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LOCAL REMODELING ASSOCIATION REPORTS 2009 ACTIVITY RESULTS
February10, 2010

MILWAUKEE – Ron Sonntag Public Relations, Inc. (RSPR), a full service public relations and marketing agency, reports that a recently completed survey conducted for the Milwaukee/NARI (National Association of the Remodeling Industry) Home Improvement Council, Inc. shows nearly 42 percent of the respondents achieved increased sales or held steady in 2009 when compared to the previous year.

Of the 63 Milwaukee/NARI Home Improvement Council, Inc. members that responded to RSPR’s “Industry Activity Questionnaire,” 73 percent were contractors, while 27 percent were either wholesalers/suppliers, manufacturers, or designers.  The objective of the questionnaire, which RSPR distributed in December 2009, and tabulated in January 2010, was to measure home improvement and remodeling trends and ascertain changes, if any, being experienced by Milwaukee/NARI members within the industry.  Survey highlights include the following:

•    In 2009, 27 percent of the respondents experienced an increase in sales for the year when compared to the same period in 2008, while 15 percent said sales were flat when compared to the previous year.

•    Of those that said sales were up in 2009, 71 percent specialize in interior remodeling projects, while 6 percent focus on exterior remodeling and 23 percent do a combination of the two.

•    Of the companies that experienced flat sales in 2009 when compared to the previous year, 44 percent specialize in interior remodeling, while 33 percent specialize in exterior remodeling, and 22 percent do a combination of interior and exterior work.

•    31 percent of the respondents said there was an increase in the average project cost completed for homeowners in 2009 when compared to 2008, while 39 percent said the project cost remained the same.

•    63 percent of the respondents said the average project cost completed in 2009 was between $1,000 - $20,000, while 30 percent said it was between $20,000 - $75,000.

•    Sales volume for 48 percent of the respondents was over $1 million, while 17 percent had sales between $500,000 and $1 million, and 25 percent had sales between $100,000 and $500,000.

•    Contractors continue to generate business in a variety of ways, with referrals (57 percent) and past customers (51 percent) given most often as the reasons that contracts are signed.  In addition, 23 percent of the respondents indicated an increase in marketing and the economic stimulus tax credits as positively impacting their business.

•    Of those that had decreased sales in 2009 when compared to 2008, 58 percent said economic conditions were either the primary or secondary cause, with increased competition indicated by 19 percent of the respondents.  Of those that experienced a decline in sales, 67 percent specialize in interior remodeling.
In its research, RSPR learned that Milwaukee/NARI members are seeing the continuation of a variety of trends in the industry, including...

•    use of “green” and environmentally safe remodeling products.
•    an emphasis on energy efficient products, particularly in relation to the energy tax credits, including windows, siding, geothermal HVAC units, and whole house control systems.
•    using additional insulation to save energy.
•    creating outdoor living environments for entertaining and leisure.
•    consumers looking to repair rather than replace.
•    increased renovations to kitchens and bathrooms.

During the year, Milwaukee/NARI members noted emerging industry trends, such as...

•    smaller or partial projects rather than complete remodels.
•    converting basement/lower level spaces to living space, plus adding egress windows to existing basements.
•    conducting home performance evaluations to conserve energy.
•    installation of hard surface flooring

According to Diane Ausavich, CR, Milwaukee/NARI president, “As the current economic conditions have started to improve, we have started to see a positive impact on the home improvement and remodeling industry.  Milwaukee/NARI members have weathered the storm, as they provide an abundance of home improvement and remodeling services to homeowners throughout southeastern Wisconsin.  While the size of projects remain more modest in size, area homes still need maintenance and repairs, and our members fulfill those needs.”

“With the energy tax credits in place through the end of 2009, enhancements to a home’s windows, HVAC systems, doors, insulation, and more will not only make a home more comfortable, but the tax incentives and the energy savings repay the homeowner multiple times over.  Milwaukee/NARI members can help homeowners save money and make their dwelling more secure,” Ausavich said.

The Milwaukee/NARI Home Improvement Council was chartered in July, 1961 as a Chapter of the National Home Improvement Council.  In May of 1982, the National Home Improvement Council merged with the National Remodelers Association to form NARI – the National Association of the Remodeling Industry.  With over 900 members, the Milwaukee Chapter is the largest in the nation.

The Council’s goals of encouraging ethical conduct, sound business practices, and professionalism in the remodeling industry have led to the growth of the remodeling industry nationwide and made NARI a recognized authority in that industry.

Ron Sonntag Public Relations specializes in assisting small to midsized companies with their overall marketing and public relations' needs, including publicity campaigns, media exposure, new product introductions and product publicity, marketing plans, Web site development and Internet marketing, direct mail, newsletters, brochures, videotapes, advertising, trade shows, specialty items, and overall marketing guidance.