Back on March 1, 2010, I solicited several assumptions regarding how local and global economic forces were influencing our bottom line. An AP report out of New York released just moments ago suggests that my key assertions were correct.
On March 1 I stated, “Market indicators remain in an unnerving pattern; one of the more intimidating trends I noted was a triumvirate blend of a strong dollar, positive gold movement, paired with creeping oil – I dare someone to place this scenario into sane context”.
The AP today: “The euro is falling again and continues to hover near a four-year low. It has become a key indicator for confidence in Europe's economy. The euro fell to $1.2318, a day after hitting $1.2146 . . . Crude oil fell $2.73 to $67.14 per barrel on the New York Mercantile Exchange.”
Gold remains at $1,191.80 an ounce despite loosing approximately 1% over two days.
I further stated on March 1 that “While January housing sales posted an increase, numbers also indicated a slight uptick in housing starts yet more bubbles await us. Significant commercial lending is coming due and as a result, many speculate more bank failures. Additionally, consumer spending remains tepid, no significant positive impact coming out of job creation, and European dept reflected in the so called “PIGS” - Portugal, Ireland, Greece and Spain, point to the potential for another significant economic slide.” My added emphasis is vital given such an accurate prognosis; as the AP notes today: “. . .the [Labor] department said new claims for unemployment benefits rose by 25,000 to 471,000, their largest amount in three months. . . Greek workers again took to the streets protesting recently approved budget cuts that were necessary for the country to receive a bailout. Greece was able to repay debt that came due Wednesday only because it had access to a rescue package from the European Union and International Monetary Fund. . . in afternoon trading, Britain's FTSE 100 fell 2.6, Germany's DAX index dropped 2.8 percent, and France's CAC-40 plummeted 3.9 percent.”
Certainly I take no pride in being correct on these assumptions as global – economically driven factors reach directly into the fissure of our cavernous lint- filled pockets. So where do we sit in the state of the state?
I encourage you to visit Mark Anthony over at “Demolition News” and read his posting, Comment – Is demolition perpetuating the recession…? Here is the link:
www.demolitionnews.com/2010/05/20/comment-is-demolition-perpetuating-the-recession
My apologies as I cannot get the link to set so you must copy/paste.
Showing posts with label economic climate. Show all posts
Showing posts with label economic climate. Show all posts
Thursday, May 20, 2010
Tuesday, October 6, 2009
Champion Environmental Services, Inc. Update – Economic Outlook
Despite the continued economic impediment that exists in the real estate and construction related industries, we are still experiencing a high volume of solicitation for proposals involving demolition and environmental services.
Based on comparative metrics in relation to last year at this time, the degree of opportunity is up 18%. While the quantity remains elevated, the magnitude of projects taking place is on a smaller scale. Rather than full building demolition, many projects seem to center on interior renovations and build-outs. One could surmise that this is a reflection of cyclical construction patterns easing workloads as we turn into fall in anticipation of winter. However, the majority of retail, office, hospital, university, and multi-residential projects over the past four months have centered on minor to mid-size interior demolition projects.
Some Broad Conclusions.
Lenders are still reluctant to finance speculative or large projects. Convalescing older structures with minor aesthetic improvements in the $50,000 to $200,000 range of project cost seem to be experiencing little resistance to financing.
Another observation we have noted is that key decision makers are extremely reticent with regard to initiating the start of a project. We have a healthy backlog of verbal commitments sans executed contracts; the developers and owners (in my estimation) are attempting to determine short and long term market outlook.
One guiding principal employed is the American Institute of Architects Architecture Billings Index (ABI). The index serves as an economic indicator of nonresidential construction. The ABI is one factor of influence.
Daily economic reports which cover everything from jobless claims, to commodity price fluctuation, housing starts, manufacturing output, and the general bipolar nature of the Dow and Nasdaq activity rounds another sphere of persuasion.
The anticipation of the Chicago Olympics, in my opinion, induced a collective inhale of possibility and exhaled shared disillusionment. Partisan politics aside, the opportunity that would have been created for contractors had Chicago been awarded the Olympic bid is extraordinary.
I personally know several investors who literally would have digested blocks real estate, everything from vacant lots, to multi-residential parcels, to distressed industrial buildings; the geographic realm not only included Chicago, but Indiana, Wisconsin, and Detroit, Michigan as well. The infusion of capital, which has been sitting on the sidelines, will remain vaulted.
The complexity is truly exhaustive. The author James Joyce wrote, “A man of genius makes no mistakes; his errors are volitional and are the portals of discovery”. Those who operate under such a premise in today’s climate stand to ascertain little.
Based on comparative metrics in relation to last year at this time, the degree of opportunity is up 18%. While the quantity remains elevated, the magnitude of projects taking place is on a smaller scale. Rather than full building demolition, many projects seem to center on interior renovations and build-outs. One could surmise that this is a reflection of cyclical construction patterns easing workloads as we turn into fall in anticipation of winter. However, the majority of retail, office, hospital, university, and multi-residential projects over the past four months have centered on minor to mid-size interior demolition projects.
Some Broad Conclusions.
Lenders are still reluctant to finance speculative or large projects. Convalescing older structures with minor aesthetic improvements in the $50,000 to $200,000 range of project cost seem to be experiencing little resistance to financing.
Another observation we have noted is that key decision makers are extremely reticent with regard to initiating the start of a project. We have a healthy backlog of verbal commitments sans executed contracts; the developers and owners (in my estimation) are attempting to determine short and long term market outlook.
One guiding principal employed is the American Institute of Architects Architecture Billings Index (ABI). The index serves as an economic indicator of nonresidential construction. The ABI is one factor of influence.
Daily economic reports which cover everything from jobless claims, to commodity price fluctuation, housing starts, manufacturing output, and the general bipolar nature of the Dow and Nasdaq activity rounds another sphere of persuasion.
The anticipation of the Chicago Olympics, in my opinion, induced a collective inhale of possibility and exhaled shared disillusionment. Partisan politics aside, the opportunity that would have been created for contractors had Chicago been awarded the Olympic bid is extraordinary.
I personally know several investors who literally would have digested blocks real estate, everything from vacant lots, to multi-residential parcels, to distressed industrial buildings; the geographic realm not only included Chicago, but Indiana, Wisconsin, and Detroit, Michigan as well. The infusion of capital, which has been sitting on the sidelines, will remain vaulted.
The complexity is truly exhaustive. The author James Joyce wrote, “A man of genius makes no mistakes; his errors are volitional and are the portals of discovery”. Those who operate under such a premise in today’s climate stand to ascertain little.
Tuesday, February 3, 2009
Recession – How to Survive In Today’s Business Environment
The economic climate of today has the American workforce on edge. Each critical facet is interdependent; such relationships embed difficulty that spreads throughout industries. Real estate has received a fair share of negative industry outlook. Home sales at historic lows, construction starts nonexistent, commercial leasing/sales edging lower, inherent land and building values in steep decline, credit markets frozen – the list is exhaustive.
Champion Environmental Services, Inc., success is dependent on a vibrant real estate market. To date, CESI has managed to stay ahead of the economic woes that have plagued nearly every trade and industry. Luck?
We attribute our continued success in a challenging market through forward thinking and sound strategic planning. CESI is guided by sound business practices enabling our continued growth. Our direction is centered on core principles that are client-centered.
Keys to our success:
Continual fostering of existing client relations centered on the quality of our services.
Expanding new geographic market presence.
Aggressive marketing that is people orientated.
Applied focus metrics.
Sales forecasting.
Aggressive assessment of balance overhead.
Networking.
A challenging economy requires that every business “face the facts” and embrace innovative processes that create opportunity. Having a value based product or service will not necessarily warrant a market need.
Take command of your situation through strategic planning and cull the varied talents of your personnel.
About Champion Environmental Services, Inc.
Champion Environmental Services, Inc., is an innovative demolition and environmental remediation firm that operates throughout the United States. Services include: building demolition, asbestos abatement, salvage reclamation, lead abatement, industrial dismantling, site/soil remediation, underground storage tank removal, and deconstruction.
For more information, visit CEIS on the web at http://www.champenv.com/ or call Terrence O'Rourke at 847-844-1695.
Champion Environmental Services, Inc., success is dependent on a vibrant real estate market. To date, CESI has managed to stay ahead of the economic woes that have plagued nearly every trade and industry. Luck?
We attribute our continued success in a challenging market through forward thinking and sound strategic planning. CESI is guided by sound business practices enabling our continued growth. Our direction is centered on core principles that are client-centered.
Keys to our success:
Continual fostering of existing client relations centered on the quality of our services.
Expanding new geographic market presence.
Aggressive marketing that is people orientated.
Applied focus metrics.
Sales forecasting.
Aggressive assessment of balance overhead.
Networking.
A challenging economy requires that every business “face the facts” and embrace innovative processes that create opportunity. Having a value based product or service will not necessarily warrant a market need.
Take command of your situation through strategic planning and cull the varied talents of your personnel.
About Champion Environmental Services, Inc.
Champion Environmental Services, Inc., is an innovative demolition and environmental remediation firm that operates throughout the United States. Services include: building demolition, asbestos abatement, salvage reclamation, lead abatement, industrial dismantling, site/soil remediation, underground storage tank removal, and deconstruction.
For more information, visit CEIS on the web at http://www.champenv.com/ or call Terrence O'Rourke at 847-844-1695.
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