According to a 2016 Remodeling 550 survey conducted by Remodeling Magazine, replacement contractors brought in significantly more revenue than full-service remodeling businesses.
The 150 replacement contractors surveyed predict they will bring in 27.2 percent more revenue this year than in 2015, while the 445 full-service remodelers predict 4.9 percent growth.
The survey results and industry reaction were recently featured in “A Giant Growth Gap Separates Contractors from Remodelers,” an article published in Replacement Contractor Magazine.
In the article, NRCA CEO Bill Good provided his reaction to the Remodeling 550 survey, saying he was surprised by the wide gap in revenue among replacement contractors and full-service remodelers.
“I would expect replacement contractors to fare better than full-service contractors but not by such a wide margin,” he said.
Good stated several reasons for the gap:
- The homebuilding industry is still almost 50 percent from its peak during 2006-2008.
- Replacement contractors’ specialization gives them an edge, along with their target marketing.
- Replacement contractors may be benefiting from the trend among millennials to rent rather than buy, which presents a greater need for repairs and replacement (including roofs) rather than full-service work.
The article and Good’s comments can be read in their entirety below.