Oct 29 2007 9:33AM | Permalink | Email this | Comments (0) |
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We were and still are aware of how hard the current market downturn has hit homebuilders. Builders have laid off personnel two or three times, they have been trying to liquidate their inventory, many have taken tremendous losses on land, etc. You know, “The beat goes on!”

Up until now, we haven’t heard or read much about how the downturn has affected the building material manufacturers. Oh sure, we heard that most of the manufacturers are not replacing people when they leave, they have cut back on travel and other expenses and many have cut back some of their capacity. However, the gears are shifting as I learned last week that several national manufacturers have made some very major work force reductions in all levels of their organizations.

This action will continue to adversely affect the homebuilding industry. I know of three national manufacturers who have decided not to display at the upcoming International Builder's Show in Orlando. These cutbacks have and will continue to negatively affect the amount of trade advertising the manufacturers will do and the manufacturers have also cut way back on the amount of conference sponsorships, etc.

I am sorry to bring so much negative news today but we do know one thing for sure, nothing lasts forever.