Home Remodeling Industry Insights

Consumers in the home remodeling industry have increasingly demanded renovations in their outdoor spaces during the COVID-19 pandemic. Additionally, the stay-at-home initiatives at the beginning of the pandemic made many home-owners realize that there was a need to update or reconfigure their indoor or outdoor spaces for school, play, exercise, or more. The money saved because consumers could not go for vacations or out to restaurants was used to add value back to homes through renovations. Other findings about the U.S. home remodeling industry can be found below, including an analysis of Power Home Remodeling Group and two of its competitors.

Behaviors and Habits of Consumers within the Home Remodeling Industry During the COVID-19 Pandemic

  • Houzz, an online home remodeling platform, revealed that there was a 58% annual increase in project leads for home professionals in June. Consumers mostly demanded renovations in their outdoor spaces. This was evidenced by a three-times increase in the searches for pool and spa professionals compared to last year. Consumers were looking for features that could make their houses more enjoyable to make them remain active and comfortable. These also included home gyms and saunas. Also, deck and patio and landscape remodeling was in high demand. “Pool demand is so strong that even Wall Street investors are taking note.”
  • Consumers desired kitchen and bath remodeling products and services, with a 40% increase in demand in June compared to a year ago. More consumers have been eating and cooking at home, making kitchens the center of family life and this has fueled the need for renovations. During the early months of the pandemic, owners spent a lot of time at home and realized that there was a need to reconfigure or update their indoor and outdoor spaces for school, play, work, exercise, or more.
  • More people are using their home equity to fund their home remodeling projects. Also, since some money is being saved from not going on vacations, not eating out, and not going out to restaurants, most consumers are deciding to add this value back to their homes through renovations. They have a lot of “confidence in their homes as investments.
  • According to Pooh, the top motivator that consumers have for taking on home remodeling projects is “finally having time.” This is followed by the need to add value to the home and finally, to make the home “feel more cozy.” During the second quarter of 2020, there was a sharp increase in DIY paint demand during the shelter-in-place initiatives period.
  • A poll conducted by the Bank of America on 1,054 Americans revealed that over 70% had decided to take on home improvement projects. Millennials outpaced other groups in spending since younger homeowners have been tackling these projects in older homes. Younger people have had more flexibility since it is more likely that they do not have a family and might want to move from their small living spaces where quarantine living is difficult.
  • Consumer habits also led to an unprecedented increase in the planting and maintenance of gardens. For example, Miracle-Gro had about a 40% increase in consumer purchases of branded soils and over 30% increase in plant food purchases. Ortho outdoor pest control products had “a more than 50% increase in purchases” from consumers. Home extension additions purchases increased by 52% while security and privacy products were in greater demand due to interest in fence repairs and installations by up to 166%.

1. Power Home Remodeling Group

Brief Overview and History

  • Power Home Remodeling is an American corporation with headquarters in Pennsylvania. It provides services that are related to cost and energy-saving exterior home remodeling products.
  • It was founded in 1992 and listed as the “largest residential re-roofer and third largest home remodeling firm in the U.S.” by Qualified Remodeler in 2018.
  • For over 25 years, Power Home Remodeling has been providing home remodeling services such as siding, replacement windows, doors, and windows.
  • It is simply called Power and its professionals provide high-quality energy-saving products and services that are designed to be compatible with all home improvement needs.

Competitive Advantage and Value Proposition

  • Power is more than just a home remodeling company. It is constantly innovating its products and the way business is done.
  • Power does not follow trends but instead sets them. By innovating from inside the company instead of imitating what is in the market, the products are “as technologically advanced as possible.”
  • At the same time, they still work to form a personal relationship with customers.
  • When a consumer works with them, they get a warm, responsible, and professional “company that redefines the process of making their home into everything they dreamed it would be.”
  • Power has a 96% satisfaction rate which puts it far ahead of its competition. Clients do not pay anything until they are happy with the job.
  • It partners with companies’ products that reduce environmental impact and recycle unused materials for future use. These products make homes energy efficient.

Performance and Dealing with the COVID-19 Pandemic

  • Power deemed itself as an essential business and kept its services open. The company endeavored to make consumers feel safe and cared for while still providing the best home remodeling experience.
  • Every step of a home remodeling project is conducted according to all CDC, state, and local government guidelines. The company is staying up to date with all the potential changes as it conducts installations and provides other services.
  • To limit unnecessary exposure to employees and customers, some measures include but are not limited to face coverings, boot covers, and gloves.
  • The employees observe high hygiene standards by disinfecting tools, vehicles, and products.
  • Social distancing is practiced by limiting the number of workers for each project and reducing any need to enter people’s homes.
  • To celebrate healthcare workers whom they deemed as heroes, Power delivered free meals to employees that had a healthcare professional living in their home.
  • As employees settled into sheltering-in-place and social distancing, the company engaged them in different aspects of their home lives by offering an employee-focused streaming platform that has workouts, educational speakers, and live music on Fridays.

2. Morgan Exteriors, Inc.

Brief Overview and History

  • Morgan Exteriors, Inc. is the leading home remodeling company in Florida.
  • It has over five generations of contractor experience, specializing in vinyl replacements, windows, doors, siding, tub, and shower replacement.
  • The company was started in 1995 after Hurrican Andrew, one of the most devastating hurricanes in Florida’s history. Since a lot of homeowners were rebuilding, Morgan got the opportunity to grow.

Competitive Advantage and Value Proposition

  • Morgan Exteriors is ranked as Tampa’s number one home improvement company.
  • Year after year, the company is independently rated as one of the “top 5% home improvement contractors in the country.”
  • It offers lifetime warranties on labor and parts, meaning that everything has to be done right.
  • The company does its own installations with no subcontractors and third-party technicians to enhance quality.
  • Morgan Exteriors provides the following statements to describe its competitive advantage and value proposition. “Each installation is a carefully orchestrated system that is precisely planned and implemented to perfection. We don’t set foot in your home without wearing protective shoe covers that will prevent any dirt or dust from being tracked into your home. We are neat, clean, downright hard to please when it comes to our own installations. After all, if we don’t do it all just right, we still have to back up that installation for a lifetime.”

Performance and Dealing with the COVID-19 Pandemic

  • Morgan Exteriors is sending home all associates and employees who show signs of illness. Also, all outside employees and associates are barred from shaking hands with homeowners and required to keep a distance.
  • Before and after every appointment, all samples are disinfected.
  • The company continues to refer to the World Health Organization, Centers for Disease Control and Prevention, and other public health agencies about COVID-19, adjusting its operations according to the recommendations.
  • At the time this update was posted on its blog, Morgan Exteriors, stated that it had no diagnosed cases of COVID-19 among any of the staff.

3. The Remodeling Company

Brief Overview and History

  • The Remodeling Company was founded in 1998 and is one of the “leading full-service residential remodeling firms in the greater Boston area.”
  • Some remodeling services that are offered include bathrooms, kitchens, and additions like mudrooms, decks, and sunrooms.

Competitive Advantage and Value Proposition

  • The Remodeling Company prides itself in being “trusted”, evidenced by the receipt of many awards such as the Remodeling magazine’s Big 50 Contractors. Since 2003, the company has “been on Qualified Remodelerʼs Top 500 Remodeler list every year since 2003.” It is also a member of the National Association of Home Builders and The National Association of the Remodeling Industry.
  • The company creates living spaces that complement consumers’ lifestyles, whether it is a playful recreation room for children and their friends or a comfortable and relaxed gathering area for the whole family.
  • The Remodeling Company collaborates with the client, their architect, and designer throughout the project. The team listens, advises, and adjusts to the client’s needs as they evolve. They also understand that remodeling can be challenging and expertly manage the process so that the experience is positive.
  • The company’s president and project supervisors are licensed construction supervisors and each has over 25 years of experience in the remodeling industry. Their experience allows for the provision of unparalleled attention to detail and craftsmanship.

Performance and Dealing with the COVID-19 Pandemic

  • The Remodeling Company has only provided the following information pertaining to COVID-19 on its website:
    • “COVID-19 UPDATE: Health and safety are our top priority. The Remodeling Company continues to use safe practices, in accordance with the CDC guidelines, for our employees, our customers, and our trade associates.”
Glenn is the Lead Operations Research Analyst at The Digital Momentum with experience in research, statistical data analysis and interview techniques. A holder of degree in Economics. A true specialist in quantitative and qualitative research.

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