One thing is for sure since COVID 19; people in the United States have dramatically changed the direction in which we are spending our money. How will this affect the home services industry?

1. Home Service
Industry 2022
Sneak Peek
David Klappenberger

2. The Effects Of COVID 19
One thing is for sure since COVID 19;
people in the United States have
dramatically changed the direction in
which we are spending our money.
In 2020 and 2021, grocery stores, Amazon,
and the home Industry grew.
Unfortunately, over 110,000
restaurants permanently closed their
doors. Other industries suffered as well,
including travel, some retail, gym
memberships, and assisted living homes,
just to name a few.
Many industries that were previously
considered safe and secure have seen
dramatic declines that are devastating.

3. Brick And Mortar Stores Nationwide
► Fact: One in six restaurants have closed permanently. That is 110,000
restaurants nationwide, according to the National Restaurant Institution.
► Facts: The National Restaurant Institute reports another 40% of
restauranteurs said that if this continues through the spring of 2021, they
will have to close as well.
► Fact: According to Yelp, before COVID-19, there were 30,374 retail
companies across America. As of July 2021, 65% are permanently closed.
► Fact: The report from Yelp also shows that 42% (or 16,585) of beauty
businesses had closures.
► Fact: Target increased its sales of beauty products by approximately 17%.
► McKinsey Consulting, a leader in the beauty industry, has seen its sales cut in
half.
The reason why? Women are wearing less lipstick and makeup when they have
to wear a mask. Overall, McKinsey believes sales will drop 30% altogether in
2020.

4. What Industries Will Return To Normal?

5. The fortunate consumers who have kept a steady income have carved a new set
of buying habits and priorities into the economic landscape.
Will things ever return to how they were in January of 2020? Experts predict
that dining, entertainment, and vacations will return to normal.
But other sectors, like business travel, movie theaters, and retail clothing
stores could see a different fate.
Gym Memberships are way down, and according to lifestyle and finances, 59%
are gone for good. People have found other forms of exercises that they prefer
that are cheaper.
A Common Question Is What Industries Might
Continue To Struggle?

6. What Industries Are Looking Up?
► E-Commerce: Online transactions with
credit and debit cards have increased an
average of 88% each month since the
beginning of April. This is according to
weekly transactions collected by the
financial-data firm Facteus.
► E-commerce now represents 16% of U.S.
retail sales, according to the Commerce
Department.
► Grocery Stores: It is no surprise that
grocery stores are up 33%.

7. The Home Industry Sector Is Flourishing
According to the U.S. Census Bureau report, from big box home improvement
stores to local paint/hardware stores, the home industry sector has seen a
22.6% increase in year-to-year sales. Home improvement stores led all retail
sectors. BUSINESS WIRE)

8. Why is the Home Industry Sector
Growing?
Recent research from Consumer Specialists and the Home Projects Council
examines why 57% of homeowners emphasized home improvement during the first
three months of COVID-19.
“Even with people at home more than usual, we were surprised at just how many
ways COVID-19 has impacted home improvement activity,” said Fred Miller,
president of Consumer Specialists. “In terms of consumer attitudes and behavior,
there has never been a single force that has so significantly shaped the home
improvement market. Through this research, businesses involved in home
improvement can better understand the current dynamic and make appropriate
adjustments to success in this environment.”
► “Have more time” (66.9%) is the top reason homeowners are doing more
projects because of COVID-19
► Nearly 50% of homeowners credit “time at home made me more aware of things
that needed doing” as a reason for doing more projects

9. Are These DIY Jobs, Or Are The
Contractors Getting More Work?
Over 50% of home service businesses
said that they had an increase in
estimates since COVID – 19.
The reason for the increased request
for business was primarily two-fold:
► Health and safety reasons
► People spending a lot of time at
home.
The close rate for about 70% of
contractors is higher now than before
COVID-19.

10. What Are The Most Popular Home
Improvement Projects?
The J.D. Power 2021 Paint Satisfaction Study SM survey finds painting as the most
popular home improvement project. 44% of all people surveyed said that painting is
something they have done recently or are planning to do in the next three months.
Are Contractors Nervous About The Future?
► According to The Farnsworth Group & the Home Improvement Research Institute
(HIRI) survey:
► When surveyed, most contractors fear about the future of finding work during the
pandemic is decreasing, though there is still nervousness.
What Are The Contractors’ Significant Concerns?
► Health and safety for their staff is the largest fear that contractors stated.

11. Were Contractors Able To Meet Their
2020 Goals Set Before COVID -19?
About 50% of contractors thought they would meet or exceed what they
projected for the year before COVID-19.
Overall, COVID-19 has had a minor impact on the handyman and painting
industry, according to The Farnsworth Group & the Home Improvement
Research Institute (HIRI).
While COVID-19 is putting many industries at risk, the painting industry — as
part of home building and construction — is positioned to be less affected than
others, according to Moody’s.
There is evidence from the J.D. Power pulse survey that paint and stain
purchases could potentially exceed typical trends.

12. Summary
► Though the painting and handyman industry suffered in March and April,
during May, the industry began to show signs of adapting to COVID-19. Many
consumers decided to do their own projects due primarily to extra time 66.9%
as per the Consumer Specialists report. As for painting and handyman
contractors, the decline in sales was marginal to neutral.
► However, some franchisees from companies like Klappenberger & Son and Mr.
Handyman had record setting years!
► The demographic that was least likely to have contractors in their home was
elderly.

13. 2022 Expectations Home Industry
According to the Consumer Confidence Index, the demand for painting and
handyman contractors over the next five years is steady. Senior advisor, Matt
Skaggs from Sherwin Williams, is expecting a 2.5% increase in sales. The
expectations for the handyman industry are even higher, at a 4.6% expected
increase in 2022.
Klappenberger & Son is so confident about the industry and its future that they
are still offering a franchise fee guarantee. The guarantee states that if you
follow the proven marketing system and fail to generate $500,000 in gross
sales in their first 20 months, they will reimburse the franchise fee fully.
► If you would like more information about a Klappenberger & Son Franchise,
please contact Bruce Chamberlin at:
► bcfranchiseguide@gmail.com
► Office: 215 317 9189

14. Klappenberger & Son
Painting and
Handyman Franchise
Contact us today for more information on
owning your own Klappenberger & Son
Painting and Handyman Company.
443-223-0645
dklappenberger@klappenbergerandson.com