Wednesday, April 23, 2014
PLACERVILLE, CALIFORNIA
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Remodelers continue to see increase in business

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From page HS20 | August 23, 2013 | 2 Comments

DES PLAINES, ILL. — The National Association of the Remodeling Industry’s second-quarter Remodeling Business Pulse data of current and future remodeling business conditions continues to soar, as quarter-over-quarter increases are seen nearly all sub-components measuring remodeling activity.

Deep into the “remodeling season,” so to speak, remodelers are reporting the highest overall rating on overall business conditions at 6.31, up from 5.97 reported during the first quarter. This rating has steadily increased in the six quarters NARI has been tracking thus far.

“This summer, many companies entered the summer with a backlog of jobs, which is something most haven’t seen in the past few years,” said Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders, based in Drexel Hill, Pa. “What’s also positive is that the inquiries and bid requests are still steady, which provides some more market stability for remodelers.”

Growth indicators in the second quarter of 2013 are as follows:
•    Current business conditions up 5.7 percent since last quarter
•    Number of inquiries up 4.7 percent since last quarter
•    Requests for bids up 3.3 percent since last quarter
•    Conversion of bids to jobs up 4.6 percent since last quarter
•    Value of jobs sold is up 5.9 percent since last quarter

This trend is expected to continue, as remodelers predict that three months out, their sales will be as strong as they are now. The No. 1 and 2 reasons for growth continues to be postponement of projects (up 5 percent at 87 percent) and improvement of home prices (up 6 percent to 65 percent), but economic growth has moved into the No. 3 reason for growth, at 49 percent (up 7 percent).

“As consumer confidence has increased, so has the confidence of the remodeling community,” O’Grady says. “It appears that everyone has finally settled into this ‘new normal’ economic picture, and more bids are turning into remodeling projects, and at higher price points.”

Remodelers, although optimistic, remain cautious about the future, with the outlook from three months from now going down 1.3 percent from last quarter.

Other significant contributors to overall activity:
•    Certainty about the future was reported by 47 percent of respondents
•    Low interest rates was reported by 35 percent of respondents (its lowest rating in three quarters)
•    Growth in stock market was reported by 37 percent of respondents

“One of the things we saw from the comments of the second-quarter RBP is that many homes were impacted by disasters in the past three months— from the storms along the East Coast, tornadoes in Oklahoma and the explosion in Texas,” O’Grady said. “Remodelers in those areas are involved in the clean-up, and that’s impacting their businesses.”

Visit the NARI.org to get tips on how to hire a remodeling professional and to search for NARI members in your area.

LEAVE A COMMENT

Discussion | 2 comments

  • A licensed contractorAugust 25, 2013 - 11:22 pm

    It is exciting to see people's confidence return and going forth with remodeling and other major projects but one area that is of concern here in our county, and most likely across the country is hiring unlicensed contractors and handymen. I've been called to do smaller jobs, such as rebuilding decks, repairing items on or in a home and finding out that I lost the job to someone who underbid me. Being underbid is part of doing business but when you find out they are unlicensed, that's where licensed contractors get very angry. It gets reported, but months later, they are still doing business. I believe I speak for all licensed contractors, "Get your contractors or Handyman license and be above board", pun intended.

    Reply | Report abusive comment
  • Fran DuchampAugust 26, 2013 - 9:41 am

    ...dont get too excited--look where the numbers are from...survey...Unless otherwise noted, the base size for each result is 261 completed surveys--From what population? http://tinyurl.com/n7apz4h And then look at the company putting it out. Data can be manipulated to serve the source from which the numbers come from. I strongly suggest you make sure all young people around you can read stats, graphs, and "hard" empirical data. It is a major "tool" to sell an idea. " If" so many people are remodeling--I guess ill take the chance...I always wanted that new kitchen. (rolling eyeballs)

    Reply | Report abusive comment
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