TAMPA, FL -- The Home Improvement Research Institute remains bullish on the remodeling industry, predicting that sales are expected to increase to $312 billion in 2006, a respectable 8.8% growth rate. This comes on top a big year in 2005, where home improvement spending exceeded $287 billion.
The group estimates that the 2006 consumer market is $231 billion, a growth of 9.0% versus 2005. Growth of sales to the professional market (contractors) is estimated to reach $80.7 billion this year, a growth of 8.1%.
These estimates have been developed as part of an ongoing Home Improvement Research Institute (HIRI) program by one of its suppliers, Global Insight. HIRI's market figures are unique in that they focus solely on home improvements and product sales. Labor costs for contractor-done work are not included in these estimates.
Even the most current data points to the continual health of the home improvement industry. In recently released data from the U.S. Department of Commerce, retail sales for building material and garden equipment/supply dealers from April to June 2006 grew 10.6% over the same period in the prior year. This growth was significantly above retailing in general at 6.7%.
||"Sales of home improvement products have been excellent so far this year," states Fred Miller, Managing Director of the Home Improvement Research Institute. "While we anticipate a slowing of the growth rate in the second half, it should still be another excellent year for this industry. This is an industry that has had a compound growth rate of 6.1% from 1992 to 2005, and not one down year."
And the long-term outlook for the market remains strong. Global Insight projects an average of 5.0% total market growth for 2007-2010 -- slightly below the pace of the past five years, but well ahead of the rate of overall economic growth.
The Home Improvement Research Institute (HIRI) is a membership-based, independent, nonprofit organization of manufacturers, retailers, wholesalers and allied organizations in the home improvement industry. Its mission is to be recognized as the primary authority for effective, useful information about home improvement products and services in North America. The membership of HIRI currently represents 78 of the leading firms in the industry.
Find them online at: www.hiri.org
Source: MARKET WIRE