Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- A 25% decline in the market seen in the past five years
- Consumer confidence and housing market key underlying drivers
- Smaller homes, green living, and legislation to shape projects, products, and demand
- Use of professionals a key competitive issue for DIY market
- Four major segments with “other” products growing from 2008-10
- Key trends in major segments
- Home centers dominant retail channels, but suffer losses 2008-10
- Five-year performance in major retail channels
- Home Depot and Lowe’s see sales grow in latter part of 2010
- Innovations seen in “green” products and innovative retailer developments
- Heavy spending and key themes in marketing
- DIY activity, trends, and key demographic groups
- Faucets and doorknobs among leading DIY products
- Need for value and environmental positioning dominate DIY attitudes and impact of downturn
- Cash trumps skill in putting the brakes on DIY spend
- Retailers can help DIYers expand their skill set/comfort zone
- “Green” behaviors and product purchase
- Home center and hardware stores’ different strengths recognized by consumers
- Hispanics most likely to do DIY
Insights and Opportunities
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- Opportunities for promoting more expensive systems such as solar, geothermal, and gray water systems
- Smaller, but more efficient homes and ADUs
- Reaching out to Boomers with universal design and changes to allow them to age in their homes
- Long-term growth will rely on catering to diverse Millennials
Inspire Insights—Trend: Green Technology
Market Size and Forecast
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- Key points
- Home channel market sales show some improvement in 2010
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- Figure 1: U.S. sales and forecast of home channel market at current prices, 2005-10
- Figure 2: U.S. sales and forecast of home channel market at inflation-adjusted prices*, 2005-10
- Narrowly defined DIY market shows positive sales in 2010
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- Figure 3: U.S. sales of home maintenance, repair, and construction equipment/supplies at current prices, 2005-15
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- Figure 4: Total U.S. sales of home maintenance, repair, and construction equipment/supplies at inflation adjusted prices*, 2005-15
- Fan-chart forecast
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- Figure 5: Fan chart forecast of total U.S. sales of home maintenance, repair, and construction equipment/supplies at current prices*, 2005-15
Market Drivers
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- Key points
- Consumer confidence making slow recovery post major downturn
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- Figure 6: University of Michigan’s index of consumer sentiment (ICS), 2001-10
- Home ownership and the housing market
- Housing market in decline from 2006 through 2010
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- Figure 7: Sales of existing and new single-family homes, 2001-09
- Foreclosures continue to rise in 2010
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- Figure 8: Foreclosure filings, by percentage of U.S. housing units, 2006-09
- Falling home values and limited opportunities for refinancing
- Positive elements within down housing market
- Aging housing stock and need for maintenance
- Upper-income households best positioned to sustain remodeling activity
- Opportunities for young, first-time homeowners in the current market
- Trend toward smaller homes may limit additions, but offer opportunities in greener houses and universal housing design
- “Green” Drivers
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- Figure 9: Environmental impact—basic actions/behavior and energy efficient products used, now and planned, October 2010
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- Figure 10: Environmental impact—construction/building installs, now and planned, October 2010
- Consumer concern with chemicals in paints and other products
- “Green” buildings and products showcased in stores and in DIY programs
- Federal incentives for energy-saving home improvements
- New building standards, green certification programs, and “green” legislation
- New technologies and business models will expand access to energy-saving home improvements
Competitive Context
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- Key points
- Undertaking DIY projects vs. seeking professional help
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- Figure 11: Select remodeling work done in past 12 months, and who did it, April 2009—June 2010
- NAHB data show decline in professional market
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- Figure 12: National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), 2001-10
Segment Performance
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- Key points
- “Other” DIY materials segment drives growth from 2008-10
- Painting and plumbing dip, while flooring shows drop in sales
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- Figure 13: U.S. sales of DIY products, segmented by product type, 2008 and 2010
Segment Performance—Paint and Wallpaper
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- Key points
- Segment dominated by domestic players and Dutch company AkzoNobel
- Low-VOC paints and trends in color and design
- Popularity as DIY project keeps segment fairly strong from 2005-10
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- Figure 14: U.S. sales and forecast of paints, wallpaper, and supplies at current prices, 2005-10
Segment Performance—Flooring
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- Key points
- Brands from Mohawk and Shaw dominate the flooring segment
- During recession, carpeting and vinyl show comparable strength
- Flooring sees sales plummet in 2008 and 2009
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- Figure 15: U.S. sales and forecast of flooring at current prices, 2005-10
Segment Performance—Plumbing
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- Key points
- Private label offerings and major brands
- Consumer interest in water-conserving products
- Segment falls modestly from 2005-10
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- Figure 16: U.S. sales and forecast of plumbing supplies and equipment at current prices, 2005-10
Segment Performance—Other DIY Products
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- Key points
- Diverse segment includes tools, lighting, and building materials
- Sales fell sharply in 2008, but increased in 2009 and 2010
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- Figure 17: U.S. sales and forecast of other DIY products at current prices, 2005-10
Retail Channels
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- Key points
- Hardware stores and floor covering stores lose share 2008-10
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- Figure 18: U.S. sales of home channel products, by retail channel, 2008 and 2010
Retail Channels—Home Centers and Lumberyards
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- Key points
- Home centers focus aggressively on DIYers, tout low prices
- Home centers still offer vast network of stores and marketing clout,
- Home centers offer exclusive private label brands
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- Figure 19: U.S. home channel sales at home centers and lumberyards, at current prices, 2005-10
Retail Channels—Lawn and Garden Stores
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- Key points
- Specialty lawn and garden stores expand appeal to DIYers
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- Figure 20: U.S. home channel sales at lawn and garden stores, at current prices, 2005-10
Retail Channels—Flooring Stores
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- Key points
- Specialty stores struggle to compete with home centers
- Lumber Liquidators stands out for exceptional growth
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- Figure 21: U.S. home channel sales at flooring stores, at current prices, 2005-10
Retail Channels—Paint and Wallcovering Stores
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- Key points
- Paint and wallcovering stores offer exclusive selections, expert services
- Sherwin-Williams is largest specialty paint retailer, followed by AkzoNobel
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- Figure 22: U.S. home channel sales at paint and wallcovering stores, at current prices, 2005-10
Retail Channels—Hardware Stores
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- Key points
- Hardware stores have performed comparably well in recession
- Largest cooperatives develop private labels and marketing support
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- Figure 23: U.S. home channel sales at hardware stores, at current prices, 2004-09
Leading Companies—Retailers
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- Key points
- Home Depot and Lowe’s increase share despite slow sales
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- Figure 24: Sales of leading DIY companies, 2008-10
- Major hardware cooperatives see sales fall in 2010
- Home improvement retailers shopped and share of spend
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- Figure 25: Home improvement retailers shopped in previous three months, May 2003-June 2010
- More than half of DIYers report shopping at home centers in past 12 months
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- Figure 26: Share of DIY spend at various store types, October 2010
Innovations and Innovators
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- Key points
- Innovations in paint and wallcovering
- Expanded offerings in low- to no-VOC products
- New color capture technology to facilitate color matching
- Innovations in flooring
- Use of natural, recycled, and sustainable materials
- Improved installation systems
- Innovations in plumbing
- WaterSense products
- Delta’s Touch2O Technology in faucets
- Building materials—green and energy-saving products
- Tools—cordless offerings and compact
- Innovations among major retailers
- Home Depot running pilot program for moving van rental
- Ace Hardware locations offer energy audits and host workshops
- Lowe’s adds Recycling Centers and expands Energy Centers nationwide
Marketing Strategies
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- Key points
- Ad spend
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- Figure 27: Advertising spending of selected home improvement retailers, 2008-09
- National branding and merchandising strategies
- Home Depot highlights low prices and exclusive brands in upbeat ad campaign
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- Figure 28: home depot, “Martha Stewart paints” TV ad, 2010
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- Figure 29: Home depot, “PERGO flooring promotion” ad, 2010
- Craftsman tools enjoy heavy promotion
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- Figure 30: craftsman, “Trust. In your hands,” TV ad, 2010
- Lowe’s makes “experience” and service central to appeal
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- Figure 31: Lowe’s, “Doug,” TV ad, 2010
- Ace Hardware puts focus on service and smaller projects
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- Figure 32: Ace Hardware, “Get In. Get help. Get on with your life,” TV ad, 2010
- In-store merchandising and displays
- Online shopping, websites, social media, and iPhone apps
- Lowe’s puts emphasis on speed and ease of online and mobile shopping
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- Figure 33: Lowe’s, “Let’s Build something together,” TV ad, 2010
- Lowe’s to create more personal online experience with MyLowes
- Lowe’s invites consumers to vote on website and Facebook page for charities
- Home Depot launches online community in 2011
- Craftsman website supports brand activity, demonstrates products, offers community
- Interactive design website connects flooring dealers and customers
- Paint suppliers offer online design tools and project centers
- iPhone apps range from the practical to the playful
DIY Projects Done in Past 12 Months
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- Key points
- Men more likely to be active DIYers
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- Figure 34: Incidence and number of DIY projects done in past 12 months, by gender, October 2010
- Those younger than 35 take on more DIY projects
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- Figure 35: Incidence and number of DIY projects done in past 12 months, by age, October 2010
- Income shapes likelihood of DIY activity, number of projects
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- Figure 36: Incidence and number of DIY projects done in past 12 months, by household income, October 2010
- Those with kids undertake more DIY projects
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- Figure 37: Incidence and number of DIY projects done in past 12 months, by presence and number of children, October 2010
- Rural dwellers most likely to undertake DIY activity
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- Figure 38: Incidence and number of DIY projects done in past 12 months, by urban status, October 2010
Remodeling Projects—Types and Trends
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- Key points
- Trends in categories of remodeling projects done/planned
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- Figure 39: Categories of remodeling projects done in the past 12 months, May 2004-June 2010
- Planning of projects somewhat lower in 2008-10
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- Figure 40: Categories of remodeling projects planned in the next 12 months, May 2004-June 2010
- Specific types of home improvement work done, and who did it
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- Figure 41: Specific remodeling work done in past 12 months, and who did it, Part 1, April 2009-June 2010
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- Figure 42: Specific remodeling work done in past 12 months, and who did it, Part 2, April 2009-June 2010
Spend on Home Improvements
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- Key points
- Age, income, and region shape spending on home improvement
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- Figure 43: Spend on home improvements in past 12 months, by key demographics, part 1, April 2009-June 2010
- Married without kids spend the most on home improvement
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- Figure 44: Spend on home improvements in past 12 months, by key demographics, part 2, April 2009-June 2010
The Demographics of Remodeling, Painting/Staining, and Workshop Equipment Owned/Rented
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- Key points
- Impact of age, income, and region on remodeling, painting, and workshop equipment
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- Figure 45: Remodeling, painting/staining done and workshop equipment owned/rented, by key demographics, part 1, April 2009-June 2010
- Married do more remodeling and those with kids, interior painting
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- Figure 46: Remodeling, painting/staining done and workshop equipment owned/rented, by key demographics, part 2, April 2009-June 2010
- …and who’s actually doing the work?
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- Figure 47: Remodeling, painting/staining done—who did it? by key demographics, April 2009-June 2010
- Singles hire the most professional help
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- Figure 48: Remodeling, painting/staining done—who did it? by key demographics, part 2, April 2009-June 2010
Motivations, Planning and Paying for Doing Home Improvements
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- Key points
- Downturn has mixed effect on DIY activity
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- Figure 49: Motivations, planning, and paying for doing home improvements, by age, October 2010
- Income shapes attitudes, access to loans, and use of planning services
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- Figure 50: Motivations, planning, and paying for doing home improvements, by household income, October 2010
- Those with 2+ children more likely to be looking to get out of unfavorable housing situation
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- Figure 51: Motivations, planning, and paying for doing home improvements, by presence and number of children, October 2010
- Regional variations in DIY attitudes and activities
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- Figure 52: Motivations, planning, and paying for doing home improvements, by region, October 2010
Reasons for Not Doing a Major Renovation or Addition
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- Key points
- Money key barrier to undertaking major renovation projects
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- Figure 53: Reasons for not doing a major renovation or addition, by key demographics, October 2010
- Women aged 18-34 merit outreach
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- Figure 54: Reasons for not doing a major renovation or addition, by gender and age, October 2010
Who Does the Home Renovation Work?
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- Key points
- For basic electric, about half do most tasks alone or with a little help
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- Figure 55: How to get things done around the house—who does the basic electric?, October 2010
- Interior painting a strong DIY activity
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- Figure 56: How to get things done around the house—who does the painting?, October 2010
- Basic plumbing repairs often DIY, bigger projects demand pros
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- Figure 57: How to get things done around the house—who does the plumbing?, October 2010
- DIY activity with floor and wall tasks varies with labor intensity
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- Figure 58: How to get things done around the house—who does the floor and wall tasks?, October 2010
- For heavy-duty building, about half turn to pros
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- Figure 59: How to get things done around the house—who does the more heavy-duty building work? October 2010
Thinking about the Environment
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- Key points
- Vast majority undertake basic resource-saving activities
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- Figure 60: Environmental impact—basic actions/behavior and energy efficient products used, now and planned, October 2010
- More costly eco-friendly improvements embraced only by minority
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- Figure 61: Environmental impact—construction/building installs, now and planned, October 2010
Consumer Rating of Home Improvement Stores
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- Key points
- Home centers top rating for selection, hardware stores for service
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- Figure 62: Rating of DIY stores on stock and staff attributes, October 2010
Brand Usage
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- Key points
- Interior paint brands—usage by age
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- Figure 63: Paint brands used, interior painting, by age, April 2009-June 2010
- Interior paint brands—usage by income
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- Figure 64: Paint brands used, interior painting, by household income, April 2009-June 2010
- Exterior paint brands—usage by age
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- Figure 65: Paint brands used, exterior painting, by age, April 2009-June 2010
- Exterior paint brands—usage by income
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- Figure 66: Paint brands used, exterior painting, by household income, April 2009-June 2010
- Interior/exterior staining brands—usage by age
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- Figure 67: Interior/exterior stain brands used, by age, April 2009-June 2010
- Interior/exterior staining brands—usage by income
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- Figure 68: Interior/exterior stain brands used, by household income, April 2009-June 2010
- Workshop equipment brands—ownership by age
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- Figure 69: Workshop equipment brands owned, by age, April 2009-June 2010
- Workshop equipment brands—ownership by income
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- Figure 70: Workshop equipment brands owned, by household income, April 2009-June 2010
Impact of Race/Hispanic Origin
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- Key points
- Hispanics and Asians show strong interest in DIY
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- Figure 71: Incidence and number of DIY projects done in past 12 months, by race/Hispanic origin, October 2010
- Hispanics spend on a par with whites
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- Figure 72: Spend on home improvements in past 12 months, by race/Hispanic origin, April 2009-June 2010
- Whites and Hispanics do the most remodeling and painting
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- Figure 73: Remodeling, painting/staining done and workshop equipment owned/rented, by race/Hispanic origin, April 2009-June 2010
- Lack of skills most widely cited by blacks
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- Figure 74: Reasons for not doing a major renovation or addition, by race/Hispanic origin and household income, October 2010
- Interior paint brands—usage by race/Hispanic origin
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- Figure 75: Paint brands used, interior painting, by race/Hispanic origin, April 2009-June 2010
- Exterior paint brands—usage by race/Hispanic origin
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- Figure 76: Paint brands used, exterior painting, by race/Hispanic origin, April 2009-June 2010
- Workshop equipment brands—ownership by race/Hispanic origin
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- Figure 77: Workshop equipment brands owned, by race/Hispanic origin, April 2009-June 2010
Cluster Analysis
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- Friendlies
- Demographics
- Characteristics
- Opportunity
- Doers
- Demographics
- Characteristics
- Opportunity
- Hirers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 78: Home improvement clusters, October 2010
- Figure 79: Number of DIY projects done in past 12 months, by home improvement clusters, October 2010
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- Figure 80: Motivations, planning, and paying for doing home improvements, by home improvement clusters, October 2010
- Figure 81: Reasons for not doing a major renovation or addition, by home improvement clusters, October 2010
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- Figure 82: How to get things done around the house—tasks and jobs “done myself/on own,” by home improvement clusters, October 2010
- Figure 83: How to get things done around the house—tasks and jobs “would employ a general handyman to do,” by home improvement clusters, October 2010
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- Figure 84: Environmental impact—basic actions/behavior and energy efficient products used, now and planned, by home improvement clusters, October 2010
- Cluster demographics
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- Figure 85: Home improvement clusters, by gender, October 2010
- Figure 86: Home improvement clusters, by age group, October 2010
- Figure 87: Home improvement clusters, by household income, October 2010
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- Figure 88: Home improvement clusters, by race, October 2010
- Figure 89: Home improvement clusters, by Hispanic origin, October 2010
- Cluster methodology
Custom Consumer Tables
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- Key points
- Aggressive marketing to dads warranted
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- Figure 90: Incidence and number of DIY projects done in past 12 months, by gender and presence of children, October 2010
- Moms more likely to take on projects alone than women without kids
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- Figure 91: Would do projects themselves, by gender and presence of children, October 2010
- Dads seek “green” home improvements, and moms, low-VOC paints
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- Figure 92: Environmental impact—basic actions/behavior and energy efficient products and construction/building installs, now, by gender and presence of children, October 2010
- Dads show highest interest in future “green” behavior, products, and projects
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- Figure 93: Environmental impact—basic actions/behavior and energy efficient products and construction/building installs, planned, by gender and presence of children, October 2010
Appendix—Other Useful Consumer Tables
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- Educational attainment shapes DIY activity
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- Figure 94: Incidence and number of DIY projects done in past 12 months, by level of education, October 2010
- Self-employed show highest level of DIY activity
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- Figure 95: Incidence and number of DIY projects done in past 12 months, by work status, October 2010
- Attitudes and motives vary with urban status
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- Figure 96: Motivations, planning, and paying for doing home improvements, by urban status, October 2010
- Those with high levels of education cite lack of skills as barrier
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- Figure 97: Reasons for not doing a major renovation or addition, by level of education, work status and region, October 2010
- Ratings of DIY stores and staff
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- Figure 98: Rating of DIY stores and staff on stock, and staff attributes, October 2010
Appendix—Trade Associations
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