Some Economic News (Read at your own risk!)

Both Kitchen & Bath Design News and Hanley Wood Market Intelligence Key Indicator Alert released their market updates yesterday. Both had a slightly positive spin because general sentiment is up a bit. There is also a slight increase in housing starts and increases in both new and existing home sales. Unfortunately, unemployment is at its highest rate since 1983. But, analysts say that job growth is the last thing to return after a recession. The reason? Businesses have cut back and will continue to produce as much goods and services as they can with as few people as possible in order to make up for previous losses due to the downturn.

Kitchen & Bath Design News did give some additional information that is of interest to remodelers and home improvement companies.

Market for ‘Green' Building Materials Outpacing Construction Growth
The U.S. market for "green" building materials generated sales of almost $57 billion in 2008 and is projected to grow 7.2% annually, to more than $80 billion, in 2013, outpacing the growth of building construction expenditures over that period, according to a new study from The Freedonia Group, Inc., a Cleveland, OH-based industry research firm. Although green building materials are expected to account for an increasing share of materials used, growth will be driven primarily by the recovery of the residential construction market through 2013 as it rises from its depressed 2008 level, the Freedonia Group said. Forest Stewardship Council (FSC)-certified lumber and wood panels are expected to be the fastest-growing green products, growing more than three times as fast as the overall market for wood panels, the research firm found.

Source: Kitchen & Bath Design News Market Update, April 2009.


AIA Study Shows Universal Design Trending Upwards; Upscale Kitchen & Bath Features Declining
As the housing market continues to decline, accessible and energy-saving products are growing in demand, while the popularity of upscale kitchen and bath features is declining, according to a new American Institute of Architects (AIA) Home Design Trends Survey.According to the survey, consumers are increasingly looking for products that are renewable, promote accessibility or save energy. By contrast, trophy-like kitchen and bath features are waning in popularity as consumers remain cautious in their spending habits. "Because of concerns over affordability and resale value, it's not surprising that there has been a sharp decline in demand for high-end kitchen and bath products," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "However, some products and features remain in high demand. Despite the difficult economic conditions, homeowners are extremely interested in renewable flooring and countertops, energy-efficient and water-saving products, as well as having a dedicated recycling center."

Source: Kitchen & Bath Design News Market Update, April 2009.