What is the home service industry?
With more households dominated by two working parents, maintaining the household has become a chore for third parties. The home service industry is growing as more homeowners delegate their chores and repairs to third parties.
Services to maintain the home.
The home services industry encircles many different categories, all of which are geared towards improving and up keeping the home. Services such as decoration, renovation, landscaping and cleaning constitute categories within the home services industry. In other words, services that homeowners consider when they want to make adjustments to their house.
Among the most popular home service franchises are Chem-Dry Carpet Cleaning, Caring Matters Home Care, and Oxi Fresh Carpet Cleaning, to name a few. As with the auto industry, more and more people are looking to franchises for their home service necessities. When bringing a business into the home, especially for services like repair or painting, many people prefer to go with a recognizable name or company that has preexisting credibility.
Many people prefer to go with a recognizable name or company with preexisting credibility.
Top Services in the Industry
As mentioned earlier, the home services franchise industry consists of many different sectors. The most popular and profitable among these are:
- Handyman Services
- Plumbing and HVAC
According to a report conducted by IBIS World, Handyman Services constitute the highest grossing subcategory within the industry, bringing in an estimated $5 billion in revenue each year with an annual growth rate of 8.1 percent. This is followed by HVAC service, painting and decorating, and plumbing services. In total, it is predicted that the home services industry earns roughly between $400 to $800 billion.
Flooring is another aspect of the industry that drives a significant portion of home service sales. In 2014, flooring drove in over $19.5 billion with both renovation, repair, and new installments. However, sales in flooring fluctuate according to the season, as not many homes are sold outside of the summer. In other words, the sector depends highly on the real estate market.
Plumbing and HVAC
Plumbing and HVAC (heating/ventilation/air conditioning) constitutes another primary sector within home service franchising. This sector is unique in that many predict high job growth in the area, as there is a lack of skilled workers in the field.
Current Trends Driving the Future
Recent trends have also served a role in dictating the home services industry, specifically trends in home remodel. According to the National Association of the Remodeling Industry (NARI), there are five house design trends that have flourished in recent years. For instance kitchen remodels, have become among the most popular renovation projects, driving other services (such as plumbing) in the industry. Similarly, bathroom upgrades with modern appliances. Flooring has also gone more modern in recent years. All of these trends drive the success of franchises in the home service industry.
Is the Industry Right for You?
Homeowners will always seek to outsource work around the home that they are either incapable of completing or too busy to take on. Thus, there will always be a demand for home industry services. However, as an interested franchisee, know that owning a franchise in this industry requires hiring skilled employees that have much knowledge in the field. As a result, it is imperative that you, as the interested franchisee, understand the details behind your business. While franchises typically provide franchisees with some sort of training program, the degree of necessary prior knowledge depends highly on your business area of choice.