Several Trends Driving Home Improvement Industry

There are several trends that Boyden Moore, Orgill's president and CEO, believe will help drive business going forward. Speaking at the opening of its spring virtual buying event, ‘Orgill 2020 & Building for the Future,’ he said it was clear that in 2020, as people spent more time at home and spent less money on dining, entertainment, and travel that the home improvement industry benefited from a huge shift in consumer spending. Overall retail sales were up 0.4 per cent for the year. But for the home improvement industry, spending was up 13.2 per cent. This trend has continued in 2021 “so far,” he said. The issue is how long this will this last. First of all, some demographics are driving increased demand in housing, especially with regard to the Millennials and Gen Z. There are 73 million Millennials in the U.S. in various stages of household and family formation and this is a larger group than the Baby Boomers or Gen X by far. This group, and Gen Z behind them, will drive housing demand in 2021 and for years to come. As the Boomers age, they're showing a preference to age in place and investing in their homes to make it easier to do so. Meanwhile, the housing supply in the U.S. is at record lows. “So there are some strong trends supporting demand for new housing and there isn't a lot of housing supply,” he said. Additionally, remote work strategies are here to stay as are many elements of the COVID-19 lifestyle that are expected to remain in place. A high percentage of people expect to continue to visit restaurants less, travel less for business and pleasure, and visit retail stores, even after they've received the vaccine. In fact, only 15 per cent of respondents to one survey expect to go fully back to their pre-pandemic routines. Even after they receive the vaccine, their expectations are to spend on home improvement in 2021.