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Miles Garden Carpentry
Market Analysis Summary
The city has been growing by 15% annually for the past 10 years. With the population now at 1. 3 million, the new construction in the Old Town section of the city is valued at $400 million in home sales next year alone.
Currently, Miles Garden Carpentry is a subcontractor with Bentwood Custom Homes, Greenridge Homes, and Landmark Homes to provide garden carpentry services to their new homes in the area. From this base, Miles Garden Carpentry will market its services to homeowners in the Old Town area.
New construction represents an important customer group for Miles Garden Carpentry. The other significant customer group is comprised of the existing home owners in the Old Town area. The revitalization of the area has generated increase remodeling of existing homes. Last year, remodeling projects were up 20% over the previous year and accounted for $15 million paid for remodeling services in the area.
4.1 Market Segmentation
Miles Garden Carpentry will focus on two significant customer groups:
- New home construction.
- Remodeling projects.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| New Home Construction | 7% | 2,000 | 2,140 | 2,290 | 2,450 | 2,622 | 7.00% |
| Remodeling Projects | 5% | 3,000 | 3,150 | 3,308 | 3,473 | 3,647 | 5.00% |
| Total | 5.82% | 5,000 | 5,290 | 5,598 | 5,923 | 6,269 | 5.82% |
4.2 Service Business Analysis
The market for garden carpentry contracting services is very fragmented and specialized. Among these, only a few are competing for work in the Old Town area. These are small businesses with less than two full-time employees. Miles Garden Carpentry’s current niche is its strong relationship with Bentwood Custom Homes, Greenridge Homes, and Landmark Homes. But this will not be sufficient for growth in a competitive market.
By focusing on creative integrated wooden decking schemes that can be manufactured to fit any space, Miles Garden Carpentry reduces its direct competitors to two small deck construction firms. Neither competitor has Joan’s relationship with the area’s home builders.