The Economic Roundtable –Have We Bottomed Out?
Business confidence seems to be on the upswing. Wholesale inventories rose almost 2% in October to $427.1 Billion suggesting that suppliers and business expect a robust holiday sales season.
The October report on wholesale inventory was a “breathy of fresh air” for the economy. With sales rising to a seven month high it appears that more suppliers and business are confident that increased demand will take product “off the shelves”. As you all know inventory build-up and replenishing leads to more jobs and increased production.
Contractor dues to NFSA showed single figure declines, for the 1st time in months, when comparing November 2010 to November 2009. Field reports from some of our contractors indicate some increase in bidding activity, although price levels continue to be depressed. Declines in revenue for both October and November to the Industry Promotion funds barely made double digit losses when compared to the same period a year ago. While excessive inventories of residential and non-residential construction are troublesome…strong building code requirements for fire sprinklers suggest we will be protecting a larger number of structures from a smaller inventory of buildings being erected.
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John A. Viniello, President NFSA