In a previous entry, we discussed some pretty interesting findings from the recently released Houzz Renovation Barometer. Based on the results of the study, professional confidence has seen significant gains over the first three months of the year. This signals great things for the market as a whole.
Postwinter Boost
According to Houzz, there are two things that could have brought about this quarter’s high readings: last year’s great momentum and the demand surge for postwinter updates. The first factor is actually fairly easy to understand. 2014 was a strong year revenue-wise. Significant growth was recorded in both the number and scale of new projects and orders.
Seasonal uptick also had a hand in this quarter’s readings. This could be seen more clearly in regional data. General contractors (GCs) and remodelers in the Northeast experienced a dramatic increase in business activity from the last quarter of 2014 to the first quarter of 2015 (the reading went up from 57 to 70).
The low reading for Q4 of 2014 may be a result of the winter storms that the states in the Northeast are (in)famous for. The challenging weather could have made it more difficult for professionals work outdoors, resulting in fewer projects for the quarter.
Local Figures
Business activity for GCs and remodelers in the Midwest, including companies that offer Naperville replacement windows, has also seen a significant increase: from a reading of 64 in Q4 of 2014 to 82 in Q1 of 2015. The growth may have been an offshoot of the area’s climate. Since conditions here are generally more moderate, experts had no trouble taking on projects during the winter.
In particular, the Chicago-Naperville-Joliet areas fared very well in terms of professional confidence and business activity growth over the last three months. These areas ranked third among the 20 metropolitan areas included in the study. The reading for GCs and remodelers alone was at 75 this quarter. That number is only expected to grow over the next few months in 2015.
Confidence Counts
Overall, the future looks bright for the industry. Among GCs and remodelers, 81% are expecting revenue and profit growth. That’s 13% more than last year’s recorded figure. It’s a pretty good indicator that the market is slowly but surely recovering, and the conditions for the rest of the year are looking very rosy.
Pros such as NEXT Door & Window are highly optimistic about business activity growth in 2015, as more and more homeowners are realizing the need for quality home improvement services. And because we think highly of customer needs, we make sure each product on our roster gives you the best value for your money.
Our replacement windows in Naperville are among the best in the business. We’re confident that they will make great additions to your home. Feel free to call (877) 676-9710 with your concerns. We will help you get the units that are right for your home.
Check out part 1 of this blog series to learn more about the Houzz Renovation Barometer for the first quarter of 2015.