Growth in renovation industry spurs employment
Tuesday, November 25, 2014
The U.S. construction industry is on an upward swing, which has led to record employment figures. Construction and renovation firms have added 20,000 jobs this year, reaching a five-year high in August, according to the Associated General Contractors of America (AGC). This accelerated employment growth was the largest since 2006, with residential building and specialty trade contractors adding a maximum number of employees at 5.7 percent.
Continued recovery in the construction sector also means that the number of workers looking for work is steadily falling. Though it does not mean that all employers are happy with the quality of workforce at hand. In fact, though the unemployment rate fell to 7.7 percent, the AGC survey shows that many contractors are unable to find enough qualified workers for the growing number of jobs at hand.
Nevertheless, there is immense scope for all-around development since specialized sectors like home improvement will report faster growth and earnings. Experts and market analysis have predicted that 2014 will finish as a robust year for the home renovation sector. Markets are rebounding from the recession, and housing prices are slowly rising, leading to growing interest in home improvements.
A Houzz & Home Study conducted earlier this year showed that over 40 percent American homeowners planned to renovate their homes this year. In related study, the National Association of Home Builders (NAHB) has estimated that these renovations may well reach a figure of $200 billion. The global home improvement market is slated to reach $678 billion by 2015. Home renovation projects are going to grab a sizable share of this pie which means more jobs for all.
The NAHB has pointed out that the state of the U.S. economy is closely linked to the health of the housing industry. Within the industry, it leads to jobs which in turn lead to wages, business income and millions in taxes and revenue for the state, local and federal governments. Analysis and reports from the organization have shown how the rebounding of this industry segment has direct repercussions for the economy, creating a positive ripple effect all over.
As employment increases, the purchasing power will also see a rise, supporting stronger consumer spending and better revenues for other industry segments. Since 2007, this has been the first time that the market is looking at exceeding 1 million home constructions, which means contributions to the GDP can well exceed the 17 percent that is predicted.
The home improvement market is particularly looking good, as sales are expected to increase by 4.9 to 5.8 percent, to almost $303 billion by the end of the year. There are multiple reasons for the positive turn of events.
Jobs in other sectors are also improving, which has led to additional or disposable income that can now be utilized for home renovation. Projects that have been on hold during the recession can be picked up again. A lot of people are eyeing renovation in order to prepare their homes for resale, as the markets pick up.
But that's not all. There is a rising number of homeowners who are also eyeing home improvement without attaching a move to it. They want upgrades and more comfort, and are particularly interested in making their homes more energy efficient and eco-friendly.
All these mean more and better job opportunities for all in the industry. According to the National Association of the Remodeling Industry (NARI), overwhelming sentiment is that of renewed optimism and a positive outlook. A majority of remodelers (67 percent) are looking at definite growth patterns and market improvement on the near future.
This slow, steady recovery of the remodeling industry is indicative of the overall economic improvement.
- Breaking down barriers to make career and technical pathways accessible for everyone
- Millions of high school students set for success: Celebrating Career and Technical Education Month
- Window film improves building system performance
- COVID-19 migration study shows where people are flocking to, fleeing from
- Interior design is not about flowers
- How COVID-19 might affect the commercial real estate market
- Emerging green building material technologies to watch
- Why stress is causing interior designers to leave the profession
- Avoid unnecessary layers of governance
- A complete list of 22 cybersecurity tips every user must follow: How many boxes can you check?
- 4 COVID-19-related changes that could outlast the pandemic
- How hard do you make your customers work to buy something from you?
- Why phased-in marketing is the right way to resume a top-selling product message
See your work in future editions
Your content, Your Expertise,
Your Industry Needs YOUR Expert Voice & We've got the platform you needFind Out How