Hardware Retailing The Industry's Source for Insights and Information
The Home Improvement Research Institute (HIRI) released the Quarterly Contractor Business Tracker Q2 2025 report, evaluating how macroeconomic trends affect contractors’ operations and strategic decision-making.
The report noted a dip in market growth optimism, with only 55% of respondents anticipating overall market growth, down from 58% in Q1 and below 2024 levels. High-value projects also fell to a five-quarter low while jobs under $5 gained share, noting possible shifts in homeowner spending confidence.
Demand for outdoor products reported higher seasonal activity saw growth in Q2 of 2025, driven by seasonal activity and a modest shift toward exterior project investment.
Maintenance remains the top project type among all home improvement projects, according to the report, while aesthetic-focused projects also saw a notable rise. Projects to increase functionality, increase energy efficiency and improve comfort and livability remained steady in Q2.
Tariff concerns continued to rise in Q2, with 44% of respondents citing tariffs as a major macroeconomic concern. Product and material costs remain the top concern, with 52% of respondents reporting it as a concern. Labor availability also remains a concern.
