market predictions & stragegies, september 2009

Guildmember Predictions & StrategiesThis summary of feedback is from GuildQualityʼs Sep-tember 2009 Market Predictions. This survey is a follow up to the survey we began in October 2008, and have continued on a quarterly basis since then. In this and prior surveys, GuildQuality requested feedback from all “Su-per” and “Admin” users -- approximately 800 people from the more than 500 home builders, remodelers, contrac-tors, and real estate developers that use our service. In each of the most recent four surveys, more than 100 people provided feedback.Our members are representative of the best businesses in the building, remodeling, and real estate profession. And just as the strength of the building industry has his-torically forecasted the strength of our entire economy, I believe that our member sentiment is a leading indicator within the building industry.

About GuildQualityNorth Americaʼs best builders, remodelers, contractors, and real estate companies rely on GuildQuality to help them monitor and improve the quality of their work.GuildQuality provides customer satisfaction surveying, web-based performance reporting, peer benchmarking, and performance marketing for construction and real es-tate companies that seek to deliver a consistently excep-tional customer experience.GuildQuality offers a trial membership to qualified home-builders, remodelers, developers, and contractors. Visit http://www.guildquality.com/freetrial/ to learn more.

GuildQuality is Building a Community of Quality (888) 355-9223 www.guildquality.com © 2009 GuildQuality Inc. of 13

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Guildmember Confidence IndexThe Guildmember Confidence Index is a forward looking indi-cator that summarizes of the predictions of the members who participated in our survey. A positive number suggests that more members predict improvement than decline.In Q3 2009, members continue to predict improvement in both their companyʼs performance and the market, but they forecast less improvement than when they were asked the same ques-tion in Q2 2009.Among all of our members, Replacement Contractors predict the most improvement, and Real Estate Developers predict the least improvement.


Guildmember Confidence Index. A positive number indicates more people forecast improvement than decline. A negative number indi-cates more people forecast decline than improvement. 100% would indicate all respondents forecasted improvement; -100% would indi-cate all respondents forecasted decline.



Confidence Level DistributionAs in prior quarters, a growing number of members expect that conditions over the next six months will remain about the same as current conditions.The significant increase in “Remain the Same” answers came from members who previously predicted improvement. About the same percentage of members forecasted declines as in the prior quarter. While more members continue to predict im-provement in the market than decline, the largest percentage (64%!) believe that we better get used to things as they are.When asked about their own companies, the largest percent-age predict improvement or significant improvement, though that number is down to 49% from 56% in Q2 2009.


Confidence Level Distribution. Guildmembers were asked to predict whether the performance of their company and the market would sig-nificantly improve, improve, remain the same, decline, or significantly decline over the next six months.



Comments: Following are the additional comments provided by our members, organized by question.

“What is your business doing to address your most press-ing NEAR-TERM challenges?”1. Continue to streamline our business practices with attention to best prac-

tices. - Analysis of the communities to ensure they are well-priced within the marketplace. - Marketing the strengths of our communities and com-pany as they appeal to our prospective homebuyers.

2. Increased newsletter & social marketing and circle-of-influence.

3. We are ramping up to really educate the client on the difference between what we do and the virtual timber frame companies out there that are just a broker of CNC machine.

4. Cutting costs and overhead.

5. We are re-aligning our business to handle smaller projects and still meet profit goals. Quite a challenge.

6. Networking everywhere talking to everyone.

7. Finding new ways to market as the market keeps getting smaller.

8. More marketing to improve lead quality.

9. We are trying to increase our marketing efforts to bring in more leads.

10. Working hard to make sales and cut costs.

11. Looking to move back into lower price point designs and spec levels, being aggressive at pricing inventory, looking hard at costs for saving opportunities.

12. Work harder, concentrate more of each deal.

13. Stressing the quality of our product. Additional marketing to past clients. Cutting overhead. Partnering with vendors.

14. We are remaining very focused on cost. We are maintaining our advertis-ing and marketing expenditures.

15. Watching our budget and making sure marketing dollars are being spent efficiently.

16. GuildQuality.

17. Direct marketing in areas of current and pending actual jobs, inserting ads in carrier-route based circulars, phone solicitation of previous cus-tomers.

18. Looking at ways to get our pricing in line with the other remodelers we are competing against for projects.

19. Negotiating as best we can, producing a lower cost product.

20. Managing cash flow as tightly as possible.

21. Working on smaller projects and handyman services.

22. Increasing our marketing focus to past clients. Squeezing our overhead. Tightening our program.

23. Changing the way we advertise and get leads.

24. Position of strength and stability. Renting vacant homes. More focus on turning lower quality prospects into buyers.

25. Reviewing our overhead and margins that we need to be profitable and get the projects. Updating our website continually to drive quality traffic to turn into qualified leads/customers.

26. Marketing, marketing, marketing as well as face-to-face networking.

27. Unfortunately just having to operate the business on the playing field that we currently have - the purchasers/market are kind of dictating what final sales prices will be. Our "long-term" goal is to be building houses next spring.

28. Taking on smaller projects at little margin.

29. We are actively seeking winter installation work to keep our crews busy through the winter months of January and February when we are typically slower. Sales staff are taking time off during winter months after the in-stallation calendar is full.

30. Positioning our place in the market as a company that cares.

31. Lowering prices. In order to remain active within the market, we've had to drop our prices significantly. The stock of existing homes is our biggest competition, and many deals can be had on foreclosures, short sales, and the like. As such, many first-time home buyers are only choosing new construction if the price is comparable with that of an existing home. To that end, we've lowered our prices in order to continue selling.

32. Building a backlog on our schedule.




33. Improve sales process, tighter packages, improve marketing, upgrade production personnel and process. Buying land and building a showroom/office.

34. Increase marketing.

35. Increasing our flexibility and adding supplier options that address the basic needs of the clients Freezing hiring.

36. Working to offer a more affordable product.

37. Cut overhead and staff along with increasing marketing expenditures and doing smaller projects that we used to turn down.

38. Revising marketing strategy and budget predictions.

39. Making sure that the customer is being heard and follow through on every lead.

40. Better trade partnering , more hands on approach by each employee.

41. Trimming the fat.

42. We are running the business mean and lean. Any expense we can cut we do! Our staff has been reduced and we are all working a lot more hours. Our primary focus is to keep advertising as no one else is (except the larger companies).

43. Cutting overhead as much as we can.

44. Working hard on customer satisfaction and meeting or exceeding expec-tations.

45. Improving our total value proposition. Offering new systems and meth-ods, integrating technology to improve customer service and aggressively working through the entire supply chain to deliver the lowest cost possi-ble.

46. Working on our electronic marketing.

47. FHA approval of product. Partnering with "condo-loan" friendly banks.

48. Stepping up marketing efforts.

49. We're finding new subcontractors & suppliers and lowering our mark-ups to stay competitive.

50. Getting multiple competitive bids for nearly each trade; being much more budget conscious to convince the customer that they would be receiving the very best price.

51. We started doing handyman services as well to keep our guys busy.

52. Watching costs and training to maintain adequate volume.

53. Dropping house size/amenity levels/prices with no profit included to try and recover some overhead and keep our remaining employees working and some subs/vendors going.

54. Open to all customer suggestions and desires, more than before.

55. Anything we can to cut overhead and find any type of business that will pay us for our efforts.

56. More aggressive sales effort. Pushing subs and suppliers for lower pric-ing and faster production. Reducing our margins to get business.

57. Neighborhood discounts and on-time performance.

58. Keep trying to sell, sell, sell and managing backlog. Continuing to seek out cost-savings wherever possible.

59. Being as cost effective as possible in the field and in the office.

60. Working with our construction lenders to try to ensure an adequate flow of construction financing.

61. Trying to be much more efficient on our jobs. Since the pipeline has be-come so sparse, every cent counts.

62. Talk to our customers about their project to make sure they really want what they say they want, phasing larger projects into manageable budg-ets.

63. Extra focus on sales and managing our leads better.

64. We are trying new sales ideas.

65. Adjusting.

66. Trying to reduce cost of construction.

67. Praying that the recession ends before we get to the end of our credit line.

68. Watching costs, not making big expenditures, keeping staff low and work-ing the owners to death.

69. Redesigning our website to track surfers and deliver content relevant to their specific surfing habits. Looking at social networking and texting.

70. Praying!




71. More aggressive purchasing to compensate for leaner margins.

72. Reducing costs any way we can; reducing staff; increasing customer care with lots of follow-up for every lead; expanding services to include small jobs we never would have looked at before and offering home repair service; holding showroom events to attract new leads; looking to share our office and shop space.

73. Getting on board with energy efficiency promotions and really offering a great solution.

74. We are implementing an online lead generation strategy called Sure Fire Social, which will take advantage of SEO, online information give-a-ways, social media, and building lists.

75. Staying educated.

76. Balancing overhead vs. revenue.

77. Cutting costs that we can pass on to the customer.

78. Developing a local website to augment our parent franchise's web site. We are also working with a photographer to shoot some of our better projects in order to promote our quality of work. We are trying to set our-selves apart from Joe Pickup.

79. Keeping overhead and personnel low.

“What is your business doing to increase your likelihood of success in the LONG-TERM?”1. Planning & conservative budgeting.

2. Thoroughly evaluating new business opportunities to ensure that they meet our standards. Ensuring that our entire company is dedicated to the success of our company. Creating a team environment.

3. We are making planned cut backs in per diem expenses and other non-essential expenses. We are also restructuring some of our job descrip-tions and working on training the artisans.

4. Selling land.

5. Becoming less niche oriented and looking at all new possibilities in the market.

6. Exploring consolidation/co-oping options.

7. Lower over head to help bottom line.

8. Planning.

9. Not expecting major changes in the market. Gear up for operating as a smaller business.

10. Added remodeling to our offering, spread ourselves back into lower price point and smaller square foot homes.

11. Worrying about builder financing - haven't moved to the "how we gona do it" phase yet.

12. Restructuring and positioning for growth opportunities.

13. Maintaining our advertising and marketing budgets, updating our website and implementing a new estimating system.

14. Watching our budget and making sure marketing dollars are being spent efficiently.

15. GuildQuality.

16. Yellow pages, signage and visibility upgrade, augmenting showroom curb appeal and displays, general advertising.

17. Working on increasing our marketing using direct mail, internet presence and follow up with past customers.

18. Working with our banks to discuss solutions.

19. Changed from traditional marketing venues to event marketing to drive traffic to the community. Controlling the land development timing to more closely coincide with market demands.

20. Not building so many homes in advance to have to pay loans/taxes on, not replacing employees that move on, comparing pricing on a more regular basis and not just sticking with a company because we've always used them. However, in saying that quality is still a priority.

21. Increasing targeted advertising within our desired community.

22. Using more subcontractors, holding off on employee benefits and com-pany expansion plans.

23. Trying to make our company stand out from our competition and moving to a wealthier client base.

24. Sticking to our core business, doing it the best we can.




25. Lining up equity funding sources to acquire distressed assets.

26. Constantly amending the short-term will primarily position us for the long-term.

27. Building image, also branching into new areas such as home perform-ance contracting.

28. Aggressively negotiating with suppliers/subcontractors to decrease costs. Considering standard specification changes to help decrease hard costs and consequently sales prices. Keeping our spec inventory very conser-vative to limit exposure, and when we do start specs we are very cautious on adding upgrades that in turn increase sales prices knowing that we are going to be discounting heavily to write contracts.

29. Improving back office functions. Improving marketing functions.

30. Continued marketing strategies and building systems to increase effi-ciency. Surveying customers to find out how we can do a better job.

31. Positioning our place in the market as a company that cares.

32. Cleaner balance sheet, less land acquisition and development, diversify-ing our product line.

33. Streamlining operations, reviewing costs, implementing positive changes and upgrading talent.

34. Marketing and sales upgrade, hiring another salesperson.

35. Expand our services.

36. Shifting our marketing to web-based vehicles and methods Restructuring our benefits programs.

37. Lots of MLS research, expanding into the Active Adult and attached unit market to bring more affordable product to market.

38. Keeping core employees and continuing to train and educate the team while staying within a workable company budget for today's revenue.

39. Continuing to be good stewards of our money.

40. Marketing effort to create valuable leads and keeping all the team mem-bers focused on customer satisfaction.

41. Securing a land position from banks that are de-leveraging.

42. Revising web sites, sales materials etc.

43. Advertising! Any way we can that we know will bring us clients. We are spending a lot more time on relationships with the clients.

44. Trying to remain viable and in business with our core crews intact.

45. Praying. Looking for ways to maximize manpower and cut costs.

46. Maintaining relationships with key referral sources and developing new relationships.

47. Working on our in house systems to improve productivity.

48. Increasing internet presence, expanding market area and working with more and stronger realtor base.

49. Branding our neighborhood.

50. We are staying true to our business goals of creating quality projects & focusing on our tried and true remodel process. If our clients are happy and satisfied, they will refer us to others.

51. Steady and consistent investment in marketing.

52. We continue to be consistent with quality as that's what our clients come to us for in the first place. Top notch customer service and top notch qual-ity.

53. Cut overhead to the bone.

54. Focus on marketing.

55. Survival and preparing for the green revolution.

56. Hanging on to top people. Continuing full-scale marketing.

57. Fix our internal inefficiencies and productivity challenges.

58. Releasing new series of plans at a lower price point to capture more first time buyers.

59. Bidding as many jobs as we can and keeping our company's name "out there".

60. Introducing new designs and keeping our eyes open for new locations that match our product.

61. Trying to stay afloat in the short-run.

62. Keep our quality high, our costs fair, building brand name recognition.




63. Cutting expenses, developing a better web based marketing plan and approach, attracting and hiring talented and smart people.

64. Additional advertising.

65. Tight Budgeting in all areas.

66. Cutting costs and prospecting.

67. Diversifying into green specialties (building LEED certified spec home, which will help us with marketing as knowledgeable about sustainable, resource efficient, value centered projects).

68. Working the owners to death - they're cheap labor! Seriously - we are going after all projects - no matter how big they are; whereas two years ago we wouldn't have considered a $10K project or gone to a job 45mins away!

69. Praying!

70. Liquidating or improving non-performing land assets.

71. Trying to give each and every job, no matter the size, the same high de-gree of customer service and high craftsmanship we are known for; re-designing our website, exploring internet marketing options.

72. High quality product with a high quality reputation.

73. Diversifying.

74. We started a remodeling division and are working with subs and vendors on pricing.

75. Finding below current market land value positions.

76. Continuing marketing and remaining lean.

“What trends do you see emerging among your customer preferences?”1. A handful of larger job leads have emerged (additions vs. remodeling of

existing spaces).

2. Good service, they want attention from start to finish - Quality construc-tion - Value - Location - Proximity to family.

3. There is still a range between residential and commercial. But, we seem to be bidding on more and more commercial work. Residential clients are

being much more careful to be ready before proceeding. Permitting has become an issue and in some cases appraisals.

4. Quality over quantity.

5. Smaller job size. Larger projects are difficult to come by let alone get one to sign. They are also much more apt to take their time making remodel-ing decisions. Also cost is much more a significant part of the decision process.

6. More maintenance type work - but they are willing to improve while main-taining. Examples such as cement board siding, extended life shingles, high performance windows.

7. Smaller more affordable projects.

8. Smaller projects and shopping price.

9. I see smaller projects like kitchens and baths as opposed to the larger additions I have seen in the past.

10. People are looking for small things that make a difference. We are seeing lots of bathrooms, partial kitchens, and repair work. There are also a lot of new young homeowners looking for inexpensive renovations. They often have not hired a remodeler before.

11. Smaller square footage, more interest in ranch designs, price point lower-ing.

12. Continued down sizing, pricing concerns, smaller lots & houses - eco-nomic downsizing.

13. Downsizing or rightsizing. Some interest in moving into more urban set-tings for conveniences and amenities.

14. Energy efficient furnaces, zoning, windows, very cost conscious.

15. Nothing really new. Just updating and some additions. Financing still seems to be a problem.

16. Scaling down their expenditures while increasing their level of expecta-tion. Close to quote ratio is 50% of 2 years ago, due to vastly greater numbers of quotes each customer is getting.

17. Looking for products that are good quality but aren't overly expensive.

18. It's all about the price - if its not a short sale, they paid too much.




19. Small homes with quality amenities. Continued interest in sustainable/green designs.

20. More comfort areas where they can entertain and relax at home with fam-ily & friends.

21. Breaking down bigger projects into smaller phases that can be done over time. More maintenance than new additions.

22. Smaller budgets for jobs. More price conscious.

23. Canadian content and green living.

24. More value conscious.

25. Affordability is an issue. Finanancing more important.

26. Customers are still driven by price primarily and will make costly mistakes due to their beliefs. Those mistakes will be detrimental to the image of remodelers/contractors and unfortunately erase the gains over the last decade.

27. Less glamour, more bread and butter. More repairs, energy retrofits, con-cern for saving money.

28. Lower prices, discounts, etc. seem to be the major continuing issues.

29. Frugality. Price Conscious.

30. A strong movement to tri-pane glazing to maximize energy savings and comfort levels.

31. Slower to begin a project and talking with more contractors. They have the expectation that construction costs are greatly reduced.

32. We've seen a trend toward smaller homes. Our average square footage of homes sold has gone from roughly 2100 sq. ft. in 2006 to just over 1800 sq. ft. in 2009. We're also seeing more home buyers ask for and order finished out basement space (additional bedrooms, bathrooms, living space).

33. Attention to detail and quality.

34. More detailed and exacting. Look at everything.

35. Smaller types of projects.

36. Economical basic remodels or upgrades using stock materials.

37. Smaller homes with more amenities. Buyers are seeking more value.

38. Reconfiguring space rather than adding additional space. Opening Kitch-ens to create a great room affect and upgrading bathrooms.

39. Finding affordable means to get needs and wants met.

40. Very price conscious and they also understand the value of the right con-tractor doing the work and the ability to make decisions that add value to the project.

41. Less square footage and more value.

42. Green efficient housing. Low operating costs. Livable space somewhat smaller and budget conscious. Built in TV and Audio. Outside living space.

43. Clients are spending less on projects and are scaling their needs down. Energy efficiency is a big concern - the tax credits have really helped to secure more sales.

44. Everything is still about price.

45. Customers spending less on replacements.

46. A lot of house at a low price. In some cases my clients are down sizing so that is an issue.

47. Customers are purchasing more and more kitchens and baths.

48. More upgrades and options.

49. More square footage for less money.

50. They are definitely more price conscious, but still want quality.

51. Value for money spent.

52. More budget driven.

53. Very price sensitive.

54. Price, Price, Price.

55. Shopping around more and more for the best deals, especially in selec-tions. want the most for their money.

56. Smaller projects, less lavish, cost conscious, slightly green.

57. More budget conscious. Slower to decide to move ahead.

58. A feeling of "getting the best deal".

59. It's still very challenging to obtain financing.




60. Anything "green".

61. Looking for slightly smaller homes on not-so-big lots.

62. We now have to help our customers downsize to reasonable projects. At first they want all the bells and whistles, but then after discussing costs they back track to more of a frugal project.

63. Customers cautious about spending money and having difficulty financing projects - thus the trend has been for smaller projects that customers can pay for directly.

64. More focused on price over value.

65. General Contracting Themselves.

66. Concerned about cost but still want the big house.

67. Smaller jobs with tighter budgets, phased projects.

68. More price break-outs.

69. More electronic communication, website, email, texting, social network sites. Wiring for networking in our homes.

70. More Practical.

71. Emphasis on quality of design, not quantity (i.e. square footage). Green products. Maintenance free products. Manufactured stone instead of brick. Tiled showers.

72. Smaller jobs, do not want to sign retainer agreements, taking a long time to make decisions, putting off work to the future.

73. Energy efficiency trends.

74. People are spending the same money as they always have. We just don't have as many leads.

75. Green building more important.

76. Colors! Deeper and or more vibrant colors in paints..

77. Smaller, less expensive homes. Energy efficiency.

78. Cost is much more of a factor than it previously was. Clients are also looking to talk to more contractors prior to signing with a remodeler. They are also looking for designs with more functionality and clean lines.

79. Families condensing and moving in together requiring in-law apartments.

“What trends are becoming less and less important to your customers?”1. Grand, oversized space is not a big priority.

2. Buying the most house they can afford - now want to buy enough house for their needs - Options and upgrades.

3. Big box housing.

4. Less service and more cost.

5. Value and energy efficiency.

6. Over done, Extravagant projects.

7. Big expensive project.

8. I see the big Green trend all over the place, but when it comes down to it, most people don't want to spend the extra money.

9. Big fancy projects.

10. Square footage for square foot sake.

11. Opposite of above - less showiness.

12. Square footage.

13. Over the top designs.

14. Fashion & style is out. Function, efficiency, effectiveness, warranty is now king.

15. Normal upgrades and higher quality.

16. Bigger homes on larger lots.

17. High end extras, no additional costs added to home.

18. Tearing down a house and starting over.

19. Carpets and other manufactured products.

20. Living without unnecessary changes or additions (putting off that outdoor kitchen or daughter's bathroom redo).

21. Requiring all the latest and greatest materials. They are settling for less based on economics and rethinking what their personal requirements are today.

22. High end costly appliances and large spaces.




23. Spending money on upgrades. For example, in a conversation with our internal design consultant recently, the few customers that we are seeing these days are sticking to base grade carpet or maybe going up 1 level and that is it. Up until about the end of 2007 we were very successful at selling higher levels of upgrade carpet.

24. Cheapest price.

25. Bigger.

26. Larger homes are becoming less important. Customers are selecting the most important options and foregoing some of the minor products - par-ticularly those that can be added at a later date (hardwood flooring, gran-ite countertops, etc.). Structural elements, like three car garages and nine foot ceilings, are being included whereas many of the cosmetic options are being postponed.

27. Uncertified work.

28. Green is never mentioned by consumers.

29. Green.

30. High end custom kitchens and bathrooms.

31. Theatre Rooms are going away. People may want a media room but it would be incorporated into the living space. Living Rooms are gone and offices are taking their place.

32. Large additions and trendy finishes.

33. Over the top consumption.

34. Ultra high luxury items somewhat less important.

35. Frills non value added features.

36. Theatres.

37. Clients are a lot more educated about the products and services they are seeking. They continue to look for remodelers who can meet their needs.

38. Customers are not calling on large homes.

39. More interested in price than quality.

40. Everyone is value shopping. Great Home, Great Price, Great Customer Service. They still want everything!

41. Additions. Also, higher end products.

42. Silestone or Corian counters.

43. They are more open to suggestions as to how to save money on their projects.

44. Green remodeling; high-end or luxury finishes.

45. Green products haven't really taken off.

46. Overbuilt opulence.

47. Size and ALL the bells and whistles.

48. Size of house.

49. Quality.

50. Rather than less important, more is becoming important to buyer. Buyers want quality, choice & value and aren't as interested in compromise.

51. Big lots.

52. High end, lavish finishes.

53. Large projects - customers seem to be down sizing - not only size but style.

54. Large, expensive add-ons.

55. Paying for "Green" construction.

56. Large luxury jobs with big budgets, doing it all at once.

57. Appearing overly expensive.

58. Less responses from print and other advertising media; more reliance on referrals and relationships.

59. Urgency, they are willing to wait to ensure they are able to take full ad-vantage of desperate contractors.

60. 2-Story great rooms, formal dining rooms. Whirlpool tubs.

61. High-end anything.

62. Quick fixes for cheap prices.

63. "Bigger is better."

64. They still want it all. They just do not want to pay for it.

65. Central vac, trash compactors, etc.




66. Large homes.

67. The Olde World look. (Tuscan country etc.)

Additional Comments1. I see a steady flow of work but also see a large increase in single truck

companies forcing the price of jobs down. They are not 100% legal but consumer thinks license and insured is ok.

2. Help! I'm trapped in the body of a contractor!

3. Our clients are thinking different now. Green living is a movement that is just taking hold, but will not be fully accepted until the costs go down. Your people must be comfortable in dealing mostly by email and wireless technology. Website design is huge! If you do not have a great website your are missing a whole generation of clients. I have people tell me that I must be a great builder based on how much they liked my website.

4. The companies that keep beating the bushes for ways to get more quality leads will survive the downturn

5. The expiration of the $8,000 Federal Homebuyer Tax Credit could have a profound impact on market activity. We've seen an up tick in the entry-level segment of our market, which can partially be attributed to the tax credit. Unless the government announces a new home buyer stimulus plan, there could be a major slow down in the housing industry again.

6. I believe we are in for another tough winter. We have enough contracts over winter but we are working to change or add items to our business model. The national media says things are beginning to improve. I just see them holding steady with more consumer confidence. People are hording their money. They won't spend as much on a house.

7. I believe our response to the market determines our success and not the market itself. Our marketing has a greater emphasis on our client base. Currently 65% of our revenue is coming from our client base.

8. I think we are running along the bottom and unemployment may cause a further dip but I think we will bump along for 6-8 months with opportuni-ties coming and going. You need to react and catch the opportunities when they show up.

9. The big banks in this country are not supporting any of the building busi-ness owners I know in Michigan. The are all calling their credit lines in

and are just not there when we could use them. I have never been late or missed any payment to my bank. Further I have 65% equity in the build-ing I have my office and showroom along with eight additional tenants which has the building full - and everyone is current with me. My bank doesn't care about my past history or my good credit standing. If we are going to have a recovery in the building industry it will start in the remod-eling sector. Banks are not lending, yet they have our bailout dollars.

10. Absolutely no consumer confidence. No urgency and everything is price driven. My gut feeling is we are in for another 16 to 20 months of the cur-rent situation not sure how many will survive.

11. HELP

12. We are thankful that Texas has been somewhat immune to the chal-lenges in the rest of the country. However, we are watching our costs and going after every project that comes our way.

13. Would still like to be able to connect with our survey results through web services.

14. We are facing the toughest challenges ever in our twenty-six years of existence yet we are trying to remain optimistic about the future.




A note about responses that were not included in this report.Not included in this report is feedback from about 50 prospective members -- builders, remodelers, contractors, and developers who are not Guildmembers. After a few more quarters of these surveys, I intend to produce a larger, more comprehensive summary that will include everyoneʼs feedback.

Future Surveys & ReportsWe will continue to conduct this survey in the last month of each quarter, with the next survey to occur in December 2009.

Thanks to all those that participated!I look forward to continuing to provide you the kind of information contained herein, and I greatly appreciate your participating in the survey. I welcome any comments, suggestions, or requests you have about this and future reports.

Sincerely,Geoff GrahamFounder & PresidentGuildQuality [email protected](888) 355-9223


mailto:[email protected]

mailto:[email protected]



market predictions & stragegies, september 2009

Business

prior guildquality

signicant improvement

predicted improvement

percentage of members

growing number of members

real estate developers

guildmember condence

signicantly decline