Depending on the group, 28% to 34% of general contractors, design-build firms, and specialty remodelers predict their revenues will rise at least 15% this year, Houzz signaled today in its 2016 State of the Industry Report. But that same poll also found that about a quarter of remodelers predict 2016 will bring no change or even a loss in revenue from the year before.
The survey, conducted between Dec. 9 of 2015 and Jan. 11 of this year, captured the views of 742 general contractors, 406 workers at design-build firms and 531 specialty remodelers. All of the companies post their work on Houzz.
The poll also interviewed architects, interior designers, landscapers, and design specialty firms. Here's how all those groups responded when asked to predict how their revenues will change in 2016:
The survey found similar divisions when remodelers were asked how their revenues and profits compared with pre-recession levels. Roughly 55% of all three groups said revenue and profits were somewhat or significantly above pre-recession levels, while 22% to 28% said revenues and profits were somewhat or significantly below where they once stood. Here are those results:
The survey also found remodelers fretting over labor shortages (particularly finish carpenters) and over higher product costs. But when asked to name their top three business challenges, the order of what mattered most varied depending on the respondent:
The survey's release coincided with Houzz's Renovation Barometer the fourth quarter of 2015. The barometer "showed continued confidence in year-over-year and quarter-over-quarter gains in business activity," Houzz said.
“All of our Houzz industry research to-date points to an exceptional two-year run for the home renovation and design industry, leading to a healthy market in 2016,” Nino Sitchinava, principal economist at Houzz, said in a news release. “2016 should bring more moderate but steady growth, driven by solid consumer demand but hampered by labor shortages. We expect to see businesses increasing their fees to offset rising labor costs and years of low margins, as well as focusing efforts on big-ticket projects while expanding their staff.”