The COVID-19 pandemic impacted the entire world. This historic pandemic forced small businesses to adapt and even reinvent what they offered to survive. Unfortunately, many did not come out on the other side unscathed.
While this is true, there are other companies that grew during the pandemic. Thanks to resilience and resourcefulness, the COVID-19 storm was not just weathered but endured. After all, the saying goes – “what doesn’t kill you, makes you stronger,” and this could not be truer than what is going on with this pandemic.
With many restrictions being lifted and the economy reopening, it is time to explore the impact on serviced-based businesses, and what has helped these savvy business owners come out stronger on the other side.
The Resilience of the Home Service Industry
Each business, regardless of size or industry, has been affected by the pandemic in some way. While there are a few exceptions, most companies saw a drop in revenue. In fact, clothing stores saw a decline of up to 87%.
While this is true, the home service category has proven to stand, resilient during this time of economic downturn. Even at the peak of the crisis, businesses operating in this sector remained afloat, with many thriving.
Even though home services businesses saw a year-over-year revenue reduction by about 18% last April, the category has remained somewhat stable compared to some of the others. As of June of 2020, the industry had returned to figures seen pre-pandemic.
Powering Careers and Communities
In April of 2020, unemployment reached a high of 14.7%, which was mainly due to layoffs caused by COVID-19. To help assess the employment situation in the home service category, information from the U.S. Bureau of Labor was considered.
Like the growth of revenue, employment across all sectors, except for the Food and Beverage retail locations, decreased significantly in April 2020. However, again, businesses operating in the home service sector were not as significantly impacted.
The Continuing Revenue Rebound
By the end of May 2020, there was a noticeable rebound of new work being scheduled and a median amount of revenue being earned for all home service businesses. Throughout the month of June, this is a trend that continued.
What to Expect in the Future?
While the data has been promising for home service businesses throughout the pandemic, it is no time to rest on your laurels. With these uncertain times and situations being far from over, it is important to continue to work to reinvent services and find new ways to meet the needs of customers.
Truthfully, it is difficult to predict how long these historic losses are going to impact customer’s spending habits and their economic opportunities. It is also difficult to predict how long it will be before the unemployment rate goes back to normal, as more and more businesses are working to redefine the way they operate.
Understanding this data and figuring out how to offer services while the pandemic is going on are two of the best things that businesses can do.