The National Association of Home Builders (NAHB) is predicting a 37.7 percent rise in single-family housing starts for 2010; that’s 610,000 units, up from 443,000 in 2009. On the other hand, the multi-family sector, it predicts, will see a 22.3 percent decline.
During the Portland Cement Association’s (PCA) economic forecast at the International Builders Show, Ed Sullivan, PCA chief economist, presented a less optimistic view of the residential construction market. He forecasts a 20 percent rise in single-family home starts for 2010 and a 5.7 percent decline in multifamily starts.
While the overall housing industry may not be headed for a quick recovery in 2010, you may find opportunities to stimulate sales by targeting certain product groups that could be used in construction-related government programs. The 2009 American Recovery and Reinvestment Act continues to spur growth in transportation sectors, while two other goverment-sponsored programs may offer opportunities for you to target certain products to your customers.
If passed, the HOMESTAR retrofit program, part of the Jobs Agenda currently being debated in Congress, would provide $6 million in cash rebates to home owners who make energy-saving home upgrades in areas like insulation, duct sealing, water heaters, HVAC, windows, roofing and doors. And on April 22, 2010, training, certification and workplace practice requirements go into effect for the Environmental Protection Agency’s (EPA) Lead-Based Paint Renovation, Repair and Painting Program. Under the rule, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow work area containment practices, use HEPA exhaust control on power tools, and employ strict clean-up practices after a job.
By identifying products and equipment that can help contractors satisfy lead-based paint requirements and complete transportation projects and energy-saving home upgrades, you’ll help your customers get to work faster. You’ll also be taking advantage of a few strong opportunities to boost your store’s sales in an economy that requires out-of-the-box thinking to survive.
Rebecca Wasieleski,
Editor
Rebecca.Wasieleski@cygnusb2b.com