Research Question: Will the improving trend in home renovations and remodeling provide widespread stimulation of the building supplier market?
Companies: Masco (MAS), USG Corporation (USG), Whirlpool (WHR), Lowe’s (LOW), Home Depot (HD), & others
Regions Covered: California, Southeast/Florida, Midwest, & Northeast
Blueshift’s initial research indicates positive remodeling trends, with our upcoming report aimed at assessing which industry services and suppliers are best positioned, while also providing insight on regional demand and differences.
- According to a new report by Harvard’s Joint Center for Housing Studies (JCHS), remodeling activity should increase in the upcoming months, spurred by low financing costs, stronger consumer confidence, and improving home sales, among other factors. Additionally, the Leading Indicator of Remodeling Activity (LIRA) projects spending on remodeling to increase to over $120 billion for the fourth quarter of 2012, compared to $114 billion for Q42011.
- According to Walter Lewis, the contractor council chairman for the National Association of the Remodeling Industry, 75% of the construction market is now remodeling, and only 25% of the market is new homes, a stark shift from past industry trends. The surge in remodeling is said to be fueled by homeowners investing in renovations they’ve put off for years, which typically cost between $30,000 and $40,000.
- In Butler County, Ohio commercial renovations and expansions projects are far outpacing new construction.
To gain specific insight into the affect of the positive surge in remodeling on industry services and suppliers, Blueshift will gather data and issue a market research report from sources in the following areas: Service suppliers (architects, interior designers, contractors, electricians, etc.), material suppliers (manufacturers of flooring, paint, windows, insulation, heating/cooling units, lumber suppliers, roofing, etc.), retailers/brands (Home Depot, Lowe’s, Pier 1, Ethan Allen, Whirlpool, Sears, kitchen and bath specialty stores, landscaping stores, heating/air conditioner sellers), bankers giving personnel loans/ lines of credit/second mortgages for renovations, and industry specialists.