Renovation grows as new building falls

REDUCING OVERHEAD: Dave Dansereau operates his Woonsocket Awning Co. under the mantra of “all awnings are custom-made by owner on premises.” A focus on energy efficiency, as well as a sluggish economy, have helped his business. / PBN PHOTO/BRIAN MCDONALD
REDUCING OVERHEAD: Dave Dansereau operates his Woonsocket Awning Co. under the mantra of “all awnings are custom-made by owner on premises.” A focus on energy efficiency, as well as a sluggish economy, have helped his business. / PBN PHOTO/BRIAN MCDONALD

Rhode Island’s decimated residential construction industry has three small pockets of activity, according to Rhode Island Builders Association Executive Director John Marcantonio.
“A good chunk of new construction is in high-end luxury homes on the water, or in other areas, where cost is no issue,” said Marcantonio. “Another portion of the new units are subsidized, affordable housing.”
A third segment of construction – remodeling – is providing some work for small builders and contractors willing to grab small and medium-sized projects.
“In the last six to eight months I’m hearing from remodelers and small builders that work has picked up for them,” Marcantonio said. “We have a bunch of remodelers in our group, and I know sometimes they can’t make a meeting because they’re working. So that’s a good sign.”
The dramatic decline in new residential housing units over many years has put Rhode Island builders in a state of limbo that’s cast a pall over the industry in the Ocean State, he said.
“There is literally no new home supply being built. … The cost of land, local zoning and density restrictions, wetlands, stormwater runoff, impact fees for school and services – all this has created the perfect storm of inactivity,” said Marcantonio.
The housing market is picking up by varying degrees in regions across the United States as the economy shows signs of recovery from the Great Recession.
“Rhode Island is different from the rest of country,” said Marcantonio. “It’s been a downward slope since what we call, in our industry, the depression in 2007. It’s so dramatically off from where it was.”
From 2,639 single-family building permits issued in 1999, the number of permits declined to 1,458 in 2007 and went down to 682 units in 2012, according to data from RIBA.
For the first and second quarters of 2013, a total of 319 single-family building permits were issued.
The lack of new housing leaves the Rhode Island landscape dotted with an abundance of older homes – which are, naturally, often in need of repair or upgrading.
That’s one bright spot for remodelers and small builders – at least those who are left standing. “I think people are starting to put money into their existing homes, when they feel their finances are stabilizing a bit. They’re doing kitchen and bath remodeling and small additions,” said Marcantonio.
The upgrades range from installing awnings to save energy and create outdoor ambiance for relaxing or entertaining to redoing interiors to create first-floor master suites in anticipation of baby boomers’ changes in mobility.
“For the last five years or so, there’s a trend to renovate an existing home or even buying and renovating, because people can’t find what they want,” said Matt Davitt, president of Davitt Design/Build in South Kingstown. “The inventory is getting lower and lower, and people come in and weigh whether to renovate or buy. Sometimes they might be living in a place for 20 years, and they just can’t find what they want, so they decide to make the place they have what they want.”
As Rhode Island homeowners look ahead, what they want includes what they expect they’ll need.
“A lot of homeowners are creating a master suite downstairs and leaving the upstairs for guests,” said Davitt, whose firm has been in business for 31 years and works largely with the high-end market in East Greenwich, Barrington, the East Side of Providence and coastal areas.
Kitchen remodels are strong, as always, and considered an investment in the property.
Davitt Design/Build also does a lot of construction of new homes, especially coastal homes, and has many clients who are knocking down small cottages and building new luxury residences. These are sometimes second homes for owners in New York or Connecticut.
The company is growing along with the demand, said Davitt.
“We’ve probably put on five or six people in the past three years,” he said. That’s brought the company up to eight employees in the office and another seven in the field.
On the other hand, Dave Dansereau could grow his Woonsocket Awning Co., since business has picked up steadily for the past couple of years.
But he prefers to go solo in the design, production and installation of his awnings. He does all the work himself, from making frames to sewing, cutting, installing and taking the down the fabric awnings, as the seasons require. The company website states Dansereau’s business outlook: “All awnings are custom-made by owner on premises. No subcontracting work sent outside these doors.”
Rhode Island’s sluggish economy and the increasing emphasis on energy efficiency have combined to boost his business.
Dansereau emphasizes the energy-saving advantages of awnings on his website, where he has a section called Join the Green Team. The website includes information from a 2012 study by the Professional Awning Manufacturers Association done in 50 cities across the United States. The study found that awnings can reduce annual cooling costs by more than 52 percent, compared to homes with completely unshaded windows.
And on a rainy day, with stationary awnings, a homeowner can sit under it and still enjoy being outdoors, he said.
Renovation began as a one-man business for Sam Brusco of Cranston, who started doing handyman jobs 12 years ago.
“People kept asking me to do bigger and bigger jobs, and at some point, I was doing five-figure jobs,” said Brusco.
Those bigger jobs are now done by his company, Brusco Design & Renovation, with subcontractors.
“Within the past month, my phone has started ringing off the hook,” said Brusco. “I think this year homeowners want to go ahead with improving their homes,” he said.
One frequent request he gets is for a “deep energy retrofit” to analyze the entire house and make substantial improvements for energy efficiency, said Brusco.
With his business steady and continuing to pick up, Brusco credits the increase to the fact that he’s a small, nimble business with low overhead and a wide range of offerings.
Overall, said Brusco, he’s seeing mid-sized and larger construction companies continuing to struggle in Rhode Island.
“From the people I know, most contractors had a staff a few years ago and now most are down to half of what they used to be, if they have any direct staff at all,” said Brucso.”A lot of guys are just working on their own.” •

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