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Analyzing the Home Improvement Market Market Sizing and Forecasting. Mike Sweet Senior Consultant, Business Planning Solutions Michael.sweet@globalinsight.com 781-301-9039. Agenda. Capabilities and Approach Case Studies. We segment the market across a number of different dimensions:
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Analyzing the Home Improvement Market Market Sizing and Forecasting Mike Sweet Senior Consultant, Business Planning Solutions Michael.sweet@globalinsight.com 781-301-9039
Agenda • Capabilities and Approach • Case Studies
We segment the market across a number of different dimensions: Products and Services End Purchasers DIY, BIY, Contractors and Builders Structure Types New Residential, Residential Remodel, Non-Residential Store Types/Distribution Channels Geographic markets Global, National, Regional, State and County Overview
Premier economic analysis & consulting organization with 3,300 clients, 600 employees and 24 offices worldwide • Most comprehensive coverage of countries, regions and industries available from any single source • Common analytical framework and a consistent set of assumptions applied to diverse capabilities and products • The BEST track record among commercial forecasters. Wall Street Journal, January 2, 2004 • Expertise Serving the Home Improvement Industry • Home Improvement Research Institute (HIRI) • Developing an Outlook for the Home Improvement Market for over 10 years • Global Construction Study • Sizing and Forecasting construction activity by structure type in 55 country markets • U.S. Construction Services • Detailed forecasts and analysis on the U.S. construction market by structure type with state-level detail • Home Improvement Retailers and Manufacturers • Product line forecasts and geographic market potential models
Unique Value Proposition We explain how demographics, income, the macro economy and customer trends influence future demand for your products
Agenda • Capabilities and Approach • Case Studies
Case Study #1 – Segmenting a Retailer’s Geographic End Markets Recovering Markets High Growth Markets Atlanta Orange County New York Tampa -St. Petersburg Los Angeles Seattle Average US Service X Detroit Denver Newark Growth 2003-2006 Average Annual Growth 2003-2006 Washington DC San Francisco Philadelphia Kansas Cleveland Baltimore St. Louis Minneapolis St. Paul Phoenix Houston Oakland Pittsburgh Dallas Chicago San Diego Boston Average US Service X Growth 1997-2003 Lagging Markets Slowing Markets Average Annual Growth 1997-2003
Case Study #2 – Paint Manufacturer Will over exposure in this channel hurt performance? Does lower penetration signal a potential growth opportunity?
Case Study #3 – Analyzing the Demographics of the Home Market • Second home demographic demand is growing nearly twice as fast as repeat demand and four times as fast as first time purchase demand • As the baby boom ages, second home demographic demand growth will remain strong. • First time demographic demand growth edges up as Generation Y starts forming households. Demographic Demand Growth Source: U.S. Census Bureau & Global Insight; age distribution data from The National Association of Realtors.