HOME IMPROVEMENT BOOM GOOD NEWS FOR RETAILERS

Sales at furniture and home furnishing stores are booming.

Sales at hardware and home improvement stores are strong.

"It's a great year for most retailers," says Gary Wright, president of G.A. Wright, a retail consulting and direct marketing business based in Denver, Colo.

Wright keeps tabs on retail trends.

"Hardware and home improvements sales are expected to remain strong for a number of years," said Wright.

He explains his reasoning:

"A large number of homes were built in the 1970s and 1980s to accommodate the baby boon generation," he said. "These homes are 10 to 30 years of age and are increasingly in need of repair."

This sector of the retail industry might also benefit from the growing population of retirees who have the time to make home improvements.

Some 31 percent of consumers report they plan to make some form of home improvement this year -- ranging from interior decorating to a complete room renovation and remodeling project.

The average home improvement budget this year is about $2,600, but many projects will range to $5,000 and more.

Home improvement is a big-time pastime for Americans, according to a recent American Express Retail Index, which monitors consumer spending, based on an annual home improvement survey of consumer which include single-family owners and apartment dwellers.

Nationwide, two-thirds of the consumers plan "do-it-yourself" projects, with 19 percent saying they will spend up to $500.

But, 16 percent of those planning improvements are budgeting $5,000 or more for their projects, which range from complete room remodeling to an expansion of the house itself.

Consumers continue to drive high volumes for the $134.5 billion home improvement industry, which is expected to reach $168.7 billion next year.

A leading trend fueling steady growth for the retailers is the growing number of do-it-yourselfers, but construction and home-design contractors are also getting their share of home improvement projects.

The home of the 1990s is taking on multifunctional uses. Consumers are making their homes a focal point and are designing and decorating for optimum use and personal satisfaction.

"Personal tastes" heads the list of reasons for many home improvement projects, with living room remodeling as a top priority. A survey indicates almost half (42 percent) say a change in personal taste is their primary motivation for making improvements.

Jim Blakemore, a Cape Girardeau businessman involved in home improvements, says he is swamped with small and large jobs.

Blakemore agrees many people want to put a personal touch on their homes. "We do a lot of remodeling on kitchens and bathrooms, along with repainting and wallpapering," he said.

More than a third of those planning projects say they plan to re-furnish at least one room this year.

More than a third of the building permits issued by the Cape Girardeau City Inspection-Service Division during the first six months of 1999 has been for home improvement projects -- remodeling, carports and garages, swimming pools, and sheds and decks.

-- Residential alterations, additions, 35 permits, in the amount of $437,908.

-- Garages and carports, 15 permits, $170,000.

-- Sheds and decks, 17 permits, $45,515.

-- Swimming pools, 10, permits, $172,000.

Total: 77 permits, valued at $826,223.

The total permits represent more than a third of the total 194 permits issued through June 30.

Construction in the city, down during the first quarter, picked up some during the second quarter but is still less than last year's totals.

During the first three months, the city issued only 74 permits, valued at $5,315,552 because of inclement weather.

During April, May and June, 120 permits were issued, valued at $12.3 million.

Fueling the second-quarter statistics were a couple of million-dollar-plus projects and three projects in the $800,000 range.

There were two school projects -- $1.6 million for Alma Schrader and $1 million at Clippard Elementary. Other notable permits were $890,000 for St. Francis Medical Center; $830,000 for a new Circuit City structure; and $800,000 Physicians Alliance building.

Totals during the first six months show 194 permits in the amount of $17,588,241, still down from the 261 permits in the amount of $21,252,732 during the same period a year ago.

There were 41 permits for single-family housing, in the amount of $5,744,465 and 15 permits for multi-family buildings (15 units), in the amount of $1.8 million.

This brings up increased furniture and home furnishings sales.

Harry S. Dent, author of "The Roaring 2000s," says the average age at which people move up to their largest and most expensive homes is 43. Then they spend about three years, to age 46, furnishing their home, said Dent.

The baby boon generation, between 1946 and 1964, started to hit age 43 in 1989, and the rest will reach age 46 by 2010. The greatest number of births per year occurred between 1958 and 1963. It follows that peak spending for furniture will occur between 2001 and 2009, which suggest there should be a number of years of good business for home furnishing retailers.

There's more good news for home furnishings.

Many people start buying a "starter home" between the ages of 33 and 34, and people buying their first home need complete furnishings.