fbpx

Aussies love a good renovation, but the numbers from one source shows we’re not doing it as much as we used to.

This isn’t the greatest news for tradies and builders, given that for many of them renovations are a strong source of work.

We’re definitely “glass half full” type of people here at Trade Risk, but it’s still important to keep an eye on the economy and relevant data.

Online tradie marketplace serviceseeking.com.au recently released numbers showing how demand for renovation work has dropped dramatically over the last 12 months.

Their figures show that renovation jobs posted on their website had dropped by a whopping 30.4%.

The average value of jobs confirmed via their website dropped even further, by 36.9% over the last 12 months.

Jeremy Levitt, joint CEO at ServiceSeeking.com.au, had this to say about the figures:

“The second quarter of the financial year is typically the strongest quarter for renovation activity, however, it has been quite subdued.”

He also suggested that falling property prices had a lot to do with the decline in demand for renovation work:

“Property prices are the most important factor weighing on the demand for renovation services.

“As home owners see the value of their most expensive asset deteriorate, they are less likely to invest in it and hence the value and volume of renovation activity drops.”

Of course serviceseeking.com.au is just one source of business for tradies, and there could be a whole host of reasons why their figures are lower, but it’s certainly an interesting insight.

It’d be interesting to see how tradies and builders who don’t have to use services like this to source their business.

This is just an assumption, but perhaps tradies and builders who don’t rely on such services will be doing better than those who do need to pay for leads…?

Tradies leaving self-employment

We Looked at our own data for the last six months to see what we could find.

When a tradie chooses to cancel or not renew their business insurance due to closing their business, we ask them why.

Chart - Why do tradies go out of business

For most it’s a career change (31%) or a better offer to go back on wages (22%).

Those who were honest enough to say they simply couldn’t make enough money to stay afloat made up 16%.

Of the remaining 31%, most chose not to provide a reason for closing their business, whilst a small portion (3%) told us they were retiring.

We’ve only been asking these additional questions for the last six months, so we’re unable to look back and compare them to the previous twelve months in the same way that serviceseeking.com.au has done.

It does give some insight into why tradies are going out of business however, and it’ll be interesting to look back in another six months to see how the numbers compare.

Is renovation work drying up for tradies?

Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • testimonial background
    "Very prompt in responding much appreciated"
    Joshua Newman | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great Service as always"
    Tenacious Enterprises Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very helpful, great staff and very good service."
    Stephan Hunjas | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very good communication and great to talk to locals on the helpline."
    Grundling Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very efficient.I like the fact that I don't need to follow them up as they do this for me."
    Mark Stanley Hawkins | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Been using them for years. Simple easy no fuss."
    Matthew Robert Gilmore | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Customer Services is fantastic. Great communication both verbally and by email. Very knowledgeable and patient staff."
    Brickit Mark Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very pleasant and helpful staff. Great response time and very happy to help with everything I needed. Would recommend to others definitely. I will continue to use your services in the future. Thank you."
    Off The Edge Safety Rail Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "answer me questions in a timely manner"
    James Patrick Roberts ATF JARC Trust | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "A very large jump in cost this year."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Understood what I asked for, provided me with a quote straight away which was good"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Communication was good - managed to explore other options to suit our needs"
    SE & RS Quick | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service great communication"
    Gary Kelvin Smith | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "5* star excellent"
    Kerry Ronald Mckenzie | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very Good Company to deal with. Explained and clarified areas and issues that were unclear."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "We needed to know what we were actually insured for as against our scope of work . We have a better understanding of what works can be undertaken . If we do industrial work which is currently outside the cover we can have it reviewed . Easy."
    John Gregory ATF Tamisa Family Trust | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Easy work with"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "The people."
    Jamie Robinson | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full