Some Stats For Our Industry That Bode Well

Mike Finley

2/3 of all existing single family homes in Amercia are 25 years or older.

Baby boomers are still a driving force and will continue to be as they will be good customers for years and years to come as they continue to upgrade existing homes in order to stay in them longer

Continuing rising energy costs will continue to influence the remodeling market with homeowners wanting to upgrade their homes to be come more energy efficient.

The top 5% of remodeling customers accounted for a staggering 60% of ALL MONEY SPENT ON REMODELING!

45% of the existing homes in America spent less then $1000 on home improvements each year for the last 5 years.

The projected average growth of home improvement spending for the next 10 years is 3.7%

Home improvement contractors consist almost entirely of small operators influencing very small geographic areas.

Over the last 7 years the number of single operators with no employees increased twice as fast as contractors with payroll.

3/4 of contractors with payrolls reported gross sales under $500,000, only 10% could claim gross sales over $1,000,000.

Experts still see no clear evidence in the near future to indicate large remodeling firms will dominate the remodeling market.

Contractors who specialized in "single line" services - (windows, siding, roofing, etc...) experience revenue growth that exceeded that of the rest of the industry as a whole.

MKamis

Those figures don't account for a lot of the homes that are newer, but poorly built and ineffeicent. The market can only get better for remodeling if you apply yourself.

dougchips

Mike, where did you get the stats from?

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ron schenker

So there is light at the end of the tunnel for us "little guy one or two man shows"

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Don't worry, the baseboard will hide it!

ron schenker

Home Depot

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Don't worry, the baseboard will hide it!

KentWhitten

I think the newspapers report too much gloom and doom. These swings always come around. We have been building the crap out of newer homes and now it's saturated the market. Well, remodeling, apartments, condos, and commercial always pick up during these times. People lose their homes unfortunately during these times and they need a place to stay, or they wanted to sell, but now can't get rid of it, so they opt for remodeling and wait out the storm.

Slide with the economy not against it and everything will be cool.

Nice numbers Mike. You made me remember it's not so pissy out there after all.

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Mike Finley

I hear that.

I don't know where I got them from, I go through stacks of magazines I get now and then and toss them after I go through them, it could have been out of a half dozen builder mags over the last few months.

MattCoops

If you read another mag you'll get another set of stats.

You can account for your own stats and gear your work around that.

That's where microsoft excel and its calculator features come into play.

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Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
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ultimatetouch

I am shooting for the 10% this year...but I dont think those stats are accurate. Lot of guys dont claim everything either.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois