Market Insights

A new report from Packaged Facts, a division of MarketResearch.com, points to growing stability in the lawn and garden industry.

In "Lawn and Garden Equipment in the U.S., 11th Edition," Packaged Facts demonstrates how lawn and garden sales have fared since they peaked in 2005.

According to the data, sales declined by a compound annual growth rate (CAGR) of 0.2% between 2010 and 2014, an improvement over the more than 1% decline between 2008 and 2012.

Results from the third-quarter survey from the National Kitchen & Bath Association (NKBA) indicated a 42% rise in showroom traffic and a 36% increase in kitchen remodel sales volumes from one year ago, as well as a significant increase -- 85% -- in bathroom sales over the third quarter of 2010.  Overall, kitchen and bath remodeling revenues reported by NKBA dealer members rose 69% in year-over-year figures.

The S&P/Case-Shiller Index, a leading indicator of U.S. housing prices, showed a 0.9% rise in home prices in July 2011 compared with the previous month for both its 10- and 20-city composites. This is the fourth consecutive month of increases for both indices. 

In July 2011, the 10- and 20-City Composites recorded annual returns of -3.7% and -4.1%, respectively. 

Credit ratings service Standard & Poor's (S&P) delivered a guarded but upbeat assessment of U.S. home builders, reporting that “operating conditions … have improved over the past six months, and the sector's overall credit quality has steadied as a result.” The new report cites a “cautiously stable” outlook for the sector overall, but warns that that trend could backpedal later this year if the baseline residential construction forecast doesn't materialize.

The S&P/Case Shiller Home Price Indeces showed positive annual growth rates in three key metrics for the first time since the summer of 2010.

“Home prices gained in the second quarter,” said David M. Blitzer, chairman of the Indx Committee at S&P Dow Jones Indices. “In this month’s report, all three composites and all 20 cities improved both in June and through the entire second quarter of 2012.” 

Channel analysis
Dollar sales and unit sales of the caulk and sealant category both showed year-over-year gains, according to consumer research from the Port Washington, N.Y.-based NPD Group. But unit volume is down compared with two years ago. The warehouse home centers dominated — nearly three of every five tubes of caulk — but have trended down in the past 12 months.

An article just released by Standard & Poor's Ratings Services predicted that mergers and acquisitions among forest product companies will continue to increase over the next few quarters due to strong balance sheets and attractive financing terms. But this M&A activity will largely be contained to the paperboard and packing sectors, according to "Top Investor Questions For The U.S.