There are almost 800,000 franchises owned and operated in the U.S. today. That’s a huge sector of business, ranging from restaurants to retail and everything in between. For aspiring business owners, being part of a franchise can be the most efficient and financially smart way to leave the rat race of corporate America and become an entrepreneur.
One of the sectors that is always prime for franchise investment is the home improvement industry. With a long history of growth and sustainability across many economic situations, franchises that focus on home renovations provide an opportunity for a fast return on investment.
Why the Home Improvement Industry is Secure
When you look at historical data on the home improvement industry, there’s a consistent growth rate. This makes home renovation franchises a solid investment for individuals looking to carve out a piece of this billion-dollar industry. The home improvement industry is growing for several reasons.
- First-time home buyers: Today, millennials are eager to buy their first homes and make it their own. If they’re buying an older home, they’ll need to make renovations to things like flooring, bathrooms, and kitchens. If they are purchasing a new home, they’re more likely choosing appliances, paint colors and furniture.
- Empty nester homeowners: Once the family has moved out of the home, empty nesters are renovating to change children’s rooms into something more usable for their lifestyle. They’re also making their home exactly as they want it using income that had previously been dedicated to the needs of their children.
- Low-hanging fruit: According to Retail Dive, DIY homeowners look at renovations they can take on themselves as “low-hanging fruit.”. This might include replacing appliances, installing window treatments, or landscaping the backyard.
- Pro market is growing: For projects that go beyond the comfort level of the DIY homeowner, they call in the pros – contractors, renovation experts, flooring specialists and so on. According to Home Advisor, the professional market in the home improvement industry is worth $400 billion and even the big players in the industry – Home Depot and Lowes – are catering to this group. Many home renovation franchises, like a flooring specialist, are in line with the professional end of the industry.
- Rather renovate than buy: For people who like where they live, renovating to make your home more enjoyable is an option over moving and starting fresh. For others, when they consider the cost of financing a new home, it makes more sense to reinvest in the home they have. Buying isn’t always the choice for people who are looking for an upgraded living space; sometimes, its reconstituting what they already have.
Pandemic Slowdown is still Higher Than Normal
There are hundreds of media reports about how the home improvement industry boomed during the pandemic when people spent more time in their homes than they ever had before. Now the media is reporting that the boom is over and home improvement commitments are declining. However, this isn’t the whole story.
According to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, in the final quarter of 2019, home improvement was a $328 billion industry. It is projected that in 2023, renovation spending will decrease from 16.1% to 6.5% by the third quarter. Even if that prediction is accurate, the industry will be valued at $445 billion – making home improvement still one of the most profitable industries in which to own a business.
To put these billion-dollar numbers in perspective, Home Advisor noted this comparison. The home improvement industry is worth more than $400 billion per year, making it:
- 38% larger than full-service restaurants ($290 billion)
- 154% larger than department stores ($150 billion)
- 20% larger than health and drug care stores ($300 billion)
- 55% larger than clothing and accessories stores ($250 billion)
Join the Industry with Floor Coverings International (FCI)
Floor Coverings International is a top-ranked franchise in the home renovation industry. Our locations offer over 3,000 flooring products with our unique mobile showroom concept. And there’re never been a better time to join. The flooring industry alone is a $26.8 billion market.
As a franchisee, you schedule your time as you choose – working the days and times that best suit your personal schedule. You can grow the business at the level at which you want to work, giving you complete control over your calendar, which allows you the work-life balance you want.
Carve out your piece of a continuously growing and lucrative franchise industry. To learn more about our franchise opportunity at Floor Coverings International, fill out this form and one of our representatives will be in touch.January 23, 2023