According to a recent report from Verified Market Research, the global home services industry is expected to experience steady growth of approximately 18.91% per year from 2019 to 2026. While the COVID-19 pandemic presented significant challenges for many providers in this industry, it is encouraging that the market has since rebounded and is poised for further expansion in the years ahead.
In 1989, I decided to jump head-first into the painting business for the same reason I would today. You can build as large a business as you want, and the competition is not very sophisticated compared to other industries.
When I started, there were no painting or handyman franchises. It was mostly just two guys and a truck. It is still that way today. I was at a painting convention, and I believe I heard that the average size of a painting in the US is 1.8 people. I guess that’s two people, but the helper is a no-show on Monday.
Other industries had similar margins but were more competitive and sophisticated. I choose the path of least resistance.
There are now about a dozen painting franchises, but they still make up a small total percentage of all painting businesses. And the same is true for handyman services.
Franchises in the home service industry are increasing because of a huge need. The industry is one of the least organized, with prices and services all over the spectrum.
Some home service industries overall do very well. Large ticket items such as new construction slow during a recession but home improvements such as painting and handyman service will only slightly decrease.
Higher interest rates can affect luxury home services such as house cleaning and big-ticket improvements like swimming pools and additions.
However, painting and handyman services must be done as needed and often cannot be postponed.
As you look around, you start to see that every structure has paint somewhere on it. Schools, hospitals, churches, and government buildings have maintenance budgets, and maintaining them is not an option.
In addition, when homes are sold, the buyer or seller will usually have painted the house.
Retail space is one area where the belt can get tightened. Even though stores have to keep a clean appearance, during a recession the up keep could get delayed in some cases.
Consumers are increasingly finding contractors online. According to LSA, 65% of consumers find home remodeling services online and 64% for painting.
Also, consumers are using their smartphones more often than a desktop. According to a company called Google, over 67% of consumers now find painting contractors on their smartphones, a 107% increase in the last three years.
Most consumers are not searching for anyone particular home service trade. 86% of consumers do not have a specific company of painting they search, and the same is the case for 68% of remodeling searches are a generic
68% and 86% of the remodeling and painting searches are generic.
In other words, most consumers don’t have a go-to painting or remodeling company.
Most people, myself included, eat pizza more often than they get their house painted. And pizza tastes better ever since they took the lead out of the paint.
But which one is more lucrative?
A painting job, on average, is a $4,000 ticket, while a pizza is about $25.
It would take 160 pizzas to equal one average-size painting job.
In 2023, it is common to be awarded large residential painting contracts between $15k – $30k.
A home over 5,000 feet can easily cost $35k+. Now we are talking about 1,400 large pizzas verse one large painting job.
Facts:
College enrollment has been steady at 40% for individuals 18-24 years of age, according to NCES.
The average age of a painting contractor is 45 years old.
I’m sure you have heard of the skilled trade labor shortage. It is true. This is a blessing and a curse. The curse is that finding good workers is difficult, not impossible, but difficult. My franchisees have experienced about 6-12 of time to put together a good group (5-10 workers) and a couple of handymen.
The good news is that you pay a little more for their value and charge more for your services. Yes, it’s inflation. If you once paid $25.00 for labor and $60, you are now paying $30.00 and $75.00. That’s good news!
The home service industry is like most people’s golf game. Very inconsistent and frustrating. Our industry lacks consistency because it is very easy to start a painting or handyman business. With a pick-up truck and $1,000 bucks in tools, you are ready to earn a decent living. However, these businesses rarely grow to more than a few helpers; jobs come from word of mouth.
An organized business with systems in the home service industry can grow to be a million-dollar company in a few years.
Over 33 years, I’ve been “Chuck and a Truck” and a large painting and handyman company where I managed people. This is what I know:
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