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Renovation boom continues even as project costs increase and interest rates rise

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2 years ago

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Susan Lambertis in the process of having her entire home renovated and is hopeful it will be completed by early next year.

“We are knee-deep in a reno,” she said.

After going through plans with an architect last year, getting the necessary approvals and some pandemic-related delays, the project officially started this past spring.

Lambert said she and her husband were motivated to upgrade their house after realizing a lot of smaller fixes were needed.

“We needed new windows, we needed a new roof. Our kitchen was falling apart — the cabinets were all broken, our fridge was broken, our stove. So we were kind of needing to do a bunch of things,” she said.

The renovation industry saw quite the boom in the first two years of the pandemic as people spent more time in their homes, and that momentum has continued despite heftier costs and rising interest rates.

Dave Kenney, who runs BroLaws Construction with his brother-in-law, said a kitchen renovation might cost between $15,000 and $20,000 more than it did just a couple of years ago.

“A job two years ago and a job now aren’t comparable, which is a little hard as a business owner when you get callbacks for other jobs that people have used you for before,” he said.

Jordy Fagan, co-founder of Toronto-based interior design firm Collective Studio, said projects are more expensive overall right now, which she attributes largely to labour costs. She said prices for materials, such as lumber, have somewhat stabilized in comparison to big fluctuations over the last two years, but still remain higher than pre-pandemic levels.

“It’s easier to give a quote now, and not be like, ‘OK, this quote is only valid for five days, because anything can happen in five days.’ At least now it’s a bit more stable, and it feels a bit more comfortable to dive into a renovation,” she said.

Coming out of the first lockdown, Collective Studio saw demand skyrocket in the summer of 2020.

“That summer felt a little bit more normal even though we were pre-vaccine. I feel like that ignited interest in getting ready for that next fall wave in terms of setting up work-from-home situations and understanding that kids weren’t necessarily going back to school come September,” Fagan said.

“The volume started to get insanely large, which was amazing.”

Fast forward to 2022 and declining consumer confidence has impacted some of that volume, but the demand is still very much there, said Fagan.

“I think people have some money saved away now,” she said.

Meanwhile, BroLaws’ Kenney said one of the challenges over the past couple of years has been around quality labour, especially as demand remains hot and workers are stretched.

He said his company is working to foster interest in the trades and give young people the proper training and experience.

“I think we need more advocates or people who can showcase that the trades can be a good place to work, and that you can be just as successful as any other job,” he said.

Kenney added that he has raised his employees’ wages as the cost of living goes up, and has consequently increased prices in order to maintain that.

In September, average hourly wages for construction workers were up 7.5 per cent year-over-year, a $2.36 increase to $33.79, according to Statistics Canada.

While Kenney has been able to keep up with the demand, he said getting projects to 100 per cent is still an issue sometimes due to ongoing delays.

“So we’ve finished a kitchen, for instance, but they didn’t have their stove for another two months, because the stove was backordered and delayed getting shipped over to them,” he said.”Or we’ve finished other projects and we’ve been waiting on a countertop that’s now been backordered just because of the demand getting it in from overseas.”

Homeowners spent on average about $13,000 between March 2021 and February 2022 renovating the inside of their home, while an average of $6,600 was spent on outdoor projects, based on data from home improvement company HomeStars.

HomeStars also found that homeowners expect to spend an average of more than $25,000 for home renovations from March 2022 to February 2023.

So what have people been asking for this year? Dedicated spaces for kids to do work, home offices and spaces to entertain, Fagan said.

Kenney said there are also a lot of requests for kitchen overhauls, outdoor projects and improvements to indoor air quality.

Looking ahead to 2023, some industry experts say there could be a bit of a cooldown on the way.

Kevin Lee, CEO of the Canadian Home Builders’ Association, has already noticed a slight slowing in demand in the second half of 2022.

“A lot of people when they’re doing especially major renovations are financing it through things like their lines of credit. So as the cost of borrowing money goes up as quickly as it has, a lot of people are now putting off some of their renovations,” he said.

However, RenoAssistance, a general contractor business that is part of Desjardins, sees the renovation market remaining strong next year.

That is because more homeowners are choosing to stay in their current property and improving it rather than trying to find a new property in a cooling housing market, it said.

Lambert said the renovation process has been a stressful one, as she and her husband balance mortgage payments, rent and financing the renovation itself, but noted that having a good contractor and architect has made a big difference.

“I went in expecting this, of course, is going to be the most stressful thing we’ve done. That’s what everyone says. I feel like we’ve been managing it pretty well.”

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What Difference Will You Make to an Employer?

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18 hours ago

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October 21, 2024

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It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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5 days ago

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October 17, 2024

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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5 days ago

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October 17, 2024

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