Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.
Issue link: https://idoi.epubxp.com/i/78039
MANAGEMENT(continued from page 53) Projected 2012 sales at resale values, and anticipated changes through 2015 are displayed in the table below. Two prominent but contrasting factors were important in preparing this forecast: 1) A sluggish and rather unpredictable economy offers no basis for anticipating signifi cant growth, but 2) Both homeowners and owner/users of non-residential buildings continue to be emphatic about maintaining and upgrading their property values. As we stated during the May presentation, "… while the rationale for new structures is dubious in light of vacancies, there is money for projects with a salutary affect on the livability and usefulness of both homes & buildings (e.g., upgraded garage doors, improved dock equipment & "smart" operators)." Accordingly, garage door sales expectations remain healthy and the general mood is positive because the industry's product improves any building's appearance, enhances its value and boosts its economic productivity. U.S. Garage Door Industry 2012 Resale Value. (installed & delivered @ retail $=mm) The preceding sentence is not simply a "pep talk" for selling effort. Both published and private research projects have repeatedly demonstrated that replacing and upgrading $=millions New residential Retro⇒ t & replacement residential (sectional, coiling & high speed) Non-residential Aftermarket service Total Resale (installed, delivered @ retail) Value garage doors add curb appeal and generate better returns to cost than alternative projects.1 For industrial and commercial buildings, both space productivity and leasing success grow in direct proportion to door, operator and dock equipment upgrades. What's New and What's Retrofi t? The majority of construction activity is retrofi t work that adds-to, alters, converts, expands, remodels, renovates or rehabilitates an existing structure, or it involves replacing a major building component. General contractors engaged in non-residential building work almost uniformly indicate that two-thirds or more of their billings are retrofi t projects. Without including the majority of DIY dollars, over 68.0% of all residential construction involves remodeling or major repairs and replacement. At ZCI, we treat all construction involving existing structures as retrofi t. Thus, new and expanded garages aded to existing houses constitute retrofi t activity, as do new docks cut into existing non-residential buildings. "Value of Construction Put in Place" (VPIP) is a measure of construction activity purchased by building owners or erected at the site during a given period. It includes wholly new structures as well as retrofi t as defi ned in the title of this article. VPIP data is published monthly by USCB, Forecast 2012 $ 430.6 2,907.0 1,636.6 1,875.5 6,849.7 6.8% 8.9% 1 For example: Houselogic, National Association of Realtors, Dec 6, 2011. Garage door replacement ranks #3 54 International Door & Operator Industry™ Average Growth to 2015 7.2% 10.7% usually stated on annualized basis, and categorized by project type. It includes the costs of all materials, labor and installations (e.g., plumbing, heating, elevators, outdoor lighting), as well as architectural and engineering work and contractor overhead and profi t. It excludes land acquisition, well drilling and the value of production and similar machinery and equipment. As of April 2012, annualized total VPIP was $820.66 billion, which was up 6.2% from one year earlier, and the highest the number has been since the economy spiraled downward in late 2008. Of the total, new house construction accounted for $143.7 billion, or about 17.5% of the total. Heavy engineering projects (highways, power systems, transportation facilities, etc.) amount to $269.1 billion, but a portion of that is spent for terminals, maintenance buildings and other structures adjacent to the primary construction. The building construction category, including educational, healthcare, offi ce and commercial structures accounts for $289.24 billion, 72.0% of which is spent for retrofi t. The $118.7 billion of residential retrofi t activity identifi ed in VPIP accounting is not a comprehensive total because it focuses on projects that require building permits. There is an additional $113.0 to $125.0 billion of residential retrofi t consisting of smaller and DIY projects, plus replacements, which typically do not require permits. All of the preceding data indicates that there is at least a $500.0 billion retrofi t construction market (remember some residential activity is not included in the VPIP numbers). This suggests that garage doors are commanding about .8% (eight tenths of one percent) of identifi ed retrofi t spending. The importance of the .8% number is that it verifi es that retrofi t and replacement doors are nearly always of higher quality and better design than doors installed in new construction, which average not quite .3% of construction value.1 Continued on page 56