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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

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