Following is an article written by Lauren Lawley, Head freelance writer with The Business Journals Content Studio. Below the article is a link to the full article on their website.
Renovation boom drives demand for contractors
Most U.S. homeowners are ready for a change.
Whether it’s turning a bathroom into a spa-like retreat or bringing a fresh look and smart appliances into the kitchen, remodeling projects abound. In fact, more than 70% of U.S. homeowners are planning or considering a home renovation project before the end of the year, according to a recent survey by the tool manufacturer DEWALT, which is a Stanley Black & Decker brand.
The most common projects? Bathrooms (42%), kitchens (40%), bedrooms (28%), porches, patios, and decks (21%), and landscaping projects (20%
“Every company we continue to work with is telling us we’re busier than we’ve ever been,” said Maria Ford, president of commercial construction at Stanley Black & Decker, one of the world’s largest tools and storage companies with 56,000 employees in more than 60 countries who create tools, products and enterprise solutions.
The hot housing market appears to be one of the forces driving the trend. More than half (52%) of U.S. homeowners report considering renovations as an alternative to buying a new home, according to the recent survey.
Remodeling is big business
Remodeling activity is expected to remain strong for several years, according to Improving America’s Housing 2021, a report released in March by the Harvard Joint Center for Housing Studies. U.S. spending on home improvements and repairs reached nearly $420 billion in 2020, the report said, a more than 3% increase from 2019 even as the entire economy shrank by 3.5%.
“In the short term, many homeowners who deferred projects — both large and small — in 2020 are expected to complete those renovations once the pandemic is over,” Kermit Baker, director of the remodeling futures program at the Joint Center for Housing Studies, said in a statement when the report was released. “Additionally, there has been an upturn in homeownership as younger households look to purchase homes, the number of multigenerational households has been growing, and remote work has given people more locational flexibility and the desire to modify their homes.”
Natural disasters also create demand for home renovations. The Joint Center for Housing Studies points out that in 2019, repairs from hurricanes, tornadoes and other disasters represented 10% of all homeowner improvement, twice its historical share.
The figures are expected to continue to be high. Last year, the U.S. had 22 disasters that caused $1 billion or more in damages, the highest number on record. As of July 9, the National Centers for Environmental Information reports there have been eight billion-dollar disasters in 2021.
Labor shortage
The growing interest in home remodeling has created a corresponding increase in demand for contractors.
While some homeowners opt for a do-it-yourself approach, the DEWALT survey found that most (84%) are planning on or considering a professional contractor for their project. They also appreciate the skills of a pro more than they did pre-pandemic, with 43% recognizing the expertise a skilled tradesperson brings to a project.
Unfortunately for many homeowners, finding an available contractor can be challenging.
More than half of survey respondents (56%) who had reached out to a contractor said they were told they would have to wait at least three months for work to start. Survey respondents reported needing contractors most for electrical work (44%), flooring (41%), plumbing (40%), windows (40%) and structural work (39%).
Demand is so strong the National Association of Home Builders reports many professional remodelers have to turn away work.
“Prior to Covid, the issue was there,” Ford said of the labor shortage in the building trades. “Then Covid hits, and it becomes even more of a challenge. You hear this throughout big, small and medium companies. It is a real challenge facing our industry.”
With the renovation boom continuing, organizations throughout the construction industry are working on solutions.
Lauren Lawley Head is a freelance writer with The Business Journals Content Studio.
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