According to the “Fourth Quarter and Annual Industry Report,” released this week by WarmlyYours, the future looks bright for both the company and the remodeling industry as a whole.
The report, which is compiled from both internal documents and the leading industry sources, described the reflective correlation between WarmlyYours’s fiscal growth and national remodeling trends.
The report analyzes how the Leading Indicator of Remodeling Activity (LIRA) released by the Joint Center for Housing Studies of Harvard University very nearly mirrors the upward trajectory of WarmlyYours’s fiscal performance in 2015.
According to the report, “The LIRA showcases nearly stationary growth for the first quarter of 2015, which is then supplanted by continual growth throughout the remaining quarters and into the first three quarters of FY 2016.”
Or in other words, the future looks pretty bright for remodeling activity.
The projections put forth by the LIRA are very sunny indeed. Chris Herbert, the managing director of the Joint Center for Housing Studies of Harvard University, said that 2016 is on pace to be a strong year for remodeling activity for a variety of reasons.
“2016 is looking to be a stronger year for home renovation activity compared to 2015 thanks to the continued recovery in the owner-occupied housing market,” said Herbert, one of several experts quoted in the report. “In most markets across the country, rising house prices are bringing more homes to the market and increasing sales, which is a large driver of home improvement activity.”
While the “Fourth Quarter and Annual Industry Report” analyzes industry trends and projections, it also assesses the growth and performance of WarmlyYours. Of particular note was the solid and continual growth of our outdoor products, like our systems for snow melting and roof and gutter deicing. This product category grew 68 percent over the last quarter and 47.2 percent over the entire year. We can also report that the most popular category of flooring type in 2015 was “tile, marble, and stone.” This was the most popular flooring type by a wide margin, making up nearly 85 percent of all flooring projects processed by WarmlyYours.
Due to sluggish existing home sales, continual labor shortages, and exacerbating weather conditions, the first quarter was a slow start for WarmlyYours in terms of overall sales. This was quickly turned around by the second quarter which saw U.S. sales breaking double digits and consolidated gross sales at 8.2 percent. The third and fourth quarters continued the upswing in consolidated gross sales with increases of 2.5 percent and 6.5 percent, respectively.
Some geographic trends also came to light after analyzing the year’s data. The fastest growing metropolitan market for WarmlyYours was Chicago at growth of 23 percent in sales. This was followed by Boston and New York at 22 percent and 19 percent, respectively. The two North American regions which showed the greatest growth in consolidated sales were the Mideast at 25 percent and the Great Lakes at 20 percent.
WarmlyYours expects 2016 to be a year of solid and continued growth and we’re not the only ones. Metrostudy’s Residential Remodeling Index is expecting that future quarters to 2018 will post year-over-year gains ranging from 2 percent to 4.1 percent. With these increases in remodeling activity, WarmlyYours is confident that we will continue to see significant increases in the sales of our floor heating systems, outdoor heating systems, and other radiant products.
“It’s an exciting time for the industry,” said Julia Billen, the president and owner of WarmlyYours, “We haven’t seen projections like this in a very long time. We are ready to take full advantage of this up-swell in remodeling activity. We expect significant growth in 2016.”