Building products manufacturers looking to grow unit sales need to provide customers with lower price point options because of rising price sensitivity among both homeowners and contractors, while labor challenges are becoming more prominent heading into the spring and summer months.
Those are among the key conclusions of a monthly survey of homeowners and residential contractors conducted by The Farnsworth Group, an Indianapolis-based market research firm.
According to Farnsworth’s latest “Home Improvement Tracker,” 17 percent of surveyed professional contractors cancelled or postponed a home-remodeling project in April due to material costs, and 28 percent purchased a cheaper brand than originally intended.
One in three surveyed contractors “are still trying new brands, new products and new suppliers each month, suggesting that they are option-shopping more, rather than sticking to one brand, product, or suppler,” Farnsworth researchers said.
Among other key survey results:
- 20 percent of surveyed remodeling contractors are able to obtain products in under one week, while 22 percent are facing wait times of three weeks or longer.
- 17 percent of surveyed remodeling pros cancelled or postponed a project in April due to material costs, and 28 percent purchased a less expensive brand.