The home improvement industry is booming, with many businesses seeing steady growth. In fact, homeowners are constantly investing in upgrading their properties, whether for aesthetic appeal, energy efficiency, safety, or increased functionality. Among these businesses, one stands out as the most profitable home improvement business based on revenue, market demand, and recent trends.
Therefore, let’s explore the home improvement industry, ranking business types by their success and market potential. In general, this is a great place to start as a contractor looking to build a better company.
Overview of the Home Improvement Industry
Home improvement businesses cover a wide range of services. They focus on enhancing, repairing, and maintaining residential properties. Some businesses focus on exterior projects like roofing and landscaping, while others work on internal systems such as HVAC, plumbing, and electrical work.
Overall, these companies play a crucial role in helping homeowners maintain the value and functionality of their homes. And each home improvement business specializes in solving specific problems for homeowners.
Electricians ensure that homes are powered safely and efficiently. Plumbers fix leaks and maintain water systems. Roofing companies install and repair roofs, ensuring homes are protected from the elements. Other businesses, like remodelers and window installers, improve the look, feel, and energy efficiency of homes.
The importance of these businesses cannot be overstated. Specifically, homes need regular maintenance to stay safe, comfortable, and energy efficient. Without these skilled trades, homeowners would struggle to keep up with the demands of home maintenance and improvements.
Additionally, well-executed home improvement projects add significant value to properties. That’s why so many homeowners are willing to invest in these services. Today, the home improvement industry is not only vital to maintaining the nation’s housing stock but is also a key driver of local economies.
Top 8 Most Profitable Home Improvement Business
Some businesses stand out from the rest due to their profitability and high demand. According to IBIS World, here are eight of the best in the industry by revenue, including the most profitable home improvement business:
- Electrician: $255.4 billion
- Landscaping: $158.9 billion
- HVAC: $133.7 billion
- Plumbing: $121.5 billion
- Remodeling: $120.9 billion
- Roofing: $51.3 billion
- Windows and Doors: $24.8 billion
- Painting: $24.2 billion
Electricians are among the most in-demand professionals in the home improvement space. With homes increasingly integrating smart technology, demand for electrical upgrades has skyrocketed. Electricians ensure homes are powered safely and install wiring for new appliances, lighting, and smart home systems.
Landscaping is also a highly profitable business, especially with homeowners placing a premium on outdoor spaces. From lawn care to hardscaping projects like patios, landscapers have a steady stream of work.
HVAC companies will always be in demand as they offer essential services for every homeowner. Whether it’s installing new systems, performing maintenance, or making repairs, HVAC professionals are rarely short on work.
Plumbers handle a wide range of services, from fixing small leaks to installing new plumbing systems. Plumbing issues can cause significant damage if not addressed quickly, and projections suggest these companies will continue to flourish.
Roofing and remodeling are staples of the home improvement industry. While revenue remains steady, we’re not seeing the same skyrocketing market that we saw during the COVID-19 pandemic.
Windows and doors are essential for home energy efficiency and security. This sector has grown due to the increased demand for energy-efficient windows and doors, which help reduce heating and cooling costs.
Interior and exterior painting services make this list as well. Whether it’s refreshing a home’s curb appeal or updating a room’s aesthetic, painting projects are popular for homeowners.
How Technology is Boosting Profits in Home Improvement
How do you become the most profitable home improvement business in the industry? By meeting demand and streamlining your entire business, from sales to production.
With new technology, the home improvement industry has become more efficient. This not only helps you save time and money during each workday, but also helps you land more jobs and widen your margins.
The home improvement industry is rapidly adopting new technology to stay competitive and improve profitability. Most businesses are now leveraging advanced software and tools to streamline operations, manage jobs, and increase revenue.
For example, estimating software helps contractors provide accurate project estimates quickly, avoiding underbidding or overbidding. Accurate estimates also lead to higher customer satisfaction, trust, and improved closing rates.
In addition, project management software is used to manage leads, track job progress, and streamline workflows. This allows contractors to avoid miscommunication between teams and ensures all work is completed according to plan.
These technological solutions help businesses save time and money while improving the customer experience. As a result, homeowners appreciate the efficiency and professionalism that technology brings to the process. And businesses that adopt these tools often see increased revenue, improved productivity, and higher profit margins.
Leap CRM: The Ultimate Management Tool for Home Improvement Businesses
As home improvement companies continue to grow, they need an all-in-one solution to manage their operations from start to finish. Leap CRM is the perfect management software for this purpose. It helps businesses manage every stage of a project, from lead management and sales to scheduling, production, and invoicing.
Leap CRM is designed to streamline processes, eliminate repetitive tasks, and reduce errors. With Leap CRM, home improvement businesses can keep track of customer interactions, manage leads, and follow up with customers effortlessly. This ensures no lead falls through the cracks, improving the chances of closing deals.
The software also makes job scheduling and project management simple. Contractors can schedule jobs, assign tasks to team members, and track progress in real-time. This minimizes delays and keeps projects on track. Additionally, Leap CRM integrates with various tools, with partners specializing in manufacturing, imaging technology, measurements, financing, and more.
For home improvement businesses looking to increase efficiency and profitability, Leap CRM is the all-in-one solution. It provides everything a contractor needs to manage their business in one convenient platform. By adopting Leap CRM, businesses can improve their operations, enhance customer satisfaction, and ultimately boost their bottom line.
The home improvement industry offers many profitable opportunities, with certain sectors standing out based on market demand and financial success. Now that you know the most profitable home improvement business in the industry, how can your company drive its profits forward?
Start with Leap CRM as the comprehensive solution for managing every stage of the job process. Watch as Leap CRM does the heavy lifting for your workflow so you can focus on delivering exceptional service to homeowners. Fill out the form below to schedule a quick demo and learn more.
