Article Number : 4403 |
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| Date | 4/20/2009 10:20:08 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4403 |
| Abstract | FLIP SIDE: Despite the depressing news that assaults us these days, some manufacturers and distributors are looking for bright spots in the dismal economic landscape, including new opportunities the stimulus package will generate and the growing potential for acquisitions this year... |
| Article | FLIP SIDE: Despite the depressing news that assaults us these days, some manufacturers and distributors are looking for bright spots in the dismal economic landscape, including new opportunities the stimulus package will generate and the growing potential for acquisitions this year. The American Recovery and Reinvestment Act includes $140 billion in construction spending, half of which will go into upgrading the infrastructure— schools, hospitals and cultural centers throughout the country. This bodes well for the floor covering industry and could help business stay afloat until the recovery comes to the rescue. One manufacturer said in order to have a successful 2009, we must find new markets, sell more products and services to our existing customers and find new customers, which means take market share from the competition. FLYING HIGH: It’s never too early to plan. The North American Association of Floor Covering Distributors (NAFCD) has engaged Rob “Waldo” Waldman to be the keynote speaker at its 38th Annual Meeting on Sept. 22 to 29 at the Renaissance Glendale Hotel & Spa in Glendale, Ariz. Waldman, a decorated Air Force fighter pilot and an accomplished businessman with many years of experience, has titled his talk, “Never Fly Solo.” He teaches how to build trusting, revenue-producing relationships with employees, partners and customers and believes the key to building a culture of trust lies with your wingmen—the men and women in your life who help you to overcome obstacles, adapt to change and achieve success. So, mark your calendar and clear the runway. NOT BAD: One might expect the business community to bemoan the vicissitudes and vagaries that have decimated the economy, but a recent survey showed the percentage of executives who believe conditions have gotten worse at the national level has remained constant. That could be interpreted as a good sign, an indication that we might have hit bottom. Even if that were the case, executives think the recovery process will be a protracted one since fewer than a third expect an upturn this year. Executives overall are confident with how their companies are handling the crisis, though 53% expect profits to drop in the first half of this year, and the number expecting to reduce the work force has jumped 8% in six weeks. It might seem like economic stasis has set in, but executives overall seem cautiously optimistic. BETTER: Optimism seems to be creeping into the mindset of a growing number of executives and economists. After the Commerce Department released data showing that new orders for durable goods increased 3.4% in February, the first advance since last July and the strongest one-month gain in 14 months, a prominent economist said the news is a sign the U.S. economy may be at or near the bottom of a business cycle. The economist, Cliff Waldman—not related to Waldo Waldman, the NAFCD’S keynote speaker—is with Manufacturers Alliance/MAPI and added, “The modest signs of stability in the U.S. economy are early and could be attributed to one-time factors…Hopefully the broad policy programs in the U.S. aimed at restoring normal functioning to credit markets and supporting economic activity, as well as stimulus programs in other major regions, will bring a measure of health to the global economy and thus to manufacturing later this year.” RANDOM THOUGHT: With an erratic stock market and a multitude of uncertainties in the economy, is it easier to cope with success or failure? I found one man’s answer to that perplexing question in a magazine article: “The most important thing in life is not to capitalize on your gains. Any fool can do that. The really important thing is to profit from your losses.” |