WASHINGTON, DC — Residential construction continued its year-long shift toward the suburbs and lower-cost markets, a trend that’s especially pronounced within the multifamily sector, according to the latest Home Building Geography Index (HBGI) released by the National Association of Home Builders.

According to the HBGI, released last month, multifamily residential construction posted a 14.3% gain in small metro core and suburban areas during the second quarter of 2021, while large metro areas experienced a 0.5% decline for multifamily building activity.

“The trend of construction shifting from high-density metro areas to more affordable regions, which accelerated at the beginning of the pandemic early last year, appears to be continuing,” said NAHB Chairman Chuck Fowke. “Lower land and labor costs, and lower regulatory burdens in suburban and exurban markets make it more appealing to build in these communities. And workers are increasingly flocking to these areas, due to expanded teleworking practices and lower housing costs.”

“There was a marked increase in new apartment construction outside large metro areas, as people have greater flexibility to live and work in more affordable markets,” observed Robert Dietz, chief economist for the Washington, DC-based NAHB. “Similarly for the single-family sector, the HBGI data revealed that construction growth occurred more proportionally in these more affordable areas as well, while declining in terms of market share in the most expensive counties.”

Dietz added, however, that overall single-family starts have slowed in recent months, “largely because of rising prices and limited availability of a broad range of key building materials.”

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I am frequently contacted by business owners who are dissatisfied with their digital marketing efforts. The number one reason I hear time and time again is “My phone isn’t ringing.” The owners want more customers, and their marketing efforts are not achieving that goal.

I have pinpointed three categorical reasons this disconnect occurs. If you are spending money on digital marketing and your phone isn’t ringing, read on for a guide to garner more customers. As an advocate for businesses, my hope is to empower owners with educational insight from independent sources so they can make informed decisions with confidence.

Reason #1: Agencies Selling the Work Wanted

To understand the business/agency disconnect, we must explore the typical marketing agency business model. Most are structured around a staff that includes website builders, social media marketers, graphic designers and copywriters who often work on search engine optimization as well. The website builders are project oriented and need an ongoing supply of work to justify their pay. Conversely, the social media work is typically ongoing.

The most common occurrence I see is building an entirely new website for a client when a less expensive update would suffice. If a website builder is needing new work, unscrupulous agencies will begin pitching websites to all their prospects, and statistically they will get work. I personally discovered one agency that designed a website template programmed to increase additional billings and work. They created internal coding on the website that overrides automatic search engine optimization (SEO) from working so they could bill for SEO work separately after the website build. I had the uncomfortable task of informing the client of my discovery and the cost of re-coding the website.

Green Light: An agency that produces documented reporting that shows your website needs SEO work and provides a market share report that demonstrates a deficiency in your website visitors compared to your competitors visitors is an indicator they have the expertise and have done research to support the suggestion. Reporting that clearly shows the deficiencies that need correction is a good sign.

Red Light: When the agency relies only on the visual appearance of the website, or wants to produce a website that is photography based with no supporting analysis of your site. Websites that serve as a photo album with little or no written content will not increase new visitors from Google searches.

Hint: You can check your website’s SEO score for free on many websites. This one scores on a scale of 100: https://www.seobility.net/en/seocheck/. This is the perfect tool to utilize to double check agency website work for integrity. This tool (or a similar third party) should also serve as a deliverable to achieve prior to final payment for website work.

Hint: If you are rebuilding your website, insist on an Americans with Disabilities Act (ADA) compliant website. This ensures disabled visitors can access all the information. Websites are legally required to be ADA compliant; additionally, ADA-compliant websites are more SEO friendly, as the requirements of ADA and SEO overlap. Following is a link to a free ADA website checker: https://wave.webaim.org/

Reason #2: Owners Believe Digital Marketing is a Finite Process

Digital marketing is an ongoing process of pivoting with the additions of experiences on social media. Instagram Live video feeds and Facebook Business Suite are a few of the latest 2021 additions. Additionally, building traffic to a website is an ongoing process of deliberate growth dictated by Google, Bing and others. All of these show your content based on algorithmic updates that change how they choose, and who to show, your content. To add to the complexity, your competitors are actively adding content to drive visitors in tandem.

I demonstrate this to clients by showing them their market share of the products they offer, as it is an effective benchmark. For example, the search terms “cabinet hardware” and “kitchen cabinet hardware” total 124,000 per month. If your website generates 4,000 monthly visitors, you have 3% of the total market. By showing this data in numerical form, it speaks a language most owners can understand and they can then develop a budget. After a website is built, there is work to be done on the SEO side, digital advertising, or both, to drive people to it.

Red Light: Business owners who think a website just needs to exist to increase visitors, or they sporadically post on social media with no brand campaign.

Green Light: Professionals who have market share reports to determine the growth potential and the credentials to grow, and will supply references for website SEO initiatives. Social media posting plans that encapsulate more than one post type, ie: Stories, videos AND Feed posts.

Hint: Consistent Blog Posting is the perfect vehicle to connect with your customers and provide new content that search engines want.

Reason #3: The Marketing is Lacking

Targeting the correct audience is easier than ever with the amount of demographic and geographic data that every digital platform collects. When advertising on Google, Bing or social media, the success is in the details. If you are spending on digital advertising, you need to be guided by the reporting that shows the success rate by your audience demographics and geographical location. If your phone is not ringing, dig deeper into who exactly is being targeted to view the ads and adjust it accordingly.

Hint: Request reporting that shows the detail of the audience, the platforms the ads were shown on and the geographic locations.

A consistent brand identity provides consumers with the confidence of knowing the caliber of your products and the service associated with it. Does your social media brand mirror your website and printed collaterals? Does the customer experience stand up to the message? Are your employees educated on your brand identity? Having a solid, well-defined brand identity that clearly demonstrates your unique value is crucial. It ensures the customers are receiving the brand experience they expect.

Hint: Train your employees to ask customers qualifying questions. How did you find us? How was your first experience with us? How can we improve?

Savvy business owners view marketing as an extension of their business, and managing it with loyal partners and a staff that is accountable is a pathway to success. Trust your gut if there is any hesitation on your part and educate yourself with the help of third-party consulting when needed. Digital marketing is complex and is a powerful tool to grow your business, and make your phone ring.

Denise Grothouse has an extensive background in international business, branding and marketing. She specializes in digital and social platforms and integrating them with traditional marketing and branding strategies. No stranger to the kitchen and bath industry, she is best known for her work as chief brand officer of Grothouse, Inc., and is the current president of the marketing firm Perfect Six.

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From virtual communication to safety protocols to material and labor shortages, members of the kitchen and bath design industry have had challenges in 2021 unlike any other year prior. Customers and projects abound as the country heads into a post-pandemic era, yet constraints and restrictions require a reliance on acquired knowledge and a constantly changing stream of information.

These challenges can knock even the top industry pros off balance. The key to regaining equilibrium and continuing on a successful path is to be flexible and adjust to circumstances as they arise. While many have weathered the storm of the past few years, others have risen above and not only carried their companies and employees through the mire, but have reached out and helped others in their journey, as well. Industry leaders continue to head committees and associations, educate and mentor professionals with less experience and expertise, and deliver high-quality and innovative design to their clients.

Kitchen & Bath Design News honors these industry leaders in its pages every year by naming The Innovators, a group of industry professionals who are setting the standard for excellence in the design industry. Nominated by their peers and then reviewed by the KBDN nominating committee, the 24 Innovators for 2021 are an exemplary group of individuals who are moving the kitchen and bath industry forward. At the links below, Kitchen & Bath Design News presents its fifth annual class of Innovators.

Todd AtkinsDan BawdenCyndy CantleyMadeleine DymlingSalvatore FerroTracy GrosspietschKaren HockleyJennifer HuttonJill JarrettJames JusticeKimberley KerlKamer KosedagRosario ManninoMaria MartinMary MikschLori MiyaKevin MullenLeah MullerJudith NearyJeremy ParcelsJohn PetrieAngela PoirrierGinger RabeNicholas Vanderhovel

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An innovator not only because of his designs but in what it means to be a professional designer and how that translates into a design experience for clients, Nicholas Vanderhovel is one of the youngest designers in the country to have achieved his Certified Master Kitchen and Bath Designer from the NKBA. Vanderhovel, CMKBD, CAPS, CLIPP, the owner and designer of Kitchen NV, in Pinckney, MI, achieved the certification at age 32 and is said to be one of only a handful of people in Michigan with the title.

The designer is a purist when it comes to function and aesthetics and curating a space. He has worked on every side of design – from installation to drawing to material selection – in order to anticipate client needs and educate them.

Vanderhovel believes that luxury doesn’t have to be unobtainable. Rather, luxury has to do with how a person is treated and whether that person’s needs are met. He always wants a client to leave with that feeling, and that is what has led him on his quest for knowledge, reaching out to other leaders in the industry to learn more, and working with manufacturers to improve processes and products. He is dedicated to mentoring others, as well.

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WASHINGTON, DC — With builders continuing to grapple with lumber price swings and supply chain disruptions, the National Association of Home Builders has once again appealed to the White House to redouble its efforts to address lumber price volatility and address supply chain bottlenecks for lumber and other building materials.

The Washington, DC-based NAHB this week sent a letter to President Biden, requesting that government officials address three key issues that, if unaddressed, “will severely hamper the ability to provide affordable housing and provide jobs to strengthen the economy,” said the association, which has already conducted several meetings on the subject with top administration officials.

“While lumber prices have fallen precipitously since peaking in mid-May, prices have been moving upward over the past month,” said the 140,000-member NAHB, urging the Biden administration “to make it an important priority to address lumber and building material supply chain issues that are contributing to price volatility and harming housing affordability.”

The NAHB urged U.S. officials address the current congestion at the ports and to “return to the negotiating table with Canada and develop a new softwood lumber agreement that will end tariffs on lumber shipments into the U.S.”

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HACKETTSTOWN, NJ — The National Kitchen & Bath Association has unveiled its Thirty Under 30 Class of 2022.

The program, currently in its tenth year, recognizes talented kitchen and bath professionals under the age of 30. Nominees were evaluated on their career or educational achievements, commitment to excellence in the kitchen and bath industry and leadership within their organizations, according to the NKBA.

The 2022 Class includes: Jessica Bolles, Oasis Showroom/APR Supply, York, PA;  Michael Boone, Green Forest Cabinetry, Chesapeake, VA; Andrew Converse, Moen, Cleveland, OH; Alex Dickson, PK Brand Management, Kelowna, BC, Canada; Darla Duncan, Prime Cabinetry, Kennesaw, GA; Hannah Guilford, Heart & Hammer Homes, Fryeburg, ME; Cara Hansen, Triple Dot Design Studio, Vancouver, BC, Canada; Jesse Jarrett, Jarrett Design LLC, Emmaus, PA; Becky Leu, Leu Interiors, Des Moines, IA; Andrea Liston-Jones, Liston Design Build, St. Charles, MO; James McDonald, McDonald Contracting, Arlington, MA; Madelaine Millholland, CASE Design/Remodeling, Bethesda, MD; Basia M’Pinda, Kohler/Williams & Associates, Winnipeg, MB, Canada; Antoinette Nunez, CKBD, F&J Builders, Wilmington, DE; Hannah Pregont, Superior Marketing, Brooklyn, NY; Megan Reed, AKBD, CLIPP, Beyond the Box Inc., Billings, MT. and Kelsey Richter, BDA & Associates, Fishers, IN.

Other Class of 2022 members include: Caitlin Ryan, Fisher & Paykel | DCS Experience Center, New York, NY; Grace Sheehan, CLIPP, Kitchen Doctors, Midlothian, VA; Justyna Skolasinski, AKBD, Crystal Lumber, Crystal Falls, MI.; Amanda Slattery, Artistic Cabinetry, Jackson Lake, NE; Benjamin Stoler, Delta Faucet Co., Indianapolis, IN; AJ Tentler, Delta Faucet Co., Indianapolis, IN; Summerlyn Travis, Strohmaier Construction, Spokane, WA; Hannah Triebel, Sunnyfields Cabinetry, Baltimore, MD; Austin Waldhauser, Kenwood Kitchens, Columbia, MD; Emily-Anne Walker, Ferguson Enterprises, Williamsburg, VA; Patience Whipple, Chariot Plumbing Supply Design, Sandy, UT; Pip Wu, D.I.D, Ferguson/Wolseley, Burnaby, BC, Canada and Shantelle Yablonski, Superior Cabinets, Saskatoon, SK, Canada.

The incoming class will be formally inducted during KBIS 2022 in Orlando, FL, according to the NKBA.

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HACKETTSTOWN, NJ A revised set of health and safety protocols, including COVID-19 vaccination requirements and/or proof of a negative coronavirus test result, have been issued for the 2022 Design & Construction Week (DCW), the annual three-day event that encompasses the Kitchen & Bath Industry Show (KBIS) and the International Builders’ Show (IBS).

The National Kitchen & Bath Association, which owns KBIS, and the National Association of Home Builders, owner of IBS, last month released the revised protocols for DCW, scheduled for Feb. 8-10 at the Orange County Convention Center in Orlando, FL. The guidelines apply to attendee and exhibitor registrants for both KBIS and IBS, and are subject to revision, event sponsors noted.

“The safety and wellbeing of our attendees, partners, exhibitors, site workers and staff remains our top priority, said DCW organizers, adding that they are “working with our vendors, partners and the Orange County Convention Center to … deliver a safe and productive environment in which to conduct business.”

“As we get closer to returning to an in-person event, we continue to update our health and safety policies based upon current recommendations from the Centers for Disease Control and Prevention, the state of Florida and local Orlando health authorities, event organizers added. “We will continue to monitor their recommendations and will update relevant information as needed.”

Guidance related to large gatherings relative to COVID-19 and associated variants continues to change, DCW organizers said. “What will remain constant,” show officials said, “is the commitment of the NAHB International Builders’ Show (IBS) and NKBA’s Kitchen & Bath Industry Show (KBIS) and to the health and safety of attendees, exhibitors, partners and staff at our shows.”

Details regarding the health and safety policies for Design and Construction Week can be found at: http://www.designandconstructionweek.com/healthsafety.html.

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WASHINGTON, DC — Single-family home sizes are reportedly rising as an offshoot of the COVID-19 pandemic, reversing a recent trend toward downsizing, as homeowners are seeking additional residential space for a wider range of purposes, particularly teleworking and school-related activities.

At the same time, trade association officials are reporting a continued shift in new residential construction away from urban areas to lower-density, lower-cost suburban markets.

According to the latest analysis by the National Association of Home Builders, the median size of a newly built single-family home increased to 2,297 sq. ft., while the average size for new single-family homes increased to 2,540 sq. ft.

Since Great Recession lows, home sizes rose between 2009 to 2015 as entry-level new construction was constrained, according to the NAHB. In contrast, home sizes declined between 2016 and 2020, as more starter homes were developed, the NAHB said.

“Going forward, we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes in the post-COVID-19 environment,” said Robert Dietz, chief economist for the Washington, DC-based NAHB.

The NAHB also reported that residential construction continued its yearlong shift toward the suburbs and lower-cost markets, a trend that’s especially pronounced within the multifamily sector.

According to the association’s latest Home Building Geography Index (HBGI), multifamily residential construction posted a 14.3% gain in small metro core and suburban areas during the second quarter of 2021, while large metro areas experienced a 0.5% decline for multifamily building activity.

“The trend of construction shifting from high-density metro areas to more affordable regions, which accelerated at the beginning of the pandemic, appears to be continuing,” said NAHB Chairman Chuck Fowke.

“There’s a marked increase in new apartment construction outside large metro areas, as people have greater flexibility to live and work in more affordable markets,” added Robert Dietz, chief economist for the NAHB.

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CHARLOTTE, NC — SEN Design Group, the Charlotte, NC-based kitchen and bath industry buying group and business education resource, has revamped its membership structure to increase access to business education opportunities for industry professionals, the organization announced.

“Under our previous structure, the majority of our educational opportunities were add-on expenses for our members, but we wanted to make sure our members had access to as much educational content as they wanted without added expense, so we have updated our membership structure to provide this much-needed resource at a minimal monthly investment,” said Catherine Daugherty, director of membership at SEN Design Group.

SEN Design Group will now offer three tiers of membership with differing benefits based on the member’s specific needs:

n Associate Membership includes basic access to industry-specific business and sales education opportunities; this level is targeted for industry firms and independent designers who may not want to participate in a buying group or attend semi-annual conferences.

n Signature U Membership includes increased access to industry-specific business and sales education opportunities, as well as access to SEN Design Group’s purchasing power and networking community.

n Executive U Membership ($399 per month) includes everything in the Signature U Membership with additional benefits for industry leaders, such as dealer roundtables, a business development manual, personal profiling assessments for better hiring and communication, maximum quarterly rebates, and more.

Additional details are available at www.sendesigngroup.com.

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WASHINGTON, DC Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages, the National Association of Home Builders reported.

According to the Washington, DC-based NAHB, builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the latest monthly NAHB/Wells Fargo Housing Market Index (HMI), released this week.

The NAHB also reported that single-family housing production held steady in September, at a seasonally adjusted annual rate of 1.56 million units, as strong demand helped to offset ongoing building material supply chain disruptions.

“Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” said NAHB Chairman Chuck Fowke.

“Builders are getting increasingly concerned about affordability hurdles ahead for most buyers,” added NAHB Chief Economist Robert Dietz. “Building material price increases and bottlenecks persist, and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt.

“Policymakers must focus on fixing the broken supply chain,” Dietz observed. “This will spur more construction and help ease upward pressure on home prices.”

 

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