Home Service Revenue Up 23% during COVID - Home Service Economic Report Data

Resilience, revenue growth, and resourcefulness are the main themes from our latest Home Service Economic Report.

The data—collected from tens of thousands of businesses—shows that home service revenue is up 23% from last year, far exceeding pre-COVID pandemic levels.

We’re also seeing changes to the way businesses are working. Unsurprisingly, contactless payments and client communications are on a huge upward trend, as they allow businesses to stay safe, stay in business, and impress customers—even at the toughest of times.

As we enter a new year, these findings are a reminder that home services are still a resilient and winning industry to be a part of.

We hope that this data can help you understand where the trends are headed, so you can make more informed decisions for the health of your business.

Read on for the data highlights and key findings.

1. ? Home Service Revenue Growth Reaches Record High, Surpasses Grocery Stores in Q4

It’s been a volatile year, but our data shows a positive trend for home service businesses.

Since June 2020, year-over-year revenue growth has been trending consistently upwards. In December, it reached a record high, growing 23% more than the same period last year.

Year-over-year Revenue Growth, All Home Service Businesses

Home Services Economic Report 2020 in Review - Median Revenue YOY01

This upward trend is even more significant when compared to other business categories.

U.S. Census Bureau data shows that year-over-year, Home Service revenue growth surpassed grocery stores, automotive, and general merchandise stores in Q4 2020.

 

Year-over-year Revenue Growth, All Business Categories

Home Services Economic Report 2020 in Review - Category Revenue Comparison - YOY Change-01 (1)

This growth shows that home services are a healthy and winning market to be a part of, even when compared to some of the most traditionally stable industries.

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2. ? Consumers are Spending More Money on their Homes and Properties

Since we’re all spending more time in our homes, it’s natural that we’d spend more money maintaining and improving them. Our data shows just how much more we’re spending, and what that could mean for home service businesses.

Consumer spending on home services has grown more this year than in any other category, except for food and beverages. That means in 2020, consumers increased home spending, and decreased spending nearly everywhere else.

More consumer spending means more opportunities for home service businesses to answer the call, expand their service list, and grow their client base. This activity creates an even healthier marketplace we’re excited to be a part of.

Year-over-year Consumer Spending Growth, All Categories

Home Service Economic Report, 2020 in Review: Consumer Spending Category Comparison - YoY Change-01

3. ? Contactless Service Grows, as Businesses Respond to Customer Demands

More home service providers are using service business software across their workflows. Our data clearly shows this trend.

  1. In 2020, home service providers used on-my-way text messages and appointment reminders to improve customer service, reduce cancellations, and avoid unnecessary physical contact. Overall, use of these features grew 67% compared to the same period last year, even though the number of service visits remained steady.
  2. Use of online and credit card payments grew 34% compared to the same time last year, as customers and businesses looked for ways to do business without handling cash or cheques.
  3. Finally, online booking requests were used 71% more this year than last. Not only are they an easier way for businesses to capture leads, but they’re also a better experience for customers who don’t want to wait on the phone to book work.

Year-over-year Service Visit Reminder Growth

Home Service Economic Report - 2020 In Review - YoY Change In Visits and Visit Reminders-01

Future Outlook

The bottom line is that home service businesses don’t stop just because the world is facing Unprecedented Times.

Quite the opposite. Home service providers rose to the challenge.

✔️ They continued to provide essential services and good jobs in their communities.

✔️ Their resourcefulness and resilience drove them to adopt new technologies so they could stay safe and generate more revenue.

✔️ And after a turbulent year, that hard work has paid off: Our data shows that consumers are requesting even more work, and service professionals are more than ready to answer the call.

We’ll continue to monitor and update the data as the year progresses.

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