Shed Sales at record lows

Posted on : July 2, 2011

Shedeye has talked extensively to people within the Shed Industry and it is unanimous that the shed industry is facing some tough times.

There are geographical pockets that are doing well, this is however the exception to the rule.

Shedeye has a theory that shed sales follow car sales reasonably closely, as both sheds and cars represent large discretionary spending for clients.  Sheds represent purchases that can easily be put off, and given that Australians are paying back debt rather than making purchases, sheds are suffering as they are deemed a big purchase in these uncertain times.

Take a look as these ABS figures for Car Sales.

Short Term Car Sales

 

The above graph shows that the number of new car sales in the month from April 2011 to May 2011 alone has decreased by approximately 7.6% (Seasonally Adjusted).  This is a whopping drop.

The next graph is showing an unfortunate trend.

Long Term Car Sales

There was a big drop after the GFC due to uncertainty, and over the last 3 years sales have not reached the same levels and are on a significant downwards trend starting in April 2010.

What does this mean for Shed Sales in the future?  Shedeye makes a rash prediction that shed sales are going to drop further for at least another 6 months.

It is not all doom and gloom though, the 4 years of sub-par growth should see a good increase in pent up demand that will see shed sales growth increase, potentially to new highs in a couple of years.

To the shed sellers out there, keep you eye on Car Sales, as this may give you the heads up on your future cash flows.

Share

One Response to “Shed Sales at record lows”

  1. The Roofer said...

    Shedeye,

    Amazing – they definately are correlated?

Leave a Reply

*