flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

2023 Game Plans: Larger Remodelers Benefit Most as Lead Times Shorten

Advertisement
billboard -
Business

2023 Game Plans: Larger Remodelers Benefit Most as Lead Times Shorten

Remodeling industry Thought Leaders share their perspectives on growth, challenges, and plans for the new year


By Vince Nardo January 4, 2023
business planning
Photo: Africa Studio | stock.adobe.com
This article first appeared in the January/February 2023 issue of Pro Remodeler.
vince nardo reborn
Vince Nardo
CEO, Reborn Cabinets
National

Growth

We are still projecting double-digit growth for our business unit next year. The majority of that will come from geographic expansion and product expansion because of our partnership with Renovo. [The private equity company that purchased Reborn in 2022.]

We have put together more of a conservative plan for 2023, so we don’t have a big shift from our target to our reality if a recession affects us.

That said, I have been doing this for 40 years and I have been through some major recessions and COVID. I do not suspect we’re going to see a substantial impact on our business.

 

Shrinking Backlog

Over the past few years, everybody has seen their backlog grow to levels they have never been accustomed to in this industry. We have always targeted a 30 to 45-day backlog, but we have been months out the past couple of years.

I anticipate seeing interest rates continue to rise, which is going to cause a pullback on consumer financing and make cash flow tighter.

I think that having a little bit of a headwind with a minor pullback might be a good thing for the consumer because we can start getting our suppliers back to normal lead times and give the consumers better experiences. Organizations that are able to correct the backlog issue will be able to capitalize on market share.

 


RELATED: 2023 Game Plans: Extra Vigilance Amongst Continuing Challenges


Challenges

Larger remodelers will be the first ones to realize that benefit, while, in my opinion, smaller standalone remodelers are going to struggle. I anticipate seeing interest rates continue to rise, which is going to cause a pullback on consumer financing and make cash flow tighter. The smaller remodelers that have not prepared their balance sheet for that are going to face a challenge.

Because there is so much unknown, remodelers have to be very nimble and flexible. If lead times shorten, how do we react quickly to that on the marketing side? How do we capitalize on that?

Remodelers have to be looking at their data even more than they have in the past. Larger remodelers who have those systems and dashboards in place are monitoring those metrics already, so they will have a leg up in that area.

 

Read all 2023 Thought Leader predictions and game plans here


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.

Related Stories

A New Opportunity

One-on-one expert business consulting is valuable... especially if it's free

3 Things to Add to Your Construction Contract—From a Lawyer

Did you know you can add these three elements to your contracts?

4 Qualifying Questions For When Clients Come Calling

Asking the correct questions impacts your ability to plan well—Are you covering these bases on the first call?

Cracking the Remodeling Sales Code

What's the secret to great remodeling sales in today's market? Mark Richardson offers 10 suggestions

A Tale of Two Cultures

Solid company culture can be easily spotted by clients—and they'll pay top dollar for it 

Leading with HEART: A Remodeler's Book on Leadership, Company Values

F.H. Perry Builder Owner Allison Iantosca shares the experience of writing a book based on her company's values

10 Sales Success Habits

"It's not the market that's making you more or less successful, it's what you're doing with the cards you're dealt with," says industry advisor and Remodeling Mastery host Mark Richardson

3 Remodelers Share Tips for Successful Meetings

Quick insights for right-timing meetings, keeping everyone on track, staying on time, and more

Positive Feedback Loop: 4 Ways to Create a Company Around Collective Success

Adams + Beasley Associates has been named a Top Places to Work in Massachusetts for three consecutive years. The co-founder of the 70-employee design-build company shares his insights into what it takes to create an award-winning company culture. 

10 Remodeler Recommended Business Reads

From leadership to process improvement, these 10 recommended business books for remodelers offer something for everyone

Advertisement
boombox1 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -