Two Hammers

The customer freeze during the first quarter is finally thawing out, and remodeling projects are starting to hit the drafting table.  For those that survived the worst quarter in recent memory there is a glimmer of hope.  We are projecting remodeling activity at 80% of the level of one year ago, not ideal, but acceptable.  Gone are the home equity line remodel projects which were so popular for the past several years.  Now projects will be either maintenance driven remodels, or for customers who are immune from recession.   This will actually be good for the industry, the home equity remodels always seemed to have the budget raided for a new car or a big screen tv.  Remodeling projects now should be of better quality with more stable budgets, and more committed customers.  Thus, these projects should be more profitable, and well established contractors will survive.