US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

DIY Market Continues to Play Large Role in Home Remodeling Industry

TFG analysts have repeatedly mentioned in this space the key role the DIY consumer is playing in supporting demand for building and construction materials. A recent report from the National Kitchen & Bath Association indicates that in the large kitchen and bathroom remodeling industry, this trend is continuing – with both positive and negative effects on the industry.

Highlights of the report include:

  • The percentage of homeowners indicating that they were working on a remodeling project nearly doubled, rising from 19% to 36% in the second quarter of 2020.
  • More than a third of the remodeling jobs completed in the quarter were those of the DIY variety – another sharp increase from the first quarter.
  • Nearly one-quarter of all US households want to undertake a remodeling project in the near future, spurred in part by the desire to add more usable space to accommodate working from home and other changes in lifestyle.
  • However, the average overall spending on kitchen and bathroom renovation projects in the second quarter fell to about half of the level of the first quarter of the year – dropping from over $12,000 to $6,000.

For manufacturers of products used in kitchen and bathroom projects – plumbing fixtures and fittings, flooring, cabinets, paints, and appliances – this report is good news, indicating continuing strong demand for their products. However, for industry professionals – contractors, installers, designers – this report is less rosy. If fewer Americans employ the services of construction professionals – relying on their own labor – it will affect the health of the construction sector and the US economy overall.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.