An uptick in housing starts has led to increased demand for new decks and patios
New York, NY (PRWEB) September 09, 2014
The Deck and Patio Construction industry designs, builds and maintains outdoor living spaces, including decks and patios for residential and commercial clients. Industry establishments perform new construction, reconstruction (i.e. the rebuilding of something after it has been destroyed), repairing and cleaning work. According to IBISWorld Industry Analyst Daniel Carusotto, “demand for deck and patio construction tends to be correlated heavily with the overall health of the housing market.” As a result, the first half of the five-year period was characterized by an industry still reeling from the recession. However, the second half of the period was characterized by robust growth fueled by loose monetary policy and increased demand. Ultimately, growth in the second half of the five years to 2014, overpowered first half weakness and, as a result, IBISWorld expects industry revenue to increase in the five years to 2014.
From 2012 to 2014, the Deck and Patio Construction industry's revenue improved. The Federal Reserve embarked on a stimulus program with the intent of lowering long-term interest rates. With the Federal Reserve buying mortgage-backed securities and long-dated treasuries, borrowing became more affordable for homeowners, effectively spurring demand for new and existing homes. Low interest rates coupled with improving economic conditions helped housing starts and private spending on home improvements increase strongly from 2012 onward, benefitting both the new deck construction and remodeling markets. As a result of increased demand, profit margins in the Deck and Patio Construction industry have expanded modestly.
Over the next five years, revenue for the Deck and Patio Construction industry is projected to rise. The industry will benefit from the extension of positive established trends, such as housing starts growth, private spending on home improvements growth and rising per capita disposable income. “Consumers who previously delayed deck and patio remodeling projects as a result of the recession are likely to go forward with new projects in the coming five years, further benefiting demand,” says Carusotto. Additionally, industry operators will increasingly offer to build decks using alternative materials such as composite in an effort to distinguish themselves from competitors.
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
The Deck and Patio Construction industry constructs outdoor living areas, including decks and patios, for residential and commercial clients. Industry operators perform new construction, reconstruction and repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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