If you’re thinking of starting a kitchen remodeling business, you’ve probably already begun to take a closer look at the current state of the market to assess the viability of your company. And if you’ve spent any time researching market revenue, you’ve probably read that it generates about $300-billion annually. This figure is cited all of the time, but it doesn’t tell you much about the actual size of the market. Sure, it’s impressive, but what does that mean for your business?
At Kitchen Solvers, we love talking about the size and profitability of the kitchen remodeling business. Today’s post does just that, walking you through findings from various journals and market analysts to break that famous figure down in greater detail and help inform your next big business decision.
Kitchen Remodeling Business Profitability: Reviewing the C-30 Survey
The C-30, or Monthly Value of Construction Put in Place survey, details total dollar value estimates for all construction work completed in the US in a given year. This is a particularly authoritative source that offers a tidy meta-analysis of dozens of concrete primary sources like the Survey of Construction and Consumer Expenditure Survey. If you’re looking to inform your decision to start a kitchen remodeling business in 2017, the C-30 is an excellent place to start.
According to the C-30, construction spending in 2017 hit $1,230.1 billion – that’s an astronomical amount of money. Of course, this wasn’t all in the kitchen remodeling world. The report states that residential hit a high of $509.6-billion in May of this year, but their breakdown isn’t really sufficient for our purposes.
These numbers are certainly impressive, but we must frame them responsibly. Remember that these figures include new additions, decks, and other services that won’t fall within the services of your kitchen remodeling business. On the other hand, these figures do not include maintenance expenditures like kitchen repairs or replacements, which is one of the cornerstone services for a kitchen remodeling business.
To address these shortcomings, we must cross-reference and supplement our research with additional sources. With that in mind, we turn to research conducted by the American Housing Survey.
American Housing Survey Findings on Kitchen Remodeling Business
The AHS synthesizes data from an even broader sample population than the C-30, assessing the spending of around 155,000 housing units. Comparing AHS findings is a great way to develop your understanding of the profitability of the kitchen remodeling business, offering a much more detailed and nuanced view that that which the C-30 report provides.
Good news: the AHS values the kitchen remodeling business about $50-billion higher than the C-30 survey. The only problem is that the AHS doesn’t distinguish between money spent on DIY projects and money spent hiring professionals – that’s where Harvard research comes in handy.
JCHS Findings on Kitchen Remodeling Business Profitability
The Harvard Joint Center for Housing Studies is particularly useful because it differentiates between professional and “DIY” kitchen remodeling spending. Back in 2011, professional spending on improvements to owner occupied units were calculated at $145-billion, and this number has seen considerable growth in the 6 years since.
So what’s the final tally?
Synthesizing Findings on Kitchen Remodeling Business Profits: Current Stats and Projections
Since new reports are constantly surfacing, we cannot ethically publish a static figure here. Instead, we hope this article has turned you on to some useful research resources and techniques.
If you’d like up-to-date research reports outlining the profitability of the kitchen remodeling business as it pertains to Kitchen Solvers franchisees, visit https://www.kitchensolversfranchise.com. We’re offering this report entirely free of charge or commitments, so get yours today.