Index Shows Increased Optimism Among Contractors

Results of the Q4 Farnsworth Index released this month show increasing optimism across the board, though not yet to pre-pandemic levels. With contractors feeling confident about getting new business in the next six months, their expectations for increased revenue next year is also rising. Other key findings from the new data:

• Confidence among all contractor segments hit a four-quarter high. Mechanical trades (HVAC, plumbing, electrical) saw the largest increase from Q3 to Q4.
• For the first time this year, more than 50 percent of all trade segments expect to increase their company revenue in 2021 compared to 2020.
• Roughly 30 to 40 percent of contractors reported their average revenue per project having increased over the last 12 months, supporting other indicators of larger project opportunities in the current market.
• Most trade segments are reporting they are as busy or busier in Q4 2020 than Q4 2019.
• The ability of contractors to close leads and the quality of those leads is at or above historical norms.

The Farnsworth Group’s quarterly Contractor Index surveys hundreds of residential contractors from five main areas, including remodeling, exterior (roofers, siding/window contractors), finishing, mechanical and landscaping. The full report is available here.