Nearly nine out of ten door, window, siding and roofing professionals expressed confidence in their ability to get new business in the next six months, according to the first HomeAdvisor Farnsworth Index, a new quarterly measurement of the home improvement industry that tracks business confidence across 13 categories.

“Home services plays a vital role in the U.S. economy regarding labor, manufacturing and retail,” said Grant Farnsworth, partner at The Farnsworth Group. “Tracking topics critical to residential contractors provides additional data to monitor those market conditions.”

The online survey was conducted February 14-24. The sample for the study included 1,744 respondents across various construction and remodeling trades within the five industry segments (exterior, remodeling, mechanical, finishing and landscaping).

About 86 percent of respondents in the survey’s exterior group, which includes contractors who specialize in doors, windows, siding and roofing, expressed confidence that their revenues would increase over the next 12 months. (Just 0.5 percent said they expected revenues to decrease.) Additionally, 52.7 percent of those polled in the exterior group said their average revenue per project had gone up in the past 12 months. Leads are also converting to customers at a solid clip in the exterior group, with more than half of respondents reporting that leads turned into jobs at least 41 percent of the time.

Despite the overall optimism, labor issues loom over many companies. About 49.8 percent of exterior group respondents reported challenges hiring skilled laborers in the past 12 months.  However, they also expressed the most confidence of any segment in the ability to hire enough labor in the coming 12 months, with positive views on acquiring workers coming in at roughly 70 percent.

As far as government and regulations, the exterior group is most concerned about taxes (17.6 percent of respondents), changes at the Environmental Protection Agency (7.1 percent) and immigration enforcement (10.6 percent). Healthcare only ranks as a top priority for 2.4 percent of respondents in the exterior group.

Follow this link to read the whole report.

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