Gilco Lumber, Inc.... - Miller Publishing Corporation
Gilco Lumber, Inc.... - Miller Publishing Corporation
Gilco Lumber, Inc.... - Miller Publishing Corporation
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LAKE STATES TRENDS -<br />
Continued<br />
ing months. The Federation’s recent<br />
Legislative Outlook said that President<br />
Obama is looking to small businesses to help<br />
lead the nation out of recession. In a plan<br />
announced recently, President Obama and<br />
Treasury Secretary Timothy Geithner<br />
announced ways to make it easier for small<br />
business owners to tap into billions of dollars<br />
in federal lending aid to fight the credit crunch<br />
that has brought business borrowing to a halt.<br />
•<br />
WEST COAST TRENDS -<br />
Continued from page 6<br />
cater to, but overall it’s not going to affect us<br />
by much,” he said. “We have participated in<br />
some projects and we handle some products<br />
that are very green, but even those aren’t<br />
moving. It’s just a stagnant market.”<br />
As for a recovery, the contact said, “It’s<br />
anybody’s guess. Like a rising tide lifts all<br />
boats, a falling tide does the same. There is<br />
an upside down the road, it’s just hard to<br />
determine how far down the road.” When<br />
asked about the economic stimulus plan and<br />
the possible effect, the contact said if it<br />
helped it would take awhile. “The money is<br />
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not getting to the right places. One of the<br />
things in the stimulus is $55 million to<br />
Mexico to buy television sets. That one’s got<br />
me scratching my head,” the source said.<br />
According to the Western Hardwood<br />
Association’s recent newsletter, focus is<br />
beginning to shift from the U.S. Congress to<br />
state governments where many of the specific<br />
funding decisions will be made. A large<br />
portion of the funds is expected to be sent to<br />
states as block grants to allow for expedited<br />
distribution. Green building provisions are<br />
included in the $6 billion to improve federal<br />
buildings, which the association says may be<br />
an avenue for introducing more Hardwoods<br />
as building materials since the final bill did<br />
not focus solely on schemes such as LEED.<br />
The Hardwood Federation said distribution<br />
yards will struggle with falling<br />
Hardwood sales again in 2009 due to slow<br />
remodeling markets and demand from commercial<br />
builders putting additional strain on<br />
cabinet, millwork, flooring and stair shops,<br />
which previously experienced two years of<br />
reduced homebuilding activity. The<br />
Federation also said that additional branch<br />
closures and layoffs will occur in regions<br />
that experienced the highest decrease in<br />
home sales, such as California, Phoenix and<br />
Las Vegas.<br />
FDM magazine recently reported annual<br />
sales for the group of FDM 300 companies<br />
declined, primarily due to lack of sales in the<br />
cabinet and furniture markets. For the group<br />
of 300 companies, annual sales were reported<br />
at $50.71 billion, 10.7 percent less than<br />
the 2007 figure. The FDM 300 is a list of the<br />
300 largest secondary woodworking manufacturers<br />
in North America. <strong>Inc</strong>luded in the<br />
300 are the largest manufacturers of cabinets,<br />
furniture, millwork, store fixtures and<br />
office and contract furniture.<br />
A steep decline in residential furniture and<br />
cabinet sales ranked as the two largest factors<br />
for the 300 in 2008. Contract and office<br />
furniture held their own and many posted<br />
increases along with a number of millwork<br />
companies.<br />
The Business and Institutional Furniture<br />
Manufacturers Association recently reported<br />
a 21 percent drop in incoming orders for its<br />
members, several have reduced production<br />
due to slow sales. According to the association,<br />
office and institutional furniture markets<br />
will hurt both Hardwood lumber and<br />
wood component producers throughout<br />
2009.<br />
Concurrent with other Hardwood product<br />
manufacturers, furniture producers will seek<br />
environmentally-conscious buyers with<br />
“green” product offerings. The Hardwood<br />
Council views 2009 as an opportunity to<br />
showcase the green elements of North<br />
American Hardwoods. The council said the<br />
message was simple, “Not only are North<br />
American Hardwoods nature’s original<br />
‘green’ material, they are also the nation’s<br />
most sustainable, renewable and natural<br />
resource.<br />
•<br />
60 Hardwoods Have Resiliency