Touched up: Housing market growth will provide a boost to industry demand and revenue

Over the five years to 2017, the Remodeling industry has continued its upward trend, as several factors have encouraged consumers to increase spending on home improvements. Over the five years to 2022, industry recovery will be driven by improvements in employment and per capita disposable income. Additionally, housing prices are expected to continue rising, bolstering demand for industry services. Despite tightening monetary policy, interest rates are expected to grow slowly. As a result, the homeownership rate is anticipated to only slightly decrease over the five years to 2022. Consequently, industry revenue is forecast to increase, albeit at a slightly slower rate than during the previous five-year period...read more.

Industry Statistics & Market Size
Revenue
$83bn
Annual Growth 12-17
3.9%
Forecast Growth 17-22
Profit
Employment
655,587
Businesses
428,285
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Rising residential construction activity and growth in disposable income will drive demand
  • Remodelers have been in high demand for those trying to flip homes
  • The industry’s primary market will grow as homeownership rises
  • Industry Report - Industry Analysis Chapter

    The Remodeling industry, similar to the wider housing sector, has continued to rebound over the five years to 2017. However, in contrast with the new residential housing market, the industry’s recovery started in earnest prior to the current five-year period. This is characteristic of the industry in general, which is less susceptible to the cyclical forces that dictate new construction activity. For instance, many repairs and improvements offered by the industry are not discretionary, such as disaster repair, thus homeowners typically continue to invest in existing structures even as new housing declines. Nevertheless, increased construction activity over the period provided the necessary boost for the industry to continue its robust growth. Due...purchase to read more.

    Additional Insights for the Remodeling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Remodeling Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Private spending on home improvements and House price index in the Remodeling industry impact industry performance..

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    What is the Remodeling Industry?

    Operators in this industry remodel and renovate the interior and exteriors of residential buildings (i.e. single-family homes and multifamily apartment building units). Remodeling includes additions, alterations, reconstruction, maintenance and repair work. This industry is composed of general contractors, operative remodelers, remodeling design-build companies and remodeling project construction management companies. This industry does not include commercial remodeling.

    Industry Products
  • Kitchen remodeling
  • Bathroom remodeling
  • Room additions and other interior alterations
  • Outside additions
  • Systems and equipment
  • Disaster repairs
  • Industry Activities
  • Residential additions, alterations and renovations
  • Construction management for residential remodeling
  • Fire and flood restoration
  • Home improvement
  • Porch construction
  • Sunroom additions
  • Kitchen and bathroom upgrades
  • Other remodeling projects
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private spending on home improvements
  • House price index
  • Households earning more than $100,000
  • Homeownership rate
  • Prime rate

  • Current Performance
  • Demand constraints
  • Market rebound
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth prospects
  • Price competition eases
  • Innovation and trends
  • Table: Remodeling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Remodeling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Apartment Rental
  • Educational Services
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Cement Manufacturing
  • Clay Brick & Product Manufacturing
  • Construction
  • Lumber Wholesaling
  • Ready-Mix Concrete Manufacturing
  • Roofing, Siding & Insulation Wholesaling
  • Sawmills & Wood Production
  • Stone, Concrete & Clay Wholesaling

  • Products & Services
  • Outside additions
  • Systems and equipment
  • Room additions and other interior alterations
  • Other
  • Kitchen remodeling
  • Bathroom remodeling
  • Disaster repairs
  • Chart: Remodeling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Single family houses (detached)
  • Apartment buildings
  • Single family houses (attached)
  • Other
  • Stores, restaurants other commercial buildings
  • Office buildings
  • Hotels, motels, and tourist cabins
  • Chart: Major Market Segmentation for the Remodeling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Remodeling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Remodeling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Remodeling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Remodeling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Private spending on home improvements (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    General Contractor
  • An individual or company that manages the construction of a building or structure for a property owner or developer. A GC may retain its own labor force or use subcontractors for projects.
  • Green Remodeling
  • Remodeling which increases a home's energy efficiency as well as reduces a building's impact on human health and the environment, through better design, construction, operation and maintenance.
  • Gypsum Wallboard
  • Also known as drywall, it is a panel used in interior construction to form a wall or ceiling.
  • Weatherization Assistance Program
  • Federal program to enable low-income families to reduce energy expenses by funding remodeling or repair projects to improve a home's energy efficiency
  • Why buy this report?

    IBISWorld’s Industry Market Report on Remodeling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Remodeling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Remodeling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Remodeling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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