Story at a Glance

Economic growth slowdown ahead.. .'85 a year of stabiliza. tlon. ..15olo Increase In repair and rmodellng market. .mort. gage rates wlll level off.

million units. The "mix" of single to multi-family dwellings will continue toward the prevailing 60:40 ratio. Although demographics are the primary determinant of the demand for housing, the cost and availability of money will be major issues next year.

The outlook for residential renovation appears to be favorable throughout 1985. Overall, a llt/o increase is anticipated in the repair and remodeling market. This segment offers great potential for the building industry because remodeling spans the entire spectrum from single family homes to major urban development.

The d-i-y market is also expected to remain strong. It is estimated that 75v/o of existing homeowners will be involved in d-i-y projects. In order to remain competitive, manufacturers and retailers must speak the customers' language. They must meet consumers' needs through new product development, customer service and advertising programs. All of these areas will be prime targets for re<valuation in the coming year.

Compared to the past year of growth, 1985 will be a year of stabilization. As the economic pace tempers, the construction industry will be challenged by a static environment. The winnirs will be those who are able to face the changes with new and innovative ideas.