Nov. 17 2021 12:23 PM

While all home service category segments saw increases, recent supply and labor shortages serve as key challenges.

The green industry market segment, consisting of irrigation, landscaping, tree care and other related outdoor services, has seen increased growth despite supply and labor challenges, according to Edmonton, Alberta-based Jobber’s November 2021 Home Service Economic Report.

Throughout Q3 of 2021, green segment growth in new work continued to prosper at just under 10% growth year-over-year, according to the report. Abheek Dhawan, vice president of business operations at Jobber, says that while growth in scheduled new work has slowed down from May onwards, “revenue growth has still been very healthy throughout 2021.”

Customer demand for home services across segments of cleaning, contracting and green is at an all-time high. Dhawan attributes this unexpected flourish in the three home service category segments to the booming real estate market and growth in home renovations.

“With most COVID-19 restrictions lifted, more and more homeowners are more confident in inviting service providers back into their homes,” says Dhawan.

Dhawan says the three home service category segments could have seen an even larger fluctuation, but as businesses face battles against labor shortages and supply chain restrictions, the current trends remain.

Invoice sizes also experienced an increase across the home service category segments. Dhawan explains this positive swelling partly to inflation and the increase in material and transportation costs, of which are mostly being passed along to homeowners.

“This increase in invoice sizes means that even with businesses not being able to fully meet consumer demand, revenue growth continues to look healthy,” says Dhawan.

In order to ride this wave of flowering business opportunities, it’s imperative that industry professionals have enough labor, Dhawan says. Within the home service category, it is normal for new work scheduled and median revenue to be closely intertwined and correlated when it comes to growth and depletion. However, in Q3 of 2021, new work being scheduled suffered a slower year-over-year growth rate as opposed to the much faster rate in which median revenue grew.

“The labor shortage was one of the primary drivers for this, as the slowdown in new work is a result of service providers’ inability to meet the rising demand,” Dhawan says. “Our data shows that service providers that were able to increase their headcount were able to schedule more work and increased revenue at a much faster rate.”

Dhawan explains that the ratio of hires to job openings has decreased greatly as well, which he says suggests that “the current demand for talent is not being sufficiently met.”

“This inability to hire enough employees likely prevented service providers from keeping up with demand and taking on more work,” Dhawan says.

Finding experienced help is the hard part and is something almost all industries are currently combatting, Dhawan says. To find sufficient help, businesses should keep a close eye on social media, job fairs and industry networking events. Businesses and entrepreneurs of the same industry can communicate with one another and share advice, ask questions, learn from one another and receive support.

“Ultimately, the best source is always referrals, so investing in your employees and their satisfaction is always a good strategy to grow your team,” Dhawan says.

The report features insights and proprietary data aggregated from more than 100,000 lawn, landscaping and other home service professionals that were then used to identify trends and insights throughout the category.