According to the Australian Industry and Skills Committee, theconstruction industry generates over $360 billion in revenue, producing around 9% of Australia’s Gross Domestic Product, and has a projected annual growth rate of 2.4% in the next five years.
Interestingly, most businesses within this industry are small, employing 20 people or less.
Therefore, it clear to see that this is an area where there are going to be opportunities for investors. There are not a huge amount of overheads and there is a huge opportunity for profit.
Of course, that number above accounts for some of the franchises you will see here. However, it doesn’t give the full outlook.
That is because the handyman industry in Australia is another area that is currently experiencing levels of growth. As you can see with the franchises listed on this page, there are many niches and areas of opportunity within this area
The research backs up this point, as a report from IBISWorld stated that the market size, measured by revenue, of the Tradesman and Handyman Franchises industry 2022 is $1.1bn.
That is an incredible number, that potential investors will be delighted to see. It also worth noting that the report also gave a good insight into how this sector is performing compared to the industry as a whole.
That report added that “the market size of the Tradesman and Handyman Franchises industry in Australia increased faster than the economy overall”.
This is a fact that has not escaped investors, who are taking advantage of the industry's strong place within the Australian economy.
However, if you are considering becoming a franchisee, you are probably more interested in looking to the future, rather than the past.
Well, there is good news on that front too, as IBISWorld’s research revealed that the industry is in a good place to thrive.
Their 2022-27 prediction stated that “continuing favourable trends in household discretionary income and the number of housing transfers are forecast to provide a solid platform for industry expansion over the next five years.”
If you are considering getting into the market as a franchisee, it is likely that you will be delighted to hear this. It gives hope that the first number of years will see you gain back your initial investment and make a profit.
The report also discussed trends within Australian society as a whole and how these trends can help supplement demand in this industry.
It read: “Trends in the total number of households affect demand for tradesmen and handymen for home renovation and repair tasks. Household numbers tend to increase in line with population growth.
“A rise in the number of households positively affects the industry, as tradesmen and handymen have more dwellings to service. The number of households is expected to rise in 2018-19, providing an opportunity for industry expansion.”
Essentially, more homes, means morebuilding and handyman opportunities for franchisees.
As the above states, there are many reasons why this industry is going from strength to strength. These reasons include the fact that more and more Australian households are outsourcing their daily tasks.
Considering that over 70 percent of the Australian workforce are working shifts that last over 40 hours, this is hardly surprising. This move to shift-work has left us with a society that values its free time even more, because it has less of it.
The average Australian worker would rather use this free time with their loved ones or taking part in a beloved pastime, rather than doing DIY, or fixing up something around the home.
In summary, as free time is at a premium for more and more Australians, they are outsourcing tasks that they would have typically done themselves. This is demonstrated by a number of new franchises successfully entering the market.
These franchises include businesses that assemble flat-pack furniture, businesses that carry out gutter cleaning, and many more. In the past, these jobs wouldn’t have been outsourced. However, businesses have recognised this overall change in outlook, and they are taking advantage of it.
Of course, one symptom of success is an increase in competition within the industry. However, with these trends in the industry, new businesses are constantly finding solutions for the needs of an ever-busier society. Like with any other part of business, the key to success is finding the area where you fit in and provide a service that customers are looking for.
A recent report by IBISWorld does give some pointers on how you can make your business stand out from the crowd.
Have a good reputation.
That is one of the key benefits of becoming a franchisee. You are joining a business that has proven it has the system in place to succeed. You do not have to build your reputation from scratch, like you do if you are starting an independent business.
Have a clear market position
Once again, franchisees have a clear benefit here. That is because they are joining a business that has carved out its name, reputation and position within the market already. As the old franchise adage goes, when you become a franchisee, you are going into business for yourself, but not by yourself.
Another great element that franchisees can look forward to is much of their marketing is usually done by the franchisor. This helps reenforce this market position that they would not otherwise have.
Ensure your work force has relevant qualifications
This is true of many parts of this industry. However, another benefit of becoming a franchisee is that training is often provided for new business owners.
It is a sector where the superior marketing and the top-level brand recognition of franchises is seeing many entrepreneurs choose franchise opportunities over going-it-alone.
You will find that many franchise systems have their own call-centres and lead generating operations. When this is the case, it takes some of the pressure off the business owner and allows them to focus on doing their job well.