Given the Economy, Why Are Professionals Positive About Growth?
The Houzz Australia State of the Industry report uncovers optimism and reveals pros' strategies for growth in 2023
Houzz’s annual State of the Industry report is out and it paints an interesting picture of professionals’ outlooks for the year. We delve into why 53 percent of professionals surveyed expect a very good year and see how they intend to achieve it.
And while the sentiment is less widespread than last year, more surveyed businesses expect increases in revenue in 2023 (56 percent) than those expecting decreases (26 percent).
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“Professionals in the home renovation and design industry have a moderate outlook about business activity in 2023, despite concerns around current economic conditions. Though less prevalent than last year, more businesses anticipate revenue growth,” says Marine Sargsyan, Houzz staff economist.
Just how companies plan to increase revenue is a lesson in itself.
Nearly two-thirds of businesses will target larger-budget projects (63 percent) while half increased, and will continue to utilise, marketing and sales efforts (51 percent) to achieve expected growth in 2023.
Businesses also plan to improve customer experience and employee productivity (37 percent and 33 percent, respectively).
“The 2023 Houzz State of the Industry reveals that professionals are willing to implement a diverse combination of marketing, financial and customer-centric strategies to achieve their business targets amidst high overhead and materials costs,” says Sargsyan.
Nearly two-thirds of businesses will target larger-budget projects (63 percent) while half increased, and will continue to utilise, marketing and sales efforts (51 percent) to achieve expected growth in 2023.
Businesses also plan to improve customer experience and employee productivity (37 percent and 33 percent, respectively).
“The 2023 Houzz State of the Industry reveals that professionals are willing to implement a diverse combination of marketing, financial and customer-centric strategies to achieve their business targets amidst high overhead and materials costs,” says Sargsyan.
Despite overarching concerns about the economy, the cost of overheads as well as products and materials, professionals across the industry are expecting some improved conditions to emerge this year.
Chief among these are a lessening of supply chain issues leading to increased availability of products and materials as well as stronger demand for their services (particularly among interior designers and builders).
Interior designers and decorators, in line with their overall outlook for business in 2023, feel confident about demand this year, with more than half anticipating an increase (53 percent) and only one in eight expecting it to decline (13 percent).
Chief among these are a lessening of supply chain issues leading to increased availability of products and materials as well as stronger demand for their services (particularly among interior designers and builders).
Interior designers and decorators, in line with their overall outlook for business in 2023, feel confident about demand this year, with more than half anticipating an increase (53 percent) and only one in eight expecting it to decline (13 percent).
The main challenge identified by professionals remains the cost of doing business.
More firms across all of the industry groups cited an increase in the cost of doing business (84 percent) versus those citing a decrease (five percent), with the share of businesses reporting an increase rising by 15 percentage points this year (84 percent compared with 69 percent in 2021).
If you’d like to see more of the 2023 Australian State of the Industry report, please find it here
More firms across all of the industry groups cited an increase in the cost of doing business (84 percent) versus those citing a decrease (five percent), with the share of businesses reporting an increase rising by 15 percentage points this year (84 percent compared with 69 percent in 2021).
If you’d like to see more of the 2023 Australian State of the Industry report, please find it here