The new generation of consumers has come to expect the convenience and ease of Mobile ordering for everything, including home exterior maintenance. With Amazon and Google entering the space, the traditional logistics and operating ways will be redundant in years to come. Companies like Uber and Airbnb introduced on-demand services as a concept to the masses. With the trendsetting in, it became imperative for other industries to catch up. As the consumer demand for services grows, so does the expectation to expand MRO in the virtual world.
Same day service is the new way of living. The winners in maintenance are the companies that understand and identify the right technology for the same. Moreover, over 300 million people have access to the internet, only in North America. Yet, the most common way of finding a contractor is through recommendations from friends and family.
Multiple organizations like Super are emerging to enhance customer experience and fix their day-to-day repair issues. They work on a subscription or contract basis for providing services of maintenance and repair for your property. In 2019, Super announced a Series B funding of $20 million to continue scaling its business up to 400 percent each year.
On the other hand, if you understand the logistics of maintaining your property, you must know that regular maintenance can increase your home’s value by 1% every year. Home maintenance makes a difference, and what’s better than having it all on your fingertips!
Scope Of The MRO Industry in the US
The US online on-demand home service sector is around $600 billion. As per Forbes, by 2025, 75% of the workforce would consist of millennials habitual of smartphones and the internet. Recent studies show that 56% of consumers would instead message than call a business for customer service.
House cleaning on-demand has become a significant industry. It has blossomed as demand has risen. Companies poised to succeed in the coming years are the ones always looking for that competitive advantage in technology while serving the customers best.
Critical Reasons for Growth in Recent Years
With Superstorms, Floods, and other recent weather pattern shifts, maintenance & repair have become massive concerns. Meanwhile, digital platforms have made it easier for consumers to request maintenance and repair services (MRO) rather than telephoning.
Trend analyst and forecaster, Charcy Evers says that maintenance and repair service apps integrate with the do-it-yourself culture. “The rise in home maintenance apps has a lot to do with the whole DIY culture. Apps lend themselves to finding the right people to do the right job and with references. It’s a lot easier than asking around.” Investors interested in this sector should seek companies that streamline the service delivery process and understand their industry.
Service apps targeting the home are a logical extension of the service economy. This is because of how prominently they figure in an individual’s or family’s finances.
Moreover, a home is an individual’s largest financial asset. The fixed and variable assets in a house need regular care. Consumers realize the importance of routine maintenance. Thus, most consumers today are keen on investing more on repairing and maintaining before time. It also keeps their homes healthy and safe by preventing home fires and air quality issues.
Challenges in the Industry
One of the primary challenges in adapting to home services online is the pricing model. There is no set standard for the prices for maintenance and repair services online. It becomes tough to partner with service providers and other professionals and agrees on a standard pricing model.
Since consumers have ample options online for repair services, and more, there is an on-going war of discounts to decide among.
Other industries have gone way out of hand to include discounts and offer on their services, establishing a trend. People now realize that any assistance they wish for is only a few clicks away. Companies dealing with home maintenance and repair services have to fight a hard battle amongst themselves to streamline their pricing strategy.
The Maintenance Repair Operations (MRO) industry is expected to grow at a CAGR of 2.13% during the forecast period (2020-2025). The increasing concern for internal efficiency and growing digitalization is the primary reason for the boom in the MRO industry. As MRO grows through, the emerging technologies to facilitate better competition are also on the rise. It’d be interesting to see how the MRO industry shifts towards mobilization. Contact our experts to get insights on the automation of the MRO industry.
Moreover, a home is an individual’s largest financial asset. The fixed and variable assets in a house need regular care. Consumers realize the importance of routine maintenance. Thus, most consumers today are keen on investing more on repairing and maintaining before time. It also keeps their homes healthy and safe by preventing home fires and air quality issues.
