Qualified Remodeler Magazine

AUG 2015

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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Page 25 of 79

t will be a long time before any- one forgets the business-cycle trough of a few years ago. It was long enough and deep enough to leave a mark. Tat's why so many remodelers are enjoying this current gradual, sustained lift in the economy. By contrast, a sharp upturn would, frankly, be unwelcome. It is already difcult to attract good new employees and trade contractors. (See the Top Challenges chart on p. 25.) And a sharp up- turn would also exacerbate a growing concern about higher prices for building materials. Gradual economic growth is good and ofers the opportunity for dynamic growth in many cases. Tat is why this jumbo jet comprised of 500 remodeling companies — the Top 500 — is feeling so bullish. Tey have just cleared the runway and (knock on wood) are heading for a comfortable cruising altitude. THE GRADUAL upturn has given most frms on the Top 500 room to spend more on mar- keting, drive more leads and convert more leads for, in many cases, larger average jobs. Te stats bear this out. Year-over-year, frms listed on the 2015 Top 500 grew their dollar volume of re- modeling revenue by 12.8 percent (see the chart, at right). Meanwhile, the number of completed jobs grew by 8.3 percent. Revenue outpaced job growth, which translated to bigger jobs and better margins versus the same jobs from the year prior. Tese are the headlines. But the story of the Top 500 list is best told through the individual stories of remodelers serving vastly diferent segments and geographies. Stephen C. Gidley, CGR, CAPS, a mem- ber of the advisory board of this magazine did not experience the same type of year that many companies clearly did. A design/ remodeling institution in Fairfeld County, Conn., Gidley's frm, ranked No. 418, went from $2.6 million in revenue to $2.1 million in consecutive years. Te revenue drop expe- rienced while serving the gilded communities of Stamford and New Canaan seem highly incongruous with a strong stock market and high home values. But according to Gidley, his clientele is subject to a distinctly more global view. Slowdowns in China and Europe have the fnancial community on edge. Hiring on Wall Street has slowed dramatically, and the backlog of unsold homes in Stamford sat at 350 this July where the normal level is 275. Tere is a 13-month supply on the market. On top of it all, a change of presidency coming in 2016 also has a stultifying efect on his clients. Gidley says his 40-plus years' experience tells him the phone will ring again this fall and to an even greater extent in the spring. Remodeling, he says, will only achieve full recovery in his region after next year's presidential election. The remodeling market as viewed through the lens of the 2015 Top 500 has left the runway seeking higher elevations as frms across all segments and most regions see growth ahead. By Patrick L. O'Toole, Editorial Director Increased Elevation I GROSS REVENUE 2015 Top 500 Year-Over-Year $6,667,467,664 2 0 1 3 2 0 14 $7,561,924,174 REMODELING REVENUE 2015 Top 500 Year-Over-Year $6,450,283,949 2 0 1 3 2 0 14 $7,301,563,969 REMODELING JOBS 2015 Top 500 Year-Over-Year 962,609 2 0 1 3 2 0 14 1,045,997 Source: Qualifed Remodeler 2015 24 August 2015 QR QualifiedRemodeler.com

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