COVID-19 has changed the way we all do business, from manufacturers to contractors. In a year where we’ve all had to adapt, both to huge swings in demand and in terms of how our services are provided, contractors especially are adjusting to the new realities.

Many factors can affect the home improvement category including overall consumer sentiment, labor supply, the economy and the political climate.

What effect will the administration elected into office in November 2016 have on the home improvement industry? Here are seven current and potential results: 

1. Increased infrastructure spending will be distributed fairly evenly across the U.S. Tax cuts for higher tax brackets could boost the Northeast and West.
2. International trade will be affected by potentially higher tariffs on imports from the renegotiations of existing trade deals.
3. Employment, real incomes and household net worth are projected to rise. As a result, consumer spending will steadily increase.
4. After the election, domestic small business sentiment rose considerably.
5. A slice of the current housing market is at the intersection of labor supply and politics. Housing demand is outpacing supply, and the U.S. is in the middle of a labor shortage. So, new immigration policies could potentially decrease supply further.
6. Starting in January 2018, the statutory corporate income tax rate will be reduced from 35 to 25 percent.
7. The combination of rising prices and wages, the fiscal stimulus and strengthening loan demand will result in higher interest rates.