W&D Weekly - May 14, 2008 | Vol 3, Num 20
(Print All Articles)

Remodeling Market Recovery Still a Year Away

The home remodeling and repairs market continues to lose traction, according to NAHB chief economist David Seiders. ...

The home remodeling and repairs market continues to lose traction, according to David Seiders, chief economist for the National Association of Home Builders. He predicts the industry won’t bottom out until 2009.

“We saw a 4 percent decline in home repairs in 2007, with an accompanying 5 percent decline in home improvements,” Seiders said in May 7 NAHB remodeling teleconference. “We’re forecasting a 7 percent decline in total remodeling activity in 2008, with improvements off by 11 percent. Then we’ll look for stabilization in 2009, with some growth.”

That prediction follows comments Seiders made in late April, when he predicted a new housing recovery in 2009.

The recovery in remodeling is likely to play out regionally. Kermit Baker, director of the Remodeling Futures Project with Harvard University’s Joint Center for Housing Studies, pointed at regions in California and Florida as those most potentially susceptible to a continued remodeling slump. Markets in Riverside and San Diego, Calif.; as well as in Orlando, Miami and Tampa, Fla. have seen the greatest combinations of drops in both home sales and prices, leaving residents weary of investing in remodeling. When coupled with a general trend of declining return on investment in remodeling—from 82.5 percent return in 2003 to about 70 percent in 2007—many homeowners have shied away from investing in the home, Baker said.

Seiders added that while many expect the remodeling industry to serve as a sort of yin to the housing market’s yang—with potential sellers turning inward for improvements when the market tightens—the remodeling market has run in relatively similar cycles.

“Contrary to a lot of peoples’ perceptions, remodeling is not counter-cyclical to home sales,” Seiders said. “It’s moving in the same direction.”

Despite current conditions—which Seiders was quick to point out matched similar past cycles—he remained optimistic about the business.

“The longer-term trends are excellent,” Seiders said. “There are some setbacks, but there’s no question the remodeling market is an excellent one to be in.”

Simonton Factory Suffers Minor Damage
in Weekend Tornados

Simonton Windows’ manufacturing plant in McAlester, Okla., suffered minor tornado damage this past weekend. ...

Simonton Windows’ manufacturing plant in McAlester, Okla., suffered minor damage from one of the more than 60 tornadoes that blew through the Midwest and Southeast this past weekend. The plant was operational on Monday, May 12, as the high winds only impacted an exterior dock area, including a scrap recycling area, dumpster and trailer. There were no employees at the facility at the time the tornado came through the area.

A company spokesperson reported that only one employee’s home was damaged in the storm and that the there was minimal damage to homes in general in the McAlester area, so there are no massive relief efforts needed locally.

Peachtree Cos. Layoff About 50

Citing a housing market where “the news continues to be bleak,” the Peachtree Cos., combined with its sister company, Weather Shield Windows & Doors, implemented a layoff of about 50 positions on Friday.

In a statement, the companies said the layoffs were necessary, “to bring corporate staffing levels in line with production volume and to help the companies to operate efficiently in this difficult market. Severance packages were offered to employees based on tenure.”

“The Peachtree Cos. has taken several measures to reduce its operating costs while continuing to provide quality product and sales support to customers,” the companies added. “These measures have helped the company compete more effectively in this market.”

Peachtree also cited rising fuel and energy costs as catalysts for the layoffs.

Early media reports, which Peachtree spokeswoman Amy Lewis attributed to an anonymous tipster, pegged the layoffs at 85 employees. Lewis refuted those reports and issued the revised number on Tuesday morning.

AAMA Moving to Create Green
Certification Program

The green and sustainable committee of AAMA recently formed two task groups to focus on specific elements for a new green certification program. ...

The green and sustainable committee of the American Architectural Manufacturers Association held an interim meeting April 30, forming two task groups to focus on specific elements for a new green certification program. Extensive work has already been completed in developing a proposed outline, which is broken down by category and details a potential points system for the program, the association reports.

The new task groups are charged with taking the comprehensive certification outline and evolving it to the next stage, which is a specification and procedural guide. Both groups will next meet at the AAMA summer conference, scheduled for June 1-4 in Hershey, Pa.

Tracy Rogers of Edgetech I.G. chairs the task group charged with creating the specification for the proposed AAMA green certification program. Dave Moyer of Architectural Testing is chairing the committee tasked with developing a procedural guide.

Crystal Achievement Nominations Due Tomorrow

The May 15 deadline for 2008 Window & Door Crystal Achievement Award nominations has almost arrived. Nominations for the awards, which honor outstanding achievements in window and door product technology, manufacturing and marketing, are due tomorrow.

An online form is available at WindowandDoor.net to submit nominations. A downloadable PDF with more information on award categories and submissions is also available here. For our product categories, including windows, doors and components, nominees need to provide information on their product, with emphasis on its unique and innovative features.

For our manufacturing and marketing categories, winners will be selected by a smaller panel of judges. Although not required, nominees may provide more detailed information on their plants and equipment in brochures, via CD-ROMs or videos, or in other formats, in addition to entry information supplied. Marketing award nominees are encouraged to submit sample materials for our judges also.

Photos can be submitted via the Web form above, emailed to clewellen@glass.org or mailed to Window & Door Crystal Achievements, 8200 Greensboro Dr. Ste. 302, McLean, VA 22102.

Window & Door will present its Crystal Achievement Awards in the September 2008 issue. Please contact Christina Lewellen with any questions.

More Top Stories

...

Thermo-Tech to Use TCDI Software
Midwestern vinyl window and patio door manufacturer Thermo-Tech Windows has selected TDCI Inc.’s BuyDesign software to provide the company’s approximately 400 dealers and salespeople with streamlined quoting and ordering capabilities. ... read more

Saflex to Expand PVB Manufacturing
Saflex, a subsidiary of Solutia Inc., will expand its PVB resin manufacturing capacity in Springfield, Mass., and Antwerp, Belgium in 2009 and 2010, respectively. ... read more

Housing Bailout: Little Cost but Also Little Help
From CNNMoney.com
Sunrooms Grab the Spotlight as Luxury Home Additions
From the Pittsburgh Tribune-Review
We're Running Out Of Brands
From Forbes.com

...

Housing Bailout: Little Cost but Also Little Help
From CNNMoney.com
A congressional proposal to have the government help homeowners refinance mortgages they can no longer afford will only help a small fraction of those who are at risk of losing their homes. But because so few at-risk homeowners will be able to get help, the cost to taxpayers may also be less than $2 billion, lower than originally feared, according to an analysis of the plan by the non-partisan Congressional Budget Office. ... read more

Sunrooms Grab the Spotlight as Luxury Home Additions
From the Pittsburgh Tribune-Review
Sunrooms and patio rooms seem to be turning into the decks of this decade.

The National Association of the Remodeling Industry, headquartered in Illinois, says 500,000 homeowners add sunrooms each year. A report in Builder Magazine says sunrooms are the third most-popular amenity sought in homes that cost more than $250,000. ... read more

We're Running Out Of Brands
From Forbes.com
Twenty-eight years ago, in a book entitled Positioning: The Battle for Your Mind, I wrote: "The single most important marketing decision you can make is what to name the product."

By now, the world seems to agree. ... read more

W&D Weekly - May 14, 2008 | Vol 3, Num 20(Print All Articles)