Growth is returning to the residential building and construction market for the first time since the recession, according to the second annual L.E.K. Consulting Contractor Behavior Survey.

The report by the Boston-based firm projects a 7 percent increase in revenue per residential job within the next three years, compared with the 3 percent decline expected in last year’s survey. L.E.K. Consulting surveyed more than 500 contractors across the United States to examine their purchasing priorities, preferences and strategies for the future.

On the downside, pressure continues despite market optimism, with 34 percent of contractors losing bids due to price in 2011 — double the percentage in 2006. Contractors are responding by looking for their preferred products at competitive prices, the report said.

"For the first time since the recession, contractors are planning for growth, which is an important bellwether for the building products industry,"Chris Kenney, vice president and head of L.E.K. Consulting’s North American Basic Industries Practice, said in a statement. "Building products manufacturers have an opportunity to capitalize on growth by continuing to promote trusted brands, introducing product features that will command a premium and reevaluating how they reach their customers

 

Survey: Growth Returns To Residential Building, Construction Market

by Banker & Tradesman time to read: 1 min
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