Touched up: Stable homeownership will keep industry revenue growing

Over the five years to 2018, the Remodeling industry has expanded as a result of several economic factors that have encouraged an increase in consumer spending on home improvements. A steep decline in unemployment has led to improvements in consumers' disposable income levels, causing homeowners to undertake more professional remodeling projects, thereby benefiting industry demand. Additionally, favorable mortgage rates and rising home prices are expected to yield an active housing construction sector in 2018. Over the five years to 2023, industry growth will be driven by rising per capita disposable income...purchase to read more.

Industry Statistics & Market Size
Revenue
$97bn
Annual Growth 13-18
5.9%
Forecast Growth 18-23
Profit
Employment
696,917
Businesses
429,988
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Many operators have re-entered the industry as demand for remodeling picked up in line with increasing housing prices
  • Remodelers have been in high demand for those trying to flip homes
  • A projected decrease in the homeownership rate may work against the industry
  • Industry Report - Starting a New Business Chapter

    Few barriers to entry exist in the industry other than the need to obtain state-based licenses and registration. The capital equipment requirements for this industry are rudimentary and formal skill requirements are seldom enforceable. Therefore, the barriers to new entrants are generally low.In addition, in 2008, the Environmental Protection Agency (EPA) enacted the Renovation, Repair and Painting Rule. According to this legislation, remodelers working on pre-1978 homes with lead-based paint must be certified by the EPA and use EPA-trained and -certified renovators. This is to reduce the risk of harmful debris caused by remodeling activities such as sanding and demolition. The...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's in this report

    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
  • Increasing demand
  • 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
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Private spending on home improvements (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    General Contractor (Gc)
  • 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 that increases a home's energy-efficiency and reduces a building's impact on human health and the environment through better design, construction, operation and maintenance.
  • Gypsum Wallboard
  • A panel used in interior construction to form a wall or ceiling; also known as drywall.
  • 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.
  • What Our Customers Say

    Why buy this report?

    The Remodeling industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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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