This story was originally published in Remodeling.
According to the latest HomeAdvisor Farnsworth Index released yesterday, 32 percent of remodelers and exterior contractors expect their company's revenue to grow 11 percent to 20 percent in the next 12 months. The index, a quarterly survey measuring business confidence in the remodeling industry, showed remodelers remain confident about market conditions for the rest of 2018.
HomeAdvisor surveyed 1,225 firms from Feb. 15–28, and asked questions about business leads, volume and quality of backlog, labor availability, and government regulations.
Here are some of the findings from this quarter's index.
Big Expectations
While 32 percent of remodelers and exterior contractors expect their company's revenue to grow 11 percent to 20 percent in the next 12 months, an impressive 23 percent of remodelers and 33 percent of exterior contractors expect their revenue to grow 31 percent to 50 percent.
Steady Confidence
Remodelers and exterior contractors are the most confident business groups, reporting 8.9 and 9.2 optimism (out of 10), respectively. Exterior contractor's optimism is up from 8.8 in Q4 2017.
More Work to Do
55 percent of contractors said their average project size has increased over the past 12 months. Exterior contractors saw the most dramatic increase in the average price tag of a project (coming in at 55.3 percent in the first quarter, versus 52.7 percent the same quarter a year ago).
Call for Help
54 percent of firms reported challenges hiring skilled workers, the highest of which being landscapers (62 percent). Firms also said if there were no challenges in hiring skilled labor, they could improve revenue even more. 24 percent of remodelers and exterior contractors said they could grow revenue an additional 11–20 percent if not for labor constraints.
The full report can be downloaded here for free.
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