Handymen franchise systems are hammering home their brand advantages and showing strong growth across Australia according to a new report just released by market research firm IbisWorld.
Over the past five years, the sector has benefited from the lack of available time and skills among the general population wanting to complete manual tasks around the home. As a result, the industry has grown at an annualised 3.2 percent 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 helped drive this growth. IbisWorld industry analyst Ryan Lin said “As more households take up residence in new dwellings, demand for industry services to make alterations or perform maintenance work is likely to increase.”
Australians homeowners have also boosted their capital expenditure in their houses, and this is forecast to be significantly higher in 2013-14 than in 2008-09. Industry revenue is forecast to grow by 3.3 percent in 2013-14 as a result of stronger demand.
THE HANDYMAN SECTOR
The tradesman and handyman sector shows a moderate level of market share concentration.
The established systems Jim’s Group Pty Ltd, VIP Home Services Pty Ltd and Hire A Hubby account for a significant portion of industry revenue between them. But outside these recognised brands the industry is highly fragmented, the report indicates.
Many of the franchised systems do not operate nationally and are confined to regions or trade within a single state.
Industry operators are typically sole traders undertaking jobs such as gardening, building maintenance, plumbing, fencing and painting. Increasingly they are turning to franchised brands to give themselves a competitive edge.
IbisWorld expects the handyman and tradesman franchises to continue their growth over the next five years, and for yet more systems to enter the franchise arena.
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.
Tradesman and Handyman Franchises in Australia: Market Research Report 2014