Hardware Retailing The Industry's Source for Insights and Information
Remodelers are expecting to have a solid 2014, according to Qualified Remodeler magazine’s annual online market forecast survey.
Of those who responded to the survey, 78 percent reported having either an excellent or good outlook on the year ahead, an improvement over the 61 percent who felt this way one year ago.
The sentiment supports the double-digit growth predicted for 2014 by the Joint Center for Housing Studies’ Remodeling Futures Program at Harvard University. Harvard’s Leading Indicator of Remodeling Activity, however, calls for a slowdown in growth toward the middle of 2014, but to levels that will remain healthy.
In late October 2013, the National Association of Home Builders’ Remodeling Market Index, which measures remodeler confidence, stood at 58, the highest rating since 2004.
However, remodelers responding to the survey rank the biggest threats to growth in 2014 as follows: the economy in general; consumers’ fears; the availability of skilled labor; government regulation; and material prices.
Growth might not be guaranteed, but if past performance is an indicator of future activity, remodelers can expect a profitable year. Survey respondents reported profit margins are at healthy levels. The bulk of remodelers (45 percent) report margins between 16 and 50 percent. Only 11 percent of remodelers report margins of 5 percent or less.
