Remodelers Continue to Report Increase in BusinessJuly 24th, 2013 | Category: Industry News
The National Association of the Remodeling Industry’s (NARI) second-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions continues to soar, as quarter-over-quarter increases are seen in 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, according to NARI. 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,” says 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; and
• 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, according to NARI. The top two 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). Economic growth has moved into the number three reason for growth, at 49 percent (up 7 percent).
“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 says. “Remodelers in those areas are involved in the clean-up, and that’s impacting their businesses.”