Industry grows as more consumers lack the time for home fix-it jobs.
Melbourne, Australia (PRWEB) May 23, 2014
Over the past five years, the Tradesman and Handyman Franchises industry has grown strongly. Industry operators are typically sole traders that perform of range of jobs such as gardening, building maintenance, plumbing, fencing and painting. According IBISWorld industry analyst Ryan Lin, “industry operators have benefited from the increasing number of consumers that lack both the time and skills to perform labour-intensive manual tasks around the home”. As a result, the industry has grown at an annualised 3.2% over the five years through 2013-14 to total $881.9 million.
The steady rise in the number of households over the past five years has aided industry growth. “As more households take up residence in new dwellings, demand for industry services to make alterations or perform maintenance work is likely to increase,” says Lin. This is supported by the growth in capital expenditure in private dwellings which is forecast to be significantly higher in 2013-14 than in 2008-09. Industry revenue is forecast to grow by 3.3% in 2013-14 as a result of stronger demand.
The Tradesman and Handyman Franchises industry exhibits a moderate level of market share concentration. Jim's Group Pty Ltd, VIP Home Services Pty Ltd and Hire A Hubby make up a significant portion of industry revenue between them, as they have established the greatest brand recognition throughout the industry. However, beyond these three companies, the industry is highly fragmented. Many franchises only work within small regions or within a single state, precluding them from gaining market share commensurate with major players that have nationwide operations. Industry operators have traditionally operated as independent sole traders. Over the past five years, however, the franchise business model has become more prevalent. This is largely due to the rising instances of competition, with franchise businesses more effective in collectively marketing and promoting tradesmen and handymen. As a result of this competitive edge in marketing, tradesmen and handymen have increasingly joined franchise businesses to boost exposure and increase competitiveness.
Over the next five years, the Tradesman and Handyman Franchises industry is expected to continue its growth. Services performed by the industry will remain largely safe from any substitutes or external competition. Despite favourable growth conditions, competition within the industry will heat up over the next five years as the number of franchises increase. Industry profit is expected to continue to decline due to price competition, causing many tradesmen and handymen to broaden their skill bases so that they can provide a wider range of services for prospective clients. For more information, visit IBISWorld’s Tradesman and Handyman Franchises report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry comprises of franchised businesses that provide tradesman and handyman services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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