Article Number : 2714 |
|
Article Detail |
|
 | |
| Date | 11/26/2007 8:50:03 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2714 |
| Abstract | GOOD NEWS: Well, pretty good news. Alan Greenspan, former chairman of the Federal Reserve, addressing a group of business and finance executives in Chicago recently said that a bloated inventory of new homes has unsettled the economy, but he was optimistic... |
| Article | GOOD NEWS: Well, pretty good news. Alan Greenspan, former chairman of the Federal Reserve, addressing a group of business and finance executives in Chicago recently said that a bloated inventory of new homes has unsettled the economy, but he was optimistic that the nation will avoid a recession. He said chances of a serious downturn are “definitely less than 50-50” but cautioned that great uncertainty remains. He said credit markets are still operating in a “state of fear” rather than in the state of euphoria that existed when investors snapped up financial products almost regardless of price. He explained that homes financed by subprime loans comprised about 25% of housing starts, so when the subprime market collapsed, a whole segment of the sales market went with it. THIS HELPS: A weak dollar is helping U.S.-made goods look more attractive abroad, and the resultant export boom is fueling economic growth. This supports Greenspan’s position that the economy is resilient and capable of rebounding. So far this year, automobile companies, airplane builders and agricultural commodity companies have been among the biggest beneficiaries of export growth. The floor covering industry has to bide time until the housing market strengthens. EXCEPTION: Warren Buffett’s Berkshire Hathaway, which is the parent company of Shaw Industries, reported its third quarter profit rose 64%—that’s no typographical error, it’s 64%. The company cited gains from PetroChina and other investments that offset weaker results from insurance, its main business. Buffett has an uncanny business sense. He recognized PetroChina as a sound investment and this past Monday (Nov. 5) it became the world’s largest capitalized company with $1.1 trillion. That’s mind-boggling. Think about it, Exxon Mobil is in second place with $488 billion. Anyway, back to Buffett, Berkshire’s Class A shares are at $132,500 and Class B shares at $4,402. The company is a $205 billion conglomerate with a market value that exceeds that of Citigroup Inc. and Bank of America Corp., the largest U.S. banks. Berkshire owns more than 70 companies. ADDED VALUE: CCA Global partners has formed a new division that will assist members in selling their business or transitioning it to the next generation. Dr. Ronnie Thomasson will head the new Business Transition Services Division as senior vice president. The new service is important because hundreds of current owners across CCA Global divisions are expected to transition their business in the next five years. The new division will help members make the move a seamless one, with understanding and without stress. GOOD WORK: The World Floor Covering Association (WFCA) recently held meetings with the editorial staffs of 11 different national women’s and home-oriented magazines to promote the value to the consuming public of the industry-leading consumer Web site www.wfca.org. Research shows that more than half of flooring shoppers begin with familiarization on the Internet, and the WFCA is trying to drive as much of this consumer traffic as possible to its member businesses. The site is very informative and entertaining and offers state-of-the-art features, such as lifestyle quizzes, an extensive room design center, a personal notebook and a first-class store locator service that directs shoppers to WFCA member stores. Shoppers can also link directly from the store locator to the member’s individual Web site if desired. This is a great deal for retailers whose presence in the www.wfca.org store locator is one of the WFCA’s most valuable member benefits and is by far their most economical and targeted advertising dollar. The WFCA is a case of so few doing so much for so many. It’s there for you. Go for it! |