Contractor Index Shows Increasing Optimism
The Farnsworth Group's Q1 - 2021 Farnsworth Contractor Index shows increasing optimism across the board, though not yet to pre-pandemic levels. Contractors are the most confident they have been in over a year. Key takeaways from this quarter's Contractor Index include:
- Q1 2021 project activity is greater than Q1 2020, with the largest YOY increase among remodelers.
- ‘Quality of leads’ continues to remain better than pre-pandemic levels.
- ‘Ability to close leads’ is higher than pre-pandemic levels in most cases. This is the result of quality leads, i.e., homeowners intent on doing the work.
- ‘Lead volume’ remains higher in most cases than pre-pandemic levels signaling strong contractor activity for months to come.
- Confidence among all contractor segments is up a full point YOY – 6.74 in Q1 2020 to 7.74 in Q1 2021.
- 54 percent of residential contractors expect to increase their company revenue in 2021 over last year.
- Most expect to increase their revenue in 2021 by 10 to 20 percent.