,307 jobs in California alone, being one of the hottest states by season. This figure is double the tally of the second-highest ranked state, New York. Employment in the HVAC sector is expected to grow at a rate of about 5% within 2020 to 2030.
The lack of qualified professionals is a constant obstacle for companies in this sector - which is why job growth estimates are being evaluated periodically! Demand for services will come from both newer and older buildings with higher performance standards to be required. In this area, there is a timeless opportunity to modernize and redesign the houses built after the instability in the tail-end of the 20th century.
Landscaping
The landscaping industry comprises about 93,000 companies in the United States with an annual revenue of about $50 billion and employs close to 900,000 people. Home landscaping services often include leaf clearing, chemical lawn care, and mowing, while commercial landscaping services include pruning, mulching, mowing, flower planting, and general garden and lawn tendering. Margins in this sector are relatively low due to strong price competition.
Landscaping work is usually seasonal, especially for housing providers. Although business customers can pay monthly, demand from resident customers is generally higher in the summer and spring months, depending on the local climate. Landscape workers sometimes shovel snow in winter as part of the job description. While simple services like lawn mowing are common regardless of economic situation, customers can choose not to use services that require high pay if the economy is weak at the time.
Concrete
Concrete suppliers and contractors are usually locally-based rather than national, and there are many different specializations in the business. Residential contractors will carry out all these works as an aspect, but specialization in the concrete industry exists, and it takes a huge project to be done that allows for these unique aspects to come to the fore.
As in other areas of the industry, new construction is essential to the concrete industry. Most of the business is related to the construction of residential and commercial buildings in the area of building flooring, roofing, or framed construction. In certain regions with harsh winter climates, seasonality is an issue. Most of the work takes place in the warmer months. Health risks are of concern, even more so than landscaping, as silicosis is difficult to completely prevent due to inhaling concrete dust and accidents during construction. The future of this sector largely depends on the development of new concrete technologies. Concrete is constantly evolving and will be needed for new types of applications.
Moving and Storage
Migration for better job opportunities and retirement options influence this aspect of home services. More than 30 million Americans relocate every year. That is over 9% of Americans move yearly. Relocation and storage involves around 7,000 companies and generates around $86 billion in total revenue, including the number of employment opportunities it creates indirectly. The industry has various types of suppliers, including local moving companies, national relocation companies, and interstate relocation companies.
Most changes happen in the summer, making the industry very seasonal. Home sales are an important indicator of a business's success, as is business relocation. At the national level, the economy is affected, but local economic conditions can have an impact.
Conclusion
The fast expansion of the home services and home renovation sector has resulted in an explosion of digital marketplaces that connect consumers with service providers, ranging from specialized sites to subscription sites to general market sites. Big-box home improvement merchants have developed their own professional services platforms, while tech behemoths Amazon and Google have lately entered the fray with Amazon Home Services and Google Local Services, respectively. Competition will be severe, and businesses will need to provide exceptional customer service in order to maintain high ratings and positive reviews
