Although the economic outlook for residential building won't start to show significant gains until 2013 or beyond, the residential remodeling outlook is showing signs of promise according to several industry studies. As contractors' needs for building materials and equipment start a slow climb back to normalcy, construction supply store owners can adjust their inventories to provide materials and supplies for some of the market's most popular homebuilding and remodeling projects.
The numbers
According to the Joint Center for Housing Studies at Harvard University, homeowner improvement spending should grow strongly during the next five years, at a 3.5 percent average annual rate. The report also says the focus of improvement spending will shift away from upper-end discretionary projects to exterior replacements and system upgrades. Additionally, an increasing number of Baby Boomers will look to aging-in-place retrofits for their homes.
An Angie's List survey conducted in January also shows homeowners are ready to jump on home improvement this year. Ninety percent of the Angie's List members who responded to a January 2011 survey said they plan to spend, on average, 5 percent of their home's value making improvements and repairs. The survey also showed the 2010 economy caused 37 percent of respondents to postpone remodeling plans. Angie's List members say they plan to invest an average of $17,500 on home improvements in 2011, with 59 percent looking to make updates or improvements, 22 percent looking to make repairs and 9 percent looking to increase the resale value of their homes.
Additional good news for the remodeling outlook comes from the American Institute of Architects Home Design Trends Survey which reported remodeling activity is on the rise for architects.
The following pages of the "Building & Remodeling Special Report" outline four popular home projects in which remodeling and new construction contractors often find themselves involved: Kitchens & Baths, Drywall Work, Wood Floor Installation and Roofing. Each section includes a short overview of that type of work and a gallery of popular tools and equipment used in those projects. By making many of these tools and products available to your customers in the remodeling industry you can make their jobs easier and establish your company as a well-organized resource for contractors.
Kitchens & Baths
Tile work, cabinet installation, plumbing and countertop placement are just some of the common chores contractors will perform during kitchen and bath work in both new and existing homes. Having the right saws, power tools, grouts and fasteners on hand will give contractors easy access to the supplies they need.
Drywall Work
From new construction to finished basements to remodeling work, home construction contractors are almost always in need of supplies for drywall work. Tape, mud, grout knives, cutting tools and placement aids are common needs for this kind of work. And if you want to become a one-stop shop for many of your drywall customers, having paint supplies on hand will save your contractors time while they check off items on their shopping lists.
Wood Floor Installation
According to the National Wood Flooring Association, residential real estate agents say homes with wood floors sell faster than a house without wood floors and increase a home's value. They also contribute to a healthy home environment for allergy sufferers. These are just a few of the reasons why homeowners choose wood floors when undertaking home upgrades or reinventing a room. Installation tools, fasteners, adhesives and lasers are common tools for the wood flooring installer.
Roofing
Every homeowner needs a good roof over his or her head. The economy might force some homeowners to put off a new roof installation for a while, but roofing must go on despite the economy. Nailers, fasteners and cutting tools are essential for this kind of work. And when replacing an existing roof, the proper removal equipment is essential so the installation process can begin. Working at heights also requires a high level of safety, so keep your customers in the know about current fall safety rulings and make the necessary safety equipment available to them (see "Safety First" in this issue).