Virtually a household name in New Mexico due to prolific marketing, Renewal by Andersen saw its window replacement business roughly triple over the past five years, while maintaining a top A+ rating from the Better Business Bureau.
But the company behind the
success of the Renewal by Andersen brand in the state, Albuquerque-based DreamStyle Remodeling, came into its own last fall after it opened a stylishly designed, $4.5 million showroom and office at 1460 N. Renaissance NE.
“There’s about 300,000 remodelers in the country,” said Larry A. Chavez, who founded the company about 25 years ago. “We’d be in the top 50.”
Dreamstyle’s success with the Andersen franchise illustrates a trend in remodeling of specialty replacement companies achieving large-scale operations faster than full-service remodelers, according to a report titled “Emerging Trends in the Remodeling Market” by the Joint Center for Housing Studies of Harvard University.
“Specialty firms have pursued scale by focusing heavily on lead generation and sales and marketing, and by integrating with manufacturers of their core product lines,” the report says. “Specialization and vertical integration give companies substantial competitive advantages and provide significant value.”
Chavez is no stranger to Harvard’s Joint Center for Housing Studies, where he serves on the more-than-50-member steering committee for the Remodeling Futures Program, which produces the Leading Indicator of Remodeling Activity. The LIRA is designed to estimate national homeowner spending on improvements.
Chavez’s company was marketing Four Seasons Sunrooms and Cal Spas when, in 2007, it was awarded the statewide franchise from Cottage Grove, Minn.-based Renewal by Andersen. Founded in 1995, the corporation’s business model is to market, manufacture and install premium windows and doors for the replacement market.
The strength of the brand name was the reason why Chavez said he marketed the products directly as Renewal by Andersen, rather than through his own company’s banner.
The timing of DreamStyle’s Andersen franchise virtually coincided with the Great Recession, but the company still managed incremental growth in sales and staff in 2008-10, according to information provided by the company. After a dip in business in 2011, the company took off.
Sales revenue jumped by 55 percent to $21 million in 2012, while the staff grew from 110 to 145 employees. Dreamstyle finished 2014 with $34 million in sales and 260 employees. The revenue projection for 2015 is $55 million, which will include an additional yet-to-be-announced expansion.
The company has expanded to include exclusive Andersen franchise territories in San Diego, Tucson and northern Arizona.