Dive Brief:
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Interior designers, landscapers and remodelers whose small companies employ fewer than five people are reporting “aggressive rates of growth”—some as much as 50% a year, according to the first quarterly Houzz Barometer, a research report covering home renovation, building and decorating.
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Small architectural firms grew more moderately, but, like one-third of the businesses in the survey, reported that they added employees last year.
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The small firms, similar to larger ones industry-wide, said the labor shortage is among their greatest concerns, although they reported they expect to continue growing their companies in the coming year—but not as fast as they did in 2014. Other concerns among small-business housing pros: economic uncertainty, more budget-conscious clients, and an increasingly “commitment-phobic” pool of potential homeowner clients.
Dive Insight:
Landscapers and interior designers are the most optimistic among the trades included in the survey about their future profits. Fewer than 7% of the firms said they expect their revenues to decline this year.
Why the numbers are important: Optimism among industry pros is a reflection of an uptick in current activity. The Houzz Barometer indicates that remodeling and design trades are expecting more contracts and larger projects—which can help them plan for staffing and revenues.
They also said they’re holding out hope for less snow and ice next winter.