2. Riding the Revival
Nothing is more critical to the success of the 3 home services providers in this Profiler – electrical contractors, plumbers and air conditioning contractors – than the current state of the construction and remodeling industries.
According to Dodge Data & Analytics, US construction is forecast to increase 6.0% to a total of $712.0 billion, with the single-family sector gaining the most, at 20%; followed by commercial buildings, 11.0%, and institutional buildings, 9.0%.
The National Association of the Remodeling Industry (NARI) reported in its December 2015 Remodeling Business Pulse that 80% of the remodelers surveyed expected an average increase in their business of 13.1% during 2016.

3. Looking for Many Good Men…and Women
Construction and specialty trades employment is another critical metric for measuring the growth of home services providers; and January 2016’s total of 6.6 million construction jobs was a 4.2% increase and the highest figure since 2008.
During January 2016, residential construction jobs increased 6.2%, compared to January 2015, and non- residential construction jobs recorded a 2.9% increase for January compared to last year.
The recession damaged the construction and trades industries so badly that 60% of former workers found employment in other industries or become jobless, leaving only 40% that could still find construction and trades jobs.

4. Wired for Success
According to First Research data, total revenues for the electrical contracting sector, which consists of approximately 70,000 single- and multi-location companies, increased 3.8%, from $130 billion to $135 billion during the February–November 2015 period.
For the top 50 electrical contractors, as reported by Electrical Construction & Maintenance, 2014 electrical and datacom revenues were $21.8 million, or a 38.9% increase compared to 2013’s total increase of $15.7 million for the group.
Of the top 50 electrical contractors, 47% expected to exceed their sales projection for 2015, compared to 31% for Worker shortage was a problem for 75% of them, but 70% expected to add employees during 2015.

5. No Slumber for Plumbers
First Research reports that total revenues for the approximately 93,000 plumbing and HVAC contractors increased 11.5% from August through February 2016.
Leaders in the plumbing trades and manufacturers of hot water heaters expect modest, but steady growth for the overall industry during The hot-water-heater replacement market will remain stable at 85% of all water heating sales.
Although shipments of residential gas water heaters and electric water heaters decreased 2.2% and 5.9%, respectively, for 2015, shipments of commercial gas water heaters and electric water heaters increased 4.1% and 20.1%, respectively.

6. A/C Contractors Feeling Cool and Comfortable
According to The Indoor Environment & Energy Efficiency Association (ACCA), its January 2016 Contractor Comfort Index was 76, increasing 4 points from 72 for December The Index measures contractors’ short-term outlook for growth.
Shipments of central air conditioners decreased 11.9% and air-source heat pumps decreased 25.3% for December compared to December 2014, or a combined decline of 17.2%.
Total shipments of both product categories decreased 0.6% for 2015, with central air conditioners increasing a modest 1.0% while air-source heat pumps decreased 3.6%. Despite these declines, the table on page 2 of the Profiler indicates good long-term growth.

7. Driving Revenues with Online Reviews
According to data reported in THE MEDIACENTER’s February 2016 New Media Insights Report, “Why Perfect Online Reviews Aren’t Perfect,” 92% of consumers thought online reviews were important to the integrity of local businesses.
A late-2014 survey from Software Advice found that 96% of consumers considered online reviews of residential services companies to be moderately to extremely valuable: extremely, 25%; very valuable, 43%; and moderately valuable, 28%.
Of the customers surveyed, 42% sought information about residential services companies from referrals (family members and friends) while 55% went online. Of those, 56% used search engines, 38%, online reviews; and 6%, Craigslist.

8. Advertising Strategies
Home service providers can use TV and digital media to cross-promote a specially discounted spring checkup of homeowners’ electrical, plumbing and air conditioning equipment.
With seniors the largest group of TV viewers, home service providers can brand themselves as specialists in advising Baby Boomers who want to remain in their homes how to protect their investment and make their homes safer with remodeling and retrofitting ideas.
Another branding opportunity for home service providers on TV is to promote themselves as specialists in creating green or eco-friendly environments, utilizing new technologies that help homeowners save money through greater energy efficiency.

9. Social Media Strategies
Since consumers consider online reviews more important than word-of-mouth referrals, home service providers should provide an incentive to motivate new (and repeat) customers to write and post reviews of their experience, energy-efficiency savings, etc.
Home service providers, especially those with many green-energy projects, can use their Website and social media pages to publicize and promote local projects to improve the community’s natural environment, recycling and the latest in wind and solar technology.
Since many of the trades are having trouble attracting young adults, home service providers can use social media to promote the benefits of a career, with videos of current technicians explaining their jobs and satisfaction, as content in a regular blog or podcast topic, etc.