Housing Sales Report for 2006
Friday, January 26, 2007
The housing market reports are out: housing bubble - "Sales of new one-family houses in December 2006 were at a seasonally adjusted annual rate of 1,120,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 11.0 percent below the December 2005 estimate of 1,259,000."
"The seasonally adjusted estimate of new houses for sale at the end of December was 537,000. An estimated 1,061,000 new homes were sold in 2006. This is 17.3 percent below the 2005 figure of 1,283,000.
Also, this sobering report - "Last year's plunge in new home sales was the biggest drop since a 17.8 percent drop since the recession year of 1990. Sales of existing homes fell by 8.4 percent to an annual rate of 6.48 million units, it was reported Thursday. That was the biggest decline in the sale of previously owned homes since 1989."
Labels: Construction News, Housing Starts
Stock Building Supply Layoff
Tuesday, January 23, 2007
From The News & Observer: "Stock Building Supply, one of the nation's largest building-material suppliers, is cutting 1,500 jobs as the U.S housing slump depresses sales and profit."
"Raleigh-based Stock said in November that it was cutting 2,000 jobs. The latest round of layoffs was announced Monday by the company's British parent, Wolseley Plc, which also is closing 22 Stock branches and cutting 500 jobs at its Ferguson plumbing division, which is headquartered in Virginia."
"Officials blamed the company's worsening financial condition on builders starting fewer new houses and a decline in lumber prices."
"'We've responded swiftly to the challenging market conditions as a significant amount of our business is in residential construction,' Stock vice president of finance Jim Major said in a prepared statement."
"Analysts said the housing decline appears to be slowing, but nobody will know for certain if there will be a rebound until the traditionally strong spring selling season begins."
"'The jury is still out,' said Kevin Lapwood, an analyst at Seymour Pierce in London. New home sales in the U.S. appear 'to be leveling out, but there may be some more pain before there's gain,' he said."
"Declining construction during the five months that ended in December reduced demand for lumber and structural panels, which make up 45 percent of Stock's revenue, the company said. Lumber prices have fallen 22 percent, and panel prices are down 35 percent."
"Raleigh-based Stock said in November that it was cutting 2,000 jobs. The latest round of layoffs was announced Monday by the company's British parent, Wolseley Plc, which also is closing 22 Stock branches and cutting 500 jobs at its Ferguson plumbing division, which is headquartered in Virginia."
"Officials blamed the company's worsening financial condition on builders starting fewer new houses and a decline in lumber prices."
"'We've responded swiftly to the challenging market conditions as a significant amount of our business is in residential construction,' Stock vice president of finance Jim Major said in a prepared statement."
"Analysts said the housing decline appears to be slowing, but nobody will know for certain if there will be a rebound until the traditionally strong spring selling season begins."
"'The jury is still out,' said Kevin Lapwood, an analyst at Seymour Pierce in London. New home sales in the U.S. appear 'to be leveling out, but there may be some more pain before there's gain,' he said."
"Declining construction during the five months that ended in December reduced demand for lumber and structural panels, which make up 45 percent of Stock's revenue, the company said. Lumber prices have fallen 22 percent, and panel prices are down 35 percent."
Labels: Construction Industry, Construction News
What is Your Company's Curb Appeal?
Monday, January 22, 2007
Your company logo is the curb appeal for your business. It's usually the first thing your customers see when they're introduced to your company. Your logo is not your brand, but it's part of the brand that tells customers who you are and what services you offer.Logos work well for businesses that sell a tangible product because it enhances the product and adds value - the Mercedes Benz symbol, for example. But for companies that offer a service, it's harder to attach a notion of quality. This is why any company involved in remodeling, building, or repair work has a logo to demonstrate what they have to offer.
Do small and medium-sized businesses need a logo? Most large construction and remodeling companies, as well as franchised repair or maintenance firms, all have a logo. When potential clients see their logos, it symbolizes their service and represents the quality and reputation that comes with it. If you want clients to remember you, even if you're a one-man operation, it makes sense to incorporate a logo into all your marketing efforts.
Human beings are bombarded by advertising messages every day. They say the average consumer sees over 4,000 ads on daily basis. Do you think they'll remember Dave's Plumbing the next time they need your services? Most people can remember when there is a visual attached. The logo belongs every where you have your company name: on your trucks, business cards, invoices, contracts, yard signs, and more.Here are 3 tips to make sure you design the best logo for your business:
- Be Memorable - something that shows what your company does in the same tone as all of your other marketing. It can be humorous or serious, colorful or muted, flashy or conservative. But it must be in tune with all other marketing, advertising, and correspondence for your business
- Be Readable - many times, a company will have a large, elaborate logo that looks great spread across their website and fills up the whole screen. But it must look just as good when it's condensed down on a business card. A simple design could be the best approach for your logo. It could be a tool, a truck, the roof of a house, or anything you feel symbolizes what your business offers your clients.
- Be Unique - the logo shouldn't be a copy of your competitor's logo. It should stand out from the crowd in order to be remembered as well as not to send any business your competitor's way.
Labels: Contractor Branding, Small Business Advice, Small Business Marketing
Construction Job News in California
Sunday, January 21, 2007
Construction job news from the LA Times: "Some of the decline in retail hiring reflected the housing slump. Hiring among dealers of building materials and supplies was down 2.5% in December compared with a year earlier. Construction remained the biggest drag on the economy, shedding 15,700 jobs in 2006, more than any other sector.""The question now is when the housing market will hit bottom. Many economists are projecting that the slump in home sales will be over by the end of the year."
"'That may be wishful thinking, said Chris Thornberg, a former UCLA economist. 'I keep hearing that the real estate markets are going to turn around, and it never ceases to amaze me,' he said. 'These cycles take two years, top to bottom, when they pop. We're only a year into it. If anything, this is different because the bubble was so much larger.'"
And news from the Orange County Register. "In the 12 months through December, Orange County's construction industry added jobs at a 0.7 percent annual rate, much slower than the industry's 7.2 percent growth in 2005."
From San Diego's Union Tribune: "In San Diego County, construction firms shed 1,800 workers during December and real estate firms cut 500 positions, according to data released yesterday by the California Employment Development Department."
"During 2006, construction firms in the county lost a total of 5,000 jobs, more than 5 percent of their work force. Statewide, construction firms have axed 15,300 workers, a 1.7 percent loss. And economists say the losses will probably continue."
"'I expect further contraction on single-family home construction,' said Kenneth Simonson, chief economist for the Associated General Contractors of America. 'It's hard to say when that will end. It's really a question regarding how long potential home buyers think they can hold on. Right now, home prices are still dropping and buyers are waiting to see when there will be a bottom of the market.'"
Labels: Construction Industry, construction jobs, Construction News
