First Quarter Prices Released, New Labor Rates

Home / Pricing Trends / First Quarter Prices Released, New Labor Rates

New material costs have been posted. They are ready to download to your estimating software.

Also, new recommended Hourly Labor Rates (HLRs) have been posted.

Material Costs Either Stay Unchanged or Increase During the Fourth Quarter

  • Plywood costs stay stable with small fluctuations in some areas.
  • Stud costs continue to be unchanged.
  • Dimensional lumber costs are up 8% since the tumble last quarter.
  • Drywall costs stay the same.
  • Roofing costs are up 13% negating the decrease last quarter.
  • Insulation costs have increased 6% across the board.

 

Here is a an article we thought you might also enjoy:

2014 Market Forecast: Carrying the Momentum

Tim Gregorski, Editor in Chief
December 1, 2013
Professional Remodeler

As 2013 comes to a close, many of the remodelers we speak to on a regular basis defined 2013 as a “good” or “very good” year for their business. Coming off an inconsistent 2012, their profit margins increased slightly in 2013 due to an improving housing market, rising home prices, lower interest rates, easier financing, positive consumer sentiment, and a series of natural disasters that impacted pockets of the country. As we reported in the September issue of Professional Remodeler, some remodelers on the East Coast notched an uptick in business due to Hurricane Sandy, which caused severe damage to residential and commercial properties in late 2012.

Continuing to build on momentum gained in 2013, 71 percent of the remodelers who responded to our 2014 Market Survey expect an increase in their revenue for 2014. Nineteen percent of remodelers expect no change to their revenue in 2014, while 10 percent expect their revenue to decrease when compared with 2013.

“In the near term, homeowner spending on improvements is expected to see its strongest growth since the height of the housing boom,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. “Existing-home sales are still growing at a double-digit pace, and rising house prices are helping homeowners rebuild equity lost during the housing crash.”

Remodelers echo Baker’s predictions about the 2013 remodeling market momentum carrying into at least the early months of 2014.

“I am bullish on the 2014 continued upward trend in sales and an increase in residential remodeling volume in a wide variety of home improvement projects ranging in size from minor repairs to whole-house remodels,” says Stephen C. Gidley, president and CEO, Stephen C. Gidley Inc., Darien, Conn.

“I believe 2014 will continue the same strong growth we have seen in 2013. Average remodeling project size in terms of dollars will increase as clients choose larger projects and focus on higher quality materials and craftsmanship,” says Jason Parsons, remodeling project designer, Design Build Pros, Toms River, N.J.

In the 2013 Market Forecast survey conducted last year, 71 percent of respondents expected revenue to increase, 11 percent expected their revenue to decrease, and 18 percent expected no change in their 2013 revenue when compared with 2012.

At the close of 2013, 64 percent of remodelers now reported their business increased in 2013 compared with 2012. Meanwhile, 20 percent reported their revenue had decreased and 16 percent reported no change in revenue compared with 2012.

Despite the slight decrease from their 2013 projections compared to the 2013 actual results, remodelers remain optimistic for 2014.

“We believe 2014 should continue upwards at a steady pace. We already have jobs signed for 2014 and feel our 2014 should be better than 2013,” says Scott Sevon, partner, MAW Chicago, Palatine, Ill.

Will home improvement taper in 2014?

The Joint Center’s Leading Indicator of Remodeling Activity (LIRA) report in the fall of 2013 found the home remodeling market continues to improve, with strong gains expected at the close of 2013 and positive momentum carrying into the early part of 2014. Even though the LIRA continues to project annual improvement spending to increase at a double-digit pace in the near term, remodelers should be cautious as the LIRA projects a slowdown of this growth in the middle of 2014.

“The soft patch that homebuilding has seen in recent months, coupled with rising financing costs, is expected to be reflected in slower growth in home improvement spending beginning around the middle of next year,” says Eric S. Belsky, managing director of the Joint Center. “However, even with this projected tapering, remodeling activity should remain at healthy levels.”

Some remodelers who responded to our survey concur with the LIRA projection for early 2014.

“We feel 2014 will be a good year for continued upward growth in both volume and bottom line. We are cautious not to be overly optimistic due to the ever-changing economic climate out there. With that being said, we feel we are in a very strong position to have a solid 2014,” says Sal Ferro, president and CEO, Alure Home Improvements, Plainview, N.Y.

“2014 will be more of the same current improving market conditions but experiencing growth in sales at a slower rate of increase than last year,” says Bob Hanbury, president, House of Hanbury, Newington, Conn.

Meanwhile, lead activity for 2014 is expected to increase over 2013 even though 33 percent of remodelers indicated their 2014 lead activity will remain unchanged compared with 2013. Just over 40 percent of remodelers indicated they expect leads to increase over 2013 compared with 24 percent who expect leads to decrease.

“I think that 2014 will look a lot like 2013 and activity will remain constant or slightly up,” says Andy Wells, principal, Normandy Design Build Remodeling, Hinsdale, Ill.

“I have a very positive outlook for 2014, especially in those areas that went into the recession first. Everyone I have talked to is busy with new leads and new work,” says William Shaw, president, William Shaw & Associates, Houston, Texas.

Click here to continue reading the article on Professional Remodeler.

Related Posts

Leave a Comment