Dec 12 2007 12:51PM | Permalink | Email this | Comments (0) |
Blog This! using: Blogger.com | LiveJournal |

I am sorry but I still have to discuss the current and future home building industry market situation. We have read and read and read about the problems that builders, lenders and consumers have been experiencing due to the over building in the home builder segment and the sub prime loans and foreclosure and the list goes on. 

I believe another shoe is beginning to fall with regard the condition of the market and this time it is the building material manufacturers’ shoe that is falling. Many manufacturers have cut personnel and budgets and some are on their second round of cuts. Many have curtailed capacity and laid off hourly personnel too. 

It is going to get worse because the cost of many raw materials is going sky high. Just look at the oil prices. Many of use don’t realize how many building materials utilize petroleum as a raw material. Vinyl siding, asphalt shingles, vinyl windows are just a few products that utilize petroleum. Basic metals like zinc and copper are used in the manufacturer of many plumbing products like faucets for example. 

Many major manufacturers are not going to display at the 2008 International Builders’ Show in February. And many manufacturers are cutting their budgets for memberships in industry associations and event sponsorship as well. The domino effect will continue to affect every facet of our industry. 

The good news is that at some point it will bottom out and we will have an upturn. But the big question is will we apply the lessons we have learned during this downturn?