In March 2020, we all know that work came to a screeching halt. Then, thanks to the efforts – and persuasion – of dedicated homebuilding industry representatives, work was allowed to resume in May. Those in the industry were overwhelmed with projects and started scheduling out months in advance.

With all those demands, the shortages began.

Lumber prices soared adding nearly $36,000 to the price of an average single-family home. Many builders are seeing some consumers putting the brakes on signing contracts. Add in the fact that current home prices are skyrocketing, and those looking for a new home are facing incredible challenges, and you can see why so many are starting to focus on remodeling.

But costs and shortages are not the only reasons for the remodeling surge. With so many forced to turn their homes into offices, schools, gyms, and more during the past year, the need for remodeling is greater than ever.

May is National Home Remodeling Month. So, we have asked a few PBA members who specialize in remodeling to give us a glimpse into what’s going on, what motivates them, and what they see coming down the road.

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JASON BARSHINGER, Co-Owner and Co-Founder
embee & son, inc., York, PA

www.embeeandson.com
York Builders Association

Consumers in need of a kitchen or bathroom remodel with all that goes along with it (flooring, cabinetry, countertops, hardware and more) can count on embee & son, inc. With over 45 years in the building and construction industry, the team has extensive knowledge and they design, supply all the products, and install! With their own showroom for product selections, it’s a one-stop shop to help homeowners get the style and function they want.

What kinds of projects are you doing lately?
“What aren’t we doing? We always have kitchen & bathroom remodels going on, but so far this year, countertop replacements have been big – it’s a semi-inexpensive remodel with big results.”

What are some of the trends in remodeling – especially due to the pandemic?
“I haven’t really seen much of a change in how our customers make selections or in the design of their project due to the pandemic. One thing that comes to mind is the increased demand for quartz countertops because of the ease of cleaning with the product being non-porous.”

How has the current materials cost/availability impacted your business?
“It’s just not lumber anymore. Shortages in electrical supplies have driven the prices up on what is in stock. A roll of 12-2 Romex cost $72 six months ago. Now it is $125! Much of the cost increase was related to the weather in Texas where raw materials like plastic and vinyl coatings are produced. In addition, labor shortages are also playing a vital role in producing goods used in remodeling and new home construction.”

Why did you decide to focus on remodeling?
“Well, it was thrown in my lap. My father, Michael Barshinger, has been a builder in York for over 45 years. Back in 2002-03, he said to me, ‘this housing bubble will burst and we are going to need to do something for our guys to get out of this.’ That’s how embee & son, inc. was born. He saw previous recessions in the 70’s, 80’s, and 90’s and said this one will be worse than any of them. So, we started remodeling while the new housing market was still good. We got our feet wet and when the bubble burst, we were already knee deep.”

Why should someone contact a professional remodeler instead of doing it themselves or with a friend?
“Because the job will be done right the first time and on time. It’s the ‘job’ to us during the day. All others will be doing the ‘job’ in the evenings and weekends away from their normal job/career. You are not getting the full respect and dedication on your home during evenings and weekends.”

Has membership in your local association and PBA helped your business?
“Absolutely. I’m using as many members as I can for our projects because I know they will give me the effort and quality I’m asking for. We have even been given referrals through our referral program at the York Builders Association. When my clients heard about this, they knew what they were going to get from embee & son, inc.”

What do you see coming down the road for the remodeling industry?
“I thought the remodeling industry was big right now. It’s going to get even bigger. New home construction has already started to slow down. If the prices of materials don’t start to fall back to where they were a year ago, people will only be able to afford to stay where they are and remodel. It sounds a lot like 2010 all over again.”

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JIM BROWN, President
J.R. Brown Construction, Inc., Hollidaysburg, PA
www.jrbrownconstr
uction.com
Blair/Bedford Builders Association

In a market where new construction isn’t particularly strong, remodeling has always filled those gaps. Jim Brown started J.R. Brown Construction in 1989 with a 100 percent focus on remodeling. As time went on, Jim and his team grew to about an even mix of new construction and remodeling. Their work includes commercial remodels but they also build additions, whole house remodels, kitchens, and finished basements. They also do exterior work such as desks, roofing, and siding.

What kinds of projects are you doing lately?
“Right now we are just finishing up a rather large addition for a growing family. This included major remodeling to the rest of the home. In addition to that, we are working on some other smaller projects.”

What are some of the trends in remodeling – especially due to the pandemic?
I’m sure we can all agree that Covid-19 has changed our business on many levels, including what the consumer is looking for. Home office space is big right now as well as combining the functionality of the kitchen with extra room for entertaining family. And I think with people canceling any travel plans over the past year – and spending more time at home – they realize maybe an updated kitchen or bath is something they should be looking at. Not spending money traveling has allowed more money to be put into these projects.”

How has the current materials cost/availability impacted your business?
The delay in acquiring certain materials over the past 12 months has been incredibly frustrating. Not only to us, but to our customers as well. We have been fortunate that our customers have been understanding throughout the process though. We would always try to throw our focus to another part of the project if we are waiting for materials. We would never allow the supply chain issues to totally shut a project down.”

“As for the price of materials, I can give you an example. Last fall, we were working on a project that involved several thousand sheets of half-inch plywood. We had ordered the plywood in advance and had it sitting at the lumberyard. Our cost was $16 per sheet.”

“In late October, we were told by the customer that they were not going to continue the project and we could release the materials. So, the lumberyard sold off the plywood. In March they decided they would restart the project. I explained the escalating lumber prices and was asked what the additional material cost would be. With the plywood now priced at over $50 per sheet, along with other materials, the cost is now close to $70,000. Now this project is in limbo and I don’t know if it will ever be restarted.”

“There are many examples of customers who are just sitting back and waiting for the lumber prices to drop to a respectable level.”

Why did you decide to focus on remodeling?
“As previously stated, we are about 50/50 with remodels and new builds. But the market really determines the focus of individual contractors in our area.”

Why should someone contact a professional remodeler instead of doing it themselves or with a friend?
“Too many times we’ve been called out to look at a project that a ‘novice’ has attempted to do on their own. The cost for us to fix these mistakes is often more than what it would have been to hire us in the beginning. Having almost 32 years in this business has afforded me a tremendous amount of knowledge with building materials, installation practices, codes, subcontractors, code officials, quality control, permitting processes, etc. Also, we are fully insured and offer a warranty for our work.”

Has membership in your local association and PBA helped your business?
I joined my local association 21 years ago. The sole reason for this was because I was concerned about the upcoming Uniform Construction Code. I was just looking for some help navigating the new regulatory processes that would now be a part of everyday life for builders. I wasn’t quite sure what to expect outside of that. But once I got involved, I saw that not only could I be educated on issues and regulations that affect my business, but that I could be a voice to shape those issues and regulations.”

“I see membership in our associations as a necessary tool to provide my employees and customers with the best business practices available, the best product available. Moving into the leadership roles at both the local and state level has given me so much knowledge about this industry and how it works. Meeting with elected officials to voice our concerns truly shows that we can make a difference by joining together. Joining our local association has been one of the best decisions I’ve made with our business.”

What do you see coming down the road for the remodeling industry?
“I try to stay positive when I think about the future of remodeling. While we struggle to fill vacancies within our staff, I tell younger people how bright their future really can be. We are at a point where the value of a skilled craftsperson is going to be recognized more now than ever. The wages will continue to rise as we remodelers find it harder and harder to find the talent we need. This of course will be passed along to the consumer. While I don’t think this will inflate the costs of remodeling too much, I do worry about the costs of materials and burdensome regulations. They may be the only things that can slow the marketplace down, but I still see a very bright future for remodeling.”

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GREG HARRIS, President
GP Harris Renovations and Remodeling, Jonestown, PA
www.gpharrisconstruction.com
HBA of Metropolitan Harrisburg

GP Harris Renovations and Remodeling was founded in 2003 and has built a collaborative team of professional designers, project managers, quality craftsmen, and experienced trade partners. They offer full-scale service for everything from finished basements, bathroom and kitchen remodels, and home additions, to name a few. They take the stress out of renovating and make it an enjoyable experience for the client. Greg Harris was named NAHB Remodeler of the Month in June 2020.

What kinds of projects are you doing lately?
“We always have a blend of kitchens, bathrooms, and additions. Recently, many people are opting to do additions since that are working from home and spending much more time in their homes than they had previously done. It seems that more and more, people like their location are opting to upgrade their homes rather than relocate.”

What are some of the trends in remodeling – especially due to the pandemic?
“People seem to be more interested than ever in investing to make their homes more enjoyable. Another trend is that more parents are moving in with their grown children. This had been on the increase pre-pandemic, but I think this has accelerated the process.”

How has the current materials cost/availability impacted your business?
“Mostly it has created a challenge in purchasing and scheduling of projects. We are now sometimes holding back on schedules due to availability of materials. This challenge is also on the supply side of trade partners. While cost for all materials and labor have gone up significantly, consumers are still pulling the trigger on large projects.”

Why did you decide to focus on remodeling?
“As the oldest child of remodeler parents, I cut my teeth on remodeling. While I’ve been involved in some new construction over the years, several years ago I made the decision to focus completely on remodeling. New construction and remodeling are two entirely different animals and require different approaches. We are usually working in our clients’ homes while they are living there. This business requires a total focus on customer relationships and attention to details to keep those relationships running smoothly.”

Why should someone contact a professional remodeler instead of doing it themselves or with a friend?
“When you hire a trusted professional, you get a wealth of experience and reliability that has earned that company a great reputation. This value cannot be overstated. The service provided by a professional should be above and beyond what you would receive from a less professional actor. The service of a professional is a great value and will inevitably require more of an investment than say your brother-in-law who got laid off and is now a ‘contractor’. Some folks are making decisions based upon price, some on quality, and others on trusted reputations. There are as many different types of remodelers as there are people, hire one that others have trusted with good results.”

Has membership in your local association and PBA helped your business?
“While being involved in the local, state, and national builders associations I have been blessed to meet many great people. Some of those are more experienced individuals that act as mentors. There is great value in having a group of others that are facing the same challenges you are to bounce ideas off of.”

What do you see coming down the road for the remodeling industry?
“I think the remodeling industry will continue to remain strong for at least the next two years. If the new home industry catches up to demand, we may see more availability of new homes. Unfortunately, the escalation of permit fees, engineering requirements, and extraordinary code requirements continue to push the cost of construction up every year. All of these costs must be passed along to the consumers which makes it harder for people to afford what they want in a home.”