| Recession remodelers can rack up big savings and | | | | climate of economic uncertainty and job insecurity. |
| help to turn around the economy at the same time. | | | | Those who have the confidence and the cash or |
| Some economists and realtors are saying housing | | | | credit access stand to save a huge amount of |
| prices have bottomed out. If they are right, any | | | | money on the materials and the management and |
| investment you make in your home (short of | | | | labor for their remodeling projects. The home building |
| over-improving it) could reap big dividends as prices | | | | and remodeling industry is just like any other industry |
| start to rise again. Yet there are even better reasons | | | | during a recession: sales are down because |
| that a recession is the perfect time to remodel if you | | | | confidence is down and people are reluctant to |
| feel secure in your job and you have some extra | | | | spend. This results in rising unemployment and |
| cash. | | | | demand for goods and services dries up. The |
| The economy is linked to everything else, and | | | | confident homeowner knows that recession |
| everything else is linked to the economy. When the | | | | remodelers rack up big savings and plans and |
| economy is riding high, so is everything else - | | | | proceeds accordingly. |
| manufacturing, distribution, sales, consumer spending | | | | Here's where the savings can happen: |
| and both the producer's and the consumer price | | | | - Because of decreased demand, many building |
| index. The economy booms because people feel | | | | materials prices drop. For example, lumber prices are |
| confident about spending money. When the economy | | | | now at a sixteen-year low. Manufacturers and |
| goes up, unemployment comes down. When the | | | | retailers need to move the product they have on |
| economy goes down, however, a whole | | | | hand, so they reduce prices, have sales, or offer |
| interconnected mass of things go haywire. When the | | | | special deals. The result is rock-bottom prices for |
| economy goes down, unemployment starts to rise, | | | | recession remodelers. |
| which triggers consumer uncertainty, resulting in | | | | - Contractors, sub-contractors and skilled workers |
| decreased spending on goods and services. This, in | | | | need to keep working. The best way to do that is |
| turn, leads to cut-backs in production, in new hiring, | | | | to work for less money in order to keep working |
| and in optimism. When consumer confidence is down, | | | | and keep some money coming in. The result for |
| spending is down, and this leads to lay-offs, and | | | | recession remodelers is the ability to choose the |
| further erosion of consumer confidence. These | | | | contractors and workers they want and get higher |
| factors work together to create a sort of feeding | | | | quality workmanship and lower cost. |
| frenzy of fear, reaction, greater fear and more | | | | - Because there is less work - a smaller number of |
| drastic reaction. | | | | jobs - contractors are likely to be working on as |
| The silver lining in this dark economic cloud is what | | | | many projects at once. The result for recession |
| happens to prices and what this can mean for | | | | remodelers is that the job gets done faster and |
| consumers. You see, when consumers stop buying, | | | | often with greater attention to detail. |
| manufacturers and retailers start slashing prices | | | | When homeowners add up these and other |
| because they must have sales. Without sales, there | | | | economic factors, it is clear that recession remodelers |
| is no money to pay employees, fund research and | | | | can (and do) rack up huge savings if they have the |
| development of new products, or pay for parts and | | | | confidence and the cash to remodel during the |
| materials to manufacture more of existing product | | | | downturn. So forge ahead and follow through on |
| lines. People who provide services, like contractors, | | | | your plans to remodel. The result might be far more |
| skilled workers and sub-contractors find that there is | | | | than you can even begin to imagine! |
| less work because people are afraid to spend in a | | | | |