Home Improvement Contractors: Changing Policies Met with Resiliency
Today, home improvement contractors are facing an ever-changing landscape marked by shifts in policies and regulations. Primary among these are tariffs, shifting immigration policies, and regulatory uncertainty. Unlike Businesses in many other industries, home improvement contractors are reacting swiftly and decisively to the shifting economic landscape with strategies focused on growth.
A recent study by the Home Improvement Research Institute (HIRI) outlines contractors’ primary economic concerns and the steps they are taking to respond. Most contractors (36%) consider tariffs to be the most challenging risk factor. Larger firms are even more concerned (49%) about the effects of tariffs, as are mechanical contractors who cite supply chain delays and increased material costs as potential negative results.
Interest rates and immigration were also cited as serious concerns. These are in addition to long-term challenges such as increased labor costs and a reduced pool of skilled workers.
Despite these and other challenges, responses to the study reveal that most contractors are adopting a positive attitude. Rather than standing still or retreating, contractors are implementing proactive strategies to overcome these challenges and move forward.
With immigration policies threatening to increase the shortage of skilled labor, contractors have responded by investing in training programs to upskill their current workforce and attract new talent. According to the HIRI study, respondents cited improving employee skills (32%) and adopting new technologies (29%) as primary growth strategies. This was particularly true for firms with more than $1M in annual revenues.
Other forward-looking tactics include increasing project bids and entering new markets. Negotiating lower pricing from suppliers and reducing operational costs were also popular approaches. Most contractors responding to the HIRI study did not cite reducing profits or delaying projects as potential strategies.
The home improvement industry is in a state of flux, driven by evolving policies and regulations that affect every aspect of the Business. Contractors are demonstrating resilience and adaptability in the face of these challenges, finding innovative solutions to manage material costs, labor availability, and regulatory uncertainty. By staying informed and proactive, home improvement contractors can continue to thrive and provide valuable services to homeowners, even in a rapidly changing policy environment.
Source:
How Policy Shifts Are Reshaping Contractors Perceptions of Risk, Opportunity, and Strategy, Home Improvement Research Institute