America’s New Millionaire Class: Plumbers and HVAC Entrepreneurs
October 14th, 2024Private equity firms are buying up local home-services companies.
Clearly, the goal is to reduce competition and drive the prices of services up. I wonder, does the situation then create opportunities for independent operators?
Via: Wall Street Journal:
PE firms across the country have been scooping up home services like HVAC—that is, heating, ventilation and air conditioning—as well as plumbing and electrical companies. They hope to profit by running larger, more profitable operations.
Their growth marks a major shift, taking home-services firms away from family operators by offering mom-and-pop shops seven-figure and eight-figure paydays. It is a contrast from previous generations, when more owners handed companies down to their children or employees.
A monopoly formed of mutually-cooperating big businesses can and will say, “Buy from us at our inflated prices or you won’t get it at all.” And, halfway here via govt regulations but not yet fully imposed, “We do it our way or not at all; you have no say in what we do in your building.”
We need these retired plumbers to start night schools where they teach whomever shows up how to do plumbing. It’s still legal to do your own plumbing, and you can teach your kids and the neighbors’ kids what you’ve learned. Same with carpentry, esp with non-motorized hand tools, roofing, etc.