NARI remodelers more successful than industry norm
Members of the National Association of the Remodeling Industry (NARI) continue to lead the industry in terms of sales, production and employees, according to results of the 2012 NARI Member Profile Study.
The data—designed to provide a snapshot of NARI remodelers—shows slight growth in the number of company locations, in-house design work, dedicated salespeople and types of services offered.
NARI member data was compared with the Home Improvement Research Institute’s (HIRI) 2011 Remodeling Professional Study for Generalists, which is a national representative sample of residential remodelers. This comparison showed that NARI members outpace the industry in the following areas:
- More employees (HIRI average 3.6; NARI average 9.3 employees)
- Higher sales volume (HIRI $320,000; NARI $1.597 million in annual sales)
- Greater productivity—or more sales per employee. (HIRI $89; NARI $172)
“NARI members are superior at diversifying and adapting to market trends in order to remain successful,” says Tom O’Grady, CR, CKBR, chair of NARI’s Strategic Planning and Research Committee and owner of O’Grady Builders in Drexel Hill, Pa. “The research suggests the majority of NARI businesses are operating on a sophisticated level, with ongoing evaluation of revenues, sales margins, overhead, income, performance, shifts in housing and consumer demand as the basis for decision-making.”
This year’s data shows other signs of improvement in the remodeling industry:
- NARI members reported a 14 percent boost in average sales, with 38 percent reporting more than $1,000,000 in annual sales.
- Eighty-two percent of NARI members offer more than one remodeling service.
- NARI members reported an increase in number of employees, with a 3 percent uptick in dedicated sales employees.
“Though the recession took its toll on many small businesses, NARI members seem to have prevailed,” O’Grady says. “Many of us are taking time to refresh our operations and responsibilities in preparation for growth over the next couple of years.” In fact, 93 percent of NARI members predict future sales to be as good or better in 2013, according to the Member Profile data.
NARI National will use this research to support the association goals, including government affairs, sponsorship and national member outreach, research panel expansion and new program development.
Fred Miller, president Consumer Specialists and facilitator of this research on NARI’s behalf, will be presenting these findings at the Spring Business Meeting in Kansas City during the Strategic Planning & Research Committee meeting on Apr. 11.
Please note that the first-quarter 2013 Remodeling Business Pulse (RBP) survey is scheduled to deploy the second week of March.
| 2/11/2013 12:00:00 AM