Houzz Publishes State of the Industry Study
Houzz, a social media platform for home remodeling and design, released their 2018 State of the Industry study that surveyed over 3,378 U.S. residential and design businesses. The study focused on a review of 2017 and outlook for 2018. Companies reported that 57% of industry groups experienced an acceleration in their average annual growth rate in 2017 compared to 2016. The most notable increase was from design-build companies who reported 3% in growth from 2016. The cost of doing business increased for all industries but was most widespread for those within the construction sector. The top contributing cost drivers reported were labor, products and materials. Most projects focused on residential services over commercial, with the majority relating to existing homes rather than new construction.
The study showed an overall positive outlook for 2018, with specialty companies in the construction, outdoor, and décor industries expecting growth of 2-3% over 2017. Wide-spread profit increases are anticipated by most industries along with high expectations for growth of local economies. Labor availability and costs are projected to worsen in 2018 due to increasingly tight labor markets. As a result, almost all companies expect the cost of doing business to increase. See Houzz