A survey of 300 of the nation's top remodelers finds that they expect sales to grow 12.8% over 2011 to hit $3.8 billion in 2012, according to the latest financial analysis of the remodeling market by ProSales’ sister magazine Remodeling; each year the magazine asks remodelers and replacement and specialty contractors to supply financial data including the previous year’s revenues and projections for the current year. Contractors expect revenues to climb 5% in 2012 to average $13 million.
That growth matches the latest numbers from the Leading Indicator of Remodeling Activity from Harvard’s Joint Center for Housing Studies, which tracks the expected annual rate of homeowner improvement-spending. The index’s latest projections plot spending growth at an annual rate of 12.2% to hit $128.9 billion per year by in 1Q 2013.
Remodelers’ 2011 sales averaged $3.4 million, down 2.7% from a year earlier. The midpoint among remodeling companies who reported revenues was $1.9 million, nearly 10% lower than 2010’s median. And in 2010, remodelers said their average job was worth $98,254, but that average shrank to $88,564 among the group who reported in 2011.
Replacement and specialty contractors averaged revenues of $12.5 million for 2011, down 14.7% from 2010’s average, with the median mark of $5.4 million a nearly 7% drop for the same period.
Note: The 2010 and 2011 data were not reported by the same group of remodelers and contractors. For more information, visit www.remodeling.hw.net.