GLG News by Building Materials Industry Experts

James GouldPresidentThe Floor Covering Institute

Light at the End of the Tunnel?

May 12, 2009

Analysis of:SAP CEO Sees Signs of Economic Recovery | www.forbes.com

Everyone is anxious to see the first signs of an economic recovery.  Recent numbers have given fuel to the most optimistic that we have reached bottom and are coming out of this recession.  A closer look at the data reveals that the recovery still has a number of major obstacles to clear before we can move forward.

Rod MacKenzieOwnerGreen Building Resources

The Building Products Supply Chain for US Home Building - Part 1

January 5, 2009

Analysis of:Building Product Wholesalers Play an Important Role in Today's Market | www.housingzone.com

Terms and jargon used to describe the building products supply chain player's and actions can be confusing.  This paper will define the steps in  the supply chain,  the players, their aliases and their value add. 

Rod MacKenzieOwnerGreen Building Resources

Small Expectations - The Coming Market Shift in New US Residential Construction

December 23, 2008

Analysis of:State of the Nation's Housing 2008 | www.jchs.harvard.edu

Market forces are emerging that will change new home buyer mentality in the US.  Home buyers will revise their plans to the new housing market realities.  Builders, manufacturers and suppliers all need to understand this market shift.  

Rod MacKenzieOwnerGreen Building Resources

Vinyl Siding - Poised for Growth

December 8, 2008

Analysis of:State of the Nation's Housing 2008 | www.jchs.harvard.edu

Vinyl siding has lost market share over the past few years.  Many factors account for this but the US economic meltdown is bringing frugality back to homebuying and homeowning.  A higher percentage of smaller, affordable and "greener" homes are expected to be built in the future.  And existing homeowners will seek more cost effective (and recoverable) residing options in the future.  Since vinyl is the cheapest siding option available, it emerges as the odds-on favorite to win more and more siding jobs. 

Rod MacKenzieOwnerGreen Building Resources

A Shot in the Arm for Building Products Wholesalers

December 3, 2008

Analysis of:State of the Nation's Housing 2008 | www.jchs.harvard.edu

The growth years of US home building in the early part of this decade allowed many residential construction supply firms to subvert wholesale distribution and buy direct from manufacturers.  Direct purchasing put the wholesaler's business model in jeopardy as more and more products were being bought around them.  But the severe contraction in the US home building industry has forced the construction suppliers to forgo direct purchasing and buy only what they need to meet their immediate needs - and this type of market "spoon feeding" plays perfectly into the hands of the wholesale distributors.

Jeremy WallerOwner and Managing DirectorAl Taqa International Ltd

Cost increases in China - action importers can take

August 6, 2008

Analysis of:The Last Days of Cheap Chinese | www.slate.com

The automotive sector tends to get more than its fair share of commentary. While the impact on autoparts is significant, in terms of materials, labour and currency dynamics, other industries are also affected, which don't always have the leverage of a major automotive producer in the USA. How can the smaller buyers of specialist products cope with the somewhat alarming changes underway, and get a real perspective on the future. What steps can importers in USA and Europe take to manage the increases, and adjust their business model?

Rod MacKenzieOwnerGreen Building Resources

Big Changes Ahead For the Building Products Supply Chain

May 29, 2008

Analysis of:Residential supply chain in transition: Summary of finding from survey of dealers | www.jchs.harvard.edu

The existing building products supply chain for US home building has too many steps.  With each step, cost is added but not necessarily value.  Big builders are calling the shots and are looking for cost reductions from all sources.  It looks like some supply chain players are going to take matters into their own hands.  The impending squeeze will affect everyone in the supply chain.  Some will win and expanded their market presence while others will lose and be relegated to niche players.

James GouldPresidentThe Floor Covering Institute

Housing Down, Vendors Not Out

January 9, 2008

Analysis of:Florida's Existing Home Sales,Median Price Down in May 2007 | www.floridarealtors.org

The depressed housing market has caused headaches for all domestic building material suppliers (Mohawk Industries, Home Depot, etc.).  At the same time the weak dollar has created opportunities that manufacturers can use to offset their loss with new business.

James GouldPresidentThe Floor Covering Institute

Anything But Oak by Floor Covering Institute LLC

October 31, 2007

Analysis of:A Man Has a Plan To Harvest a Forest In Ghanaian Lake | www.modernghana.com

American consumers are asking for more choices in wood flooring. “Anything but oak" means an increased demand for exotic woods from rare, slow growing trees. Finding sources such as old buildings or lake bottoms avoids cutting down live trees and, therefore, is encouraged by most environmentalist. If the logs remain very cold in the water, they can be recovered without structural deterioration. Moisture content can be reduced to acceptable levels for flooring manufacturing under skilled and appropriate air and kiln drying. Ghana should be pleased with the export income. The cost of acquisition and processing these logs will be higher than newly cut trees so the end product will be more expensive. Depending on the species of wood that is being harvested, finding these sources creates a winning proposition for everyone. The consumer receives a unique floor without disrupting the environment. Jim Gould President Floor Covering Institute LLC jgould@floorcoveringinstitute.com    

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

Housing Outlook Remains Bleak

June 28, 2007

Analysis of:Still Waiting: The Single-Family Recovery | www.cement.org

The Portland Cement Association (PCA) has recently published a new article with a pessimistic view of the housing situation. It is becoming more likely that 2007 and 2008 construction activity is going to suffer despite relative strength in non residential and public works construction. Construction materials demand is likely to register more substantial declines than previously forecast, and price increases will likely meet greater resistance as demand falls, further suggesting that the construction materials sector has entered a cyclical downturn.

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