In a Recession, Small Remodels Keep Contractors Afloat
Monday, January 11th, 2010Deserts were once vast sea beds teeming, I imagine, with boundless plant life and creatures so massive and fantastic that our modern species can’t even grasp their strangeness. But now, deserts are deserts. They have dried up, and in place of ancient whales and seaweed forests, a much more diminutive ecosystem lives off what little moisture and sustenance remains.
For contractors across the country, New Construction feels like a desert where steady work and profit have gone the way of the dodo.
In desert-like conditions, contractors are looking to small remodels to stay afloat. There’s little speculation in the building industry, but there are aging homes, low-cost materials and energy efficiency incentives, which are a ray of light in a trade otherwise rife with downsizing and bankruptcy protection.
A recent article in The Tennessean tells the story of Capitol Homes. The construction company was booming with everybody else for much of the last decade, building 850 homes in eight years, including a high-profile showcase on ABC’s Extreme Makeover: Home Edition. Now, things have changed. Owner David Luecke filed for bankruptcy protection and downsized his business to become a home remodeler. Where once Capitol Homes was banging out new home after new home, they are now refinishing basements. (more…)


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