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Staying Strong.

Article Excerpt
Staying Strong

Top 500 remodelers recount recent challenges and anticipate what's to come

By definition those remodelers listed in Qualified Remodeler's Top 500 are not typical remodelers; they're at the top of their profession. And, yet, even these high performers have felt the impact of the recent economic downturn. Most have experienced decreases in revenue. There are fewer jobs and those are taking longer to sell. Many remodelers have been forced to make difficult cuts to control costs, particularly in personnel. They've survived by knowing their numbers and keeping a tight rein on them.

Most of them have heard enough talk about difficult economic times and are more than ready to think about what's next. They're guardedly optimistic about the future, but few expect an abrupt turnaround without challenges.

For many remodelers, most of whom have weathered previous economic slowdowns, the current state of affairs is perceived as more severe than previous downturns. Iris Harrell of Harrell Remodeling Inc. in Mountain View, Calif., (No. 80 on the list) predicts a 35 percent drop in volume in 2009 revenues compared to 2008 figures and says she knows of firms who likely will experience drops as high as 50 percent. "We've had downturns before, and we've gone down 15 percent, maybe 18 percent," she says, "but we haven't had that kind of drop in volume [35 percent] ever."

Geno Benvenuti, owner of Benvenuti and Stein in Evanston, Ill., (No. 61 on the list) reports a similar downturn. "Our client base is mostly affluent, but they too suffered from the uncertainty and fear that controlled everyone's thinking," he says. "It's difficult when your net worth is halved in a couple...

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