In early December 2024, roughly 60 representatives from about 30 building product/tool brands and suppliers gathered at our annual Building Products Customer Workshop to network, learn about the current state of the industry, and understand how building product customers are behaving. As we round the corner into 2025, this workshop was designed to support building product marketing, brand, and sales leaders in determining their 2025 priorities.
The sessions of this workshop were primarily based on unpacking the key findings from the 2025 Building Products Customer study, conducted by The Farnsworth Group, with the event hosted in partnership with Venveo.
If you couldn't make it this year or in 2023, we do hope to see you next year! Workshop attendees get immediate access to the full report, which will not become accessible outside event attendees until Q2 of 2025. Until then, here's an overview of what you may have missed at this year's event:
Attendees Gained Insights from Industry Experts from NAHB and Harvard's JCHS
At the workshop, we were pleased to host Danushka Nanayakkara-Skillington, who shared the supporting evidence behind what The National Association of Home Builders (NAHB) has outlined as its medium-term outlook for residential construction, with projections spanning from 2024 to beyond 2030.
In 2025, the Federal Reserve is expected to ease its monetary policy, which will help normalize interest rates. This, in turn, will stimulate a recovery in the housing market, with single-family home construction taking the lead. While demand for homes will return, supply-side challenges are likely to intensify. These challenges include a lack of available lots, limited supply of skilled labor, limited access to acquisition, development, and construction (AD&C) financing, and ongoing price and availability constraints in building materials.
From 2025 to 2030, favorable demographic trends are anticipated to provide a solid foundation for continued growth in home building. During this period, the structural housing deficit is expected to be reduced, and single-family home construction volumes are projected to approach or exceed 1.1 million units annually. However, as the market progresses into the 2030s and beyond, declining demographics are expected to dampen demand for both multifamily and single-family housing, with full implications of such to be dependent on many other macro-economic variables.
As it relates to the outlook for DIY home improvement activity and spending, we hosted Abbe Will of Harvard's Joint Center for Housing Studies to present their research findings about current DIY market trends.
Abbe shared evidence of how, in recent years, DIY home improvements have seen exceptionally strong growth, with spending levels far surpassing previous peaks. However, the share of market spending dedicated to DIY projects is gradually declining. This trend is attributed to factors such as an aging population, older homes, and a shifting mix of home improvement projects. As a result, future DIY spending is more likely to trends towards cyclical discretionary projects, such as kitchen and bath remodels and outdoor property enhancements.
Younger homeowners, those with lower incomes, and individuals with homes of lower value are also more likely to allocate their remodeling budgets to DIY efforts. This trend is also more common among owners in rural areas or those with older homes. Additionally, while homeowners are staying in their properties longer, increased mobility remains a significant driver of DIY spending, as people often invest in home improvements to enhance their living spaces before moving or selling.
Attendees Had the Opportunity to Dialogue with Pro Panels
It's important to us that we give workshop attendees the unique opportunity to hear directly from their ideal buyers, so this year, we brought together not just one, but two Pro panels of builders, architects, and specialty trade pros for workshop attendees to hear from and ask specific questions of.
These Pros shared their perspectives on what manufacturers reps should STOP and START doing when trying to reach Pros, which largely boiled down to being available in every medium (including text messaging) to tailor the experience for individuals.
Other top callouts from these Pros were that manufacturers should:
- Stop raising prices and passing those costs on to Pros
- Make products better and easier to install
- Continue with collaboration and education
- Keep reaching out and engaging with them
- Create, straightforward idiot proof websites because to them, functionality matters more than attractiveness if the answers can't be found.
We also heard that Pros tend to tune out messaging that is positioned towards DIYers and listen when there is a contractor grade product distinct from a consumer grade product or an all-in product.
Everyone on the panel said their job was to solve problems with the stated implication being that manufacturers need to be problem-solvers on their behalf in order to be a good partner to them. The Farnsworth Group also studies what Pros report as their top challenges in our Contractor Business Sentiment Tracker.
We heard from multiple Pro panelists, both generalist and specialists, that they switched brands in cases where they could not get a hold of their sales reps or because of high turnover of reps. This is because Pros do want to develop genuine relationships and not be perceived as just a number by their manufacturer and supplier partners. Suppliers continue to be a trusted source for Pros to learn about and establish relationships with new brands.
Through the panels we heard a couple of different perspectives related to loyalty programs, which remains a difficult topic for manufacturers to address because of the various needs and expectations of different customers - as well as perceptions of what should be offered because of what other loyalty programs offer.
We also heard from Pros on the panels that they trust install and product based videos content most from other contractors, than from manufacturers or from DIYers. This sentiment compliments the quantitative research results from the 2025 Building Products Customer Guide that was presented to workshop attendees.
Steve Ford, an HGTV home improvement influencer and contractor, was available throughout the event to answer questions about how manufacturers can leverage influencers to increase their reach.
Attendees Had Time to Collaborate with Peers During Strategic Workshops
Also this year were dedicated workshop sessions to help attendees collaborate with others on how they are handling top challenges in the industry:
The workshops included:
Strategies to Solve Labor Challenges in 2025: This session focused on helping manufacturers address Pro customers' needs for efficiency in procurement, delivery, installation, maintenance, and training. Attendees conducted technology and collaboration assessments to plan for 2025.
Winning Marketing and Sales Strategies for Pros, Architects, and DIYers: Attendees worked on identifying gaps in the buyer journey and brainstorming solutions.
How to Drive and Measure Brand Health and Loyalty: In this session, participants discussed effective ways to measure brand health, shared insights on most useful and least useful methods, and mapped their brand attributes based on customer priorities to set the foundation for monitoring their brand performance.
Developing 2025 Action Plans: The final session allowed manufacturers to create action plans for 2025, using the insights gained from the workshops.
Attendees Were Provided Top Takeaways from the 2025 Building Products Customer Study
Several presentations also covered findings directly from the 2025 Building Products Customer study, conducted by the market research team at The Farnsworth Group.
Pros
Here’s a high-level overview of what to know about Pros heading into 2025:
Budget is a Reality: Customers need options to achieve budget constraints. More competitive pricing is also a key factor in trying a new brand or product.
Availability is Key: Manufacturers must ensure that essential products are consistently available to meet Pro demand.
Play to Win: To build loyalty, manufacturers should focus on quality, reliability, ease of installation, and product variety, strengthening their value proposition in a competitive market.
Online + In-Store: The line between digital and physical retail is blurring. Manufacturers should ensure their online presence adds value to in-store experiences.
Labor Challenges: Many Pros, aside from commercial builders, are not yet using innovative products or training to address labor issues. With construction wages rising faster than most professions, pressure to cut labor costs will grow, especially with projected production increases in 2025-2026. Manufactures and Suppliers must be part of the labor solution.
Speed of Trust: Relationships are important, but you're not always top of mind for Pros. Building trust through responsiveness and multiple communication channels (email, phone, text) is crucial, as being present in various ways is more important than ever.
DIYers
Heading into 2025, you should understand these differences that exist among DIY customers.
Brand Loyalty: Brand shifts among homeowners continue to be driven by budget, availability, and quality. Younger DIYers are much less loyal as they start their DIY journey.
Expand Distribution: DIYers want seamless online experiences. Manufacturers should prioritize intuitive site navigation and real-time stock updates, whether partnering with retailers or creating their own e-commerce sites.
Online Marketing is Essential: A strong multi-channel online presence is crucial to attract younger generations, while in-store experiences can engage older DIYers. Younger DIYers rely heavily on social media for product research and 'how-to' videos.
Customer Service Matters: DIYers expect responsive, multi-channel support, fast warranty claim responses, and easy access to product information. Younger DIYers are less likely to contact manufacturers directly, so engage them through indirect channels.
Architects
And here’s what you need to know about Architects, at a high level, based on the 2025 study findings:
Smaller architectural firms value accessible pricing, responsive support, and clear communication. Larger firms prefer tech-driven solutions like mobile apps and lead generation tools, with strong growth expectations for energy modeling and sustainable design tools.
Manufacturers should tailor their approach to each firm’s priorities to strengthen partnerships and loyalty.
Looking ahead, 74% of architecture firms expect significant growth in AI and machine learning. Other technologies with strong growth potential include 3D modeling, energy modeling software, sustainable design tools, and 3D printing.
Looking Ahead: Implication for 2025 Building Product Sales
The secondary research available through The Farnsworth Group’s complimentary public studies provides a valuable starting point for understanding your specific customers, product categories, and markets. Our seasoned market researchers work with leading brands in the building products industry to uncover critical insights that drive effective go-to-market strategies.
When you partner with The Farnsworth Group for custom market research, you equip your product, marketing, sales, and channel teams with actionable recommendations. These insights help you connect with your target audiences, identify the most effective distribution channels, optimize your product mix, and pinpoint areas of your business with the greatest revenue potential.
Additionally, leveraging more targeted customer usage and attitude research, combined with brand health and awareness studies, will provide you the insights you need to further strengthen your company’s market position.
