Exterior Contractors: Stimulated

In the depths of the shock and awe of the financial crisis, Todd Whitworth, CEO of the largest window installation firm in the United States, stood in the lobby of his North Wilksboro, N.C. office, smiling. It was February of 2009 and at that moment just about every remodeling company in the United States was feeling the pinch of lower consumer interest in home improvement. And yet Whitworth was host that day to NASCAR driver John Andretti who would be driving a Window World sponsored vehicle during the coming race season. It was a sponsorship that demonstrated not only how far the company had grown in a little over a decade, but also signaled that the company was bullish for the coming year. Whitworth explained the No. 1 reason for his smile that day was a monthly sales report that showed his same-store sales of windows would be up almost 10 percent in the midst of all of the muddled financial news.

Window World, which was listed as the third largest Nationals firm among all remodeling franchise and dealer holding companies, is experiencing an expanding top line for a number of reasons. First there is the momentum from an innovative business model that offers homeowners a lot more transparency in pricing. And then there was a new tax credit to help close more deals.

“I am a pretty conservative guy,” Whitworth said. “But I love the new stimulus package.”

From the very beginning, most exterior contracting firms realized the benefit of the $1,500 tax credits for new windows and roofing products that are Energy Star rated. It provided just the amount of encouragement and energy to spur the entire exterior sector of the remodeling market during one of its gloomiest hours. Whitworth explained that every sales representative at every Window World dealer went to each meeting armed with the government paperwork required to qualify for the tax credit.

Several of Whitworth’s dealers are listed on this year’s Top 500. The corporate organization was ranked No. 3 on the Top 500 Nationals Firm List following the two largest insurance restoration operations nationally. (In November, Qualified Remodeler will publish the Exterior 200 List, in which the parent Window World company will likely be listed as the No. 1 window installation firm due to a different set of eligibility rules.)

Here is a sampling of the hurdles and opportunities as the top Exterior Contractors see it:

American Exteriors, LLC, Littleton, Colo.
Biggest hurdle: “Stabilizing sales in Q4 and finding lending sources.”
Biggest opportunity: “Acquiring market share from struggling competitors.”

Thermo-Tite Window Systems, Port Chester, N.Y.
Biggest hurdle: “Lead cost, lead cost, lead cost.”
Biggest opportunity: “The tax credit.”

Weather Tight Corp., West Allis, Wis.
Biggest hurdle: “Helping production keep up with steep increase in sales volume, and restructuring management in sales and marketing to allow for future growth.”
Biggest opportunity: “New showroom opened with great success; looking to launch second satellite showroom in 2009.”

K-Designers, Gold River, Calif.
Biggest hurdle: “Third party financing for our remodeling projects.”
Biggest opportunity: “Introducing new products.”

Brothers Home Improvement, Inc., Roseville, Calif.
Biggest hurdle: “Restructuring the company to accommodate market conditions.”
Biggest opportunity: “Revisit company methods and procedures, and fine-tune operations.”

Top 500 Methodology

Qualified Remodeler’s annual Top 500 rankings are based on dollar volume of remodeling activity. The Top 500 is open to all remodeling contractors. Invitations to apply for the list appear in the magazine and on its Web site. Additionally, direct mail and e-mail are used to promote applications.

The deadline is in early May. However, previous applicants to the list, as well as large remodeling companies that qualify to be on the list, often receive e-mails and phone calls from staff encouraging them to submit their applications after that deadline, if they have not done so.