2008 Media Releases & Alerts
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
February 13, 2008, 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:
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How are relationships changing between builders and home buyers, manufacturers,
suppliers and subcontractors?
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What changes in home design and materials usage have taken place in response to
the housing downturn?
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What changes have builders made in land development, home design, construction,
and sales efforts, and how do those changes affect building product
specification?
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What are the most successful techniques builders have employed to increase
sales?
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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.
02/08
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