Remodelers forecast positive outlook on business

NARI members attribute growth to project postponement, interest rates and home values.

The National Association of the Remodeling Industry (NARI) reveals that the latest from the NARI Second Quarterly Business Review is positive news.

The second-quarter research, which measures remodeler’s assessment of business conditions, shows NARI members believe the current business climate is slightly more positive than the same time last year.

“There are clear indications that some of our NARI members believe that they have weathered the storm, and expect consumer confidence to return in a more consistent pace going forward,” says Kevin Anundson, CR, CKBR, NARI National Secretary and president of Owner Assisted Remodeling based in Elm Grove, Wis.

In fact, data shows that NARI members forecast stronger sales growth in the next three months, based on three key factors: Postponement of projects (80%), growth due to low interest rates (50%) and 35% believe improving home prices are also a significant factor.

Remodelers say consumer confidence has a different tone this time around. “People are aware that that their home values may not be as high as they once were, yet that only affects those that are forced to sell,” Anundson says. “Many homeowners have made the decision to remain in their home and are choosing to make improvements and increase their comfort and long-term living accommodations. This thought process allows them to be much less concerned about returns on investment and resale values.”

This is supported by a homeowner poll conducted on NARI’s Website in May 2012, which showed that 28% of homeowners planned on staying in their home up to five years longer because of the economy (Read “Homeowners personalize their home rather than move”).

Still, NARI members keep a conservative outlook on business conditions and are working hard to maintain the tighter and more efficient systems implemented during the past several years.

“As with most business owners, remodelers are only increasing staff when it makes good financial sense,” Anundson says. “We are actively striving to keep overhead low, while continuing to invest in effective marketing strategies. Even as the remodeling market improves, we have gained a new insight into the fluid nature of our national economy.”

Additional findings related to the overall business conditions:

  • Number of inquires has increased since last year
  • Requests for bids has increased since last year
  • Conversion of bids to jobs has increased since last year
  • Sales value of jobs sold has increased since last year

NARI members can download this research plus the first-quarter results on the Members Only side of NARI.org.

To get your username and password, e-mail info@nari.org.

| 8/28/2012 12:00:00 AM | 1 comments
Add Blogs to RSS FeedAdd Blogs to RSS Feed

Recent posts

No recent posts

Post archive

June 2022(2)
May 2022(2)
April 2022(2)
March 2022(3)
February 2022(1)
January 2022(5)
October 2021(2)
August 2021(3)
July 2021(1)
June 2021(2)
May 2021(1)
March 2021(2)
February 2021(1)
December 2020(1)
November 2020(2)
October 2020(2)
September 2020(3)
July 2020(3)
May 2020(2)
March 2020(2)
January 2020(2)
November 2019(1)
October 2019(4)
September 2019(3)
August 2019(3)
July 2019(5)
June 2019(3)
May 2019(5)
February 2019(3)
January 2019(3)
December 2018(1)
November 2018(3)
October 2018(2)
September 2018(3)
August 2018(3)
July 2018(4)
June 2018(6)
May 2018(3)
April 2018(2)
March 2018(3)
February 2018(1)
January 2018(1)
November 2017(4)
October 2017(5)
September 2017(6)
August 2017(4)
July 2017(2)
June 2017(2)
May 2017(4)
April 2017(6)
March 2017(3)
February 2017(6)
January 2017(6)
December 2016(3)
November 2016(4)
October 2016(8)
September 2016(5)
August 2016(3)
June 2016(3)
May 2016(5)
April 2016(4)
March 2016(5)
February 2016(4)
January 2016(4)
December 2015(3)
November 2015(4)
October 2015(9)
August 2015(4)
July 2015(3)
June 2015(7)
May 2015(2)
April 2015(5)
March 2015(9)
February 2015(6)
January 2015(7)
December 2014(2)
November 2014(7)
October 2014(5)
September 2014(3)
August 2014(5)
July 2014(6)
June 2014(7)
May 2014(3)
April 2014(5)
March 2014(8)
February 2014(7)
January 2014(7)
December 2013(6)
November 2013(8)
October 2013(5)
September 2013(4)
August 2013(4)
July 2013(6)
June 2013(8)
May 2013(8)
April 2013(15)
March 2013(6)
February 2013(11)
January 2013(8)
December 2012(6)
November 2012(7)
October 2012(20)
September 2012(14)
August 2012(6)
March 2012(4)
January 2012(1)
April 2011(2)