News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Relationship Marketing and Developing Loyal Customers
Neil Brown / CMA / October 24, 2014
The goal of any construction firm or contractor is develop a loyal customer base. You want to be the first person or company a customer will think of and go to when they have a project that needs to be completed.These loyal clients will trust you and will give you contract after contract at your price. We would like to thank Construction Business Ownerfor this informative article on Developing Loyal Customers. The construction industry is full of competition, especially as the industry is slowly recovering. Most of your competition are excellent firms or contractors in their own right. They oftenRead More
Architecture Billings Index Shows Robust Conditions Ahead for Construction Industry
American Institute of Architects / October 22, 2014
With all geographic regions and building project sectors showing positive conditions, there continues to be a heightened level of demand for design services signaled in the latest Architecture Billings Index (ABI). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the September ABI score was 55.2, up from a mark of 53.0 in August. This score reflects an increase in design activity (any score above 50 indicatesRead More
David Crowe / Eye on Housing / October 16, 2014
Builder sentiment as measured by the NAHB/Wells Fargo Housing Market Index fell five points in October to a level of 54. Any value above 50 means more builder see the market favorably over those who see unfavorable conditions. The drop was from a 9 year high of 59 in August and returns the index to summer 2014 levels.
Conditions across markets continue to vary with some markets, notably those in the oil and energy belt, continuing with positive outlooks whereas markets struggling where employment trends have not been as strong. Builders continue to note shortages of buildable lots and a scatteredRead More
Brad Hunter / Builder / October 17, 2014
Housing starts rose by 6.3% in September, which places activity 17.8% above September of last year, according to the government report just released at 8:30.
Metrostudy’s view about the housing recovery remains unchanged. The total for 2014 will be little changed from 2013, but activity should increase in 2015.
The Top 4 Obstacles
There are still people who *should* be able to get mortgages who cannot (particularly those who work on commissions or bonuses, or are self-employed).
They have yet to help household formation rates, because those
Remodeling / October 13, 2014
Spending on home improvement projects will grow by 6% both this year and next thanks to gains in home prices and last year’s rise in home sales, but big-ticket projects won’t see as big a gain, Fitch Ratings forecasts.
The firm’s special report, issued Oct. 10, called for the home improvements product market to grow from $289.7 billion in 2013 to reach $307.1 billion this year and $325.5 billion in 2014. Fitch based its forecast on a broad array of indicators, including the gains in this year’s REMODELING Cost vs. Value report; the 4.8% year-over-year rise in existingRead More
AGC of America / October 3, 2014
Construction employers added 16,000 jobs and the sector’s unemployment rate fell to 7 percent, the lowest rate for September in years, according to an analysis released today by the Associated General Contractors of America. Association officials said the construction employment gains come as more firms report having a hard time finding enough qualified workers to fill available positions, citing the lack of local vocational training programs, especially at the secondary level.
“While we are eager to see even more construction employment gains, there is no denying theRead More
David Crowe / Eye on Housing/ October 2, 2014
New home sales rebounded in August, increasing 18% to a seasonally adjusted annual rate of 504,000, according to estimates from the Census Bureau and HUD. These gains were atop upward revisions for the July pace. The August rate is 33% higher than August 2013 and is a solid indication of the ongoing recovery in the single-family market.
The inventory of new single-family homes inched up to 206,000 on a non-seasonally adjusted basis in August. Of this total, only 48,000 were completed, ready-to-occupy residences. In terms of months’ supply, the inventory of new single-family sales fellRead More