Jobber on 2023: “The year that the Home Service economy returned to normal levels”

Jobber released its annual Home Services Report, reflecting on 2023 and highlighting trends for 2024. After a couple of gangbuster years, Jobber defined 2023 as “the year that the Home Service economy returned to normal levels.” 

What happened in 2023: Digital payments accounted for ~40% of Jobber customers’ total payments collected, with no signs of the trend reversing.

• Commodity prices came down ~10% for the year as supply chains relaxed, and inflation slowed down.

• Of the $2.1 trillion in excess savings that households accumulated during the pandemic, about $430 billion remains in the economy.

• Although consumers hold record levels of debt, their take-home incomes rose throughout the year. 

• Demand for contracting services, which include HVAC, plumbing, and electrical, saw a 5-10% decline, however, contractors were able to “smartly” raise prices, resulting in flat year-over-year revenue growth. 

Heading into 2024: The $32 trillion in total homeowners’ equity, coupled with an aging housing stock, is expected to drive investments in home maintenance and upgrades.

• Although homeowners have gotten wealthier, the slowdown in inflation might affect contractors’ ability to raise prices this year. 

The takeaway: All things considered, Jobber says contractors should explore offering add-on services to boost revenues and negotiate with suppliers to manage costs and preserve margins. 

💭 Our thought bubble: Do you feel like raising prices for your customers will be a challenge this year?