00:00Labor is one of the most critical functions in growing any of the home services businesses.
00:06We consider it if we don't spend all our time hiring, training, and evaluating,
00:11we'll spend all our time hiring, training, and evaluating.
00:14It is something that organized organizations such as ours, we've put apprentice programs together
00:20where we can take somebody from an apprentice to a handyman to a craftsman,
00:24all the way to franchise ownership.
00:27So this is something you have to focus on every day.
00:30And I'm very hopeful that the industry is starting to see people celebrate those going into the trades,
00:36not getting up with a lot of debt, and really, really finding tremendous satisfaction in the home improvement lane.
00:43I'm hopeful, but it is an anchor on all home services that we have to drag behind us.
00:48Is labor the biggest constraint, Andy, when it comes to home services and home improvement?
00:54Or is it costs? Is it ability to obtain materials?
00:58What tends to be the biggest roadblock for getting some of these projects done?
01:03Yeah, the biggest roadblock is labor.
01:05You have to be an employer of choice.
01:07You have to treat people with dignity and respect.
01:09And you have to honor their work-life balance.
01:13And companies that are embracing that are continuing to indeed grow in this resilient and strong market.
01:21What we've grown in and continue to do competitively, we've found our footprint is coast-to-coast.
01:29We have 400 locations.
01:31We operate in 47 different states.
01:35And each of these states, we're able to find expert craftsmen that are multi-skilled.
01:39And they really love being employees of the organization.
01:43And knowing that we have a one-year guarantee on all labor, all materials, it's creating a comfort for both the staff that we employ, the expert craftsmen, and the people that work in the office.
01:55That's what we've grown on.
01:57Ace Handyman started as Handyman Matters in the basement of my house.
02:02It's going to be 29 years ago next month.
02:06And as we grew, we realized in 2019, coming under the umbrella of Ace, that that really national brand locked in the trust.
02:17And we brought the reliability and professionalism to the industry.
02:22So people come to us because it's a fun, interesting, and challenging position.
02:27I believe the trades are on the upswing, and the youth are starting to be exposed to this industry.
02:36You see it a lot.
02:37There's a lot of people who have, as first-time homebuyers, haven't got access to that kind of stay-put stock, the houses where somebody traditionally would have left and moved to a downsized equation.
02:53The high interest rates and the high housing prices have created this stay-put economy.
03:04And first-time homebuyers are going into houses that need a little more TLC than they probably planned on.
03:10And they're finding interest and passion in the home improvement industry.
03:13So I'm hopeful that this is all going to grow in the direction it is because it's a competitive, solid, regular demand market.
03:22Andy, you know, both Danny and I love the Ace Hardware stores.
03:27I go to the one in Bronxville all the time.
03:29I'm guessing she knows the store.
03:31On West 4th.
03:31On West 4th Street.
03:32So there's one in Manhattan, obviously, as well.
03:35How does your business, which, you know, helps homeowners get access to all the services they need,
03:42work together with, you know, what seems like a mom-and-pop shop on the corner, the Ace Hardware in every small town,
03:50and apparently in the largest city in America as well.
03:53How do you work together?
03:55Well, we all love Ace Hardware from the foundation.
03:59It tends to be a 102-year-old brand that's celebrated in any market.
04:04And so when we go to do a home project, the first thing we do is we check the availability of product in the Ace Hardware store.
04:13So we're bringing helpful to people's homes through Ace Hardware.
04:19You go in Ace Hardware, you buy the materials of your need, but it's really a transition in the market where people want us to do it for them.
04:26And in that do-it-for-them market, they also want us to buy the materials, and our first preference is always going to Ace Hardware.
04:34Andy, I would love, before we let you go, just to get, like, a very big-picture general sense.
04:40This is a moment in policy where at least the president and his party is trying to do a really big push on affordability.
04:46What is the sentiment out there among Ace Handyman Services customers?
04:51Is there a willingness to spend to take on big projects?
04:53Is there some conservatism?
04:55What are you seeing?
04:57We're seeing, you know, people staying in those really easy to fix, you know, to remodel homes.
05:03You know, there's cosmetic, the homes that people are staying in longer, they need carpet and paint, just simple stuff.
05:10What we're seeing is the new home buyers being pushed into more fix-and-flip markets, and they're using technology to contact home services.
05:21They're challenging us to make it easier to communicate with.
05:24And what we're seeing is a tremendous demand right now for projects.
05:29We used to be, I think we sit at the intersection of necessity and trust.
05:35And that larger brand that we have nationwide, the resilience of our local operators and our local experts in each of these markets has created a demand because it's easy to use.
05:50So we see people that are first-time home buyers going on for a long time.
05:54And, you know, we aren't reversing the aging in this country.
06:02So people, I think the latest statistic is 75% of people that are over 50 want to stay in their home permanently and age in place.
06:12So that brings on a whole other level of project and demand.
06:15We see favorability in this fragmented market from being a national brand with local roots that stand in there.
06:25And the significance of this industry towards the consumer purchasing market, I think it's a behavior change.
06:32And people are using these as a line item on their budget.
06:36Repair and maintenance used to be you'd see a handyman every now and again.
06:40And now you're starting to see people using us on a more regular basis.
06:45So I see favorability in this market for a long time to come.
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