Reflecting continued optimism about the U.S. economic recovery, 35% of ProSales 100 companies expect new-home building growth in their markets and 23% expect multifamily to grow more than 10% in the next five years. That’s down from 2012 when 47% expected new-home building growth, but a slight improvement for multifamily. Expectations for the remodeling segment also cooled a bit with just 16% expecting that book of business to grow by greater than 10%; whereas in 2012, 24% of dealers saw remodeling growth coming. Also, the percentage of dealers reporting increases in revenue came to 95% in 2013, a slight improvement over 2012.
For the second year in a row, half of all ProSales 100 dealers that provide component manufacturing expect to see that portion of their business expand in 2014. While slightly more than a quarter of dealers currently build wall panels, 12% say their future plans include adding that component to their offerings. A smaller segment plans to expand into pre-built stairs, roof trusses, and floor trusses.
Faced with competition from online building material dealers and the customer-oriented tech offerings of big-box lumberyards, ProSales 100 dealers plan to push their services online in the coming year by introducing online order tracking, online purchase orders, and online inventory/pricing for their customers. However, just 12% of dealers say that they will spend more than 1% of total sales on technology products and services in 2014.