Market Analysis
COVID And Its Impact.
With the outbreak of the COVID crisis, it was thought that the pandemic would significantly affect the Remodeling Industry. However, this does not turn out to be the case, as this segment appears to be more resilient than most people thought. With unemployment forecast to remain relatively low, annual housing starts are expected to continue to grow faster than the previous five-year period, expanding the pool of potential remodeling sites. Since people are working remotely and primarily operating from home, home offices, private meeting rooms, and more have opened new ideas and opportunities for a remodeling company. High employment levels are also expected to boost per capita disposable income, enabling homeowners to spend more on home improvements. Furthermore, rising home prices allowing consumers to finance remodeling projects as many homeowners tap into their home equity to fund construction. Recent LIRA reports have veered towards a more positive outlook for the remodeling industry than reports released in the early months of the outbreak coronavirus (COVID-19) pandemic. Projections from the first two-quarters of 2020 forecast remodeling spending would decline by mid of 2021. As greater clarity emerged on the effect of the virus on the overall economy and the residential housing market demonstrated pliability, the LIRA began to project moderate gains for homeowner spending on remodeling and repair projects throughout 2021.
Status of Home Remodeling Industry.
The LIRA measured an annual rate-of-change of its components; it projected the annual rate of change in the expenditure of the current quarter and the following four quarters. The indicator is projected to help identify future turning points in the business cycle of the home development and repair industry. The indicator is benchmarked to the national spending estimates from the U.S. Department of Housing and Urban Development’s American Housing Survey (AHS).
The remodeling industry in the U.S. was $99 billion in 2018, with 430,909 businesses employing 687,556 craftsmen. These numbers dropped some due to the pandemic but have regained their losses by the First quarter of 2021.
Commercial contractors continue to encounter material shortages brought on by the pandemic outbreak of coronavirus, according to the Q4 2020 U.S. Chamber of Commerce Commercial Construction Index. The report states, 71% of contractors surveyed are facing at least one material shortage. Lumber was the most-cited material shortage (31%), followed by steel or electrical supplies other than copper wire (11%) and lighting supplies (10%).
Fuel, copper, steel, and aluminum have experienced modest price increases. In contrast, concrete’s price has slightly decreased, according to Atillo Rivetti, vice president at Turner Construction, who assembles the firm’s Building Cost Index.
As stated in the report by Ken Simonson, chief economist for the Associated General Contractors of America, steel and lumber price increases have been steep, jumping up several times this fall.
The shortages are impacting not only costs but lead times, Rivetti said. Price increases for materials like scrap steel and gypsum drywall are expected to continue into 2021.
The Current Situation.
- info@snchillc.com
SNC Home Improvement, LLC has worked on numerous projects over the years and has been a reliable company for many homeowners and contractors to remodel their property.
Focusing on Washington DC and the surrounding area SNC Home Improvement is looking to expand the business with a few select remodeling projects in the Northern Virginia and Maryland areas.
Although working in a global pandemic, SNC Home Improvement has still satisfied their clientele with their remarkable work and plenty of years of experience. The company uses state of the art equipment in each of their projects to ensure the projects success and longevity.
Products and Services
The plan as a business is to get you the top of the line products and services within the design of your home. We work with experienced structural engineers, architect designers and contractors to make sure the quality of the home is never compromised. The aim is to work one on one, directly with the clients to ensure we are following their needs and recommendations.
