In April of this year, DuckerFrontier consultants and team of building and construction experts released ,”Covid-19’s Impact on Residential and Nonresidential Construction and Leading Segments for Growth Post Pandemic” a forecast and outlook report that identified the potential for increase in home remodeling and DIY efforts for nesting in place and upgrading spaces. The recent earnings release by Lowes and Home Depot affirms DuckerFrontier’s prediction and provides further insights to the changing dynamics of the US construction industry.
DuckerFrontier’s Building & Construction experts have broken down our expectations and factors boosting the building and construction market post pandemic.
- Home centers were a respite for consumers and contractors to break away from the Covid confinement. Our data suggest not just building projects – but a variety of diverse product lines were purchased
- Digital experiences by Home Depot and Lowes were improved in the period with easy access by contractors and DIYers to review projects, check inventory and explore potential project costs. In fact, Lowes recently updated its pro site and consumer facing site for a more advanced digital experience
- DuckerFrontier’s ongoing research with contractors and remodelers in May-July indicated an increasing trends toward home center purchases and digital interaction, which combined with location depth and breadth is helping business
- Not to be overlooked, but the single most important driver for home center demand in the next 6 months is the significant increase of existing home sales and the desire to remodel by homeowners. – especially at the expense of urban living
- According to NAR – existing home sales jumped by 20.7 % in June with average price increase of 3.5% and historically low interest rates.
- DuckerFrontier’s experts in construction indicate within 6-8 months of a housing transaction – DIY and DIFM spending accelerates – and we anticipate more DIY projects given the nature of covid-related safety and contractor labor availability
DuckerFrontier’s Building & Construction team is at the forefront of key trends impacting the industry post Coivd. Visit our Market Insights page for the latest insights and implications for global business, or contact us to connect with a team member.