2. A slowdown in DIY projects will create more business for home improvement professionals.

The numbers show that the market in 2021 has been made up of growth in both the consumer and professional markets, at 10.8% and 18.2%, respectively. In 2022, those numbers are still expected to improve, but at significantly slower rates.

Why the slowdown in growth? HIRI and IHS Markit believe that the downshift can be partially explained with a simple answer: Homeowners are completing recent home improvement projects and are probably not looking to start another one.

While homeowners were willing to spend money to make their homes more comfortable and useful in 2021, they may now have achieved their goal. They’ve likely completed an in-home workspace or made renovations to their kitchens or living rooms at this point. For some, that was an inspiring and fun experience. Others will have learned that they’d prefer to hire professionals to do renovation work in the future.

As a result, HIRI research shows that growth is expected to continue in the professional markets at a higher rate than the consumer markets, offering opportunity for contractors and professionals to regain more of the market share.

According to IHS Markit Managing Director Scott Hazelton, “While the boom cannot last forever, a continuing strong economy suggests spending by contractors will actually improve year over year as households feel more comfortable with contractors in their home.”

3. These are the categories and regions with the strongest potential for growth.

HIRI’s forecast also breaks down the predicted growth by merchandise line and location.

• The strongest anticipated performers? Siding and exterior trim, with a predicted 11.0% growth, and gypsum and specialty boards, with a predicted 9.5% growth between 2021 and 2025.

• In addition, major household appliances, kitchen and bath cabinets, doors and moldings, roofing supplies, and dimensional lumber and boards are all projected to perform well, with each showing an estimated 8.0% growth in the same period.

• Regionally, the West South Central and Pacific are expected to experience the largest growth between 2022 and 2025, with increases of 6.2% and 6.0%, respectively.

• The above regions are followed by New England and the South Atlantic, with both estimated for 5.5% growth.

While we continue to live and work in unprecedented times, forecasts such as these show that things are moving in the right direction. Like a much more scientific and accurate version of Punxsutawney Phil fearlessly telling us if we can expect an early spring, HIRI’s report shows that the future for the home improvement market looks bright and sunny.

Interested in how Wray Ward can help your brand take advantage of these continuing growth trends in the home improvement category? Email me with questions.