The first quarter of each year is a busy time for the building and home improvement industry. January through March is chalked full of over 20 trade shows dedicated to architects, designers, builders, and contractors of various trades. Our favorite time of year!
The Farnsworth Group participates in most of these shows and many others throughout the year. This spring you could find us at
- The International Roofing Expo
- The International Builders' Show
- Kitchen & Bath Industry Show
- National Hardware Show
- World of Concrete
- JLC Live
- The Orgill Dealer Market
- AHR Expo
- and at various corporate client events
Wherever we go, we visit with and talk to manufacturers, suppliers, and attendees. We listen. We learn. We learn a lot!
Below are several key themes that were top of mind, across all our conversations, and poised to influence the industry's trajectory in the coming months. Each key theme also includes some ideas for research-based solutions that will help you make better strategic decisions as you navigate, what looks to be a volatile, 2025.
1. Tariffs, Costs, and Inflation: A Constant Concern
The industry is grappling with the implications of tariffs, escalating costs, and inflation. Manufacturers and suppliers are proactively adjusting pricing, reevaluating product mixes, and modifying purchasing strategies to mitigate these challenges.
Many companies we talked with so far in Q1 have already implemented contingency plans to navigate the prevailing economic uncertainty. However, quite a few we talked to are taking a ‘wait and see’ approach. Regardless of how you are approaching this theme customized market research can help you:
- Understanding the size, share, and distribution of our category: Accurately assessing the total market size for specific products or sub-products, enabling informed decisions on pricing strategies and product mix adjustments.
- Understanding the competition: Analyze competitors' pricing and product strategies to identify opportunities for differentiation and market positioning.
- Understanding the channel: Identify risks and alternative sourcing options to maintain stable costs amid changing trade policies.
Key Questions Customized Market Research Can Answer:
- What is the total market size for our specific product categories?
- How do our pricing strategies compare to competitors in the current market?
- What alternative sourcing or supply chain options are available to reduce cost volatility?
2. The Labor Challenge Looms Large
Labor challenges remain a pressing issue, with concerns that the problem will intensify as demand rebounds. The industry continues, and will continue, to face challenges with hiring, making workforce shortages a top priority to address in the near and long term.
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This is not a new issue. Most, if not all, manufacturers we spoke with have been doing their part to promote the trades, educate, and train for years. Recently, many manufacturers have stepped up their game when it comes to offering product that is faster and easier to install with less labor. If this isn’t you…
How Market Research Can Help:
- Workforce Analysis: Identify skill gaps and workforce trends in the construction industry.
- Contractor and Builder Surveys: Understand what incentives and technologies can improve efficiency and ease labor shortages.
- Technology Adoption Studies: Evaluate the role of automation and digital tools in mitigating workforce constraints.
Key Questions Market Research Can Answer:
- What are the biggest pain points for builders and contractors in hiring and retaining labor?
- What training and resources are most needed to attract new talent?
- How can technology help reduce labor shortages, and what are the barriers to adoption?
3. The Impact of Uncertainty on Forecasting
Economic factors, shifting policies, and market fluctuations have led many organizations to revise their 2025 forecasts downward. While most manufacturers and suppliers we talked with in Q4 2024 had anticipated 3-5% growth, many now expect a flat year. Consequently, manufacturers are focusing on strategies to maintain or increase brand share and share of wallet, rather than relying on overall market expansion.
How Customized Market Research Can Help:
- Market Demand Forecasting: Provide insights into future trends and market size projections.
- Brand Positioning Studies: Assess how brands can differentiate themselves in a stagnant market.
- Customer Segmentation: Identify key customer segments that present the best growth opportunities.
Key Questions Customized Market Research Can Answer:
- What is the realistic demand outlook for 2025 and beyond?
- How can we position our brand to capture market share in a slow-growth environment?
- What customer segments are most likely to continue spending despite economic uncertainty?
4. Budget Sensitivity and Product Availability
Builders and contractors we spoke with at every trade shows (and proves out in our clients research) emphasized the importance of manufacturers and suppliers providing product options (Good, Better, Best) that align with budget-conscious clients. Homeowners and home buyers are more price-sensitive than ever, reinforcing the need for flexibility in product offerings. This trend is expected to persist throughout the year and beyond. In a flat growth market, you must ensure that you have a product and price for every customer.
How Customized Market Research Can Help:
- Consumer Sentiment Analysis: Track changing homeowner and buyer preferences.
- Product Feature Trade-Off Analysis: Identify which product features are must-haves versus nice-to-haves for budget-conscious consumers.
- Distribution Channel Insights: Optimize sales strategies based on where budget-conscious buyers are shopping.
Key Questions Customized Market Research Can Answer:
- What product features do budget-sensitive customers value most?
- How do homeowners prioritize spending on building materials and home improvement projects?
- What distribution channels are most effective for reaching cost-conscious consumers?
While we were at IBS this year, the team at Wray Ward asked for Grant Farnsworth's perspective on several current industry dynamics. Here's what he had to say:
5. Resilience, Durability, and Sustainability
Sustainability, durability, and resilience were central themes in product marketing and positioning at all the trade shows we attended in Q1. However, a significant missed opportunity remains: many brands we saw at, IBS/KBIS for instance, struggled to clearly communicate how their products can improve labor efficiency and reduce costs. Effectively linking product benefits to labor savings could be a powerful differentiator in a competitive market.
How Customized Market Research Can Help:
- Sustainability Perception Studies: Understand consumer demand for durable and sustainable products and the need for a ‘healthy home’.
- Product Performance Benchmarking: Compare the resilience and longevity of different materials.
- Messaging and Positioning Testing: Identify the most effective ways to communicate sustainability benefits.
Key Questions Customized Market Research Can Answer:
- How important is sustainability in product selection for builders and homeowners?
- What specific durability features matter most to consumers?
- How can manufacturers better position their products to highlight installation efficiency benefits?
Making Strategic Decisions in 2025 and Beyond
These themes we experienced repeatedly in discussions at the 2025 spring trade shows highlight the ongoing challenges and opportunities facing the building and home improvement industry, across all product categories. As companies navigate economic pressures, industry challenges, shifting consumer demands, and technological advancements, those that fully understand their category, quantify, adapt, innovate, and clearly communicate their value propositions will be best positioned for success.
Custom market research can provide manufacturers, suppliers, and builders with the insights needed to make data-driven decisions, navigate uncertainty, and position their brands for growth. Regardless of your company’s goals, our team at the Farnsworth Group takes the time to understand your specific needs, leveraging decades of industry knowledge and creating customized research to guide your market, brand, product, and customer strategies.
Written by Adam Mowrey
Business Development Manager
Since 2018, Adam has brought over two decades of professional experience to the table for The Farnsworth Group’s clients gained within various facets of the building products industry from his roles at Dodge, Hanley Wood, Metrostudy, HomeSphere, and other building product focused agencies.
Adam’s roots in the industry run deep, as his family is involved across the channel as home builders, contractors, brick and tile dealers, glazers, and commercial product manufacturers. In the past 10+ years, Adam has focused on guiding manufacturers and dealers through research assessments to ensure they will get the answers and single source of truth necessary to make the right product, marketing, and sales decisions. Adam is a proud husband and father to his wife and 3 kids and is based in Pittsburgh, PA. When not advising clients, you can find Adam working on his latest DIY project or deep in the mountains in PA or CO.