From pandemics to recessions, and everything in between, the restoration industry has seemed particularly volatile over the last few years. Just as leaders begin to solve their latest set of challenges, new ones emerge. As we kick off the start of 2023, many leaders are wondering what obstacles (and opportunities) will pop up this year.
That’s why we asked owners and leaders in the restoration industry what is keeping them up at night going into 2023 as a part of the 2022 State of the Industry. Here are the biggest problems the restoration industry is facing, according to the data.
1) Recruiting and Training Staff
One of the biggest challenges for restoration companies is hiring and training the right people for their teams. With increasingly competitive job markets, it can be difficult to attract qualified candidates and ensure that they have the necessary skills to get up to speed quickly. Restoration leaders need to make sure they not only have a solid recruitment process in place but also offer ongoing training opportunities to help existing employees stay on top of new technologies and trends in the industry. According to the State of the Industry report published by KnowHow, restorers continue to face significant challenges when it comes to attracting and hiring their workforces. The pain point that was the impetus for our last study - known as "Why Workers Quit" - Hiring will be a top priority for industry leaders in 2023.
2) Getting Paid on Time
Another key challenge that restoration leaders are facing going into 2023 is getting paid in a timely manner. This can make it difficult to ensure that you're getting paid on time, as clients may take weeks or even months to pay their invoices. According to the owners and leaders we spoke to, many are worried about the rising economic uncertainties that could lead to a recession, as well as interest rates which have been increasing and making it difficult for businesses to pay their bills on time.
According to the State of the Industry report, here’s how long it takes for a restoration company to collect payment after completing a job.
32.8% of the respondents say it takes 31-45 days.
32% of the restoration professionals get paid after 46-60 days.
15.6% of restoration contractors get their money after 16-30 days
13.1% receive their payments after 60 days
The above data shows that a significant number of companies are facing difficulty in getting their money on time. Restoration companies need to ensure they have a payment plan in place that mitigates the risk of slow payments and ensures they get paid promptly for their hard work.
3) Employee Retention
In addition to attracting new talent, retaining existing employees is also a key challenge for restoration companies. As the industry continues to evolve, it is increasingly difficult for restorers to keep up with changing trends and keep their staff engaged and motivated. Ensuring each and every employee is contributing their best efforts needs to be a key focus in adopting the right retention techniques by any restoration company that is looking to grow in the years to come. Restoration leaders need to focus on implementing strategies that help foster employee engagement, upskilling, retraining and providing competitive benefits. Based on the Why Workers Quit report, gaps in knowledge and training remain one of the top reasons for employee attrition. Restoration companies therefore need to ensure they are providing the right tools and resources to their employees to succeed in their long-term careers.
4) Keeping Up with New Technology
Finally, keeping up with new technologies is one of the biggest challenges for restorers going into 2023. Restoration requires a wide range of skills and knowledge, from understanding the latest equipment and techniques to staying abreast of changes in regulations. Restoration leaders need to make sure that they have access to the most up-to-date training material and technical know-how available in order to remain competitive in an ever-evolving industry. According to our State of the Industry report, many restorers lack confidence when it comes to technology adoption as well as training staff on new products and processes. Restoration companies should strive to build strong partnerships with training partners and software providers in order to gain access to rapid training updates, so they can remain knowledgeable about the latest trends and technologies.
Although restoration leaders are facing a myriad of challenges, restoration businesses have seen a significant uptick in growth since people and businesses began recognizing the importance of having disaster preparedness plans. Over the years, restoration companies are becoming well equipped to quickly return properties back to their original state following an event.
This has implications for business owners in the restoration industry. On one hand, there is a lot of money to be made by restoring old buildings; however, with so many competitors vying for market share, businesses that invest now will have an edge over their rivals. It is therefore imperative that restorers find solutions that help create a competitive edge and create a sustainable future for their business, employees and their clients alike.
If you would like to learn more on how to future-proof your restoration business, reach out to the KnowHow experts today!