NZ Home Renovation Firm Now One Of World’s Largest

A New Zealand-based home renovation company, created by building industry consultants to tackle systemic inefficiencies, has risen to be one of the world's largest of its kind.

The Auckland-headquartered firm now has over 170 franchise operations across North America, the UK, Australia, and New Zealand. Collectively, these franchises generate annual revenues exceeding $100 million.

Jon Bridge, the founder and director of Refresh Renovations, states that the latest industry data indicate the firm is among the largest full-service home renovation companies globally. The company aims to exceed $1 billion in annual sales within the next decade, significantly boosting export revenue from 20% to 80% over this period.

Bridge explained that the company was established in 2009 after analysing the building industry value chain both in New Zealand and internationally. At that time, their business strategy firm, Traffic, was consulting for major construction sector suppliers. Their research revealed that while commercial and new home builders were well-organized and scaled, the home renovation market remained fragmented, combative, and price-driven without a focus on process or customer experience.

The home renovation market, comparable in size to the new home market, was characterised by numerous small trade-based builders lacking a solid value proposition and essential business skills, processes, marketing, or technology infrastructure. This fragmentation led to poor business outcomes and a distressing renovation experience for consumers—a pattern observed in every country where they operate.

Renovations, which should be high-margin since homeowners aim to enhance their properties, were often executed by trade-based builders competing primarily on price. This resulted in inefficient operations, with homeowners facing delays and suppliers not being able to offer value-added products.

Bridge highlighted that the fragmented industry structure led them to establish Refresh as a franchise model, focusing on implementing systems and processes rather than traditional building skills. Most franchisees come from business backgrounds, not construction. This model aims to secure a 3-5% market share, significantly reducing project disputes compared to industry averages.

Their strategy emphasised attracting business-oriented individuals who prioritise process and customer focus over purely technical skills. Research indicates that 30% of renovation spending is wasted due to unstructured processes and poor communication. About 20-30% of renovations typically result in disputes, whereas Refresh’s complaint rate is under 1%, at 0.33%. These results underscore the necessity for improved process management in the renovation sector.

The company has identified various niches within the residential market and established specialised brands to address these needs, including Refresh Renovations, Zones Landscaping, Oncore Services, and We Sort It. They are also launching Planfirst, a franchise system for architectural and design specialists.

Since 2016, Refresh has been active in Australia, with newer markets in the UK and the US. In the UK, they’ve expanded their model to include property and tenant management services. In the US, they have franchisees in several major cities and anticipate significant future growth by forming relationships with key players in the US value chain.

Bridge sees substantial export potential, particularly in the US, where the renovation market is around $570 billion annually compared to $9 billion in New Zealand. To support their expansion, the company is heavily investing in IT, with a subsidiary in India developing a proprietary system called Control, designed specifically for renovation management.

This system, patent-pending due to innovative process and documentation controls, integrates business management, HR, marketing, CRM, project scoping, and financials, ensuring clear communication and eliminating project risks.

With a strong focus on AI integration, this system promises to drive significant value and efficiency improvements in the renovation process.

© Scoop Media