Downsizing of Lowes & Home Deport opens opportunities

In recent news (Aug 2019), Lowe's publicized it was laying off store workers who handle certain maintenance and product assembly tasks as the home-improvement chain continues to cut costs in a bid to boost profits.

The chain confirmed that it is moving to outsource assemblers and facility services to allow Lowe’s store associates to spend more time on the sales floor serving customers.

The Wall Street Journal reported that the number of layoffs is in the "thousands" and described the affected workers as including workers who "put together grills, wheelbarrows and other products."

Those positions are being outsourced to a third-party company. Some of these affected workers will move to other positions, others may not qualify and have to find jobs elsewhere.

In Feb 2019, Home Depot announced they were laying off staff in their installation business. After reviewing the installation business, they decided to wind down its roofing, siding, insulation, and gutters installation programs. They also are using 3rd party contractors and outsourcing these functions. They still sell these items.

In both examples, these moves are about cutting cost to increase profit and shareholder value.
Mooresville, North Carolina-based Lowe's has about 300,000 employees and about 2,200 stores.
Atlanta, Georgia based Home Depot has about 400,000 employees and about 2,286 stores.
Their business decision to outsource these functions provides an opportunity for entrepreneurs to start installation businesses, or for existing contractors and handymen to pick up staff and get some of this business from these home improvement behemoths.

Additionally, mobile apps should see some uptick in requests for items to be assembled or installed if the 3rd party contractors hired by Home Depot and Lowes are slow to respond to buyers or are too busy to come quickly to the aid of a homeowner or renter.

Mobile apps like these could see upticks:

Newly displaced workers can start small businesses and get on these apps, and try to get some of the left over work from Home Depot and Lowes.
There are opportunities for marketing businesses that serve the contractor industry that could help contractors pick up more business from consumers, or develop marketing campaigns on social or Google search to get some of this new business for existing contractors or new businesses in formation.
Lead generation companies that drive traffic to websites and via email/social media marketing can also pick up some of this business. If you need outsourced and contract sales teams to help you get contracts with large enterprise or middle market clients, or just need qualified and guaranteed appointments via our appointment setting team  or some HOT leads, reach out to us to see how we can help.
Happy Hunting!

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