Today, home services provider Thumbtack released their latest Economic Sentiment Survey report, revealing that many home services professionals are raising their prices due to the current economic climate.
Home Service Pro Businesses Forced to Raise Prices Due to Inflation
The report was a survey of the professionals who offer their home services via Thumbtack, with the aim of providing insight into how this industry is coping with the state of the economy and its effects on their businesses. The report states that 20% of home services professionals are being forced to raise their prices due to increased operating costs.
General Optimism a Sign of ‘Strong Consumer Demand’
Despite many professionals needing to raise prices, there are many more who feel optimistic about the future. This is a good sign for small businesses everywhere as the reason for the optimism is a trend of strong consumer demand that began last year and is carrying over into 2022.
The economy might be making supplies and energy more expensive for small businesses, but the strong consumer demand means there is hope that businesses can survive.
Home Pros Feeling ‘Solid’ Financially
The Thumbtack report states that: “42% of home pros say they plan to invest in their businesses in the first quarter of 2022 – signaling the continuation of strong consumer demand. And home pros feel solid in their current financial situation – with nearly 80% rating their current financial situation as satisfactory, good or very good.”
On the reasons for raising prices, the report adds: “20% of home pros report raising prices due to the increased cost of supplies and energy, while 19% attribute the increase to shortages caused by problems in the building material supply chains, and 9% point to rising labor costs.”
The labor shortage is further highlighted by 36% of those surveyed reporting that they have been trying to fill part-time and/or full-time positions towards the end of last year. More than half of those have been so far unable to fill those positions.
Best States for ‘Ease of Hiring’
Thumbtack are often surveying the professionals who work through them, and last year they discovered the best states for ease of hiring. They were Kansas and Washington, with Nevada, Missouri and Alabama not far behind.
They didn’t have data for every single state, but from those they did, the worst states for ease of hiring included Pennsylvania, Indiana, Michigan and Idaho, as well as Colorado and New Mexico.