NAHB Research Center Releases New Findings from Study of Soft Housing Market’s Impact on Product Manufacturers

New Findings from 2008 Survey of Home Builders Reveals Recent Changes in Business Operations, Promotional Tactics, and Attitudes toward New Product Purchases
Orlando, Fla. – While the U.S. housing market continued its slide through 2007, home builders have implemented some dramatic changes in how they build and sell homes to remain competitive and profitable. As a result, builder expectations of manufacturers and the products they sell have changed substantially. To keep current on what builders are doing to cope in the soft market, the NAHB Research Center has completed its 2008 study, “Implications of the Soft Housing Market on Suppliers of Building Products.”

Beginning in late 2006, the Research Center set out to understand how builder attitudes and operations had changed, and how this would affect the way suppliers should be doing business. Through a series of national focus groups and a subsequent national survey of builders, the Research Center set out to find answers to some key questions:

• How are relationships changing between builders and home buyers, manufacturers, suppliers and subcontractors?
• What changes in home design and materials usage have taken place in response to the housing downturn?
• What changes have builders made in land development, home design, construction, and sales efforts, and how do those changes affect building product specification?
• What are the most successful techniques builders have employed to increase sales?
• What technologies are builders using to increase their chance of success in the down housing market?

Essential input from builders throughout the year-long study specifically illustrated how builder expectations for product manufacturers have changed and the effects of the existing climate on material usage and selection, adjustments in internal operations and purchasing decisions, interest in product innovation, and their reactions to the shifting expectations of home buyers. Answers to these and other questions have helped bring to light not only the challenges manufacturers might face given current market conditions, but also the opportunities that are available.

After publishing preliminary findings in January, 2007, the NAHB Research Center initiated a second phase of the study to capture new attitudes and opinions from builders and other emerging trends as the market slowdown continued. The final report detailing the Research Center’s findings and newly documented trends is now available, and will be presented at the 2008 International Builders’ Show at an education session, “Tips for Manufacturer & Supplier Success in a Soft Housing Market.”

To purchase a copy of this report, or for information on other NAHB Research Center market research projects call 800-638-8556, or visit www.nahbrc.org/bookstore.

ABOUT THE NAHB RESEARCH CENTER: Located in Upper Marlboro, Md., the NAHB Research Center promotes innovation in housing technology to improve the quality, durability, affordability, and environmental performance of homes and home building products. Created over 40 years ago as a subsidiary of the National Association of Home Builders (NAHB), the NAHB Research Center has established itself as the source for reliable, objective information and research on housing construction and development issues. Through its various testing and certification services, the Research Center seal is internationally-recognized as a mark of product quality and an assurance of product performance.