SPR 2018

HVAC/P - HVAC and Plumbing Product News magazine - is the go-to resource for the latest products in the industry.

Issue link: https://hvacpproducts.epubxp.com/i/959319

Contents of this Issue


Page 21 of 38

A ccording to a recent industry report, growth in electric floor heating in 2017 was largely driven by sales of floor heating cables paired with uncoupling membranes. WarmlyYours, a radiant heating company, has released its 2017 Fourth Quarter and Annual Industry Report. One of the report's chief findings is that cable-based floor heating systems, particularly those paired with an uncou- pling membrane, were responsible for a huge chunk of sales growth in 2017. The report also analyzed the impact of both housing and remodeling activi- ties at the national level and how those markets impacted sales of radiant heat- ing products. In 2017, most remodeling and home-selling activity was flat due to a shortage of available housing units in much of the country. However, according to the Lead- ing Indicator of Remodeling Activity, a quarterly publication released by the Joint Center for Housing Studies of Harvard University analyzed in the WarmlyYours report, projects some growth in remodeling activity in the first quarter of 2018 and then a relative flattening of activity until Q4, when consumer expenditures on remodeling activity will accelerate to 7.5 percent, a level that hasn't been seen since before the Great Recession. "Despite continuing challenges of low for-sale housing inventories and contractor labor availability, 2018 could post the strongest gains for home remodeling in more than a decade," said Abbe Will, research associate in the Re- modeling Futures Program at the Joint Center. "Annual growth rates have not exceeded 6.8 percent since early 2007, before the Great Recession hit." Part of this growth will unfortunately be driven by recovery efforts relating to various national disasters from 2017, including hurricanes and wildfires. "Steady gains in the broader econ- omy, and in-home sales and prices, are supporting growing demand for home improvements," said Chris Herbert, managing director of the Joint Center for Housing Studies. "We expect the remodeling market will also get a boost this year from ongoing restoration efforts in many areas of the country impacted by last year's record-setting natural disasters." Hurricane Harvey alone damaged 203,000 residences, many of which were destroyed. However, many of these disasters occurred in areas with strong economies and in some cases, like Houston, these markets were one of the few in the nation with an over-supply of housing units, which helped absorb the brunt of the economic impact. Houston experienced an initial sup- ply crunch as longer-term aid workers and displaced residents sought lodging. But in the fourth quarter of 2017, sales of single-family homes in the city grew 7.4 percent. This growth, plus December 2017 sales being up 4.1 percent higher than the prior year, helped push Hous- ton sales of single-family homes up 3.5 percent for the year. This lines up closely with the sales activity that WarmlyYours saw in the Houston market from the same time pe- riod. In Q3 2017, the company projected a conservative estimate of 15 percent growth in radiant heating sales; the actual growth rate was 72.1 percent. In regard to Q1 2018 projections for radiant heating sales growth, the com- pany expects to show sizable growth in three major metropolitan markets: New York; Washington, D.C. and Los Angeles, California at 10 percent, 6 percent and 25 percent growth respectively. In addition to early first quarter sales and historical performance, Julia Billen, president and owner of WarmlyYours, said that rising national wages (up 2.9 percent in January 2018 vs. January 2017) will play a major role in radiant heating growth in these markets. "When it comes down to it, radiant heating is a tangible, attainable way to put extra earnings to good use in your home," said Billen. "Not only do you get to enjoy the comfort — you get to enjoy the added equity if you decide to sell in this bullish housing market." For more information, visit WarmlyYours.com. Hot Performance Uncoupling membranes and fl oor heating cables helped drive electric fl oor heating sales in 2017. Floor heating cables, uncoupling membranes drove 2017 growth "KEEP IT SIMPLE WITH KOLBI" KOLBI Pipe Marker Co. Since 1970... Phone 800.499.8450 Online www.kolbipipemarkers.com Email sales@kolbipipemarkers.com Contact us, you will be impressed! Pipemarkers Valve Tags Engraved Nameplates CIRCLE ID #16 ON READER SERVICE CARD OR GO TO HVACPPRODUCTS.COM/MARKET

Articles in this issue

Links on this page

Archives of this issue

view archives of HVACP - SPR 2018