This article originally appeared in REMODELING, a sister publication to PROSALES.
According to the latest HomeAdvisor Farnsworth Index released May 30, 32% of remodelers and exterior contractors expect their company’s revenue to grow 11% to 20% in the next 12 months. The index, a quarterly survey measuring business confidence in the remodeling industry, showed remodelers remain confident about market conditions for the rest of 2018.
HomeAdvisor surveyed 1,225 firms from Feb. 15-28, and asked questions about business leads, volume and quality of backlog, labor availability, and government regulations.
Here are some of the findings from this quarter’s index.
Big Expectations
- While 32% of remodelers and exterior contractors expect their company’s revenue to grow 11% to 20% in the next 12 months, an impressive 23% of remodelers and 33% of exterior contractors expect their revenue to grow 31% to 50%.
Steady Confidence
- Remodelers and exterior contractors are the most confident business groups, reporting 8.9 and 9.2 optimism (out of 10), respectively. Exterior contractor’s optimism is up from 8.8 in Q4 2017.
More Work to Do
- 55% of contractors said their average project size has increased over the past 12 months. Exterior contractors saw the most dramatic increase in the average price tag of a project (coming in at 55.3% in the first quarter, versus 52.7% the same quarter a year ago).
Call for Help
- 54% of firms reported challenges hiring skilled workers, the highest of which being landscapers (62%). Firms also said if there were no challenges in hiring skilled labor, they could improve revenue even more. 24% of remodelers and exterior contractors said they could grow revenue an additional 11-20% if not for labor constraints.
The full report can be downloaded here for free.
