How Will the Home Improvement Industry Weather the Tough Economy?

The news these days speaks mostly of recession, the suffering economy, struggling industries and individual businesses.  Given the state of our country’s economy one would expect that the Home Improvement Industry will also suffer.  However, that may not be the case.

In New England and other parts of the country, new construction housing has all but come to a halt, and housing sales in general are down significantly from the first half of this decade.  In the past most families occupied a residence for an average of 5-7 years.  But in a difficult economy that number is rising.  Many homeowners are choosing to sit tight in the house they currently reside.  This is great news for the Home Improvement Industry.

This phenomenon should positively affect established and professional remodeling and replacement contractors in 2 significant ways.  The first way is that essential systems that tend to break down over time such as roofing, furnaces, boilers, hot water heaters, windows, and appliances, still need to be replaced.  In the past some homeowners may have passed the cost and duty of replacing these systems to the next owner.  But in many cases that is no longer an option.

The second way home improvement companies in New England may reap some benefits is the “don’t move improve” mentality.  Instead of upgrading to a newer larger home many people are opting to add on or remodel their existing home to suit their families needs.  These types of projects often include additions, finished basements and attics, low-maintenance siding upgrades, garages, and kitchen and bathroom remodels.

Homeowners still need to do their homework and consider carefully who they hire.

Although well established companies will survive this tough season, less professionally run businesses and “fly-by-night” contractors most likely will not.  If you are interviewing a contractor and they seem desperate to have your business and do not have a list of recent references to provide, consider this; There’s a high likelihood that contractor will not be around for the long run.  Do you want someone handling a project for you that will not be able to honor any warranty or service any issues that might arise it the future?  Furthermore, consider the low level of workmanship you will receive from someone who is barely making money, if any, on your project.  They will cut any corner possible.