International Door & Operator Industry

MAR-APR 2018

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.

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Page 46 of 142

MANAGEMENT 44 International Door & Operator Industryâ„¢ Residential Retrofit Garage Doors Because of the size, weight and exposure to weather and damage, garage doors require servicing and replacement more often than some other exterior residential components. They don't get it. Maintenance postponement is widespread among garage doors, and replacement is too often delayed or ignored in favor of other projects that appear to offer more immediate homeowner gratification (new kitchens, landscaping, recreation decks, etc.). However, research by organizations including ZCI have found that few improvement investments provide both the size and immediacy of return offered by new garage doors. Age is a factor in replacing garage doors, and they are not necessarily the same age as the houses they adorn since many garage additions and expansions were carried-out after the domicile was built. The following table displays the relative age of owner occupied 1-unit dwellings to that of residential garage doors: (continued from page 42) Using both the preceding tables, and allowing for a realistic life span of 16 to 20 years, just over 7.30% of all garage doors are potentially replaceable at any point in time. Assuming the rate of new garage construction (resulting from remodeling or home expansion) is constant, there should be a market for nearly 6.7 million replacement and/or renovation generated doors annually. Unfortunately, actual sales fall well short of that number. In 2017 between 2.83 and 2.92 million residential retrofit garage door units of all sizes and types were sold and installed by resellers (dealers, home centers, lumber yards, etc.) for $3.45 billion. The resale value reflects the cost of the door system, operators (if installed simultaneously with the door), direct labor and the markup required to cover reseller overhead and profit. Just to be clear, this quantity and value reflects residential retrofit only. It excludes doors for new residential construction and all aspects of commercial garage doors. Why does actual residential retrofit quantity fall so far short of market potential? The answer has many facets, but certainly one key reason is that many (perhaps most) homeowners are not cognizant of either the cost or value presented by this generation of garage door designs. Garage doors are probably more difficult to merchandise and display than kitchen cabinets, flooring, lighting or even entry doors. However, some dealers are very skilled at marketing replacement doors, and they universally report that once value is demonstrated, homeowners are quick to understand the salutary effects of new doors on an existing house. The problem remains one of pushing garage doors to a higher position on the home improvement "desirability" list. 58.9 94.1 100.0 112.5 128.8 137.8 132.5 121.5 108.8 104.5 104.6 107.3 120.8 130.9 134.4 135.1 136.8 139.2 141.1 25 50 75 100 125 150 175 Index Value The IDA Garage Door Activity Index Base Year = 2003 Designed, calculated and maintained for IDA by Zoller Consulting, Inc. Copyrighted material. May not be reproduced in whole or part without express written permission of the International Pre- Recession Residential Construction Peak Non-Residential Construction peaked as Residential Construction faltered Residential garage door demand is accelerating - for new, remodeling and replacement construction. Both unit quantity and value per door is increasing more rapidly than the pace of underlying building activity ! As 2017 drew to a close, construction employment reached its highest level since November of 2008 dispite the continuing problem of finding skilled craftsmen. Wages & training are reflecting the continuing expansion of construction opportunities since 2010 1.7% 2.1% 2000-09 16.2% 21.2% 1980-99 26.8% 27.4% 1960-79 25.3% 25.4% 1940-59 17.9% 15.2% before 1940 12.0% 8.7% Total 100.0% 100.0% Year Built: % Distribution of Owner Occupied 1-U % Distribution of Garage Doors (continued on page 46)

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