Snapshot Survey Results | Consolidation in Home Services
In the May 2022 Snapshot Survey, we asked contracting business owners about how consolidation has affected their businesses to help you incorporate best practice strategies into your company planning. Here’s one survey question and its results from the “Consolidation in Home Services” summary report, which will be available in its entirety to EGIA members on 6/20/22.
Has consolidation of home services businesses in your marketplace impacted how your company does business?
Consolidation refers to the acquisition of smaller companies by a larger company in order to increase market share and profitability. The home services industry has seen a recent wave of consolidation from private equity professionals, creating opportunities for retiring owners to sell and steeper competition for those remaining in the marketplace. According to the contractors who took our survey, the majority of contractors (50%) said that consolidation has affected how they do business. The fact is, consolidation will affect all contracting business owners in some way or another. Investing in processes that strengthen brand loyalty – including service agreements – is a sure-fire way to insulate your company from any competitive disadvantages and will help you sell high if you choose to.
Here’s what an HVAC contractor from Texas said in the survey:
“Small companies that are well organized and have consistent training will do well no matter how many companies get consolidated.”