Sales strategy of remodeling industry growth

A MERICA is remodeling and your customers, A whether do-it-yourself, buy-it-yourself or contractor, and your store are part of the industry growth.

Over 600/o of the more than 80 million single family homes in the U.S. are at least 15 years old. Owners of older homes turn to remodeling to keep them efficient, comfortable and good looking. Owners of newer homes, as well, are remodeling to acquire more storage space' extra room or a more functional kitchen or bath.

Remodeling projects increase the demand for lumber and structural panels as well as other building products. The National Forest Products Association expects R&R

Story at a Glance

Analysis of remodeling industry figures. . .top remodeling projects. .increased demand for lumber and other building products.

to increase lumber sales by 25-30V0 and structural panel sales by 200/o. Over half of ttre $95 billion spent on residential upkeep and improvements in 1986 went for additions and alterations, all utilizing wood, they point out.

The National Association of the Remodeling Industry (remodeling contractors) expects their share of residential remodeling to become a $65.4 billion industry this year. All sources predict 1987 will exceed 1986 expenditures for remodeling.

Doors and windows for replacement or room additions are the top dollar remodeling project with a volume of over $9 billion. Storm windows and doors, skylights, entry and sliding exterior doors and hinged patio doors are included in this figure.

Wood doors are preferred over steel doors, 50.90/o to 49.10/0. Wood windows also are preferred. Of all the replacement windows sold, 450/o are wood, 34.80/o aluminum, 17 .40/o vinyl, and 20/o steel' The average door and window replacement remodeling project costs $9,000.

An estimated $7.7 billion was spent in kitchen remodeling in 1986. Approximately 2,895,000 kitchens are remodeled each year at an average cost of$11,000. The majority of this figure is spent on cabinets which have an annual dollar volume of $3,835,000,000. Countertops are second with $770,000,000 in volume followed by appliances, cabinet hardware, sinks and plumbing.

Prolessional Remodeling Proiects by Jobs/Units Sold AnnuallY

Siding has an annual dollar volume of about $5 billion spent for approximately 1,751,000 remodeling jobs. Vinyl siding is used by 31.20h of the homeowners; aluminum by 27.40/o; wood by 23.60/o; hardboard by ll0/o and steel by 6.7%.

Approximately $4 billion is spent annually remodeling 4,152,000 bathrooms. About $72,000,000 of this is spent on vanities; $660,000,000 on ceramic tile; $397,000,000 on whirlpools' The average bath remodeling project costs about $3,500. In addition to some 3,035,000 existing baths which are remodeled, l.l 17.000 baths are added annually'

Retailers can get their share of this gigantic home improvement market by encouraging d-i-yers with advice and clinics, providing special orders and installation and offering special services to remodeling contractors.