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- Accredited Dwelling Fire Sprinkler Contractor program will put the “good housekeeping” seal of approval on contractors completing the accreditation process raising consumer confidence in fire sprinkler system installation in single-family homes. Look for updates as the program makes its way through the Center for Public Safety and Excellence approval process
- Passage of the Fire Sprinkler Incentive Act continues to be sought in the 111th Congress.
- Check schedule for upcoming online seminars.
- New 24/7 online training programs available at www.nfsaacademy.org
2010 State of the Industry Address
A Look at Recent Economic History
With an improved federal deficit, taxes were cut and interest rates lowered to unprecedented levels. As a result, lower interest rates temporarily revived the economy. Low interest rates made it very attractive for consumers to buy houses. Unfortunately, almost 50 percent of the people who took advantage of the $1.3 trillion in sub-prime mortgages could not verify their income; very scary, but true. As a result, by 2009 2 million families had been affected by foreclosures, which in turn put further downward pressure on housing prices. This led to a very ugly spiral as consumers, unable to borrow against their homes to pay their bills, began defaulting on $2.5 trillion worth of debt in the form of credit cards, auto loans, student loans etc. Coupled with this, the wars in the Middle East are mounting federal deficit at almost a billion dollars a day.
What does this all have to do with the sprinkler industry? In my view, everything. The present debt recession will be more demanding on our economy. When equity investors lose value in their stock, they have no recourse to get their money back. But lenders are different; when they aren’t paid back, they take possession of collateral; the house, the car, the yacht. With this, and high unemployment – consumer spending – the engine that drives the economy, comes to a grinding halt. All building construction is affected and our industry is not immune. On the plus side, when a recovery does occur, with the successes we have had in recent years improving fire sprinkler requirements in the various model building codes, especially in the construction of new single- and multi-family homes, we should see an explosion of sprinkler work at every level. For now, hunker down and be prepared to weather the storm. Look to expand inspection, testing and maintenance and retrofit businesses as the economy begins to recover.
The 2011 NFSA Annual Seminar & Exhibition will be held April 7 – 9 in Baltimore, Maryland at the Baltimore Hilton. The Inner Harbor area of Baltimore has been completely revitalized and the Hilton is conveniently located within a short walk to Camden Yards – home of the Baltimore Orioles – Science Center, Aquarium and IMAX theater. NFSA SAM and Manufacturer members interested in reserving booth and program advertising space should contact Harve Horowitz at Exhibit Promotions Plus; phone 410.997.0763; email nfsa@epponline.com.
Looking further ahead, the 2012 Annual Seminar will be held in Los Cabos, Mexico May 3 – 5 at the Hilton Los Cabos Resort.