Farnsworth tells PDIS what to expect in remodeling
Nashville, Tenn. — Bradley Farnsworth, president of the eponymous research-based consulting firm (The Farnsworth Group), delivered an address to ProDealer Summit attendees Friday that outlined a progressively greener near-future outlook for remodeling.
In his presentation, titled "Emerging Trends in Remodeling: A Consumer and Contractor Perspective," Farnsworth detailed the experiences and expectations of architects, contractors and remodelers.
An increased focus on materials, but especially green features and energy efficiency, was at the forefront across the board. However, the impetus is shifting toward eco-friendly for its own sake, and not just as a means of saving money. Among architects, 48% mentioned being greener or more energy-efficient in the next five years, with 40% of contractors and remodelers saying the same.
An overwhelming amount of respondents also expect smaller home sizes in the near future (62% of architects), due in large part to rising housing and construction costs (63%) and higher energy costs (26%).
Expenses, however, do not paint the whole picture in this downsizing trend: 77% reported increased interest in urban areas, whereas interest in suburban regions actually declined (51%). An increasingly urban population portends a decrease in average living space square footage.
That’s also because consumers have other priorities than elbow room: access to amenities, walkable communities, access to mass transit and availability of jobs were all among the most attractive community features for potential homeowners.
The outlook for remodeling paints a slightly different picture: though green features are equally big, much of the market opportunities are oriented toward retrofitting homes for an aging population. Layout and accessibility accounted for 38% of remodeling motives, compared to 33% for energy efficiency.
Though increasing labor costs and lack of qualified labor are the biggest near-term issues for the sector, proper handling of these various growth trends can facilitate short-term growth of as much as 12 to 14%, said Farnsworth.
Weyerhaeuser posts solid Q3
Weyerhaeuser reported net earnings of $157 million for the third quarter, compared with net earnings of $117 million for the same period last year.
Net sales for the third quarter totaled $2.2 billion, compared with net sales of $1.8 billion for the third quarter of 2012.
“Solid operating results in the quarter contributed to a significant improvement in our year-over-year earnings,” said Doyle Simons, president and CEO.“In the quarter, we also closed on our previously announced acquisition of Longview Timber and are actively engaged in leveraging our silviculture, logistics and marketing expertise to realize the full potential of this valuable asset. We will continue to focus on improving performance in all of our businesses and generating additional value for our shareholders.”
Total net sales in its Timberlands segment totaled $547 million in the third quarter, up from $499 million in its second quarter of 2013. Net sales in its Wood Products segment totaled $1.05 billion, compared with $1.08 billion in its second quarter. In its Cellulose Fibers segment, net sales were $474 million, compared with $476 million in the second quarter. Net sales in its Real Estate segment totaled $324 million, up from $267 million in its second quarter of 2013.
Brian Miller to serve on NAHB Executive Officers Council
Brian Miller, executive VP of the Home Builders Association of Northern Kentucky, will serve a two-year term starting in 2014 on the board of directors of the National Association of Home Builders’ (NAHB) Executive Officers Council, according to Cincinnati.com.
He will serve as a regional director from national association’s region C, which covers Kentucky, Ohio, West Virginia, Illinois, Indiana, Michigan, Iowa, Minnesota, North Dakota, South Dakota and Wisconsin.
The Executive Officers Council is an organization of association executives who manage the more than 800 local and state builder associations affiliated with National Association of Home Builders.