My brother is a remodeler. He has been out of work for quite some time. The excerpt below raises my spirit about his prospects for getting back to work, and the economic recovery as well.
The National Association of Home Builders publishes its Remodeling Market Index (RMI) each month. The RMI has been running below 50 since the final quarter of 2005. In the fourth quarter, the RMI component measuring current market conditions stayed flat at 43.3 from 43.4 in the previous quarter. The RMI component measuring future indicators of remodeling business increased to 39.7 from 38.1 in the previous quarter. All but one index for future market conditions improved during the fourth quarter.
The excerpt above also points to opportunity for us investor/trader types – derivative trades. Yes, the indicators above are moving in the correct direction, but there is still plenty of room to move. In this context, consider which large companies supply materials for remodelers, which are often local, small businesses. Consider as well, the large companies that make building supplies, such as roofing materials, but don’t neglect those “green” companies that are now making solar roof shingles.
Things are changing. Electricity rates continue to rise, more states are increasing incentives for consumers, and the federal government has beefed up its tax credit for energy-efficiency upgrades such as solar. Now roofing manufacturers are introducing products that make it easier for builders to include solar in their houses.
Ah, you say. Solar shingles are not ready for prime time. Let me just say this about that. Solar shingles are here and coming down in price. The economy of scale is beginning to tip in favor of installing these power generating shingles, especially when the cost of a home is lower than it has been in quite some time and big companies see money in making them.
Another development is The Dow Chemical Co.’s announcement of the POWERHOUSE Solar Shingle. The Midland, Mich.–based company says the system integrates low-cost, thin-film PV cells into a proprietary roofing shingle that can be interwoven into standard asphalt roofing. It’s slated for limited availability by mid-2010 and wider availability in 2011.
Oh, but there is more, so much more …
Asphalt solar roofing isn’t the only game in town. Custom-Built Metals in Chino, Calif., offers FusionSolar, a thin-film solar laminate integrated with standing-seam metal roofing. The system comes with all necessary components, detailed schematics, and specifications for wiring and electrical components that an electrical subcontractor needs for installation.
Finally, check out makers and sellers of kitchen and bathroom appliances. Historically, folks spend more money remodeling these two rooms than any other in the house.
Trade in the day – Invest in your life
