Home improvement companies are a large part of the economic picture. Many people are not do-it-yourselfers and hire people to maintain their home. This has been the case for many years and the home remodeling industry is very large. Suddenly, the market has shrunk and there is not enough work to go around.

Homeowners who are interested in remodeling are finding that it is a buyer’s market. Business is slow and contractors are often forced to cut expenses such as forfeiting their health insurance plans. A good number of them are willing to cut their prices just to obtain work. Many homeowners are scaling down their plans. A family considering remodeling a bath, for example, will settle for a new vanity and a coat of paint. The larger jobs are being put on hold as people consider the impact of their investment and whether or not they will get their money back when they sell.

Estimates are that investments n home improvements and maintenance is expected to drop 4% this year compared with 2007. It is also anticipated that 2007 levels will not be seen again until 2010. Meanwhile, many contractors are trying to survive in this new environment.

Companies catering to high end clientele are surviving and profitable, however, it is those who cater to the middle income homeowner who are feeling the pinch the most.

It will take a recovery in the housing market in general to improve the situation in the home improvement and remodeling industry. We are all hoping that this is just around the corner, but realize that it may take some time to materialize. Meanwhile, contractors, as so many others, will just have to try to hang on and be ready for the upswing when it does come.