We all are familiar with the "Cash for Clunkers Program" that has been driving consumers to our auto showrooms.
It has done well in fact; the Ford Ranger Pick-up Factory in St.
Paul, Minnesota just announced it is bringing workers back to a full-time schedule so they can replenish inventory.
Cash for Clunkers increased their sales by 64%.
So if this worked well for autos why not offer a similar program for homes that need remodeling? Let's face it most of us live in a home that is probably in need of some updating.
If it has been more than 10 years you probably are noticing that the kitchen cabinets look more dreary or out of style, or the flooring does not have the luster it once did and its more challenging to clean.
There have been incentives for replacing major mechanical items (i.
e.
Water heater, furnace or a/c) or windows but what about more cosmetic items like cabinetry or floor coverings.
Here in mid-August, there is potential relief for the consumer.
The idea is to give the consumer a great reason to make improvements to their homes and this would then naturally increase the activity for manufacturers, retailers and contractors alike.
On the famous Capitol Hill is a proposed bill called "Home Improvements Revitalize the Economy Act" also known as HIRE.
Currently there is over 13 industry related trade organizations encouraging the bill to be passed.
If it is approved this would re-ignite a whole assortment of jobs from the sales staff to contractors to the assembly lines and transportation teams.
The idea behind HIRE is to provide consumers with an incentive ($2,000 single/$4,000 joint) for purchasing products related to home improvement that meet and exceed environmental standards.
These standards are recognizable under LEED, NAHB, SFI/FSC, Green Globes and KCMA's Environmental Stewardship Program and would be easy for the consumer to identify once marketing efforts are underway.
It is probable that the home furnishings business may also be able to be part of this HIRE program.
The purchases would also provide the retailer and contractors with credits as well.
Basically, this program would give the remodeling industry a great shot in the arm and improve our housing stock and home values.
It is no surprise that these past few years have created the worst real estate market our country has ever experienced.
As buyers purchase vacant and foreclosure properties many of the needed improvements are put on hold because lines of credit have been difficult obtain.
Or they use retail credit cards where interest rates are extremely high and most cannot justify buying new bathroom or kitchen cabinetry for example with those kinds of funds.
Those of us who have owned our homes for some time have been taking a "wait it out" position.
Even though they tell us the market appears to be leveling off slightly from the downfall we have been experiencing, the pace of hiring and job replenishment is still low.
Most expect the job market not to improve for another 6 to 12 months.
It is a vicious cycle, job loss or fear of a possible loss means homeowners hold onto their hard earned cash.
If we're not spending money at the retailer or with the contractor then no sells their products which means the factory has to also reduce hours or lay employees off.
Similar to the Cash for Clunkers we can all benefit.
With cars, consumers were able to get rid of high maintenance, low gas mileage vehicles and in return have a more environmental friendly vehicle that is more safe for both the owner and others sharing the road.
The HIRE program would uplift the homeowner's attitude, improve the homes market value and make cleaning easier.
It would also provide jobs once again for those in the remodeling industries plus...
the added bonus is improved indoor air quality of our homes.
Many products today have omitted VOC's, formaldehydes and other harmful chemicals.
It has been proven that many illnesses are caused by overexposure to these chemicals, poor ventilation and lack of good maintenance which allows mold and pests to contaminate our homes.
To learn more about indoor air quality go to: http://www.
epa.
gov/iaq/ia-intro.
html
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