Why Plumbing & HVAC is the Ultimate Recession-Proof Business
March 08, 2025
by a searcher in San Francisco, CA, USA
Did you know the plumbing and HVAC industry generates billions in annual revenue, with demand that stays strong no matter the economy? Whether it's a leaky pipe or a failing AC unit, people can't afford to ignore these essential services.
That's why we’re acquiring and consolidating high-margin, cash-flowing businesses in this space. Want to learn more? DM me or email redacted for details.
from University of Pennsylvania in Portland, OR, USA
Demand is down over the last 18 months and there is more supply competing for it. The observation that people with acute issues, like a leaking pipe or a failing AC unit, are unlikely to ignore there issues is generally true (though we've dispatched to plenty of homes with longstanding issues and some where they just stopped using a second or third bathroom that had an issue). Two things this observation misses:
1) Acute issues do not comprise 100% of home services demand. A prominent example right now is work associated with home transactions. In 2024 the number of homes transacted in the US hit a 30 year low. When a home sells there is work beforehand as the seller preps the house to market, work driven by the real estate inspection, and work by the buyer who wants to make the house just the way they want it.
2) Supply of home services labor fluctuates and can increase competition for work. In most markets new construction of homes is very slow now. Those plumbers and HVAC techs still need to make a living. Some of the large companies that do both new construction and service are pouring effort into capturing service demand now and some of the individual trades people are going after service jobs on their own... usually at a much lower rate than an established company charges.
Home services is a wonderful industry and I encourage searchers to consider it. Just be cautious about overstating the unwavering demand. Our shop has been able to beat the recent trends and I know others who are growing as well, but it's been a much harder fight and cost a lot more in marketing to keep the lead flow up in the last 18 months.
from Brigham Young University in Boise, ID, USA