A Renovation Barometer, from Houzz
Labor continues to pose a top challenge for renovation-focused firms, with nearly four in five general contractors, remodelers and design-build firms reporting moderate-to-severe shortages across a wide range of skilled trades.
That’s one of the findings from the first-quarter “Houzz Renovation Barometer.” But despite the tight labor market, there’s widespread confidence in market growth.
The barometer produced readings of 68-75 in the first quarter of 2016 (Jan.-Mar.), which are 6%-10% higher for architects and designers, 14%-17% higher for general contractors /remodelers and design-build firms, and 9%-26% higher for specialty firms than Q4 2015 scores.
The readings for Q1 2016 are in line with scores for the same quarter in 2015, with the exception of architects and outdoor specialty firms, which report somewhat weaker confidence in Q1 2016.
The Houzz Renovation Barometer study is conducted quarterly and presents analysis of responses to an online survey sent out to a national U.S. panel of architects, interior designers, general contractors/remodelers, design-build firms, and building/renovation and landscape/outdoor specialties.
“While Barometer readings continue to reflect year-over-year market improvements across industry groups, these gains are somewhat less widespread than those we saw in the same period of 2015,” said Nino Sitchinava, principal economist at Houzz. “Consistent with our projections in the Houzz State of the Industry report at the beginning of the year, we are seeing early evidence that 2016 will be a year of more moderate yet steady growth for residential renovation and design businesses.”
Labor continues to pose a top challenge for renovation-focused firms, with nearly four in five general contractors, remodelers and design-build firms reporting moderate-to-severe shortages across a wide range of skilled trades, consistent with 2015 Barometer findings. Three in four firms reporting shortages are hiring employees or subcontractors in those in-demand trades.
In order to attract young workers, the following steps are in play:
• 39%, remodeling-focused companies are offering on-the-job training;
• 21%, leveraging social media to help promote job opportunities to new talent;
• 8%, partnering with local colleges to offer training programs;
• 8%, attending recruiting events; and
• 6%, each for giving talks at local colleges and local schools.