$100 Billion Bonanza: How Renovation Projects Are Bolstering Building Product Manufacturers

Posted On: 
Dec 6, 2019

Construction renovation projects have contributed to over $100 billion annually in spending for the past several years. Many of the largest AEC firms have reported earnings from this sector and some firms earned at least half their income from renovation projects. How can this $100 billion bonanza help building product manufacturers?

 According to Building Design and Construction, major AEC firms are working on office renovations, adaptive reuse, and preservation projects which are pumping billions into the construction industry. One of the only sectors that rivals renovation from a community perspective is healthcare projects. . The commercial property remodeling industry has increased over the five years as a result of contracting office rental vacancy rates and rising consumer spending.

 Despite a shortage of skilled labor, renovation projects keep getting approved. Recently, the city of Springfield, MA redeveloped a 14-acre $960 million project in the downtown area. A renovation project isn’t just slapping a new coat of paint on an old building. Renovating an older building can include improvements in energy savings, using healthy building materials, and getting the project certified under LEED v4.

Building product manufacturers have many opportunities to get specified on renovation projects just as they do on new commercial projects. Manufacturers need to get in early during the specification process. They need to get in front of the decision makers like any other project. Here are strategies to consider:

  • Identify your goals. Target the correct design professionals in the firm for the renovation project. Follow the project to the end.
  • Become the firm’s expert for your product technology.
  • Lunch and learn presentation – Building product manufacturers would be wise to deliver an AIA face to face presentation to the AEC firm working on the renovation.
  • Specification documentation – Building product manufacturers should have the proper specification documentation on hand. Is the renovation going to be a LEED certified project? Has the manufacturer developed a Health Product Declaration (HPD) or Declare Label if the project is going to be certified under LEED v4?

 How does your company approach AEC firms about renovation projects? What percentage of your business is reconstruction and renovation projects?

For more information or to discuss the topic of this blog, please contact Brad Blank