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 quick and easy just a few questions online and it's done, looks to be good coverage as well very good communication , will be using them again next year thank you trade risk team"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Supportive towards small business and very flexible"
    Logreen Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I thought that the service was good, the ladies seemed nice and they were very easy to talk to"
    Cristopher Tremellen-Smith | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent service"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I have requested a refund within the cooling off period and not received an answer"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "No problems, it was quick and easy to arrange the insurance."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "excellent service and you always follow through thank you guys !"
    Entire Installations (Aust) Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service year in year out. Have been with Trade Risk for several years and find them the most competative in the market"
    Gerard Anthony Fox | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Easy to use website. Quick quoting and service. Good value."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent customer Service and very good for a small business, very approachable and nothing is too hard. Very competitive rates"
    Fiona Lee Joyce King | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I renewed my acc. on 15/06/2020 and my certificate shows renewal date as 22/5/2020 So you basically charged a month from me when I did not need insurance due to not working ( COVID 19)"
    Johann Godfrey Van Tonder | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Always willing to provide assistance and information to make the process as easy and informative as possible."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very easy to deal with and prompt response every time, very thorough explanation of policy and terms."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Just being bombarded with emails, driving me nuts."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Easy to use and understand, their insurance is laid out in a format that the average person can quickly grasp. I needed cover fast and that’s what I got, simple."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service"
    Scott Deem | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "My only reason for 4 stars instead of 5 is I had no contact from Trade risk when renewal was pending to offer me their service."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Thanks Trade Risk for the right insurance for the right price ><))))º<"
    Clayton Wayne Earl | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full