The Green Industry experienced a 5% decline in new work scheduled in Q3 2022 but median revenue grew 5-10% year-over-year, according to the latest Home Service Economic Report: Q3 2022 Edition from Jobber.
Businesses in the Green segment experienced volatility in new work scheduled throughout the first three quarters of 2022. Contract jobs can represent as high as 20% of all jobs in peak seasons, but then reduce significantly in the off season. Last quarter, contract jobs experienced a significant year-over-year decline.
The Green segment saw a spike in new work scheduled early in the year, which quickly declined, then flattened out. Last quarter, the new work scheduled performance was quite similar to the back half of 2021.
The decline in new work scheduled in the Green Industry, however, did not impact revenue growth for this segment. Year-over-year revenue growth for Q3 2022 was around 5–10% and seems to be stabilizing at these levels.
While continued supply chain issues and a slight slowdown in demand contributed to declines in new work being scheduled in Q3 2022, revenue growth in the Green Industry continued to be positive. “The Home Service category has shown an incredible ability over the last few years to navigate tough challenges impacting every sector across the globe, from supply chain disruptions to labor shortages and rising material costs,” said Sam Pillar, CEO & co-founder of Jobber. “While these challenges are expected to linger, Home Service is once again showing strong stability and good revenue growth compared to other categories. The future looks bright in this category.”
Although the economy has slowed down across many categories in Q3 2022, the impact on Home Service has not been as significant. There are numerous positive signals that demonstrate resilience in the category.
- An Appetite for Home Service: Consumer spending on Home Service has been strong and was second only to Restaurants in Q3 2022, outperforming other major categories, including Automotive, Grocery, Clothing, and more.
- Growth Rates Show Stability: Although 2022 isn’t seeing the same ultra-high growth rates as last year, most of 2022 has still had healthy median revenue growth rates of 7-10% year-over-year.
Let’s Get Digital (Payments)
The ability to pay for services digitally has become an expectation among consumers. The pandemic and the need for social distancing boosted digital payment adoption in Home Service over the past couple of years—a trend that continues to grow.
- Digital Adoption: Digital payments represented 40% of total payments collected in Q3 2022.
- Contracting Catching Up: Historically, Contracting has been the slowest segment to adopt digital payments but now shows a similar trend as Green businesses, which collected more digital payments in peak season.
“Year-over-year growth in 2022 is relatively lower than in 2021, which was boosted by pandemic-related home improvement trends. Even with this slowdown, the category continues to grow at a very healthy rate of around 10%,” explained Abheek Dhawan, VP, Business Operations at Jobber. “What we’re seeing is the Home Service category normalizing after pandemic-related volatility. Home Service remains a priority for consumers compared to other categories like Clothing Stores and Automotive. Even with macroeconomic uncertainty, we see a positive outlook for Home Service.”
The report featured expert insights and proprietary data aggregated from more than 200,000 residential cleaners, landscapers, HVAC technicians, electricians, plumbers, and more, who use Jobber operations management software for home service businesses.
For more on Jobber, see “6 Landscape & Tree Care Pros Awarded Jobber Grants.”