Industry Overview: Outdoor Living

By Bruce Fordyce

According to Chris Mordi of Kalamazoo Outdoor Gourmet, ''The economy was the biggest challenge facing the outdoor living industry. However, 2010 was Kalamazoo's biggest sales year ever, and we predict continued growth opportunity at the high-end of outdoor living.'' Shown here is a Kalamazoo Outdoor Gourmet kitchen installation.

Americans have always ''lived'' outdoors, but the concept of ''outdoor living'' is a relatively new and rapidly growing lifestyle phenomenon. The entire ''leisure lifestyle'' industry is now a $6.2 billion industry. What is outdoor living? It no longer means just a few folding chairs, a picnic table, and a hibachi. It means bringing all the comforts of indoor living to the outdoors.

According to the U.S. Census Bureau, $50 million dollars were spent towards outdoor living areas. According to The National Association of Home Builders: ''An outdoor kitchen addition can increase the value of your home, and bring upwards of 130 percent return on initial investment!'' This is a powerful marketing device landscape contractors can state to potential clients.

Danver's Larry Smith reported: ''The 'leisure industry' is growing 15 to 17 percent annually. During the first half of 2010, we noticed a shift in the design of outdoor kitchens, a shift from the traditional BBQ island or masonry kitchen island to modular cabinets inside a three-sided stone surround consisting of stone, brick, framed stucco structure or some other material popular in that area of the country.'' Shown here is a Danver outdoor kitchen.

The Depressed Housing Market And Outdoor Living

As homeowners forgo buying new homes due to the lackluster economy, they're investing instead in creative ways to enhance their yards. ''By 2015 we expect most homes to have some kind of outdoor feature, even in colder parts of the country,'' says Gopal Ahluwalia, VP of Research for the National Association of Home Builders (NAHB).

According to the Wall Street journal: Today, people feel that perhaps the housing market has hit bottom or is getting close to it, and projects they've put off are getting another look, says Abbe Will, research assistant at Harvard University's Joint Center for Housing Studies.

Remodeling expenditures are forecast to rise at an inflation-adjusted annual average of 3.5 percent between 2010 and 2015, according to a recent report from Harvard's Joint Center.

Most investment in home improvements over the past couple of years has focused on the necessities. People replaced an air-conditioning unit if it went out, for example. That's beginning to change, though homeowners remain more cautious about overspending than they once were.

''Clients who we were talking to two years ago have called up and said 'We're ready to put this back on the front burner and move forward,''' Zuch reports.

This louvered patio roof rotates from completely closed to 155 degrees open by use of a small motor. The system comes with a portable remote control, a timer control system, and a rain sensor that closes the louvers during periods of bad weather. It is offered by Vergola.

These Living Wall Planters are used to accent outdoor spaces. The company predicts that in the future, homeowners will use such walls to grow herbs and vegetables. They are offered by Bright Green, LLC.

What's Hot In Outdoor Living

We polled a host of manufacturers to get their take on the industry, as well as what is hot in 2011 and how the industry can get through these difficult times.

Steve Ostrowski of ShadeFX stated: ''From our perspective 'Shade Pergolas' are red hot. We doubled our sales, 2009 to 2010 and plan to double them again in 2011. We see strong growth for The Outdoor Living Lifestyle industry.''

Joe Rider, President of Stone Age Manufacturing, Inc. added, ''The outdoor living industry held its own in 2010, in spite of the economy and housing market. We see outdoor living areas as the true bright spot in the construction industry for 2011. We see outdoor living continuing to grow in the future and we see the outdoor room becoming a permanent part of the home, making this industry not just a trend, but a lifestyle.''

Stone 2 Furniture specializes in stone furniture, including their DeepSeating Set, that consist of two chairs and a table. The most prominent color is the Idaho Gray Flagstone.

Jessica Hall of Blue Ox Advertising for The Outdoor Greatroom Company declared: ''Gas fire pit tables are a hot item today. Consumers like the idea of gathering around the fire as opposed to sitting in front of it.''

Lynn Stearn, SunBriteTV's Vice President of Sales and Marketing observed: ''In our information-rich culture, we are finding that where people go, technology will follow. As homeowners are creating outdoor living spaces, outdoor audio/video technology is becoming an integral part of the landscape design plans. The demand for our TVs has grown exponentially.''

This retractable canopy system is designed to attach to pergolas and simple overhead frames of all types. It uses a monorail drive track that needs no alignment on installation and will never jam or bind even if the frame goes out-of-square over time. It is offered by ShadeFX.

According to Jill Cranford of Stone 2 Furniture: ''We see consumers doing more mindful consumption with sustainability being an important feature when purchasing outdoor furniture. Consumers are not looking to put a lot of money into furniture that is going to have to be replaced after a few years.''

Sheila Boyce, President of DeepStream Designs, Inc. sees ''continued interest in sustainable design and recycled materials (as well as) a desire for green space in the midst of every day city life'' as a hot trend over the next couple of years.

Danver's Larry Smith reported, ''The 'leisure industry' is growing 15 to 17 percent annually. During the first half of 2010, we noticed a shift in the design of outdoor kitchens. The transition is a shift from the traditional BBQ island or masonry kitchen island to modular cabinets inside a 3-sided stone surround consisting of stone, brick, framed stucco structure or some other material popular in that area of the country.''

Shown here is the Raw Urth Napa fire feature. It can run on either a propane or natural gas or can be used as a wood burning unit.

Industry Challenges

As to what constitutes the biggest challenge facing the outdoor living industry today, Scott commented: ''Maintaining the demand for quality products when many clients are trying to save money. But we (the industry) all need to look long-term. We all know that classic design and craftsmanship will stand the test of time.''

Ostrowski added: ''The retail side of the business is not connected to the design-build side of the business. This has to change if growth is to accelerate. Homeowners are forced to bridge the gap between a design-build contractor who sells only half of the big picture.''

Rider advised: ''The biggest challenge I see in the outdoor living industry is the health of the economy and unnecessary government regulations concerning the EPA and emissions control. Also challenging, is educating the designer/dealer/contractor/homeowner as a whole about the importance of choosing quality products designed and intended for outdoor use that offer versatility, longevity, and value, while providing homeowners with the best possible results for their investment.''

This Kalamazoo outdoor kitchen is located in Boca Raton, Florida and was designed by Daniel Lowery, APLD, Queen Anne Gardens.

Hall added: ''Because outdoor rooms are typically considered discretionary spending, it is important that the economy and consumer confidence continue moving in the right direction.''

Stearn concluded: ''The economic downturn has taken its toll on the market segments that don't involve ''necessity.'' As the economy rebounds, the challenge is to enhance projects with utility-rich products and features that add value and function to their customers' lifestyle.''

Smith added, ''The biggest challenge facing the outdoor living industry today is a lack of knowledge about outdoor living and what the consumer is looking for in this very fast paced and growing marketplace.''

Conclusion