Being in the business of heating & air conditioning for residential applications is challenging when the housing market continues to decline. Today's news won't help the situation. New York was not one of the hardest hit housing markets by far and there was news recently that the Glens Falls job situation was improving, if not stable. But that doesn't change the fact that, if the country continues to decline, then the news will focus on problems and that will hurt the confidence of buyers in any market.
When people turn on the evening news in Glens Falls they see that housing is bad, the markets are bad, BP oil spill, you name it. Even if they are in a good place financially, this weighs on there conscience when it comes to buying a new dish washer or putting in a new furnace. This is bad for local business as a whole. Whether your a local restaurant, corner shop or sheet metal fabricator. Micro-businesses like mine and others suffer from the problems of the masses, even if the town is stable financially and employment is good.
The bottom line is that the countries problems aren't getting any better. I follow the markets on a daily basis and things aren't looking great. Is there progress? Some, but not enough to create more jobs and make people optimistic about the future. Even if people in Glens Falls, Queensbury and Saratoga Springs have solid jobs and aren't as bad off as the rest of the country. That doesn't mean they won't hoard every last penny and find ways to save just as much as someone with less. Which means that local businesses will continue to suffer and so will the housing market, job market etc.. If people can't buy a new dishwasher, they're surely not going to be buying or building a new house.
Tuesday, July 20, 2010
Sunday, July 18, 2010
No Break In The Heat Or The Slump
The heat here in the Glens Falls, Queensbury area has been scorching for the last two weeks. Not just dry heat either, it's been humid. Which usually means that our phones ring off the hook with people wanting air conditioning as soon as they can get it. This however has not been the case.
In the past when the heat has been this intense, we would be working what seemed like around the clock. People would call in the morning and want air conditioning by evening. Oh how times have changed. The recession has brought new rules to how the game is played. People are accepting the heat more, keeping there finances more in check(which they should) and maybe buying a window unit at Home Depot for $150. In fact, I heard a story from a colleague the other day about a women buying a few of these same units. She actually had central air conditioning, but it wasn't working. She received a couple of shady quotes and decided to buy three new window units, rather than research someone better to fix her already existing air system. This type of attitude does not bode well for business. She was willing to pay upwards of $500 for supplemental air conditioning instead of paying a reputable service man. She went with the guys working on the side who have basic knowledge, but not full knowledge. You know, the ones who are doing $3000 jobs for $1000. Undercutting guys like us. It makes business very challenging and hard to keep alive.
Heat or no heat, business has changed and so have the customers. I have learned a lot from the last two years of recession. Most of which is not to under appreciate the boom times, like they'll be there forever. Times are still a bit rocky but there is light at the end of the tunnel. Those same people getting work done for 1/4 of a fair price will be calling when their systems break down from faulty installation. When they call, we'll be ready. Business is business and you have to adapt to everything daily. Now we must make a more concerted effort to search out consistent business. Get our name out there and show that we do a great job, for a great price and we stand behind our work.
In the past when the heat has been this intense, we would be working what seemed like around the clock. People would call in the morning and want air conditioning by evening. Oh how times have changed. The recession has brought new rules to how the game is played. People are accepting the heat more, keeping there finances more in check(which they should) and maybe buying a window unit at Home Depot for $150. In fact, I heard a story from a colleague the other day about a women buying a few of these same units. She actually had central air conditioning, but it wasn't working. She received a couple of shady quotes and decided to buy three new window units, rather than research someone better to fix her already existing air system. This type of attitude does not bode well for business. She was willing to pay upwards of $500 for supplemental air conditioning instead of paying a reputable service man. She went with the guys working on the side who have basic knowledge, but not full knowledge. You know, the ones who are doing $3000 jobs for $1000. Undercutting guys like us. It makes business very challenging and hard to keep alive.
Heat or no heat, business has changed and so have the customers. I have learned a lot from the last two years of recession. Most of which is not to under appreciate the boom times, like they'll be there forever. Times are still a bit rocky but there is light at the end of the tunnel. Those same people getting work done for 1/4 of a fair price will be calling when their systems break down from faulty installation. When they call, we'll be ready. Business is business and you have to adapt to everything daily. Now we must make a more concerted effort to search out consistent business. Get our name out there and show that we do a great job, for a great price and we stand behind our work.
Don't forget to check out the new website
kesheetmetal.com
kesheetmetal.com
Monday, July 12, 2010
K & E Sheet Metal Now On Facebook
A slow Monday has persuaded me to start a page on Facebook for the company. With business being slow and Facebook becoming an ever increasing source of networking, I decided to start the page and see what happens. Many businesses are turning to social networking as a way to connect with customers and friends. If we can do the same it can only benefit us. I hope that anyone reading this will look below and "Like" us on Facebook. If Facebook isn't your thing you can follow us on Twitter as well.
K & E Sheet Metal LLC
Promote Your Page Too
Promote Your Page Too
Wednesday, April 21, 2010
A Full Day Of Custom Fabrication
Thought that I would post a couple pictures of what I worked on today. It isn't everyday that I get to make all custom fittings. Most days are filled with stock duct and maybe a few easy custom things. I enjoy a day that sees a custom fitting go from mind to metal.
The top photos are of a custom condenser cover. They are very basic because the customer wanted something less expensive. The bottom photos are a custom U-shaped elbow for running the duct under a support beam. The customer didn't want to fool around with cutting and fitting stock elbows on the job.
The top photos are of a custom condenser cover. They are very basic because the customer wanted something less expensive. The bottom photos are a custom U-shaped elbow for running the duct under a support beam. The customer didn't want to fool around with cutting and fitting stock elbows on the job.
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Tuesday, April 20, 2010
Customers Declining, Input Costs Rising
Our input costs are rising. Gas prices are hovering around the $3 level again and metal prices have been rising albeit slowly. Then today I read the AK Steel (AKS) quarterly earnings report and find that they are warning against inflation in the manufacturing sector due to a rise in iron ore prices. Hence, prices will continue to rise throughout the year.
From MarketWatch
The main problem with our business lately has been customers. People are hoarding their money in this area and unless the summer temperatures are sweltering, I don't feel like business will pickup significantly. The rise in input costs is just another punch to the gut. You can only cut so many costs and find ways to save money until everyday fixed costs (Rent, phones, gas, metal etc.) begin to weigh on any profits. Profits by the way that will solely contribute to a debt that was incurred during the hardest times over the last two years.
I'm crossing my fingers for an air conditioning boom summer. Something that we didn't have last year.
From MarketWatch
AK Steel said it assumes global iron ore prices to rise 30% over the January to March period. If prices go beyond that, the company said it would hurt its financial performance for the second quarter.
At the start of the year, iron ore suppliers Vale SA and BHP Billiton changed the way they structure iron ore contracts, setting prices on a short-term rather than annual basis.
This week, Credit Suisse analysts upped their average 2010 price target on iron ore by 56% to $129 per ton. Prices for raw materials are rising as the world economy slowly recovers and consumer spending on cars and appliances picks up.
The main problem with our business lately has been customers. People are hoarding their money in this area and unless the summer temperatures are sweltering, I don't feel like business will pickup significantly. The rise in input costs is just another punch to the gut. You can only cut so many costs and find ways to save money until everyday fixed costs (Rent, phones, gas, metal etc.) begin to weigh on any profits. Profits by the way that will solely contribute to a debt that was incurred during the hardest times over the last two years.
I'm crossing my fingers for an air conditioning boom summer. Something that we didn't have last year.
Thursday, April 15, 2010
Is The Stock Market Telling Us Home Building Will Soon Pickup?
The stock market is a leading indicator for the future economy. The rally in the markets is a confidence in the future profits of companies and the economy as a whole.
The SPDR S&P Homebuilders Index ETF (XHB) is an index of home building, consumer durables, capital goods and retailing stocks. Some examples of stocks in the index are Toll Brothers Builders, Owens Corning, Sherwin Williams, Home Depot etc. Here is the link to the index website.
The XHB index has rallied for the majority of the year, while the physical housing market has yet to really pickup. Is this telling us that the housing market and home building markets are about to turn around? Will things in the home building industry get better soon? Being that we are in the residential heating and cooling industry, I hope so. There is a saying that the stock markets predict what will happen six months from now. If this saying holds any weight. We should see a pickup in the 4th quarter of this year.
Being a micro-business, sometimes it's hard to gauge what's going on in the local markets. You can learn a lot at the supply houses and on job sites, but you need to take that information with a grain of salt. The builders that we do business with are too small to really gauge the markets as a whole. Using as much market data as possible can help to give a time line of when things may be looking up. It may not be specific to your local market, but you can be sure that it will affect it at some point.
The SPDR S&P Homebuilders Index ETF (XHB) is an index of home building, consumer durables, capital goods and retailing stocks. Some examples of stocks in the index are Toll Brothers Builders, Owens Corning, Sherwin Williams, Home Depot etc. Here is the link to the index website.
The XHB index has rallied for the majority of the year, while the physical housing market has yet to really pickup. Is this telling us that the housing market and home building markets are about to turn around? Will things in the home building industry get better soon? Being that we are in the residential heating and cooling industry, I hope so. There is a saying that the stock markets predict what will happen six months from now. If this saying holds any weight. We should see a pickup in the 4th quarter of this year.
Being a micro-business, sometimes it's hard to gauge what's going on in the local markets. You can learn a lot at the supply houses and on job sites, but you need to take that information with a grain of salt. The builders that we do business with are too small to really gauge the markets as a whole. Using as much market data as possible can help to give a time line of when things may be looking up. It may not be specific to your local market, but you can be sure that it will affect it at some point.
Friday, April 9, 2010
Receivables, Receivables, Receivables
The frustration for any micro or small business is being paid. This is our current dilemma. The slowdown in business has made us tighten on everything from driving less to not eating out with family. I feel like this would be the case for any company we deal with, if in the same dilemma. Not true.
Being a micro-business can be very tough when customers don't pay their bills. We can't afford to get a court involved and our receivables aren't large enough to pay fees for a receivables loan or something similar. You can send letters and make phone calls until your blue in the face, but you will always get the same answer...the check is in the mail.
Our business is very small and we count on every dollar....literally! We will track down a single dollar if necessary. We as a company continue to pay our bills. We cut costs and use credit cards if possible, but we always pay or we call our vendors and are honest. They will usually be very forgiving and take whatever we can give at the time. We rarely get this courtesy.
It can be frustrating on many levels. You provide a needed service that isn't compensated. Chasing money is not our business. Our business is metal fabrication. We fabricate, you pay...that's the deal.
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