A report from the National Association of the Remodeling Industry (NARI) states that the second quarter saw an increase in remodeling market indicators.
The 2014 Remodeling Business Pulse (RBP) survey demonstrated growth compared to conditions in March, at which time market indicators had just declined.
On a scale of 1 to 9 -- where 1 is "much worse than a year ago," 5 is "about the same as last year" and 9 is "much better," -- current business conditions increased from 6.07 to 6.29.
The number of inquiries increased from 6.24 to 6.38, and requests for bids rose to 6.29 from 6.16. Conversion of bids increased to 5.83 from 5.71, and the sales value of jobs went up to 6.20 from 5.84.
“This quarter didn’t show much change in conditions driving growth,” says Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning Committee. “People needing to do postponed projects remain the number one driver at 80 percent, and improving home prices, at 59 percent, continues at number two. What is encouraging — is that the value of jobs sold had a statistically significant growth.”
One factor that did decline: the three-month outlook for business, which dropped to 6.32 from March's previous high of 6.51. However, only 8% of remodelers reported decline; 70% are still seeing some level of growth.
“As the industry slowly recovers from the 2008 downturn and comparisons are being made to healthier year-ago periods, we may see these ratings soften some,” O’Grady says. “Remodelers report that shortages are particularly acute for trained workers with basic carpentry skills to work in the field."