Dealers are more optimistic about revenue growth in their businesses in 2013 than remodelers and single-family builders are about their operations, with repair and remodel business ranking atop the list of growth opportunities, a new survey by ProSales’ parent finds.
Hanley Wood’s poll of 482 dealers and distributors nationwide found 36% of the respondents predicted at least 10% revenue growth next year, 32% expect to grow by 1% to 9%, 21% look to maintain 2012’s pace, and only 10% predict revenue declines.
In contrast, 41% of the 542 single-family builders responding to the poll look for growth at or above 10% but only 20% were in the 1%-to-9% range, thus making dealers slightly more positive about their prospects. Among the 639 remodelers surveyed, 33% look for growth levels above 10% and 18% predict they’ll grow no more than 10%.
The results of the August survey, released Sept. 26 in Chicago during Hanley Wood’s Foundations Conference, also asked dealers to name their top growth categories in 2013. Repair and remodeling led the way at 62%, followed by small builders (47%), custom builders (43%), commercial contractors (38%), builders of multifamily rental housing (21%), production builders (20%), and builders of multifamily units for sale (13%).
Perhaps ironically, when single-family builders were asked to name their top growth opportunities, 38% listed remodeling. The only other category that did so well was move-up housing, also at 38%. They were followed by luxury custom homes at 27% and starter homes at 24%.
Remodelers identified baths as their top growth opportunity, with 61% citing that category. Next up were repair and remodel jobs, listed by 58% of all remodeler respondents, kitchens (56%), major replacements of elements such as windows or siding (36%), and small additions (34%) minor replacements like countertops 32%, and deck or porch work (29%).