This story was originally published in Remodeling.
Remodelers and contractors are less optimistic about the future market for business, according to GuildQuality’s 2018 Fourth Quarter Market Predictions report. The amount of respondents who believed the market would decline in the fourth quarter increased more than four times to 17.1%, the highest percentage from the GuildQuality survey since it was first given in 2008.
Only 20.8% of respondents believed the market would ‘Improve’ or ‘Significantly Improve' in the fourth quarter, the lowest percentage since the third quarter of 2011. Half of respondents said they expected their company performance to improve, down a full 20% from the third quarter. While GuildQuality indicated that these results are outliers based on previous data, a decrease in expectations is common surrounding the end of the year calendar.
Despite the gloomy outlook for the future of the market, 84.3% of respondents said the current state of the market was ‘Good’ or ‘Excellent,’ up 1.7% from the third quarter. The amount of respondents who said the current market state was ‘Excellent’ decreased from both the previous quarter and the year-earlier period, while the amount of respondents categorizing the market state as ‘Good’ increased from the third quarter.
GuildQuality’s report is based on its Market Predictions Survey, sent out to over 2,500 members including home builders, remodelers, and contractors. In addition to asking about the current and future state of the market, the survey also polls respondents on the availability of qualified labor.
The vast majority of respondents (58.6%) suggested the availability of qualified labor was ‘Horrible’ or ‘Poor,’ while less than 15% indicated the availability was ‘Good’ or ‘Excellent.’ Additionally, only 7.5% of respondents said the availability of qualified labor had improved in the last six months, compared to the 28.8% of respondents who said the availability had declined in the same period. The negative responses towards the current state of qualified labor are smaller than previous quarters, GuildQuality said.
Respondents were also surveyed on trends they saw more and less of during their work in the third quarter. The results indicate that exterior additions, high-quality products at affordable prices, rustic finishes, and grey tones were the most common emerging trends. Granite countertops, formal dining spaces, and master bathtubs were elements respondents indicated were on the way out. Members suggested quartz countertops were gaining in popularity and were behind the waning market share of granite.
This story was originally published in Remodeling.
