NARI (National Assn. of the Remodeling Industry), www.nari.org, Des Plaines, Ill., has released third-quarter data regarding current and future remodeling business conditions, and the trends indicate growth for the industry.

The third-quarter rating of 6.41 shows strong growth backed by quarter-over-quarter increases through all sub-components which measure remodeling activity. Since March’s rate of 6.07, the last two quarters have shown increases leading to the 6.41 mark. Ratings are given on a scale of one to nine in which one is much worse than a year ago, while nine is much better. A rating of five indicates things were the same as the previous year.

Producing the largest gain among sub-components is “conversion from bids to jobs,” which grew by three percent. Other areas of growth include:

  • Number of inquiries increased from 6.38 last quarter to 6.51
  • Requests for bids grew from 6.29 to 6.41
  • Conversion of bids went from 5.83 to 6.01
  • Sales value of jobs rose from 6.20 to 6.27

As remodeling projects continue to grow, the likelihood of more technology being a part of the new family room or den is a real possibility.

A survey released by the CEA (Consumer Electronics Assn.), www.ce.org, and Parks Associates, www.parksassociates.com, shows continued strong growth of smart-home products. The report states 20% of U.S. homes with broadband intend to purchase one or more smart-home devices within the next 12 months. Smart lighting and smart thermostats were the most desired products to purchase by those surveyed.

Nearly two-thirds of people interviewed stated they are interested in buying a smart device which interacts with another smart device.

Also making a move upward was economic growth, which went from 47% in June to 57%. The top driver is postponed projects, which went down from 80% in the last quarter to a current rate of 74%.

As is the case at this time of year, the three-month outlook dropped from a high mark of 6.51 in March to 6.32 in June. The reason behind September declines is due to remodelers preparing for the colder months ahead.

Homeowner financing of projects ran into some difficulty as it was placed between neutral and difficult in getting funds. The main issue involving financing, which came in at 38%, was the financing company being “overly cautious.” Right behind that was the project being too expensive compared to the home’s value at 27%, followed by poor credit history at 11%. If a check or cash was not used, 72% went the route of a bank or credit union to gain financing, while 20% used a credit card.

Tom O’Grady, CR (certified remodeler), CKBR (certified kitchen and bath remodeler), chairman, NARI strategic planning committee, says, “This is indicative of the slow, steady recovery of the remodeling industry. Currently, 67 percent of remodelers are seeing growth, and are confident that the market is improving which is in line with market indicators.”

Want to tweet about this article? Use hashtags: #construction, #remodeling, #financing , #CEA, #ConsumerElectronicsAssn, #ParksAssociates, #NARI