Dive Brief:
- Remodeling Magazine has released its annual list of the nation's top remodeling firms — the Remodeling 550 — and reported that all companies on the list combined saw sales of $4.22 billion in 2015.
- Across the board, the listed companies predicted their revenues will increase 17.3% to $4.94 billion in 2016, with the highest forecasted rise in revenue from replacement contractors (27.2%), followed by full-service firms (4.9%) and insurance restoration companies (2.5%).
- Remodeling reported that, although only anecdotal evidence exists, the shortage of skilled workers might have prevented remodeling firms from earning more in 2015.
Dive Insight:
The top five overall remodeling contractors were: Pacific Homeworks in Torrance, CA (2015 revenue of $50.58 million; 2016 predicted revenue of $58.16 million); Alure Home Improvements in East Meadow, NY ($41.47 million; $43 million); Treeium, Inc. in Valley Village, CA ($33.77 million; $38 million); BOWA in McLean, VA ($31.09 million; $34.8 million); and Greater Dayton Construction in Beavercreek, OH ($30.01 million; $30 million).
The top full-service remodelers echoed the overall list, while Window World in North Wilkesboro, NC ($579 million; $617 million) topped the list of replacement contractors and American Technologies ($181.9 million; $173.13 million) was the No. 1 insurance restoration company.
According to a July report from Harvard's Joint Center for Housing Studies, homeowner spending on renovation projects will likely reach $321 billion by mid-2017, an 8% growth rate. Insulation is the biggest moneymaker, and CNBC also reported that requests for multiroom remodels are up 67%, but kitchen and bath remodels are still high on the list of projects. Increased home equity has played a part in the rise in remodeling jobs, as homeowners are now able to afford those upgrades.
Last month's second-quarter Houzz 2016 Renovation Barometer found that there was a slight cooling of demand for remodeling services but reported that, like the firms on the Remodeling list, industry outlook is positive. The site also determined that remodeling demand was highest among baby boomers and older homeowners as they make aging-in-place changes to their homes.
