Often in life, the difference between winning and losing doesn’t lie in being better or smarter—it is in making better predictions. This dynamic is also true in business. If you can predict what clients will need or the impact of a changing economy, you will likely be more successful. While I don’t have a crystal ball, I do get a chance to interact with some of the industry’s best, and the following are my predictions for 2019.
1] Remodeling costs will continue to rise. I believe the increase will not be as much as in 2018 (up 15–25% for many projects), but it will probably be 8–14%. These increases will lead to more stalled projects and squeezed margins. It is important that you position yourself and your clients for this situation.
2] Home appreciation will flatten. Home appreciation has been a key driver since the recession. It generates consumer confidence in investing into the home. In 2019, remodelers will need more and different data points and evidence of remodeling ROI to counterbalance this.
3] Levels of transparency in the remodeling sales and production processes will become greater. Many remodelers are moving in this direction; however, in 2019 the clients will require it. It is important to start thinking through new methods of communicating project costs.
4] Online meetings will continue to increase. These will take place in the sales, design, product selection, and production processes. Better businesses will begin using online activities as a differentiator in sales and to improve the client experience.
Social media will become part of everyone’s role in the business. It will be an integral piece of sales and production training and communication.
5] Amazon and Google will have a bigger impact on remodeling. In the ‘90s, many said Home Depot could be only a supplier. Now, they are the largest remodeler. While we all recognize Amazon and Google’s influence, we need to think through how they fit in the equation.
6] Social media will be much more than a marketing tool. Social media will become part of everyone’s role in the business. It will be an integral piece of sales and production training and communication.
7] The labor crisis will get worse. The better and more creative businesses will win with innovation, not more warm bodies. This means faster installations, fun work environments, and more labor friendly products.
8] Referrals will continue to have less impact on leads. Many consumers today put more value in an online review than a personal referral, according to Google surveys. Obtaining simplified online reviews will become a critical process for most of the better remodelers.
9] Project types will continue to shift. Due to costs and other design alternatives, a higher percentage of remodeling dollars will be in bathrooms, kitchens, outdoor living, master suites, and exterior makeovers. The larger additions will continue to decline as a percentage of the total revenue. So position your messaging and operations to fit a modified project and client blend.
While most of these predictions are not revolutionary, they are important. With that in mind, you need to look forward and predict the changes rather than relying on the past as your only guide.
Related Stories
Real AI Applications For Remodelers
Tech-forward remodeler Michael Anschel shares how he uses artificial intelligence in his business.
How to Eliminate Boring, Languishing Meetings
Leff Design Build ensures maximum productivity and efficiency through these straightforward methods
5 Counterintuitive Strategies to Improve Your Business
Follow these strategies to inspire employees, instill trust, and beat the competition
Couple Act As Much More Than General Contractors
How LBR Partners uplifts and educates their Spanish-speaking trade partners
Artificial Intelligence Meets Design
An architect looks at the pitfalls of using technology to take over human design tasks
How to Correctly Hire for Business Growth
Refloor CEO Brian Elias shares exactly how his company hires the correct people for the correct seats
Managing Business Risk to Embrace Risk
As remodelers, our product is risk. Yet within our businesses, we fear risk. Just like with your projects, if you plan accordingly, your risk comes with reward
What the Most Successful Remodelers are Doing Right Now
Industry advisor Mark Richardson shares the answers to his three most asked questions: What's the remodeling market like? What are other remodelers doing? How do I measure up?
Becoming an Employee-Owned Design-Build Company
One remodeler’s cancer diagnosis changed the way he approached succession planning
10 Remodeling Sales Techniques for 2024
Mark Richardson explains the benefits of visual selling, strategic questioning, intentional messaging, and more on this episode of Remodeling Mastery