The Farnsworth Group

Thanks to National Hardware Show, Charlotte Yzerman and team for hosting The Farnsworth Group to join a panel of industry experts Craig Webb and Luca Gaudenzi. Craig, Luca, and I discussed DIY trends in the US and Europe. No way to avoid talking tariffs and uncertain consumer confidence that will/is impact Home Improvement spending. - EU market in total is expected to be down this year, though Spain and Italy are growing. - Sustainability in Europe continues to outpace the U.S. perhaps due to a larger population in Europe having different motivators and beliefs on the topic. Water conservation because it's an important resource to protect, and energy efficiency because power costs have greatly increased. There are also more rules in place that put added emphasis on buying sustainable products. - Both markets are being impacted by great uncertainty of tariffs and anticipated cost increases. This may be reflected in a better first half than second half of the year as it may take a few months for price increases to work through distribution. Plus, some manufacturers and suppliers are building inventory pre-tariff to reduce their risk. - Labor remains an important, long-standing challenge that may get worse once more homeowners in the U.S. move forward with remodeling projects they've been waiting to do. - Merchandising was also discussed with Europe more readily adopting electronic price tags on shelf. Allowing for instant price updates and additional product info. Curious if/when the U.S. will follow suite. And great to see our friend Marine Sargsyan from Houzz share some insights on project trends. As well as Dan Tratensek from North American Hardware and Paint Association (NHPA) and Jim Rivas from Tyndale Advisors, LLC talk in more detail about merchandising challenges and solutions within the hardware channel. #DIY #homeimprovement #hardware

Incredible week at NAHB International Builders' Show and at KBIS. Our team collectively met with over 70 building product manufacturers and suppliers. The Farnsworth Group has been attending these shows for over 25 years, and this may have been the largest crowd we've seen. Also, a big thank you to our clients and colleagues for insightful conversations, laughs, and opportunities to share our research through a variety of podcasts, panels, and presentations - TOTO USA, ASSA ABLOY Group, Westlake Royal Building Products, The Association of Professional Builders, RoofersCoffeeShop? and many more! Here were some takeaways from a packed week in Las Vegas. - Tariffs, costs, inflation came up in almost every conversation. Many are already taking action or at least making contingency plans that involve pricing, product mix, or purchasing. - Labor was also a hot topic, and one we continue to believe will become a larger issue once demand returns. - "Uncertainty" is the result of a lot of rhetoric and unknowns. It's being prolonged, and is causing most organizations to reduce their initial forecasts for 2025. Many organizations are now expected a flat year, where as just a few months ago they might have expected 3-5% growth. - Builder feedback had a lot to do with manufacturers and suppliers providing product options and availability that allowed them to meet client budgets. Budget sensitivity, driven by homeowners and home buyers, will remain through the year and likely beyond. - Technology continues to grow. These tools are becoming easier to use, embedded in processes, creating efficiencies builders crave, and support builders need. - Design trends saw a lot of warm, earthy tones. Textures were also present on a range of categories. - Resilience, durability, sustainability was also a theme in marketing and positioning of products. We continue to see many brands missing an opportunity to effectively communicate how their product can impact labor efficiency/costs. Great to see so many friend, colleagues, and clients! Adam Mowrey, Taylor Pence, Rachel Sedgwick, Karen Barnes, Cy Gourlay, Dave King #builders, #buildingproducts, #marketresearch, #design

Outstanding week at National Association of Home Builders' IBS/KBIS. It was a jam packed week catching up with friends and colleagues. It's been a fantastic reminder how lucky I am to work in the construction industry! Our industry has challenges but I come away from last week feeling positive about the future of building and home improvement. Why? Here are a few reasons that build off each other... ??Everyone I met with has housing affordability on their mind and are working diligently on how they can be a part of the solution. ??All manufacturers I spoke with understand and are working on product innovation and channel solutions to mitigate our skilled labor challenges. ?? Partnerships - lots of collaboration between materials and tech to improve efficiency, performance, health, and safety of our built environments. We are all communicating and working together. It's a beautiful thing! #building #remodeling #IBS2025 #research #construction

What a whirlwind week as I experienced my first NAHB International Builders' Show and KBIS! When I was first introduced to KBIS by some lovely contacts at NKBA last year (thank you and congrats Tricia Zach and team!) I had no idea?I would soon be fully immersing myself in the industry?and the show with?The Farnsworth Group just a few months later. It was amazing to get to understand the breadth and diversity of the industry through the sheer size of the show, but even better to get to meet so many clients and contacts face-to-face.?What a welcoming, friendly, and enthusiastic group - I had such a blast seeing you all! In addition to seeing many category trends pop through (hello large-format tile, knurled hardware, and colored sinks), here's a few insights I heard across the industry: - Impending tariffs and labor shortages are continuing to split the market between the homeowner 'haves' and 'have nots'. It's more important than ever to have a strong portfolio management strategy to take advantage of unique segments with distinct purchase considerations. - Innovation is centering more and more on efficiency, ease of installation, and easy maintenance/repair, even during the installation process. Products with built-in forgiveness will ensure loyalty from less skilled pros who still want to avoid dreaded call-backs. - Durability continues to be a critical focus, as it applies unilaterally across all key segments. For luxury homeowners as a core element of quality, for DIY purchasers as an indicator of value, and for builders concerned about code and insurance policy changes due to severe weather events. I'm excited to dig into these topics even further to ensure our client partners are optimized to increase market share in what might be a flatter-than-hoped 2025. Thanks to Grant Farnsworth, Adam Mowrey, Taylor Pence, Cy Gourlay, and Dave King for making my?first IBS/KBIS a success!

Such a terrific week at NAHB International Builders' Show and KBIS. It was quite a joy to connect with friends and clients at the show and to see a new level of enjoyment of the research we are doing for many in the industry. We had a great team at the show and had a great time with them. Some takeaways that I had from the show were: -The strong agreement across all the manufacturers I spoke to about the lack of labor and expected labor shortages as the year continues. -Tariffs or fear of tariffs causing manufacturers to have a plan B and plan C depending on what transpires. -The pursuit of pro business and learning how to do it well cannot be sidelined even if 2025 turns out to be a softer growth year. Manufacturers are itching to better understand how best to engage and influence pros so that when consumer/pro confidence rebounds manufacturers will be ready to meet demand. Grant Farnsworth Adam Mowrey Karen Barnes Cy Gourlay Rachel Sedgwick Dave King #builders, #buildingproducts, #marketresearch, #design

A great couple days at a very busy ASHRAE's AHR Expo 2025. ?? Big takeaway...the advancement (increased efficiency in colder climates AND incorporating technology) of and increased competition in the residential heat pump category. Some really good messaging and booth experiences by Midea Group , Samsung HVAC America , and LG HVAC Solutions Global to help dispel the many myths around heat pumps. That said, there is still a long road to hoe when it comes to educating and training HVAC pros and homeowners to improve adoption. Manufacturers will need to explore what is known/unknown, who is driving or detracting from interest and selection, and why. Lastly, really cool booth signage from our friends Shurtape Technologies, LLC #ashrae #ahr2025 #hvac

Impressive Orgill dealer market last week/weekend in New Orleans. Thanks to Boyden Moore, Greg Stine and the Orgill team for having The Farnsworth Group present and participate throughout the week. And a thanks to Jim Rivas and Tyndale Advisors, LLC for a wonderful event bringing dealers from across the country together. It's always impactful hearing directly from those interacting daily with customers and manufacturers. Through our conversations with dealers there were themes that align with much of our research. Many topics revolve around increasing competition and price pressures to earn the consumers' business. Dealers must address increasing digital expectations while also addressing budget constraints of many homeowners or contractors. This put emphasis on a strength of dealers by winning business through excellent service/support as well as the ability to be more curated or nimble with product offerings that align with local markets. We continue to see prolonged uncertainty in consumer confidence. While this persists, expect a return to spending and increased home improvement activity to be delayed. Keeping budgets top of mind for many homeowners as they look to find solutions that fit their needs. Brad Farnsworth, Jim Robisch, John Sieggreen, Dan Tratensek, Barry Friedman #homeimprovement #hardware #marketresearch

A terrific time at International Roofing Expo (IRE). Great to see the highest attendance in its history. Some really great booths that showcased installation methods--these booths drew a lot of attraction from pros attending the show. With a large focus of the show being on the major roofing brands, it was interesting to see a lack of interactive booths for the ancillary products like sealants and fasteners. These pros were loving live demonstrations, and the more these ancillary product categories can lean into that, the better. #roofing #buildingproducts #marketresearch

Great week at International Roofing Expo (IRE). Thanks to Informa Markets, Rick Strachan, Kevin Thornton, Richard Russo, and the entire team for having The Farnsworth Group present and sponsor this week. Here were some takeaways this week. - This is a growing event, and represents an opportunity for any manufacturer looking to connect with exterior trades. There is a high percentage of roofing companies that also install windows, siding, or other exterior products. I was surprised to see only a few siding, insulation, window brands represented. For those that were there, great decision! - Weather resistance and durability were a constant theme across many brands. Showcasing products abilities to resist wind, hail, water damage. - Metals and concrete materials that imitate the look of more natural elements. Again speaking to durability through material, while achieving a clay or asphalt look. - The lack of brands messaging around ease of install, speed of install, reduced labor needs, or any other ways their products can increase contractor efficiency. We remain bullish that labor will continue to be an increasing challenge once there is even a modest return to building and home improvement activity. Building product manufacturers that focus on product development and market benefits of labor efficiencies may find added interest in their products. #roofing #buildingproducts #marketresearch

The Farnsworth Group was honored to present at this year's Builders FirstSource national event. We shared new research we conducted on the new home buyer's sentiment and new home buyer experience. This research was shared with hundreds of home builders. While most home builders we spoke with are optimistic about their business opportunities in 2025, there are some themes we discussed as a result of our research among recent buyers of new homes. Home Buyers are budget sensitive and need affirmation - Consumer confidence is trending up, but likely to remain uncertain for much of 2025. They are putting a lot of thought into how, where they spend, and want to need confidence when they buy. - Home buying sentiment is at a 10+ year low. - Financial concerns remain the the biggest concern among homeowners. - Yet, many homeowner express strong intent in wanting to invest in the home. Home Builders must provide a personal process with digital resources. - We surveyed owners that purchased a new home last year, 30% said it was a 6+ month process. - Better price/better value was the #1 reason they purchased new instead of existing. There is a unique pattern in the market with parity between new and existing medium home values. A big opportunity for new builds. - Real estate agents remain a key influencer. - New home buyers we surveyed made it clear the process of finding information they need, when they need it, must be easier. Thanks to the Builders FirstSource team, Billy Stutz, MBA for a wonderful event, and our colleagues Venveo, Beth?? PopNikolov, Zach Williams for provided additional digital marketing insights to help builders action against our research findings. #homebuilding #homeowners #builders