Looking ahead to 2020

popular pro brands while featuring product demos.

“We are bringing on board some of the most innovative pro tools out there in the market,” Fred Stokes, Lowe’s senior vice president of pro sales and services told HBSDealer.

Stokes didn’t hesitate to demonstrate some of Lowe’s latest prooriented products, including Spyder’s carbide tipped hole saw. “As we partner with brands like Spyder or Sherwin-Williams, we are focusing on the needs of the pro customer,” Stokes explained.

Scott Matthews, Lowe’s vice president of pro sales, said the products along with upcoming demos in Lowe’s stores are all part of the retailer’s new pro experience. That includes “fast in and fast out” service when pros shop at Lowe’s. 84 Lumber’s message at IBS focused on the products and services the company offers in addition to building materials. A video at the dealer’s booth highlighted some of the company’s offerings including millwork, design services, and component installation.

“This is a great opportunity to connect with our customers and our vendor partners,” said Amy Smiley, 84 Lumber vice president of marketing. “This is that one time of the year when we are all in one place together.” Component manufacturing expansion is high on 84 Lumber’s agenda for 2020. The company has opened a new facility in New Britain, Pa., which will service southern New Jersey, Philadelphia and parts of Delaware.

Other component plants expected to come online in 2020 include a facility in the Richmond, Va. market;

Fred Stokes (center), Lowe’s senior vice president of pro sales and services, demonstrates a carbide tipped hole saw blade from Spyder at IBS 2020.

and a Mansfield, Ohio, facility, which will serve the Cleveland and Columbus markets.

Specialty flooring retailer Lumber Liquidators made its case for how it can provide assistance for its pro customers.

“We truly want to be a business partner with our pro customers and help them grow their business,” said Steve Stocki, Lumber Liquidators sales and service manager of marketing and merchandising.

Stocki said that pro sales account for roughly 30% of the retailer’s sales. “But we are really looking to grow that business,” he said. That includes biggers sales to remodelers, home builders, property managers, architects and designers and commercial sales.

Having professional customers utilize Lumber Liquidator’s locations and services are part of the mix for bigger sales.

“Our pros can come into the store and work with us or they can just have their customers come in for a visit,” Stocki said. “It’s white glove service for our professional customers.”

Forecast: Underbuilding, but growing

LAS VEGAS — Residential construction should continue on a steady, upward trajectory.

That was the message as the National Association of Home Builders (NAHB) provided its housing industry forecast for 2020, including what lies ahead for residential construction and remodeling activity. The NAHB Economic Outlook report was delivered on the opening day of the 2020 International Builders’ Show, held here at the Las Vegas Convention Center.

Single-family starts should continue on a gradual climb in 2020, fueled by solid job growth and low mortgage rates that will keep demand firm, the NAHB said.

“Low resale inventory, favorable mortgage rates, historically low unemployment and accelerating wage growth are driving builder sentiment and point to single-family production gains in 2020,” said NAHB Chief Economist Robert Dietz. “At the same time, builders are still underbuilding as they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots. These affordability headwinds are impeding more robust construction growth.”

Total housing starts are expected to hit 1.3 million units in 2020, up more than 2% from last year. While this would mark the highest output since 2007, it is still well below the production levels that averaged 1.5 million units annually from 1960-2007.

Single-family starts are forecast to increase more than 3% from 2019 to about 920,000 units. That’s still less than the 1 million to 1.1 million units that demographics would support. Some of the shortfall is being made up by increased use of accessory dwelling units and young adults who who live at home.