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Remodeling is the new “New Construction” Since the new housing boom has slowed considerably, more and more homeowners are looking to remodeling and renovation projects to update their homes. In fact, according to this year’s National Association of Home Builders (NAHB) forecast, Americans will spend nearly $233 billion on home remodeling this year, accounting for more than 40 percent of the home construction industry by dollar volume. Obviously, this presents some great opportunities to manufacturers in the building products segment. In this edition of News to Use, we dive into the remodeling world to explore the latest trends in the market and address the issues remodelers face today. We certainly hope you find this information valuable to your efforts in connecting to remodelers and their customers.

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A New Kind of Remodeler To effectively market your products to remodelers, you have to understand who they are. So we thought we’d share a few insights with you.

The remodeler is young. | According to the US Census Bureau, a quarter of all remodeling company owners are between the ages of 25 and 34.

The remodeler is educated. | 64% of these owners have at least some college education.

The remodeler is marketing savvy. | This new breed of remodeler is focused on developing elaborate marketing strategies, incorporating advanced software programs and technologies, and creating business plans aimed at increasing revenue and broadening company offerings.

The remodeler doesn’t want trouble. | They want products that are reliable and worry-free. And if there ever is a problem, they want the supplier to fix it immediately.

The remodeler doesn’t shop bids. | Once you’ve established yourself as a trouble-free supplier, you’re golden. Because to a remodeler, the risk of using someone else is just too great.

The remodeler is thirsty for product knowledge. | The remodeling contractor needs to know what products are on the market. His business depends on it.

When marketing to remodelers, manufacturers should look for ways to educate them without cutting into their workday. Newsletters and lunch seminars have proven to be successful. And the Internet offers a host of opportunities for both advertising and product education.

Compiled From: Solid Surface & Qualified Remodeler

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How to Team Up With A Remodeler So You Both Sell More All too often, remodelers are too busy and too overworked to think about their own marketing. But there are ways manufacturers can help, and benefit in the process.

Neal Hendy, president of Neal’s Design Remodel, advises remodelers to partner with suppliers – many of whom may have deeper advertising pockets – to get marketing mileage. Co-op advertising is often a simple solution to solve both the remodeler’s and the supplier’s objectives.

Hendy also advises underscoring what it is that remodelers do best. “Remodelers have surpassed builders on customer service. That’s good news for remodelers going after referral business.” Manufacturers who can show builders how they can help them deliver on the “service” promise will go far in cementing a relationship with them.

Another challenge that remodelers face, especially when competing with new-home builders, is that they don’t have model homes to help sell their services.

As a substitute, some remodelers are outfitting their companys’ headquarters with room sets so customers can look at a limited number of products. To help the selling process further, remodelers are also stocking these “living areas” with a variety of catalogs, videos, project photos and displayed products to help clients make their selections. Manufacturers can support remodelers by providing them with the sales literature, video materials and products to help bring their “model home” to life.

Have you considered a co-op program that includes shelf marketing tools such as ads, direct mail or e-mail for remodelers to help them gain referrals?

Compiled From: Remodeling

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Gen Xers aren’t the next driving force. They’re gaining speed now In the next few years, the last of the baby boomers will be leaving their remodeling prime – typically when the homeowner is between 35 and 45. But finding a viable replacement for boomers isn’t going to take a few years. It’s already happening.

Generation Xers are spending at a higher rate than boomers and are just now entering their key spending years. They’re spending more per household, reflecting their tendency to spend more than their parents. And they’re much more likely to buy when they’re single and look at their home as an investment more so than previous generations. Which all leads to one obvious conclusion: if you want to build your business, you need to court this age group.

Here are some other tidbits about Gen Xers to help you tailor your message and develop profitable inroads with them:

Above all, the first key to successfully marketing to Generation X is to do it now. Because companies that are presently active with this group are going to have a big leg up on their competition when Xers are ready to remodel.

Here are just a few ideas to reach Xers:

Compiled From: Professional Remodeler

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Survey says partner up with the pros to get in on the action End users and constructions pros both play a part in how brands are selected. Here are some insights that may be helpful to you.

Also, here’s a list (by product category) of the frequency with which builders and remodelers select brands for homeowners:

• Insulation   88%
• Roofing   79%
• Exterior siding   78%
• Interior doors   75%
• Door/window hardware   74%
• Bath fixtures   74%
• Windows   74%
• Exterior doors   71%
• Decks/patios   63%
• Kitchen cabinets   63%
• Molding/trim   61%
• Kitchen countertops   54%

 

Have you considered developing hands-on tools that allow demonstration of your products?

Compiled From: Prosales

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Outdoor Living Means More Projects for Remodelers Homeowners are turning their back yards into extensions of their homes – with big patios and decks, furniture, grills, heaters, fire pits, lights and yard art. Manufacturers are picking up on this trend by producing items specifically designed to enhance these outdoor living spaces. And retailers are realizing the importance of merchandising these products in their stores. Customers want to visualize how the furniture, grill or chiminea will look in their back yard, so giving them the ability to interact with the items at the store level can go a long way.

According to the Hearth, Patio & Barbecue Association (HPBA), one-third of the remodeling dollars spent today goes into outdoor living space. What’s more, an outdoor deck or patio is one of the top three features people are asking for. Homeowners are turning their decks and patios into living spaces with all the comforts of an indoor room. Some are even enclosing them to create additional indoor living space.

Maybe you could lead your category

by developing a unique feature within your web site that allows homeowners to build a virtual outdoor space by selecting furniture, grills and chimineas to visualize how they can look in their space?

Compiled From: Hardware Retailing

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Emerging Home Trends According to Harvard University’s Joint Center for Housing Studies, 90% of the remodeling industry’s growth over the past decade was fueled by homes worth $400,000 or more. These trends eventually filter down to the middle market and then into the new-home market. Here are some emerging areas that are on the verge of exploding.

Concrete and Glass Countertops | Concrete and glass are adding a fresh, modern look to the kitchen. Concrete is blending contemporary style with the practical, expressive functionality homeowners crave, while ultra-modern aesthetics are being created with glass. Highly polished and available in virtually any color, shape or thickness, glass is non-porous and stain-proof.

Spa-like Bathrooms | Homeowners are gaining more and more inspiration from upscale spas – where seats in the shower are just another posh amenity. Big space, huge soaking tubs, multiple showerheads, custom tile and dual sinks are just some of the amenities people are asking for. Some are going as far as heated floors and towel warmers. And when it comes to the toilet, moving it into a separate room or partitioned area is the latest trend.

Outdoor Kitchens | We’re not just talking about grills and patio furniture here. We’re talking about a full, functional kitchen complete with a cooking center, grill, sink with hot and cold water, modern appliances such as refrigerators and microwaves, and cabinets with plenty of storage space. They provide excellent living and entertainment areas and often times boost the resale value of the home.

Safety Lighting | Be it dimming lights for each room or wireless controls for the entire house, lighting control systems are invading homes across America. Even from outside the home, the owner can turn dark, distant spaces into warm, inviting environments with the touch of a button.

Energy Efficient Materials and Appliances | Perhaps the fastest growing trend, this idea will one day be the standard. Windows, doors, washing machines, dishwashers, ranges, refrigerators – everything will help homeowners be more energy efficient and save money.

Universal Design | Although the boomers are spending money on remodeling today, midlife Gen Xers will be looking for more space for their growing families. Renovations that allow easier access for wheelchairs and walkers – such as wider hallways and step-in showers with no lip – help the elderly with mobility issues and add a pleasing, more spacious aesthetic to the home.

Perhaps you should consider a segmentation strategy to reach early adopters in the middle and new home markets so you can be a leader in capitalizing on these growing trends.

Compiled From: Business Wire and realestate.msn.com

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Get in consumers’ minds to get into their kitchens and baths When it comes to remodeling their homes, consumers are more knowledgeable than ever before. But mainly about products, not design. They’re absorbing a ton of remodeling-related content on cable television and the Internet, and in books and magazines. But the problem for most consumers is that there is so much information out there, they don’t know where to start.

“They see those shows on HGTV or they bring in a picture from a magazine and tell us they want their project to ‘look like that,’” says John Audet of Case Design/Remodeling. But what are consumers asking for in their kitchen and bath remodeling projects? Here are a few trends:

Design Elements |

Kitchen Trends |

Master Bathroom Trends |

Flooring Trends |

Do you have programs in place that help make choices easier for homeowners? Perhaps a step-by-step process that helps homeowners narrow their choices according to their tastes, lifestyle and budget? Or maybe an online tool that lets homeowners create their own environments?

Compiled From: Professional Remodeler & Business Wire

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The Growing Influence of Women in Remodeling If you’re wondering if women are making an impact in the male-dominated remodeling industry, consider this fact: 17 million single women own homes today.

As such, remodeling companies are shifting their marketing efforts towards women. And many have hired female salespersons to close the deal. At Harrell Remodeling in Mountain View, CA, 17 of their 22 employees are female.

According to Joan Stephens of Boise, Idaho-based Stronghold Remodeling, “Women homeowners are typically more comfortable dealing with a woman remodeler. And women are making a lot of the decisions when it comes to remodeling a home.”

Another emerging trend is women DIYers. Heidi Baker, co-owner of BeJane.com, a website dedicated to women DIYers, says that women are becoming very involved in their own home improvements. She cites a survey conducted by BeJane.com, which found that 67% of women describe themselves as DIYers.


As a manufacturer,
are you giving remodelers the products and selling tools they need to attract the growing female market?

Compiled From: Qualified Remodeler

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Remodeling Advertisers Turning to the Web While the remodeling market continues to grow, ad spending in the two major remodeling pubs continues to dwindle.

Why? Because many marketers are reallocating their ad budgets to the web.

In fact, e-revenue at Reed’s Professional Remodeler is up 46% this year, while at Hanley Wood’s Remodeling, e-revenue is up 30%.

“What we’re losing in print, we’re gaining in electronic,” says Tony Mancini, Associate Publisher at Professional Remodeler. “We think this ongoing migration is going to stabilize at 50% print and 50% electronic revenue.”

But these figures cannot be ignored. The Internet is playing a bigger and bigger part in everyone’s lives – including that of the trades, who once had the reputation of not being very computer savvy at all.

For manufacturers, this not only signals a shift in how you might think about allocating your marketing dollars but also provides you with greater negotiating power with the print publications, who are looking to provide incentives to its advertisers.

Compiled From: Phillips Full, June 4, 2007

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Window Trends By all indications, the replacement window and remodeling market will continue to grow as homeowners choose renovating their current homes over building new ones. And, with millions of houses needing their windows replaced, the opportunity is great – especially for those that focus their efforts in a few key areas:

Energy Efficiency | As energy costs continue to fluctuate, windows with built-in energy efficient features will be in demand.

Coastal Concerns | In the wake of Hurricane Katrina, there is an increased awareness for windows that protect from environmental elements. Remodelers will see a greater need to offer windows that provide impact, wind and water resistance.

Knowledge | Window manufacturers are realizing that they not only need to please their customers, but also their customers’ customers. Additional support services and training programs are starting to permeate every level of the window industry – especially as the focus skews heavily towards remodeling projects versus new construction.

Style | Homeowners today are looking to blend the outside and inside environments. They want bigger, better views and more natural light – two things that make a big impact on their homes in a relatively simple project.

Are you devoting budget dollars to promoting your products that address these trends? Are your marketing messages clearly focused on communicating these trends?

Compiled From: Qualified Remodeler

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