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Examining the remodeling market crash
Our Business Results Survey reveals the depth of the downturn
Jonathan Sweet, Senior Editor
April 1, 2009
Professional Remodeler
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 View the Professional Remodeler 2009 Business Results broken down by geographic region. Includes charts and graphs. View survey |
We saw early signs of turmoil in 2007, but 2008 was the year that the remodeling downturn really hit remodelers across the country. Almost every indicator in our 7th annual Business Results Survey points to a shrinking market in 2008.
Besides giving us a snapshot of the industry, the study also provides a benchmark for you to compare your company against others across the country. With more than 400 respondents, this year's study allows you to see how your company measures up across several areas, including expenses, revenues, marketing, labor and sales.
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(For reference, 29 percent of respondents had revenues less than $500,000; 21 percent were between $500,000 and $999,999; 32 percent fell between $1 million and $3 million; and 18 percent had revenues of more than $3 million.)
The biggest difference between the various company groups was average job size, from a low of $5,248 for the smallest firms and $77,687 for the largest. The numbers seem to support the anecdotal evidence that job sizes, especially in the high end, decreased in 2008. Those companies, over $3 million saw their average job size drop by almost $60,000, from $133,456 in 2007 to $77,687 last year, while the total number of jobs increased from 157 to 181.
Although not reflected on the tables, larger companies were also much more likely to belong to a trade association. Nearly 70 percent of companies with volume of more than $1 million belong to a trade association, compared with 44 percent of those with revenues less than $1 million. Overall, 41 percent of respondents were members of NAHB, 25 percent were members of NARI and 14 percent were members of NKBA.
Click here to listen to an introductory podcast from Senior Editor Jonathan Sweet.
Listen to what three of our Market Leaders have to say about the condition of the market:
• Bob Birner, Amazing Siding & Renewal by Andersen, Houston
• Joe Christensen, Remodel Works Bath & Kitchen, Poway, Calif.
• Michael McCutcheon, McCutcheon Construction, Berkeley, Calif.
To view the rest of the survey, click on the links below:
Business Results Survey Reports:
Revenues take a plunge
Labor is top expense
Small workforce the norm
The amazing shrinking job
Repeats and referrals dominate
Lean sales operations
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© 2009, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.