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Staying Nimble
Scott Gittleman is changing with the times, and even forging ahead.
Steve Raphael
Special to the Jewish News
G
ittleman Construction is retrofitting its
business model as the 31-year-old
remodeling and home improvement
company fights to survive in this chal-
lenging economic environment.
"I changed my plan when the business
changed," says company founder Scott
Gittleman. "Our company is busy and busier than
we were in 2007. Now we are doing more jobs
with fewer people, without any loss in quality."
Projects are smaller, additions fewer and inte-
rior renovations more numerous. Up until the
middle of last year, the company was doing a lot
more additions than it is now, he says.
Gittleman is building a kitchen/bathroom show-
room in company offices in Farmington Hills, ren-
ovating a cabinetry showroom. This year, the firm
began selling the products of upscale manufac-
turers Medallion Cabinets and Pennville Custom
Cabinetry. The firm also was recently certified as
a green builder by the National Association of
Home Builders.
Gittleman's work situation is hardly different
than his peers. A 2009 study by Harvard's Joint
Center for Housing Studies Reductions found that
homeowner improvement spending will decline 12
percent this year.
"The weak housing market and the national
economic recession continue to take their toll on
remodeling," explains Nicolas P. Retsinas, director
of the Joint Center. "It looks increasing unlikely
that this industry will recover until consumers
have more confidence in the housing market."
As an indicator of remodeling activity, Harvard
measures and projects only a portion of the U.S.
home improvement market, namely spending by
homeowners on property improvements.
The remodeling industry can still point to small
pockets of hope. ServiceMagic's first quarter
2009 home and remodeling repair survey found
that "homeowners are feeling more confident
about the economy this year, compared to last,"
says Craig Smith, chief executive. "People are not
going bigger and better, but improving what they
have more cost effectively."
Servicemagic.com is a Web site that connects
homeowners to prescreened contractors.
The survey revealed that more than half of the
homeowners queried last year who put off home
improvement projects are going forward this year.
Gittleman may have completed the mother of
all home improvement projects last fall. "I turned
a small log cabin into a great looking lake house,"
he beamed. The project belongs to Joyce Keller
Michael Walch, Joyce Keller and Scott Gittleman stand inside the former "log cabin."
STAYING NIMBLE on page B6
June 18 2009
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