Seasonal Trends Impacting Confidence - Q4 2021 Farnsworth Contractor Index

Seasonal Trends Impacting Confidence - Q4 2021 Farnsworth Contractor Index

The percent of contractors expressing challenges finding labor is at its highest point in 2 years. Meanwhile ‘Lead volume’ is at record levels for 4 of 5 trade groups and ‘Ability to close leads’ is at record levels. This is the result of quality leads, i.e. homeowners intent on doing the work.

Each quarter The Farnsworth Group provides its Contractor Index to the industry.  We survey hundreds of residential contractors from five main areas:

-       Remodeling Contractors (Remodelers, GCs)

-       Exterior Contractors (Roofers, Siding/Window Contractors)

-       Finish Contractors (Painters, Flooring Contractors, Carpenters, Drywall)

-       Mechanical Contractors (Plumbers, Electricians, HVAC)

-       Landscape Contractors (Landscapers, Decking Contractors, Concrete)

 

Our Q4 - 2021 Farnsworth Contractor Index is now available.  Results show strong optimism among interior trades: Remodelers, Mechanical Contractors, Finish Contractors.  However, given the winter months ahead, Exterior Contractors and Landscapers are less confident in their ability get new business over the next 6 months.

Remodelers are the most confident they have been since the pandemic, and it’s another reason The Farnsworth Group is bullish on existing home contractor activity heading into 2022.  Homeowners have equity, savings, and few options if they want to move.  Plus, there is pent up demand from work that did not happen in 2020 or early in 2021, and with increasing homeownership rates, there is also increased demand for residential contractors.

 

Here are some key takeaways from this quarters' Contractor Index.

 

-       Overall confidence to get new business remains high. 7.84/10 in Q4 2021vs 7.76 this time last year.

-       Revenue expectations for the next 12 months have improved over Q3,where they saw a dip.

-       % of contractors expressing challenges finding labor is at its highest point in 2 years.

-       Most trade groups are busiest today than anytime in the prior 2-3years.

-       Q1 2021 project activity is greater than Q1 2020, with the largest YOY increase among Remodelers.

-       ‘Ability to close leads’ is at record levels.  This is the result of quality leads, i.e. homeowners intent on doing the work.

-       ‘Lead volume’ is at record levels for 4 of 5 trade groups.

-       Confidence among all contractor segments is up a full point YOY – 6.74in Q1 2020 to 7.74 in Q1 2021.

-       51% of residential contractors expect to increase their company revenue in 2021 over last year.

 

Be sure to check out the full report of our Q4 Farnsworth Contractor Index by downloading the full report today. Contact us for industry insights on what this means to your business and what to be paying attention to going forward regarding your customers, brand and products.