While many areas of the economy are suffering due to restrictions caused by the ongoing COVID-19 pandemic, the home improvement industry has registered robust sales. Consumers are stuck at home, with more time and often extra money (from vacations not taken, foregone spending on other entertainment, or from government stimulus programs). As a result, people are taking time to tackle long-desired home improvement projects.
Sales of a variety of products and services, including decking, fencing, patios, exterior painting, basement waterproofing, gardening products, tree care, and landscaping have seen healthy growth for much of 2020. This has driven sales of lumber and other building materials, paints and coatings, tools, and lawn and garden products.
Bryan Fairbanks, CEO of Trex, said in an interview with Yahoo Finance, that his company’s sales are expected to see growth of 16% in 2020, several percentage points faster than that seen over the previous five year period. He attributes growth both to gains in market share compared to wood, which is being hurt by high lumber prices, and to higher sales from white collar workers who are key customers for Trex products.
However, concerns remain about how long this home improvement boom will last, with the COVID crisis now expected to extend into 2021 and a lack of new stimulus money any time soon.
For more information and a discussion of market opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research related to home improvement, including Wood & Competitive Decking, Residential Fencing, Lawn & Garden Consumables, Lawn & Garden Consumer Insights: The Home Gardener, Home Improvement Consumer Insights: 2020, Power Lawn & Garden Equipment, Global Power Lawn & Garden Equipment, and Power Tools. Freedonia Custom Research is also available for questions requiring tailored market intelligence.