Houzz Stat: Hurry up and wait
General contractors and remodelers, design-build firms, and interior designers all reported longer project backlogs as of Oct. 1 than they did as of July 1. “Backlog” refers to the wait time an average firm faces before starting a new midsize project due to its current project commitments.
“It is hard to pin down why for some of them the backlog actually increased — it could be that projects are taking longer to complete,” says Nino Sitchinava, research economist at Houzz. Labor shortages also could be to blame. However, Sitchinava cautioned that it’s too early to know the full explanation, particularly since Houzz began tracking renovation project backlogs just three months ago.
Wait times for design-build firms are the longest of all. Design-build firms reported average wait times of 7.7 weeks, the longest of any of the six groups tracked in the survey. The average project backlog reported by these firms is also an uptick from three months earlier, when the backlog was 7.4 weeks.
Wait times for general contractors and remodelers average more than seven weeks. General contractors and remodeling firms reported the next-longest wait times, with average backlogs of 7.1 weeks as of Oct. 1, just a slight rise compared with three months earlier, when the average backlog was seven weeks.
Designers saw their backlogs rise. Designers reported wait times of 4.5 weeks, also a small rise from three months earlier, when the average wait time for firms in this group was 4.3 weeks.
The numbers come from Houzz's research and surveys of professionals.
HBSDealer Stock Watch: More bleeding on Wall Street
Home improvement stocks tanked on Thursday, especially SHLD, BXC and HD.
The above stocks lost 6.6%, 6.3% and 5.3%, respectively, on another rough day across the board. One stock bucked the trend: CENT – up 8.9%, after issuing a promising first-quarter earnings report.
Beacon Roofing Supply Q1 sales surge 12%
Beacon Roofing Supply, Inc. reported first quarter 2018 sales increased 12% to $1.12 billion from first quarter 2017 sales of $1 billion.
Residential roofing product sales increased 11.1%, non-residential roofing product sales increased 5.4% and complementary product sales increased 27.5% during the quarter, the company said. Existing markets sales, excluding acquisitions, increased 8.3% for the quarter.
The Herndon, Va.-based roofing and building products distributor also reported a first quarter net income of $67.6 million, compared to $20.4 million in 2017.
“Fiscal 2018 is off to an excellent start, highlighted by strong first quarter sales growth,” said Paul Isabella, president and CEO of Beacon Roofing. “We delivered 8.3% organic sales growth, boosted by post-hurricane rebuilding efforts in Florida and Texas, and strong sales results from our acquired businesses.”
Isabella also noted that overall product pricing was a positive contributor to first quarter sales growth. “In our existing markets, residential roofing posted its 15th consecutive quarter of positive growth, with a 9.6% increase.”
Complementary products represented the company’s best performing category, with 11.7% organic growth.
Current and future tax savings resulting from recent tax reforms will be utilized to further improve the company’s balance sheet, pursue additional growth avenues, and invest in our core business, including more than 8,500 employees, Beacon reported.
On Jan. 2 the company closed its acquisition of Allied Building Materials in a $2.62 billion cash deal. This adds approximately $2.6 billion in pro forma revenue and a network of more than 200 branches.
Beacon roofing operates 590 branches throughout the United States and Canada.