WarmlyYours Report Shows Radiant Heating Sales Outpace Surging Remodeling Industry
November 28, 2016
A recent industry report shows that Q3 2016 sales of radiant heating products are outpacing the swift growth of national remodeling activity, which is projected to reach a 10-year zenith in mid-2017.
WarmlyYours Radiant Heating released its Third Quarter Industry Report, which finds that the sales of electric radiant heating products appear to be growing in rates that surpass even the optimistic projections put forth by various groups that are dedicated to the analysis of remodeling trends. WarmlyYours saw 20.6 percent growth in total consolidated third-quarter sales when compared with the prior year period. This level of growth is due, in large part, to a competitive housing market that is poised to drive remodeling activity to pre-recession peaks.
The WarmlyYours report also analyzed the findings in the most recent Leading Indicator of Remodeling Activity (LIRA), a quarterly assessment and projection of national remodeling trends composed by the Joint Center for Housing Studies of Harvard University. The most recent LIRA predicts that annual consumer remodeling expenditures will exceed $327 billion by the third quarter of 2017, a level that has not been seen since 2006. It further finds that change-of-rates for remodeling expenditures will accelerate positively until they reach 8.3 percent in Q2 2017, before tempering slightly to 7.5 percent in Q3 2017. According to Chris Herbert, the managing director for the Joint Center, this is due to several factors.
“Homeowner remodeling activity continues to be encouraged by rising home values and tightening for-sale inventories in many markets across the country,” said Herbert.
The WarmlyYours report also addresses how this up-swell in consumer remodeling spending helps explain sales growth in several WarmlyYours product lines in the third quarter. According to the report, the sales of electric floor heating systems, a flagship product line for WarmlyYours, grew 15.7 percent in consolidated sales, which is more than double the 6.6 percent growth in consumer remodeling expenditure that the LIRA identified for Q3 2016. Snow melting systems also grew considerably for WarmlyYours. In year-to-date sales, snow melting systems grew 24.2 percent, 75 percent of which was due to the introduction of commercially oriented 208- and 277-volt systems.
Julia Billen, owner and president of WarmlyYours, said that while remodeling expenditures are currently growing, the future marketplace is not without its challenges: chiefly, the projected shortage of available and affordable housing.
“During a time of plenty like we see in the current marketplace, it’s easy to become complacent,” said Billen. “The challenge for any company in the remodeling industry is to recognize where and how to position yourselves for the future. And that’s a challenge that WarmlyYours is eager to take on.”