As we closed the books on 2012, many readers reported to Professional Remodeler that business has been picking up steam, according to a survey conducted in late 2012. Forty-six percent of remodelers reported their 2012 revenue increased compared with 2011; 20 percent reported no change in their revenue 2012 versus 2011, according to “Forecast Looking a Little Brighter,” which appeared in the December 2012 issue of Professional Remodeler. As for 2013, nearly 80 percent of respondents expect 2013 to be the same or better than 2012.
We wanted to dig deeper into what remodelers expect and how they are positioning their business for 2013 in an effort to pass along what they anticipate this next year will hold (see “Positioning Your Business for Success,” page 26).
To find out, we quizzed dozens of remodelers on four topics:
- How they are positioning their business for growth in 2013
- Keys to success in 2013
- Top opportunities
- Top challenges
When we asked remodelers how they are positioning their business for success 2013, the most popular response was “hiring new employees.” The next popular response was “increasing marketing and advertising dollars.” Solid expectations that better days may lie ahead. However, remodelers are still proceeding with caution.
There is still a lot of market uncertainty heading into 2013, much of which revolves around the status of the economy. As of this writing, we inched closer to the fiscal cliff that dominates discussion from boardrooms to the jobsite.
Whether or not we fall off the cliff, we asked remodelers to identify how they expect to define success in 2013. They cited consumer confidence, economic stability, repeat and referral business, and building on the momentum gathered in 2012.
We also talked to remodelers about the top opportunities and challenges they expect to face in 2013.
First the opportunities: replacement windows, entry doors, and kitchens and baths in regard to specific industry segments.
More importantly, they said opportunity exists due to the continued purging of unscrupulous remodelers who jumped into the industry
during the glory days just to make a quick buck. The competition that was born out of greed has lessened, leaving the professional remodeling contractor to absorb this business.
Challenges, as if there have not been enough challenges staring remodelers in the face the past few years. We didn’t anticipate remodelers would shed light on anything that hasn’t been faced before, but we asked anyway. Of course, the economy was the dominant response. Other responses included codes and standards, labor shortages, and advancing technology to name a select few.
Even though the themes remain the same, remodelers expect 2013 to be another stepping-stone toward better days. We are not out of the woods, not by a long shot, but we continue to build on business that was gained the previous year. It’s a long, slow climb to get back to the top, but we are getting there. PR