By Joel Scanlon
IBISWorld, an industry research firm, has added the Deck and Patio Construction industry market research report to its collection.
The Deck and Patio Construction industry plans, builds and sustains living spaces, including decks, patios, porches and sunrooms for commercial and residential customers. Industry firms carry out reconstruction, new construction, and repairing and cleaning work. Requirement for the Deck and Patio Construction industry, similar to other building industries, has been subtle over the last five years to 2012, where industry revenue decreased at an approximated average annual growth rate of 1.9% to $31.1 billion.
The research report shows that industry revenue has turned the corner in the past two years by progressing from the slow rebound in each disposable income and new developments in existing housing prices and home sales.
Radia Amari, IBISWorld’s industry analyst, said that the industry benefited from revived growth in housing starts. The National Association of Home Builders reported that 62.0% of new homes developed in 2009 had porches. Tax credits given to homeowners to spend on energy-efficient upgrades to doors, roofs and windows have also driven requirement for Deck and Patio Construction industry services.
According to the research report, there will be a higher demand in the coming years for outdoor spaces due to a rebounding housing market. A 2012 Professional Builder magazine survey reveals that nearly 53% of respondents accept that today, outdoor living features are portion of new home sales. In response to this, a growing number of operators will enter/reenter the industry and small locally-operated firms will make up the greater number of the industry. In view of the small size of patio and deck construction firms, they may exit the industry at the time of a downturn.
The industry contracted rapidly due to the recession and decrease in demand for patio and deck construction over the past five years to 2012. However, in the next five years, industry firms are expected to increase as requirement for construction grows.