By Amy Campbell

From garages to closets to media and game rooms, Americans are cleaning up—and getting organized. Any time of day, viewers can watch experts turn cluttered closets, messy laundry rooms, playrooms overrun by toys, and chaotic garages into organized, usable spaces.

Retailers have also jumped on the bandwagon. Storage and organization products—once allocated to after-Christmas sales—are now a hot retail commodity. Plain, clear plastic storage boxes and bins have been replaced by products in a rainbow colors, sizes and styles. Not to be outdone, wicker, wood and metal also find space among the bright plastics. You can even find these products on the shelves at your local grocery store.

So why the sudden interest in cabinets, closets, drawers and doors? In a word: awareness. “When big players, like Whirlpool, entered the game, it validated the market,” says Don Mitchell, co-owner of Stillwater, Okla.-based Mitchell Garage Cabinet Systems. “They have such huge presence and have really made more people aware of the products.”

Storage and organization products aren’t just for living rooms, laundry rooms and basements either. One of the hottest trends in today’s market is garage makeovers. Once considered just a parking spot or catch-all for storage overflow, the garage is fast emerging as a livable addition to the home. “The image is changing for garages. They are not the junk drawer they used to be,” points out Bruce Anton, president of Spicewood, Texas-based TrakRack. “With cabinets, shelves, storage racks, work benches, etc., they are a place for a men and women to hang out.”

Anton points to a survey by The Chamberlain Group, a manufacturer of access-control products and operators, which states 45 percent of North Americans plan to renovate or expand their garages and will spend $5,000 to do so. In another survey, commissioned by reality brokers Century 21, homebuyers were asked what they believed to be the most important amenity in the home-buying decision. A whopping 74 percent listed the garage, barely edging out the long-time favorite: a gourmet kitchen.

“People are becoming aware that there are companies in the market that can provide products and organizational expertise to help them organize their garages,” says Rick Gumpert, president of Salem, Va.-based TAG Inc. (The Accessories Group).

And they’re willing to pay for it, shelling out big bucks to turn garages into usable spaces with cabinets, flooring, shelving, racks and drawers. “When I started doing this, people had no idea what it was,” says Ric Wright, who started Garage Cabinet Systems in 1998 after organizing his own garage. Now Wright tackles garages, basements, laundry rooms and any other room needing cabinets. “People would see me at a home and garden show or at the mall and say, ‘Hey, that’s a cool idea.’ Now there is more awareness and business is good.”

Although many retail and home improvement stores carry a variety of storage and organization products, there’s a large market of homeowners who either don’t want to or don’t have the time to do it themselves, adds Gumpert. “Baby Boomers want to hire a professional to do it for them and provide a mix of quality products not readily available to them at the big-boxes.”

Garages are also becoming bigger, and two-thirds of new homes built today have two-car garages. Even more noteworthy: about 19 percent of new homes now have three-car or more garages. “The home building industry is definitely seeing a growing trend toward the three-car garage,” says Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB). “Especially in areas where houses do not traditionally have basements, the three-car garage is becoming a must-have in new homes.” But it’s not limited to those areas, he adds. “Three-car garages are becoming more common in markets across the country.”

For most buyers, the appeal of the three-car garage is simple: more storage space. NAHB studies of consumer preferences consistently show that extra storage space is very high on most consumers’ wish lists.

In addition, builders are finding homeowners want more sophisticated garages as well. “Consumers find elaborate and extensive built-in storage and shelving systems, work areas, utility sinks and many other amenities very appealing,” Howard says. “They are also tending to view the garage as more of an extension of the house, and some buyers are even heating and cooling the space for comfort and year-round use.”

People expect—and are requesting—more upscale products in new homes, points out Eric Wheary, general manager for Closet City Ltd, of Montgomeryville, Pa. “Just look at the kitchens, baths and huge closets that are being put in. They are also conditioned to accept spending large sums of money to get these upgrades.”

Getting Started

For garage door dealers, the jump to storage and organization seems logical. Already accustomed to working in the garage, it seems only natural to move beyond doors and openers to expand their product lines. One such company, Holmes-Hally Industries, has done just that. In addition to its primary business of garage doors and operators, the Tempe, Ariz., company now offers cabinets and flooring, and even has a showroom. “For us, it has turned into another profit center,” says Richard Gomez, senior product manager.

“Door dealers are already meeting with consumers who would be perfect prospects for more than just a new or repaired garage door,” adds Gumpert. “They need to look beyond the door entrance and show their customers how to get their stuff off the floor and use their vertical wall space for storage opportunities.”

When a customer upgrades their garage door, chances are, they will be interested in upgrading the interior as well, says Carl Landgren, owner of storeWALL LLC in Milwaukee, Wis. “The question is: Who will be the interior contractor? The door dealer can work with a garage interior dealer, subcontract portions of the garage project or choose to provide the entire garage solution.”

One of the easiest ways to enter this market is by becoming a shelving or storage rack distributor, Anton says. “Those products are usually easier and quicker to install than a garage door. They also have a much higher profit margin than doors,” he says. “Second, dealers know the homebuilders already. They know they’re looking for the competitive edge when selling their homes. Small details often times sell homes.”

Wheary suggests partnering with a reliable manufacturer or wholesaler when entering this new field. “With the professional marketing tools they supply, it would be an easy sell once they are discussing garage door options with the client,” he says.

Start-up costs will vary according to product lines and whether dealers choose to stock products or order by-the-job. On the average, simple storage options are a low-cost, low-expertise startup according to Landgren. More complex jobs that include floors, wall storage, cabinets, lighting and HVAC, will lead to a bigger profit margin. “This takes full advantage of the market and requires a showroom, planning expertise and more complex installation,” Landgren says. “It’s a higher start-up cost, but it creates much larger sales.”

Although garage storage and organization is still a niche, it’s developing by leaps and bounds. “It’s growing rapidly and we see the trend continuing with new and better products for the home,” Landgren says. “The garage is the primary entry for family, friends and neighbors. An organized garage is a pleasant entry and this makes the garage an emotional issue. Homeowners have wanted to solve their garage problem but didn’t know how to do it. Now there are many good examples.”

“The market potential is so huge,” adds Mitchell. “It’s not just about storage. It’s about changing lifestyles.”

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