Sunday, November 13, 2011
12:02 pm est
Window Replacement Hold High Value - Over 75% Cost Recouped
12:02 pm est
|$13,575||$7,380||54.4%||Backup Power Generator||$14,718||$7,136||48.5%|
|$14,844||$9,980||67.2%||Deck Addition (composite)||$15,620||$10,337||66.2%|
|$9,916||$7,670||77.3%||Deck Addition (wood)||$10,973||$7,986||72.8%|
|$3,348||$2,117||63.2%||Entry Door Replacement (fiberglass)||$3,576||$2,147||60.0%|
|$1,098||$1,488||135.5%||Entry Door Replacement (steel)||$1,218||$1,243||102.1%|
|$76,663||$49,914||65.1%||Family Room Addition||$85,740||$53,624||62.5%|
|$1,178||$1,079||91.6%||Garage Door Replacement||$1,291||$1,083||83.9%|
|$27,223||$13,122||48.2%||Home Office Remodel||$28,888||$13,235||45.8%|
|$55,004||$38,713||70.4%||Major Kitchen Remodel||$58,367||$40,126||68.7%|
|$96,845||$65,195||67.3%||Master Suite Addition||$108,090||$68,146||63.0%|
|$20,762||$15,358||74.0%||Minor Kitchen Remodel||$21,695||$15,790||72.8%|
|$10,347||$7,917||76.5%||Siding Replacement (vinyl)||$11,357||$8,223||72.4%|
|$9,965||$7,705||77.3%||Window Replacement (vinyl)||$11,066||$7,920||71.6%|
|$10,873||$8,011||73.7%||Window Replacement (wood)||$12,027||$8,707||72.4%|
|$36,620||$21,611||59.0%||Deck Addition (composite)||$38,382||$22,154||57.7%|
|$3,445||$2,595||75.3%||Garage Door Replacement||$3,545||$2,476||69.8%|
|$7,073||$4,703||66.5%||Grand Entrance (fiberglass)||$7,700||$4,979||64.7%|
|$109,003||$66,560||61.1%||Major Kitchen Remodel||$113,464||$67,746||59.7%|
|$214,431||$119,585||55.8%||Master Suite Addition||$232,062||$122,370||52.7%|
|$13,106||$11,197||85.4%||Siding Replacement (fiber-cement)||$13,382||$10,707||80.0%|
|$12,860||$9,774||76.0%||Siding Replacement (foam-backed vinyl)||$13,973||$10,119||72.4%|
|$12,878||$10,027||77.9%||Window Replacement (vinyl)||$14,284||$10,368||72.6%|
|$16,760||$11,667||69.6%||Window Replacement (wood)||$18,226||$12,303||67.5%|
Source: Replacement Contractor, Business Update, November 10, 2011
Friday, November 11, 2011
Remodeling projects slow after tax credits expire
9:22 am est
The window business has slowed for many remodelers this year in the wake of the expired tax credits.
according to the latest Professional Remodeler research, which shows that the majority of remodelers are selling fewer windows
Fifty-four percent of remodelers said their window business has declined compared to 2010, while only 18
percent reported an increase in business. That’s in stark contrast to other exterior projects, such as siding, which
our research earlier this year showed to be on the upswing, with only 13 percent reporting a decrease in business.
That difference seems to be due in large part to the expiration of the $1,500 tax credit at the end of
2010. This year’s smaller credit doesn’t appear to be doing a significant job of driving window work.
government tax credit cannibalized future sales,” said a Florida-based exterior remodeler. “Our window business
remained consistent plus or minus 10 percent for the past 10 years and is now off 40 percent.”
of remodelers said the expiration of the tax credits had decreased their business, although 44 percent said it had no impact
“The expiration of the tax credits is not so much to blame as the tax credits themselves,”
said a Wisconsin full-service remodeler. “Either you have perpetual tax credits or never have them. All they do is take
away future business for the next one to two years.”
Many remodelers also cited the general downturn in the economy,
as well as the new lead paint rules, for the decline in their business this year.
“Cost is always an issue, so
increased costs due to EPA rules have reduced the quantity and quality customers are willing to select,” said one remodeler.
have been looking for less expensive windows with fewer options, and have been phasing their window replacement projects,”
said an Ohio full-service remodeler.
Remodelers driving product choice
Remodelers continue to have a major influence
over the brands and types of windows that are getting installed.
In fact, 64 percent of remodelers said that their average
client relies on them to make all material, style and brand recommendations. Another 19 percent of remodelers said that the
average homeowner may have a specific style and material in mind, but they influence the brand. Only 3 percent of remodelers
said they have no influence on the brand, material or style when it comes to window installation.
Vinyl and wood are
the most common frame materials remodelers are specifying. Vinyl is used by 19 percent of remodelers in all of their projects,
while wood is used by 15 percent of remodelers. Seventy-two percent of remodelers use vinyl on at least some projects and
74 percent use wood.
Aluminum, fiberglass and composites are used by a smaller group, with about 60 percent using those
materials on some projects. Eight percent of remodelers used aluminum on all their projects, compared to 4 percent who used
fiberglass and 2 percent that used composites. Steel frames were used by a much smaller group, with only 22 percent using
them on any projects at all.
Energy-efficient features were very popular, with more than 90 percent using at least one
such feature on their projects, led by insulated double-pane windows with low-e coatings at 90 percent. More than 60 percent
of remodelers used argon- or krypton-filled units over the past year.
GlassBuild in Atlanta September 2011
9:01 am est
GlassBuild Opens Doors Next Week
Exhibitors are making final preparations
for GlassBuild America, which opens next week in Atlanta. The largest North American trade show geared toward manufacturers
of windows and doors, the event runs from Monday, September 12, through Wednesday, September 14, at the Georgia World Congress
Despite weak market conditions, organizers report that the show has sold out its exhibit space. “We are
thrilled that so many incredible companies recognized the great value and tradition of exhibiting at the premier glass, window
and door show in North America,” says Denise Sheehan, VP of industry events for the National Glass Association (which
also publishes Window & Door).
One reason for the sell-out, she notes, is many first-time exhibitors at
GlassBuild. “There’s great momentum to be involved in this event as a tool to grow business and market share,"
Sheehan states. "We were really pleased to attract so many new people and just honored that we continue to get such amazing
loyalty from our long-time exhibitors.”
Exhibitors are also optimistic about this year's show. "Especially
when market conditions are difficult, it is even more important to introduce new and innovative product solutions because
it allows manufacturers to differentiate themselves from their competition," says Axel Husen, president and CEO of Interlock
USA. His company is planning to showcase a variety of new door and window hardware products. "Every significant supplier
to our industry will be at the GlassBuild show to exhibit their most technologically-advanced window and door components.
This makes the show an ideal place for the window and door manufacturer to come and see it all."
are continuing to research products that will help differentiate them in the market, says Gary Hartman, marketing manager
of Chelsea Building Products. The vinyl extruder also expects attendees to be focused on value-added options and features
that can help them increase margins in this difficult market. "Our focus will be on cost effective solutions to high
performing–structural and thermal–fenestration products. Also to highlight the use of PVC in the commercial segment
and the opportunities in alternative materials."
Equipment suppliers also foresee activity at this year's event.
“I have been seeing quite some activity from window and door manufacturers on emerging window systems," reports
Chris Cooper, senior sales engineer at Joseph Machine Co. "I believe their interest will be in evaluating completely
automated lines that offer high flexibility and fabrication consistency."
A full preview article on the trade show and related events appeared in the August issue of Window & Door. In addition, our
online coverage includes an in-depth look at many of the window and door industry products, components, software and equipment to be featured by exhibitors in Atlanta.
GlassBuild trade show hours are 11 a.m. to 6 p.m. on Monday, September 12; 10 a.m. to 5 p.m. on Tuesday, September 13; and
9 a.m. to 3 p.m. on Wednesday, September 14. More information about the event, including a full list of exhibitors, is available on the GlassBuild website. Next week's activities will also include the second annual Window & Door Dealers Forum, organized by the Window &
Door Dealers Alliance. More information on that event is available on the WDDA website.
Latest lead paint changes September 2011
8:43 am est
Despite being in place for 18 months now, the details of the federal government’s lead paint rules continue
The latest updates this summer to the Lead Paint Repair and Renovation Program rules that apply to pre-1978
homes were, all-in-all, a positive for remodelers, with contractors getting some of the changes they wanted from the Environmental
The NAHB, which has been lobbying Congress and working with the EPA in an attempt to modify the rule,
has put together an analysis of the latest changes. Here are five highlights that should be a plus for the industry:
No mandatory third-party testing
In probably the biggest development this summer, the EPA agreed not to require third-party,
post-project clearance testing.
As part of a settlement with the Sierra Club and other groups, the EPA had proposed
that contractors would have to hire a licensed, third-party tester to perform post-project testing on all remodeling jobs.
The results would have had to be evaluated by an independent lab.
The EPA was persuaded by trade groups’ arguments
(and Congressional pressure) that the new standard would put an undue financial burden on remodelers, and not offer significant
benefits to homeowners, especially with the unreliability of most tests currently on the market.
EPA had estimated the
new rule would cost about $400 million annually. NAHB had estimated the tests would cost hundreds of dollars, especially burdensome
on smaller projects, not to mention the costs of potential project delays from testing.
2. Online training an option
the EPA has been allowing online training through various trade associations, including CEDIA and the Oregon Home Builders
Association, the modified rule now explicitly states that this is allowable. This will allow remodelers, even in the 12 states
that have taken over administration of the rule, to replace the classroom portion of the training with an online version.
The hands-on portion of training must still be conducted in person.
3. More testing options
One of the most
challenging parts of the implementation of the rule has been the lack of easy-to-use, reliable and inexpensive testing kits.
That has made it difficult for homes to test out of the lead-safe work practices, an option under the LRRP rules when there
is no lead paint present.
This issue is what prompted U.S. Rep. Denny Rehberg (R-Mont.) to introduce an amendment to
a funding bill that defunded EPA’s enforcement of the rules until an effective test could be found. That bill passed
the House, but hasn’t been taken up by the Senate.
NAHB had petitioned the EPA to revise the RRP requirements
to reflect that lack of effective testing kits. Instead, the EPA opted to expand the rules to allow remodelers to collect
paint chips and send them to a third-party lab as an alternative. It is an improvement, but there are only about 100 accredited
lab in the country and many states do not have any.
4. Further definition to containment rules
NAHB, the standards laid out by EPA for containment of lead paint dust presented potential risks to worker safety and could
violate OSHA regulations.
Essentially, the rule now clarifies what efforts need to be taken in windy conditions and
to allow contractors more freedom to contain paint dust and chips.
EPA also agreed to keep its definition and standards
for HEPA vacuums in line with the original 2008 rules rather than the differing rules proposed under the Sierra Club settlement.
That means remodelers that had purchased HEPA vacuums and filters already won’t need to make further investment in equipment.
The rules does state, though, that remodelers need to make sure the vacuum is “operated and maintained in accordance
with the manufacturer’s instructions,” so a record of that maintenance should be kept in case of an EPA audit.
New requirements for states
EPA also issued two new guidelines for the states (12 as of this writing) that have taken
over administration of the rule from the agency.
The guidelines set the maximum fine a state can levy at $5,000 per
violation, bringing it in line with the new EPA levels. States also have to provide procedures and requirements for how accredited
remodelers can perform on-the-job training for other individuals performing renovations. The states can also opt to require
all contractors working in pre-1978 homes to be accredited. The states have two years to make the changes.
How to Work with Remodelers
8:29 am est
How to Work with Remodelers Oct 25th, 2011 | By DWM Mag | Category: Event News
Want to work with remodelers but don’t know how to get started? Think price is among the top
items remodelers consider? Think again. Paul Winans, Remodelers Advantage, talked about how to work with remodelers and what
is most important to them, during his seminar held yesterday during the Association of Millwork Distributors Annual Convention
taking place this week in Nashville.
Winans noted that many remodelers starting out (and even some who have been in
the business for years) have no industry knowledge.
“You need to figure out how to educate this group,”
he said. “A remodeler does not want to be the product knowledge expert. They want you to help them navigate this process.”
also pointed out that many of these companies have no business training and suppliers can help them with this as well.
sales training for remodeling companies,” said Winans. “Most of them are in the toilet because they don’t
know how to sell.”
Your goal: Become that company’s preferred provider. Winans warned to not just get to
know the owner but others in the company as well. “If they don’t know you, they will go elsewhere.”
said suppliers can also help whittle down the options for remodelers.
“There are 20 million choices for remodelers
today when there used to be three,” he said. “There are many choices, and how to help remodelers narrow them down
is an opportunity for you.”
Winans detailed the most important criteria for remodelers when it comes to product
selection, according to a survey conducted by SPECSpan.
1. Delivery is correct, defect-free and undamaged;
Supplier response to mistakes/defects; and
3. Solid dependable warranty.
The way suppliers react to number two
“What you do when there is a problem will determine whether or not you get repeat business,” said
The least important criteria, according to the same survey, include:
1. Co-op advertising available;
Price: biggest rebate; and
3. Exclusivity of product within market area.
Many may be surprised that price is considered
least important but Winans is not.
“When you build a relationship with a remodeler price is even less important,”
he said. “Time is where remodelers make money. If it means paying a little more for a positive delivery experience they
will pay for it.”
So how do suppliers build relationships with remodelers?
Winans tells them to get involved
in local remodeling associations, or sponsor a meeting at their showroom. Identify three to five remodelers who you would
like to know better.
“Ask the remodeler questions about him–not the business,” he said. “The
right ones will ask you about your business.”
At a time when it is easy to get discouraged Winans presented many
signs of encouragement for those in attendance.
“When the market takes off again you will have so much business
it will be incredible,” said Winans. “You won’t have to lower your prices and I strongly recommend you don’t
do that. If you do what you say you will get a ton of business.
“You can’t write remodelers off,”
he added. “They are coming back. If you stick with them they will never forget you.”
The $189.00 Window Myth
7:56 am est
The $189.00 Myth
About everyone has heard the radio commercials and seen the billboards touting windows
for $189.00. Is this for real? Well No, this can be very misleading and it’s not even close. Here are the facts as we
have heard from customers many times.
The window they show for $189.00 is a vinyl window with a mechanical frame
that uses screws to hold the corners together. The mechanical frames are inferior to “fusion welded”
windows that form a stronger and air-tight corner. So you need to upgrade to a welded window from them for an additional
Also the window comes with clear insulated glass that may not meet the current IRC codes for
energy efficient windows. To meet the housing code you would have to add Low E glass for $50.00 per window.
Next to qualify for the energy standard for the Federal tax credit would require argon gas in the glass for an
Additionally if you want grids in the glass it will run you another $40.00 per window.
Finally, this price is only good if you have wood windows and you do not want the exterior of the window to be
clad in a matching vinyl material. The “Custom Exterior Trim” is an additional $60.00 per window.
If you are replacing old metal windows you will need the clad exterior trim.
So, now you are up to $339.00
for no grids and $379.00 with grids.
Additionally you may be charge for a “Site Set-up and window Disposal
Fee of $150.00. So, here is the grand total: If you need to replace 10 metal windows in your house and you think
it is going to be $1,890.00, ($189.00 x 10) you could end up being charged $3,540.00. This is $354.00 per window which
is a long way from the advertised $189.00.
So, why would anyone want to do business with a company
that is so misleading with “Bait and Switch” type advertising. The proffesional company has the advantage
here. We Look for people and partners that will show you a variety of windows and try to find one that best fits
your needs and budget in a No Pressure consultation.
Thursday, November 10, 2011
Remodeling index: Consumers put more into homes, July 2011
4:52 pm est
Remodeling index: Activity reaches record high in JulyIndex also indicates as remodeling activity has increased, many homes
are now under-insuredBy Mary
Beth Nevulis, HousingZone Contributing EditorSeptember 20, 2011
The BuildFax Remodeling Index(BFRI) for July 2011 shows that remodeling activity reached a record high during that month. The data also indicates that
as consumers are putting more discretionary income into their homes, there are now a record number of under-insured properties
from coast to coast.The latest BFRI
shows that July 2011 became the month with the highest level of remodeling activity since the Index was introduced in 2004.
During these difficult economic times, there has been an upswing in the sales of building materials and the number of renovations
greater than $10,000.
4:49 pm est
GREEN BUILDING EVENT WITHOUT
TRAVELJoin the thousands of GreenExpo365.com members for the November Live Event (11/1-2) as industry insiders and exhibitors offer opportunities to hear about tactics
you can use today to make your buildings better for your customers and the environment. Visit manufacturers on the one-of-a-kind virtual trade show floor, chime in on the 2-sides discussions and green building blogs, and participate in the free green building webinars featuring Eric Corey Freed, Doug Bennett, Tysen Gannon, plus USGBC
and Milgard Windows and Doors.
CONSTRUCTION MATERIALS PRICES CONTINUE TO OUTPACE BUILDING PRICES
4:36 pm est
CONSTRUCTION MATERIALS PRICES FLATTEN IN SEPTEMBER BUT CONTINUE TO OUTPACE BUILDING PRICES,
ADDING TO COST SQUEEZE FOR CONTRACTORS
Date: October 18, 2011
Producer Price Index for Construction Materials
Climbed 8.1 Percentin Past 12 Months, While Amount Contractors Charge Only Increased Between 2 to 3 Percent, Construction
The amount contractors pay for a range of key construction
materials held steady in September but climbed 8.1 percent from the year-earlier level, according to an analysis of producer
price index figures released today by the Associated General Contractors of America. Meanwhile, the price contractors charge
for new nonresidential building construction edged up only 2 to 3 percent over 12 months, depending on building type.