I’m tired of hearing all the negative rhetoric about the US economy
from our Media. Just this morning I heard it reported that existing
home sales “edged up slightly” by 3.1% in July. Now, think about that
wording for a minute; “edged up slightly”. Why not something like
“Existing home sales rebounded sharply in July, up 3.1%”? Suppose there
was a 3.1% drop in existing home sales – would the media report a
“slight drop” in sales? No, we all know a 3.1% drop would be hailed as
a “sharp plunge”, or some wording with a far more negative
psychological impact. I’m sure the reason behind ‘the economy is
terrible’ campaign is basically just to scare voters into casting their
ballots for Obama, but I think it will ultimately fail miserably come
November.
The bottom line is that US economy is not actually in a recession, and
while it’s not fantastic, it’s not terrible or gloomy and it certainly
isn’t something that George Bush caused (I’ve never been a Bush fan,
but I find the blame-Bush-for-every-probl
em-under-the-sun
game absolutely ridiculous). Fact is the economy is opening up with
opportunities in many areas. In our company for example, we manufacture
wood stair parts (among other things) and quite frequently our builders
request iron railings or balusters. There are only a handful of
large-scale manufacturers that make such iron stair components, and in
times past it was impossible for us to order directly from the
manufacturers (mainly due to minimum order restrictions) – we were
stuck with ordering from their retail distributors ultimately paying
the same price for the components as our higher-volume competitors were
selling them for. This left us with no markup, and it wasn’t economical
for us to offer the product, consequently sending our clientele to buy
from our competitors. Now things are different. With the housing market
slowing down, manufacturers are getting more competitive and seeking
more outlets for their products. One of those outlets is selling direct
to smaller companies like ours, without requiring large quantity orders.
Just last week I attended the International Woodworking Fair in
Atlanta, where I had the opportunity to speak with literally hundreds
of manufacturers, distributors, and contractors in the woodworking
industry. When I asked the question “How’s business”, I got basically
the same response from everyone I asked – “It’s not great, but it’s
steady.” This seems to be the case in most areas, it’s just that
average American’s are so used to a great economy that they tend to
freak out when things slow down (and when the Media is constantly
insisting things are horrible). In all fairness, our economy is seeing
a sort of correction, and while it does cause things to slow down it
will ultimately produce a positive effect. If nothing else, it will
teach us Americans to live on less money than we make – an all too
common fault we’ll have to overcome at some point.
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