ACP Pubs

Steve Hudson

So How's Business?
July 30, 2008

One of the more intriguing things about editing Dixie Contractor is the huge amount of economic information that comes across the desk. Always noteworthy is material from Kenneth D. Simonson, chief economist for the Associated General Contractors of America. Just the other day this included state-specific info from the Bureau of Labor Statistics (BLS) concerning seasonally adjusted construction employment for June.

So what does it say?

First, the big picture. From June of 2007 to June of 2008, construction employment nationwide fell 5.9 percent. Specifically, employment declined in 34 states, increased in 13 states, and remained essentially the same in three states (Hawaii, New Mexico and North Dakota) and in the District of Columbia.

Regionally, Florida’s construction employment declined by 14 percent. In fact, Florida tied with Arizona for the largest decline in construction employment nationwide. Georgia’s construction employment showed a 4 percent decline. In Tennessee, the decline was 0.4 (four-tenths) percent.

Only in Alabama was there an increase; it was 0.8 (eight-tenths) percent.

Also last week the Federal Reserve released the latest "Beige Book" summarizing business conditions in the 12 Federal Reserve districts. In the Sixth District, which includes Alabama, Florida, Georgia, and parts of Tennessee, reports were that overall economic activity weakened from June through mid-July. Respondents in every district reported that single family construction continues to decline. Commercial development remains weak. Credit remains tight. Prices for energy and  metals keep going up. Retail development has slowed significantly – especially in Florida – and commercial contractors look for what Simonson calls “further softening through the remainder of the year and a weak 2009.”

Is there any good news in all of this?

While visiting with contractors in Florida last week, I heard over and over again that business is off – in some cases way off. I hear the same thing when I visit with contractors in other states too.

But most of the contractors I speak with are not letting this get them down. They’re making adjustments. They’re fine-tuning (and sometimes re-evaluating) their focus and their priorities.

As one contractor put it, “Life’s too short to let it you down.”

“You’ve just got to be flexible and bend with the times,” another said. “The ones that can bend will weather the storm, just like we’ve weathered other storms in the past. We’ve done it before and we’ll do it again. We contractors are a pretty tough bunch.”

How are you and your company coping with these challenging economic times? I’m interested. Let me know.

Posted by Steve Hudson on July 30, 2008 | Comments (0)