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Remodeling market poised for 2014 growth

Forecasts & Statistics

Trade association sees late 2013 remodeling momentum continuing.

CDR Staff January 21, 2014

Recyclers who receive materials generated at remodeling projects will ideally see steady to growing volumes of material from that sector in 2014, based on recent survey data.

The National Association of the Remodeling Industry (NARI), Des Plaines, Ill., says its fourth-quarter 2013 Remodeling Business Pulse (RBP) data points to an active remodeling market entering 2014.

The RBP, which measures current and future remodeling business conditions, continues to show growth, according to NARI. Remodelers reported the highest overall rating on business conditions of the year, at 6.51 (from 6.41 in the third quarter), although numbers in other categories experienced a slight drop.

“Many remodelers entered 2014 with jobs in the pipeline, which hasn’t happened in the past few years,” says Tom O’Grady, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders, Drexel Hill, Pa. “Although inquiries, requests for bids and conversion of bids are down in the fourth quarter, that backlog has given remodelers confidence that the overall business conditions will remain positive.”

Growth indicators in the fourth quarter of 2013 are as follows (rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 equates to about the same as last year):
•    current business conditions was rated 6.51 (from 6.41 in the previous quarter);
•    number of inquiries fell to 6.2, a drop from 6.55 the previous quarter;
•    requests for bids fell to 6.22 from 6.45, another decline from the previous quarter;
•    conversion of bids to jobs continues to be the weakest measure, remaining flat at 6.03; and
•    the value of jobs sold declined to 6.27 from 6.31 recorded in the third quarter.

“The fourth quarter of [2013] was very strong for many remodelers, as reflected in the RBP survey,” O’Grady says. “Average sale prices continue to rise, and consumers are more comfortable spending money on projects that will increase the value of their homes.”

“The outlook forecasts that favorable business conditions will remain strong across all regions of the United States,” O’Grady says. “Consumer confidence is up, which translates into more homeowners feeling safe investing in their homes.”

NARI says it represents 7,000 member companies nationwide, comprised of 63,000 remodeling contractors. More information about the group can be found at www.NARI.org.

 

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