Anybody seeing a slowdown? Personally I think demand has been so high that there is still a pipeline of business that will last for years.
Home Improvement Spending Slows With Home Sales
(May 12, 2006) — Higher interest rates, expensive building materials, and a slowdown in many housing markets have taken a bite out of home-improvement spending.
(May 12, 2006) — Higher interest rates, expensive building materials, and a slowdown in many housing markets have taken a bite out of home-improvement spending.
A May 1 report from the U.S. Census Bureau shows that expenditures for residential improvements grew by 9.2 percent in 2005, down from the 12.3 percent surge in 2004. A separate report on construction spending shows renovations in the first quarter are 10 percent less than a year ago.
Because home improvement spending typically trails trends in home sales, further weakness may be on the way.
While most housing analysts are optimistic about home improvement spending this year, the risk is growing that slowing home sales will cut sharply into retail sales of building materials and services, putting another drag on consumer spending.
Source: Business Week (05/15/2006)
Edited 5/13/2006 11:06 am ET by philarenewal
Edited 5/13/2006 11:07 am ET by philarenewal
Replies
My the link to "Prepackaged Sales Meetings"?
Try it now. The hypertext must display differently depending on your browser?
"Let's get crack-a-lackin" --- Adam Carolla
What you had done is to copy and paste the WHOLE web page including all of the HTML, instead of just the text in the article.
I have noticed a change in direction of the bucks invested in Home Improvement at least as it relates to my small business. While last years gross was down significantly from the previous year, my net at least kept pace. So, while the dollar is being watched here in NW Oh. a little more closely, there seems to be at least this spring, investment in maintainance and moderate improvements.
We usually talk about such matters at the Fests. What's keeping you from attending this years in NY's long island? More the merrier.
A great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
Quittin' Time
>>"What's keeping you from attending this years in NY's long island? More the merrier.
I don't travel well (actually I hate travelling). ;-)
When I've been around here longer, I will go. Maybe next year.
"Let's get crack-a-lackin" --- Adam Carolla
Wise move.Other than you and me all of the others are actually axe murders and not builders.Those pictures of the "house" that MS is "building". All photoshopped.But watch out.They are moving closer to you each year.RI, now Long Island. And next year?
Edited 5/13/2006 3:44 pm by BillHartmann
>>"Other than you and me all of the others are actually axe murders and not builders.
Nah, I'm pretty sure everyone is a builder. I know from personal experience that even axe murderers need to make a living plus need some legitimate cover (did I just say that out loud?). ;-)
>>"And next year?
Next year Camden, NJ. Murderers of all stripes fit right in there and I won't have to travel far. ;-)
"Let's get crack-a-lackin" --- Adam Carolla
It ain't slowed down here. We're building stuff one day that ships the next morning. Normally we don't schedule that tight.
This morning I had 12 jobs and 4 quotes to run. Normally I have about 10 total.
>>"It ain't slowed down here. We're building stuff one day that ships the next morning. Normally we don't schedule that tight.
That's what I'm thinking. Whatever the "experts" say, there's enough pent up demand to keep everyone busy for years.
As Calvin mentioned, as long as the folks that still want don't get fearful and pull back.
Looks that way to me at least. Still plenty of $$$ floating around out there one way or the other.
"Let's get crack-a-lackin" --- Adam Carolla
philarenewal,
Sometime this fall America will reach 300 million people.. They all need a place to stay.. so homes will need to be built..
If you look right in front of you sooner or later you'll run into an accident, however if you look forward far enough you'll be able to see much more and have a better perspective..
I rented a guy a new forklift again this spring. It's his 5th year in a row he rents and come late novemember, or december he chickens out and turns it back in.. by march or so he's calling me and askin' for another one..
What he's paid in rent these last 5 years would more than pay for a new forklift but every fall with the seasonal slowdown he gets afraid that it's all over and sends it back.. That's a clear case of shortsightedness.. Five years ago a new loaded forklift was in the low $60,000's now it's in the high $80,000's
His bids are tighter and his profit is lower on each house because he's rented instead of owned..
My point is that if you focus on the next month or two you'll fail to see the big picture..
Look at data like population growth (or decline) in your area, look at stuff like the Dow Jones average for a real picture on the economy..
Frenchy, where you been? Thought something might have happened to you.
I agree that population growth and job growth are key drivers. But as I'm pretty sure it was Calvin pointed out, discretionary income is another big factor.
People do need a place to live. But they don't always need to fix it up just now if they're not feeling as flush as in previous years.
High home prices are driven as much by income as by raw demand for housing, or maybe more accurately, are driven by both.
What I'm saying is, if everybody needs a place to live but nobody can afford it, you still won't sell any houses or rennovations (or at least not at a profit). Know what I mean.
"Let's get crack-a-lackin" --- Adam Carolla
philarenewal,
Income makes people feel good and want to spend money , sleeping outside forces them to build or rent.. either case someplace new needs to be built..
Even in the worst recession I've been thru (late 70's) with interest rates at 20% homes were being built!
sure a lot of them were homes for the wealthy who knew that was a time to get a good price and some of it was from those with foresight to know that they could always refinace when rates went back down.
But even then homes were being built.. The guys who got rich were those who were around building during the rough times and built a reputation which caused people to seek them out..
You best advertizement is your own work.. you can't afford TV or radio adds and the rest is so scattered as to be pretty ineffective.. However build in a new neighborhood and watch how many people come up to you to talk about doing some work for them..
Your trailer and forklift on the site should have your company logo all over it (and your phone number)
Besides what are you going to do if you get out of the business?
Hve you got enough put away so you don't need to work?