Builder Trends from the 2013 International Builders' Show

Tim Costello, CEO of BHI/BDX, and Jonathan Smoke, Chief Economist of Hanley Wood, share builders insights gleaned from the 2013 International Builders' Show.

TRANSCRIPTION:

00:00 COSTELLO: Hey, welcome to the 2013 International Builder's show. We're on the third day and we're about to come to a close so I'm gonna give you a wrap up of some of the impressions here. First of all, I just heard from an official, the National Association of Homebuilders, that there's 75,000 through the door attendees this year, which is almost twice the number of attendees last year. And I can tell you from all the interactions that I've had with builders throughout this show in educational meetings, business meetings and off-site engagements, the builder's mood has changed completely. You can tell there's a positive air in the atmosphere, there's a spring in their steps, and they're really convinced that this recovery is absolutely real. The difference that you can see is on the show floor - builders are starting to make investments, investments in their future. They're looking at technology, they're looking at products to build their company, to be prepared for 2014 and what's to come. With 20% growth projected next year, builders need to prepare and make up for the investments that we haven't been able to make for five years.

00:55 SMOKE: I've talked to building product manufacturers, remodelers, new home builders from custom homes to the biggest home builders in the country, and everybody is positive. Everybody has high expectations for the year. Whereas last year people were doubting me, that on our forecast that 2012 would be up, this year they're doubting me that our forecast of 20% growth isn't high enough.