Industry Trends
Brand Strategy
Depending on the day and the news outlet, the economy is up … or down. From tariffs to changing media costs, the current geopolitical environment offers no guarantees for business planners. So how can you get ahead of the curve? For starters, if you work in home and building products, you’re in the right industry.
During the recent Home Improvement Research Institute (HIRI) Summit, Houzz Principal Economist Nino Sitchinava said that if you consider factors such as home age, home value, homeownership age and confidence, home improvement “might be the luckiest industry there is in this economy.”
Here are some things for marketers in the home and building category to keep in mind this business planning season:
1. In spite of varying outlooks, the economy is in pretty good shape.
A recent U.S. Census Bureau report found that poverty levels fell for a fourth consecutive year, dropping to a prerecession low (Forbes). Meanwhile, the mean household income passed $63,000 for the first time in history, and the number of people employed in the United States is expected to increase by almost 2 million in 2019. Additionally, CNBC reported that consumer confidence is up, with close to a 5% increase in retail spending expected this holiday season.
During its annual summit, HIRI, the only nonprofit organization devoted to home improvement research, anticipated growth in DIY activity among homeowners, fueling optimism. Furthermore, Houzz’s Sitchinava shared that an aging housing stock is invigorating the industry. Meanwhile, boomers are driving big-ticket spends.
2. With careful planning, you can get ahead of potential issues.
Proactivity is the name of the game. For example, accelerated media planning can help overcome a potential media inventory shortage or future cost increases. On the other hand, if you know you will need to pass a price bump on to your customers to offset increased tariffs, you may want to adjust product messaging to amplify key product features and benefits. These points of differentiation can shine a spotlight on product value despite the increased cost.