Tuesday, August 16, 2011

Housing market still stymies related manufacturers


REGION


"Refrigerators, cabinetry, carpets, bath fixtures, paint," he said. "It's a whole raft of items, and they're spread out all over the country."Sales of new single-family homes declined 17 percent in February to a record low of 250,000 units nationwide, according to Washington, D.C.- based National Association of Home Builders. The Northeast saw the largest decline in new home sales, a 57 percent drop from a year ago, according to the association.Family of fish self-adhesive mirrors pounds 24.95 (www.houseofbath.co.uk, 0871 230 0867)The down market for new-home sales has affected more than just the construction industry. Even as the overall economy improves, homeproduct manufacturers feel the pinch and react with factory closings and layoffs.The homebuilders association estimates that every 1 million new singlefamily homes creates 3 million jobs, half of which are in non-construction industries and primarily manufacturing, Crowe said.Home-product manufacturers with local operations echoed similar sentiments, saying the link between the housing and factories is almost a oneto- one relationship. That's even the case for products that don't get bolted to a wall, such as mattresses.The bathroom is one of the most personalized parts of the home. For some people, it even serves as a sort of sanctuary where one can relax in a long soaking bath or an invigorating shower. This is the reason why most people are willing to spend a good amount of money just to get their desired bathroom a certain look and feel.Starfish soap dish pounds 5.95 (www.dotcomgiftshop.com, 020 8746 2473)Although some people do not prefer vintage styles because it connotes being old or outdated, many others prefer vintage because it represents quality, durability, and a return to a simpler era. The classic look of an antique or clawfoot bathtub has a timeless quality that will not grow old very quickly.These days, it seems modern designs and styles are continually being introduced to the market. There is the continuous development of styles and designs that incorporate the theme of the modern society and the personal tastes of the individual. However, even though the latest and greatest products have their place, "old school" methods and technology have gained resurgence in popularity in recent years, sparking an interest in the classic items of yesteryear.It's not a big surprise that as poor sales of new homes continue, manufacturing will feel the effects as well, he said.The net result is that few people are buying homes, which triggers fewer sales of other products, such as bedding, cabinets and flooring, he said. People only replace mattresses every 10 or 12 years, or when they buy a new home, he said.Armstrong posted a $21 million loss in the fourth quarter of 2010 and income was $11 million for the whole year, down from $78 million in 2009. The company also closed several factories last year to save money and reduce manufacturing capacity.Painted wooden fish hook pounds 2.95 (www.milkand-honey.co.uk, 0845 459 7649)The factory employs 78 workers, the first of whom would be given layoff notices in May, but others would be offered jobs in the mold shop, according to the company. Again, the housing market was the largest factor, President Gary Anderson said in a statement."When you lose construction, the immediate impact is that you lose those local construction jobs," Crowe said. "But you lose many more jobs nationwide."Declining real estate values means many banks won't lend for fear the property won't be worth its price if the borrower defaults, Orders said. It also keeps investors from buying property, he said.Several companies already announced that they're closing or drastically reducing manufacturing operations in Lancaster and York counties because of the housing market link, including California-based bathtub and shower maker Aquatic Co.; Lancaster County-based flooring, tile and cabinet maker Armstrong World Industries Inc.; and Illinois-based cabinet maker Elkay Manufacturing Co.Real estate values continue to decline in many parts of the country, said James B. Orders III, president of Park Place Corp., a South Carolina mattress maker with a factory in Lancaster County. The company wants a buyer for the Denver, Pa., factory because it no longer makes mattresses for sale in the Northeast.One can hardly go wrong with a vintage clawfoot bathtub for the home. There are many styles of faucets and other accessories with a vintage look that will perfectly complement your choice of vintage tubs.Elkay said March 18 that its Yorktowne Cabinetry plant in Red Lion will close by August and operations will be consolidated in a Virginia plant because the down housing market makes it impossible for the finances to work at the midstate plant.Shark drinking bottle pounds 12.99 (www.peanutandpip.com, 01234 766094)The housing market issue is on the radar of state associations as well as national groups, including the Pennsylvania Manufacturers Association, executive director David Taylor said."Our industry was hard hit by the economy," Elkay spokeswoman Linda Carlisle said, "and the company's products sell better when the housing market is on an upswing."Dive bathtub appliques pounds 8.99 (www.boonuk.co.uk, 0845 618 5954)

jimr@journalpub.com




Author: Ryan, Jim T


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