HIRI sees continued growth for home improvement product sales
Here’s a bit of good news: Last week, the Home Improvement Research Institute (HIRI) released its September 2012 forecast for the home improvement market. The organization is seeing a growth of 4.9 percent in 2012 and 4.0 percent in 2013, bringing the market size to $284.8 billion next year.
Based on a variety of macroeconomic factors known to be industry drivers, home improvement sales should outpace GDP growth, as consumers ease back to “normal” in relation to the maintenance, repair and improvement of their homes, according to Fred Miller, managing director of HIRI. He noted, “Some of the newest data on housing should help maintain the positive momentum the industry started experiencing last year.”
While growth in purchases by contractors is expected to lag behind those made by consumers this year, the outlook is reverse for 2013 as housing turnover improves. Next year, HIRI sees contractor sales growing by 4.4 percent vs 3.9 percent for consumer sales.
HIRI’s forecast also includes revisions to history that take into consideration new data released by the Census Bureau. Retail sales by building material dealers, for example, experienced slower growth in 2010 and 2011 than previously thought. Moreover, total home improvement product sales now show no growth in 2010 and only a 3.1 percent increase in 2011; both are much less than the 2.3 percent and 3.8 percent growth rates previously estimated for these two years.
As employment growth accelerates and the housing market improves, home improvement sales are expected to grow more dramatically, averaging 5.9 percent in 2014 to 2015. This will taper off, however, when the housing market cycle runs its course, resulting in a slight deceleration in 2016 and 2017.
Interested in learning more? HIRI is hosting “Retailing in Home Improvement—2013 and Beyond,” a one-day conference taking place on October 17 in Chicago that will provide information on the status of and trends in the industry.
This entry was posted on Thursday, September 13th, 2012 at 6:00 AM and is filed under Business, Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.