Not necessarily.
Finding the Right Customers
"Based on current projections, I'm going to have my best year ever," says contractor William Carter, vice president of the board of the National Association of the Remodeling Industry. Carter, who has run his own contracting business in Sacramento, Calif., for 35 years, says plenty of people are willing to invest in their houses -- you just have to know who they are.
"The Baby Boomers still have that money to spend on their homes," says Carter. "The dollar isn't going as far as it used to, but if you put money into fixing up your house, it's an investment that has an assured return and value."
Home Depot and Lowe's target money-conscious, do-it-yourself consumers -- the very people who are most likely struggling now to afford $4-a-gallon gas. In tough economic times, they're the ones who will put off heading to their local home-improvement store for luxuries like limestone countertops or expensive bathroom faucets.
But that leaves a whole network of potential clients who can still afford to hire professionals. A few years ago, if these higher-income clients were dissatisfied with their houses, they'd pick up and move. Now, stuck in a house that won't sell, they're more likely to change what they don't like, investing in upgrades such as room additions or new kitchens. That means contractors and other home-repair specialists may find themselves more in demand than ever.
Market Your Biz
While Baby Boomers are a prime demographic, Carter says home-improvement companies also have to appeal to younger, design-conscious clients with attractive Web sites and up-to-date logos. "It's a way to rise above the others," he says. "You have to keep your name out there, so you'll be in the forefront when the economy cycles back around," he says.
Elizabeth Blackwell
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