One of the lessons smart businesses learned from the housing crash is having multiple streams of revenue is hugely helpful. When one revenue stream is crippled by forces outside your control, having something else to turn to is a life-saver.
Building product manufacturers, distributors, and dealers all can benefit from multiple lines of business. One easy way is by focusing not just on new construction, but also the remodeling segment. You'll capture sales from people who aren’t buying a new house but have equity to tap into. The remodeling market is projected to grow as baby boomers age-in-place and people scarred by the crash decide it’s easier to stay than risk being upside down.
Are You Adapting To The Remodeling Shift?
So how can your company make the shift? How can you personally adapt to today’s economy and customer demands? Here are three areas of remodeling focus we see as continuing to grow in popularity in years to come.
Green Products
Focus on green building products is continuing to grow – it isn’t a flash in the pan going away anytime soon. Baby boomers and millennials alike are demanding more energy and water efficient products in every facet of their lives. Smart manufacturers are devoting time and money towards creating more sustainable products. Taking that a step further, successful companies will focus on retrofitting or renovation products that can improve existing homes without having to use a lot of resources in the process.
Higher-End For Smaller Budgets
Just because we all want to save the environment and our pocketbooks, doesn’t mean we want drab, cheap materials. High-end or at least luxurious appearing products are becoming more common and are definitely more requested. Focusing on innovations that last longer and look better while being more cost-effective are a winning combination.
Smaller Details/Greater Impact
With the tiny house revolution and more people staying at home longer, customers demand solutions unique to their situations. Revolutionary storage and space saving features are some of the more requested items to come out of these trends. Manufacturers who are paying more attention to the smaller things and giving them bigger and better features are reaping the rewards. Multi-tasking products are going to continue to be in demand.
No matter where you are in the building industry, the shift from new builds to remodeling has impacted your company somehow. Adapting to trends and improving your product base are part of being an industry leader.
