FRESH CLIPPINGS
HOME SERVICE BUSINESS OUTLOOK STRONG BEYOND FOURTH QUARTER
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ome service businesses continue to outperform other industries as demand for professional home services remained high in the fourth quarter of 2021. That demand will only be tampered by the ongoing workforce shortage. A booming real estate market and domestic supply chain bottlenecks are expected to continue, which means high prices for business owners, according to Jobber’s Home Service Economic Report for the third quarter. Jobber surveys the more than 100,000 users of its business management software to create data for its reports.
Customer Demand is Up
Typically, Jobber reports, the amount of new work scheduled goes hand-in-hand with revenue performance. In other words, the more new jobs scheduled, the more money companies make. In the third quarter of 2021, however, the rate of new jobs slowed. Yet median revenue is growing. Essentially, green industry contractors are unable to keep up with the demand for work, but the invoices they’re billing out are larger than usual. The green industry experienced very high growth last year as consumers invested more in outdoor projects such as landscaping, which could be done while staying within the parameters of physical distancing. The growth in new work Essentially, green industry contractors are scheduled in the third quarter of 2021, although below the growth rate of the unable to keep up with same quarter in 2020, stayed positive at the demand for work, just under 10% growth year-over-year.
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Takeaways:
• Invoice sizes saw an increase across the Home Service category in these segments: cleaning, contracting and green. • Service providers who increased their headcount were able to schedule more but the invoices they’re work and increase revenue faster. Economic Pressures billing out are larger than • Although growth in new work scheduled Inflation, high consumer demand and a shortage of workers means home is slower due to resource limitations, revusual. services businesses are pinched for enue growth in Home Service remains workers, reducing the number of jobs they can take on. healthy due to the rise in invoice sizes. According to the U.S. Bureau of Labor Statistics, the • Green segment growth in new work scheduled during the third quarter 2021 continues to stay positive at just under 10% growth 12-month change in overall Consumer Price Index (CPI), or changes in consumer prices grew from 1.4 at the start year-over-year. • Home Service saw a substantial consumer price increase in the of the year to 5.4% in Sept 2021, the report states. Future growth in the green industry last 12 months. • Revenue growth in Home Service outperformed all other is likely, the report states. categories in the third quarter. greenindustrypros.com/21928194
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BLACK & DECKER BUYS PARENT COMPANIES OF CUB CADET, TROY-BILT, HUSTLER TURF
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tanley Black & Decker has completed the acquisition of two companies in the outdoor power equipment industry, including purchasing the remaining 80% ownership stake in MTD Holdings Inc., and the acquisition of Excel Industries. These transactions complement Stanley Black & Decker’s position as the fastest growing provider of cordless electric outdoor power equipment
10 GREEN INDUSTRY PROS
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with brands such as DEWALT, CRAFTSMAN and BLACK+DECKER. The purchase price for the two transactions totaled $1.9 billion inclusive of standard purchase price adjustments. MTD is known for lawn mowers, snow blowers, trimmers and outdoor power equipment for residential and commercial markets. The MTD family of brands includes Cub Cadet, Troy-Bilt, Robomow, Rover and WOLF-Garten.
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Excel is a manufacturer of commercial and residential turf equipment under the brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). In 1964, Excel introduced The Hustler, creating an entirely new product category now known as the zeroturn mower. Excel serves 1,400 dealers in the U.S. and Canada.
greenindustrypros. com/21928421
www.greenindustrypros.com
2/3/22 11:15 AM
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