Rising material prices and inflation, in general, are likely to continue to plague companies in trade services businesses, according to a new survey conducted by the business management software platform Simpro.
In the survey, 20% of owners, CEOs, and business managers in trade service businesses say they are more likely to face inflation concerns this year.
staff retention
Another big concern across all trade service businesses is staff retention. Even higher percentages of survey respondents expect continuing challenges presented by the labor market.
73% anticipate hiring to be more challenging in 2023 than last year because of a lack of skilled workers (cited by 51% of respondents) and ongoing economic uncertainty (cited by 50%).
changes in trade service companies
HVAC professionals were 60% more likely than average to say they faced rising material prices
The survey, conducted in January 2023, also highlighted changes trade service companies saw in the market last year compared to 2021.
The HVAC industry was particularly beleaguered in 2022. HVAC professionals were 60% more likely than average to say they faced rising material prices, and 54% more likely to say they faced issues with inflation and/or finding and hiring qualified talent. There were also 21% more likely to say hiring was more challenging in 2022 than in 2021.
customer satisfaction
In a service-based industry, customer satisfaction is a high priority: 95% of trade professionals noted that customer experience is paramount, and 73% have adopted technology tools specifically designed to enhance the customer experience.
Customer acquisition was more challenging in 2022, according to 66% of survey respondents, while customer retention was more challenging for 60% of respondents. Hiring was also more difficult than in 2021, according to 76% of the survey respondents.
technological innovations
Simpro’s smart technology solutions and expert long-term support help businesses build, repair, and power
In the survey, Simpro seeks to highlight the ways technological innovations can shape the future of trade services businesses and their customers. Simpro’s total business management software platform for commercial trade service businesses performs functions such as job quoting, scheduling, inventory tracking, invoicing, and others.
Simpro’s smart technology solutions and expert long-term support help businesses build, repair, and power their future with control over operations.
competitive software and technology
In the “Voice of the Trades” survey, 72% of trade professionals (including HVAC, security, plumbers, contractors, electricians, and others) believe that new software and technology must be adopted to remain competitive. Also, 60% feel that administrative burdens hurt their ability to service customers.
Trade professionals, including electricians, estimate they spend more than 18 hours a week on tasks such as scheduling, inventory, invoicing, and overall workflow management. The report reveals why it is so hard to find a contractor or service technician right now: 49% of respondents share a belief that time on admin has directly contributed to that customer frustration.
Voice of the Trades findings
This research provides a clear roadmap for improving operational efficiency so trade organizations can better serve"
“The Voice of the Trades findings confirm the need for trade businesses worldwide to implement technology solutions to lessen the burden of business management in any economy,” said Gary Specter, CEO of Simpro.
“This research provides a clear roadmap for improving operational efficiency so trade organizations can better serve their customers.”
feedback
The report gleaned feedback from 840 respondents who are trade industry professionals, with a geographic pool that includes the U.S., U.K., Australia, New Zealand, and Canada.
Founded in 2002 by an electrical contractor and headquartered in Brisbane, Australia, Simpro supports more than 8,000 businesses and 200,000 users worldwide in the electrical, plumbing, HVAC, security, and fire protection industries with 700-plus employees in six global offices around the world.