Full Support: Deck and Patio Construction in the US Industry Market Research Report Now Available from IBISWorld

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After falling demand in line with hurting housing and construction markets, Deck and Patio Construction industry revenue turned the corner, benefiting from the slow rebound in per capita disposable income and the recent increase in existing home sales and housing prices. The industry also benefited from renewed growth in housing starts, with most including covered patios or porches. With a rebounding housing market, there will be greater demand for outdoor spaces. In turn, an increasing number of operators will enter or reenter the industry (a significant number of operators left the industry between 2007 and 2010). For these reasons, industry research firm IBISWorld has added a report on the Deck and Patio Construction industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Housing prices have begun to rebound, driving increased household investment

The Deck and Patio Construction industry designs, builds and maintains outdoor living spaces, including sunrooms, decks, porches and patios for residential and commercial clients. Industry firms perform new construction, reconstruction (i.e. the rebuilding of something after it has been destroyed), repairing and cleaning work. Similar to other construction industries, demand for the Deck and Patio Construction industry has been volatile over the five years to 2012. “When the housing market crashed in 2007 and the recession hit in late 2008 and carried on through 2009, homeownership rates declined, housing starts dropped, foreclosures hit record highs and housing prices fell,” says IBISWorld industry analyst Radia Amari. “These trends resulted in decreased demand for industry services.” Over the five years to 2012, industry revenue fell at an estimated average annual rate of 1.9% to $31.1 billion.

In the past two years, industry revenue turned the corner, benefiting from the slow rebound in per capita disposable income and the recent increase in existing home sales and housing prices. And in the past year, existing home sales and housing prices have begun to rebound, “driving increased household investment in new additions and remodeling projects to increase selling values,” says Amari. “The industry also benefited from renewed growth in housing starts, with most including covered patios or porches.” According to the National Association of Home Builders, 62.0% of new homes completed in 2009 included porches. Tax credits offered to homeowners to invest in energy-efficient upgrades to windows, doors and roofs have also spurred demand for Deck and Patio Construction industry services.

With a rebounding housing market, there will be greater demand for outdoor spaces in the coming years. According to a 2012 Professional Builder magazine survey, almost 53.0% of respondents believe it is more important that outdoor living features are part of new home sales today than two years ago. In turn, an increasing number of operators will enter or reenter the industry (a significant number of operators left the industry between 2007 and 2010). Small, locally operated firms with fewer than 10 employees (including subcontractors) make up the majority of the industry. Due to the small size of deck and patio construction firms, they are more likely to exit the industry during a downturn. The industry contracted quickly as a result of the recession and declines in demand for deck and patio construction over the five years to 2012. During the next five years, however, as demand for construction increases, the number of industry firms is expected to grow. For more information, visit IBISWorld’s Deck and Patio Construction in the US industry report page.

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IBISWorld industry Report Key Topics

This industry constructs outdoor living areas, including decks, patios and sunrooms, for residential and commercial clients. Industry operators perform new construction, reconstruction and repairs.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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