Home Building & Improvement Market Research Reports, Analysis & Trends
Home building & improvement industry comprises companies that operate by building and remodeling the houses and conducting operations principally involved in the new construction or remodeling/renovation of single-family and multifamily residential buildings. Along with that industry operators consists other people as well and they are general contractors, design-build firms and single-family construction management firms acting as general contractors and builders. The industry does not include speculative builders or contractors that build on their own account for sale. There are professional industry workers that are constantly improving the standards by building and renovating homes in a more innovative and creative way that involves general contractors and subcontractors who build new homes and remodel existing homes. Other firms involved in the industry include project construction management outfits, design companies and specialty trade contractors who provide specialized building services such as dry walling and masonry.
Home renovation projects also encompass the remodeling of external structures such as gardens, garages, and lawns. Homeowners undertake home improvement to make residential properties more comfortable, upgrade air conditioning and heating systems, waterproof roofs and basements, soundproof rooms, and to extend their homes and boost energy savings. Consumer demand for environmentally friendly products, along with government-imposed standards to limit environmental harm is shaping the home building and improvement market. Consumers are opting for greener options such as photovoltaic roofing and vegetative roofs. Homeowners are also motivated to renovate their properties to cut utility costs by replacing windows and opting for energy-efficient thermal insulation.
Home Building & Improvement Trends
Globally there's a great growth pattern recorded for home building & improvement but America's home renovation market is in need of repair. Following years of high growth, the Home Improvement Stores industry's growth slowed significantly during the early part of the past five-year period. Demand for home improvement products was severely affected by the drop in consumer sentiment following the housing market collapse. Increased demand has helped the industry regain momentum since 2010, though, causing revenue to grow at an annualized rate of 1.4% in the five years to 2013. The geographic distribution of industry activity generally corresponds with the distribution of population, although slight regional variations occur, reflecting the differences in topography, land values, demographic factors and consumer preferences. This industry has the greatest concentration of establishments, employment, payroll and the value of activity in the Southeast, West, Great Lakes and Mid-Atlantic regions. The current distribution of establishments, employment and payroll by region is derived from the annual survey of County Business Pattern.
According to MarketLine, the global home improvement market is expected to grow at a yearly rate of 2.5% between 2010 and 2015. The market has a predicted 2015 worth of almost $678 billion. And home improvement stores are starting to recover as consumers invest in renovations and remodeling again. Improvements in consumer sentiment, disposable incomes and housing markets have boosted purchases of industry products, but intensifying price competition and the continued dominance of the industry's top players keep profit down. In addition, the do-it-for-me market offers an opportunity for growth, particularly for operators that provide additional services, like installation.
Major Home Building & Improvement Companies
Major players in the home building & improvement industry include Lowe's, Home Depot, Sears, Roebuck & Co, and Menards.