Contractors opt for more expensive materials
Posted on Thursday, January 3, 2013 at 3:36:36 PM
In the wake of the housing market collapse, many contractors were forced to complete projects with more affordable materials. However, as the economy gains momentum, these individuals are more willing to invest in pricier goods.
During recent years, many contractors opted for cheaper materials to offset a drop in homeowner demand, according to a report from LEK Consulting. This allowed many of them to maintain their revenue streams, but many are reverting back to previous practices, as households becoming more willing to complete major home improvement projects.
"They are also increasingly finding non-price mechanisms to address pricing pressures, with nearly half of those surveyed performing extra services rather than reducing their quotes," according to analysts from LEK Consulting.
According to a 2011 survey from the company, an estimated 22 percent of contractors said they utilized more affordable brands to complete projects. When the same poll was taken at the end of 2012, this share shrunk significantly to just 12 percent.
Although this may result in higher costs when it comes to completing home repairs and updates, consumers may be able to take advantage of home improvement loans offered by Home Loan Investment Bank to make their upcoming projects more affordable.