COLUMBUS, Ohio — Small businesses make up 47% of the private labor force and contribute 44% to GDP in the U.S. Jobber, an operations management platform for home service businesses, is uniquely positioned to identify aggregate trends and insights in this important small business segment. Jobber’s analysis of the home service economy in 2022 and outlook for 2023 highlight three major trends: rising costs, persevering consumer demand, and long-term resilience. In this Jobber Home Service Economic Report, a deeper understanding of these themes and the potential impact they may have on home service professionals is explored.
Key takeaways:
- Home service businesses continue to grow in revenue despite headwinds. This is mainly driven by price increases rather than by a higher number of jobs. The year 2021 had very high growth. As a result, flat to low growth in 2022 is actually a net positive; two-year compound annual growth rate (CAGR) is over 15%.
- New business starts spiked in mid-2020, seeing more than 40,000 new construction businesses and 30,000-plus new lawn care and cleaning businesses start every month. This trend has sustained at these levels since then.
- Similarly, construction spends, remodeling activity, and revenues of green and cleaning businesses have sustained at elevated levels.
- Trade school revenues have grown by more than 10% year-over-year over the last few quarters, even in Q3 2022. When viewed as a proxy for interest in this domain, this illustrates a great sign for the future of home service employment and entrepreneurship.
For more information, visit https://getjobber.com/home-service-reports/march-2023.
