Construction and Renovation Projects Drive Continued Demand for Home Services
HVAC industry shows remarkable growth amplified by government regulations and the repair and replacement of systems in older homes
TORONTO, May 19, 2022 /CNW/ - Jobber, the leading provider of home service management software, today released its Home Service Economic Report: Special HVAC Edition, which provides a snapshot of the Home Service category's performance, followed by a deep dive into the factors impacting the Heating, Ventilation and Air Conditioning (HVAC) industry. The report includes expert insights, external data, and proprietary data aggregated from more than 160,000 home service pros who use Jobber.
Home improvement and maintenance expenditures continue to see strong growth performance with last quarter reaching record-breaking growth. Year-over-year revenue growth in the Home Service category overall was up 19% in Q1 2022.
"Home Service continues to perform well against other consumer spending categories largely due to a surge in new home construction and renovation projects," said Sam Pillar, CEO & co-founder of Jobber. "While talent gap and supply chain issues are impacting the ability for HVAC businesses to hire and take on new projects, the industry as a whole is experiencing tremendous demand that will keep techs and business owners busy for years to come."
The HVAC equipment market, valued at $130 billion in 2021, is projected to reach $206 billion by 2030. A number of factors have contributed to a boost in recent growth and market forecasts, including:
- A New Construction High: March 2022 marked record-breaking growth in new construction permits being issued;
- Sustainability Creates New Demand: Government regulations to reduce energy consumption and carbon emissions from HVAC systems are creating homeowner demand for newer systems;
- Aging Homes Need Repair: More than 50% of U.S. homes are 40+ years old, creating a strong market for the repair and replacement of HVAC systems and other components
Demand for HVAC services has surpassed the market's capacity to deliver services. This has spurred an increase in the number of net new HVAC businesses established in 2021 and into this year. This growth is expected to extend throughout 2022.
- Invoice Sizes Grow: Expanding cost of services and growth in project scope has led to a 23% year-over-year increase in invoice sizes for Q1 2022;
- A Backlog of Jobs: Many HVAC businesses are booked through the summer in anticipation of yet another hot season.
The HVAC industry is in a hiring frenzy. There are currently more jobs than candidates available, leading to increases in the wages being offered. Companies that are able to increase headcount are reaping the benefits.
- Positions Outpace Candidates: It's predicted that 1.8 positions will be available for every technician working in HVAC as a result of the labor shortage;
- Labor Cost Increases: The median cost of labor grew by 13% year-over-year in Q1 2022 compared to Q1 2021;
- Hiring Drives Revenue: Businesses that added headcount in Q1 2022 grew by an average rate of 27% while businesses that decreased headcount only grew revenue by an average of 1%.
"Although inflation remains high and interest rate hikes are starting to take effect across the economy, we believe the HVAC industry will continue to persevere, especially as we approach its peak season," said Abheek Dhawan, VP, Business Operations at Jobber. "With businesses backlogged with scheduled work and job openings exceeding qualified candidates, there's ample opportunity for new entrepreneurs and skilled workers to capitalize on."
To download the Jobber Home Service Economic Report: Special HVAC Edition, visit: https://getjobber.com/home-service-reports/may-2022
Jobber is an award-winning business 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 160,000+ home service professionals have served over 12 million households in more than 47 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://getjobber.com/.
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Elana Ziluk
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SOURCE Jobber
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