US remodeling market fell slightly in March, with all sub-components of NARI's Q1 Remodeling Business Pulse down except for one; harsh winter likely played role in decline, remodelers more optimistic about future as they head into their busy season
Allison Oesterle
DES PLAINES, Illinois
,
April 21, 2014
(press release)
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NARI reports harsh winter may have played a role
The National Association of the Remodeling Industry’s (NARI) first-quarter 2014 Remodeling Business Pulse (RBP) data of current and future remodeling business conditions show current condition ratings fell significantly in March.
Business conditions during the first three months of 2014 dropped to 6.07, down from 6.41 in December. There was a decline in all but one of the sub-components that drive the overall current rating. Conversion of bids and sales value of jobs had the largest dip.
However, strength of sales in this three month period increased to 6.51, from the 6.41 reported during the fourth quarter of 2013.
“The harsh winter seemed to have played a role in the decline of our numbers this quarter,” says Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning Committee.
However, despite the low ratings for current business conditions, remodelers are more optimistic about the future, heading into their busy season. The outlook for business three months out reached a new all-time high of 6.51, from 6.41 in December 2013.
Growth indicators in the first quarter of 2014 are as follows (rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 is about the same as last year):
“Postponed home maintenance issues continue to be a large driver for projects,” O’Grady says. “However, homeowners remain slow to make the decision to move ahead with higher-priced projects, which is still the biggest barrier to growth.”
When asked about what is driving growth, remodelers had responses similar to those seen in the last few quarters. Activity is being driven by several factors:
“From the comments on the Remodeling Business Pulse survey, remodelers still feel this will be end up a strong year for business,” O’Grady says.
To review the research in its entirety, please send your request to marketing@nari.org.
NARI is the source for homeowners seeking to hire a professional remodeling contractor. Members are full-time, dedicated remodelers who follow a strict code of ethics with high standards of honesty, integrity and responsibility.
Visit the NARI.org site to get tips on how to hire a remodeling professional and to search for NARI members in your area.
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About NARI: The National Association of the Remodeling Industry (NARI) is the medium for business development, a platform for advocacy and the principal source for industry intelligence. NARI connects homeowners with its professional members and provides tips and tricks so that the consumer has a positive remodeling experience. NARI is a nationwide network of nearly 7000 member companies and their employees. Consumers may wish to search www.NARI.org to find a qualified NARI professional or call NARI National at (847) 298-9200 and request a free copy of NARI’s brochure, “How to Select a Remodeling Professional.”
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