Remodeling Conditions Continue to Show Strong Growth

November 6th, 2014 by Editor

The National Association of the Remodeling Industry’s (NARI) third-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions indicated strong growth in the third quarter of 2014 with a rating of 6.41. Quarter-over-quarter increases are evident in all sub-components measuring remodeling activity, according to NARI. This is the second quarter of growth in 2014, coming on top of June’s strong increase over the 6.07 recorded in March.

All of the sub-components in the third quarter increased, with conversion from bids to jobs showing the strongest gain by three percent. (Rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 is about the same as last year):

  • Current business conditions increased to 6.41 (from 6.29 last quarter);
  • Number of inquiries increased to 6.51 (up from 6.38 last quarter);
  • Requests for bids rose to 6.41 (from 6.29 last quarter);
  • Conversion of bids increased 6.01 (from 5.83 last quarter); and
  • Sales value of jobs improved to 6.27 (up from 6.20 last quarter).

Economic growth had a 10 percent increase this quarter rising to 57 percent—up from June’s rating of 47 percent moving it to the number-two position, according to the report. Postponed projects remain the top driver at 74 percent, although it is down six percent from the second quarter of 2014.

“This is indicative of the slow, steady recovery of the remodeling industry,” says Tom O’Grady, chair of NARI’s Strategic Planning Committee. “Currently 67 percent of remodelers are seeing growth, and are confident that the market is improving which is in line with market indicators.”

The three-month outlook for business declined slightly in June to 6.32 from the previous high posted in March of 6.51, according to NARI.

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