Qualified Remodeler Magazine

AUG 2018

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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staff, who will continue to execute NARI's programs and services. The staff also will work closely with NARI leadership as the executive recruitment process moves forward. Day-to-day questions can be addressed to staff at (847) 298-9200 and to email by contacting David Pekel at david@pekelconstruction.com. Remodeling confidence increases despite rising costs The National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) posted a reading of 58 in the second quarter of 2018, up one point from the previous quarter. The overall RMI— consistently above 50 since the second quarter of 2013—averages ratings of current remodeling activity with indicators of future remodeling activity. "Remodelers across the country continue to see demand," says NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mount Pleasant, Michigan. "However, the rising cost of materials is impeding the market's ability to be even stronger." Current market conditions decreased one point from the first quarter of 2018 to 57. Among its three major components, major additions and alterations waned one point to 55, minor additions and alterations decreased two points to 58, and the home maintenance and repair component rose two points to 59. The future market indicators gained four points from the previous quarter to 59. Calls for bids fell two points to 55, amount of work committed for the next three months increased two points to 56, the backlog of remodeling jobs jumped nine points to 66, and appointments for proposals rose seven points to 61. "Improving economic growth is sup- porting demand for home remodeling," says NAHB Chief Economist Robert Dietz. "However, remodelers have to deal with rising material prices, especially lumber, and the continued shortage of labor to keep prices competitive. The labor short- age is also a factor contributing to the increasing backlog of remodeling jobs." For the full RMI tables, visit nahb.org/ rmi. For more information about remodel- ing, visit nahb.org/remodel. | future turning points in the business cycle of the home improvement and repair industry. The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter's closing. The next LIRA release date is October 18, 2018. DowDuPont opens new manufacturing facility The Specialty Products Division of DowDuPont announced the opening of a new manufacturing facility located in Burley, Idaho. The new facility will produce STYROFOAM Brand XPS Insulation products with BLUEDGE Polymeric Flame Retardant Technology. The development of this new facility has been a collaborative effort among the company, the state of Idaho, the city of Burley, the Burley Development Authority, Southern Idaho Economic Development Organization and other local entities. NARI CEO resigns The National Association of the Remodeling Industry (NARI) has an- nounced a leadership change at NARI headquarters. On June 22, 2018, Fred Ulreich re- signed his position as CEO. During his tenure, Ulreich commuted on a weekly basis from Grand Rapids, Michigan, to Des Plaines, Illinois, where NARI head- quarters are located. He will have more time to spend with family as he pursues other professional interests. The repositioning and rebranding of NARI was successfully accomplished un- der Ulreich's leadership and ushered in a clear promise as embodied in the tagline, "Remodeling Done Right," which set a beacon for the industry as the only trade association dedicated to remodeling. We wish the very best for Ulreich and are thankful for his efforts over the past four years in his role as the association's CEO. David Pekel, MCR, UDCP, CAPS, CCP, and president of the NARI National Board of Directors, will serve as interim CEO. An executive recruitment process has begun for a qualified replacement. The officers and board have great confidence in the current headquarters Note: Historical estimates since 2015 are produced using the LIRA model until American Housing Survey data became available. Source: Joint Center for Housing Studies Leading Indicator of Remodeling Activity—Second Quarter 2018 HOMEOWNER IMPROVEMENTS & REPAIRS FOUR-QUARTER MOVING TOTALS BILLIONS OF $ FOUR-QUARTER MOVING RATE OF CHANGE 2 2 2 2 2 (P) 3 3 3 3 4 4 4 4 2016 -1 2017 -1 2018 -1 2019 -1 (P) Historical Estimates 450 425 400 375 350 325 300 275 250 225 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% LIRA Projections 346.8 7.0% 6.9% 7.3% 7.4% 7.1% 6.8% 6.3% 6.2% 6.4% 6.5% 6.2% 5.7% 5.1% 4.5% 5.1% 5.3% 5.5% 339.0 336.7 331.0 324.1 317.2 313.9 308.3 302.5 297.2 295.2 290.3 284.5 279.1 278.0 274.7 270.8 10 August 2018 QR QualifiedRemodeler.com IN BRIEF

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