HindSite Software releases its 2016 Snow Industry Benchmark Report

June 28, 2016 -  By

screenshot: Hindsite Solution

HindSite Software released the results from its 2016 Snow Industry Benchmark Report. The report is the culmination of a month-long surveying effort and reflects the challenges and outlooks expressed by more than 100 survey respondents whom provide snow removal services.

According to the report, the 2015-2016 snow season showed nearly 40 percent of survey respondents experienced a decrease in snow events by 20 percent or more, and 22 percent of survey respondents saw snow revenues decline by more than 20 percent year-over-year.

“This is the fourth year we’ve completed the Snow Industry Benchmark Report,” said Chad Reinholz, HindSite’s Marketing Manager. “We do it because we want to help snow businesses identify trends that may impact their business.”

Despite the decrease in revenue that many contractors experienced, profit margins remained healthy. Twenty-seven percent of respondents reported profit margins in excess of 30 percent. Additional findings show two-thirds of respondents expect to increase spending on software in the next year, up 11 percent from last year’s findings.

Last year, 81 percent of respondents didn’t experience any slip and fall claims in the past year. That dropped to 65 percent this year.

Other key findings:

  • Government regulation is becoming a more pronounced threat to the typical snow business. Last year, just 3 percent of respondents indicated government regulation was the biggest threat to their business. That’s up to 14 percent this year.
  • The use of GPS tracking has exploded in the past three years. Fifty percent of respondents use GPS tracking software, nearly double what was reported in 2014. It’s a must for large businesses. Seventy percent of businesses with more than 10 employees using GPS software.
  • Labor shortages are forcing more contractors to hire subcontractors, and 60 percent of respondents reported using subcontractors. With 35 percent using more than five subcontractors during a typical snow event, they’re also using more.
  • Though word of mouth is still the primary source of new customers for the typical snow removal business, digital marketing is starting to drive results. Twenty-three percent of respondents selected either their website, email marketing, social media or their blog as the primary source for new business.
  • Software makes snow businesses more profitable. Contractors who use field service software like HindSite are more than 10 percent more likely to experience profit margins in excess of 20 percent than those that don’t.

This year’s report also featured a new section dedicated to stories from four snow removal businesses: Ippolito Snow Services, Edenscape, LCS Landscapes and Belknap Landscapes.

“The data in the report is great,” said Reinholz. “But we wanted to introduce a human element to the benchmark report this year. As a result, we’ve created four snow removal contractor spotlights that combines with the data to tell an even better story about the snow industry.”

The 2016 Snow Industry Benchmark Report is available for free.

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