American Made Holiday Gifts

With Christmas fast approaching, have you done your part to support American Made products.  While many people still have some shopping left to do, I urge you to actively try to buy American Made.  Having surprised myself this holiday season, I have found many products that are Made in the U.S.A. and many products that were not.  Although it sometimes feels like an impossible challenge to buy American Made products, I promise you it can be achieved.  What I have found to be most helpful is take the list of gifts still left to buy, then Googled “American Made________,”  Then I find out where they are sold locally, so I can go pick them up and support our local economy.  In my endeavor this holiday season to buy products produced in the United States I have been pleasantly surprised to find many American Made brands, that I plan to continue purchasing from.

As a producer of American Made Store Fixtures and constantly trying to compete with mass production store fixtures from overseas, I can assure you I understand the frustration for finding American Made products.  Although a challenge, by doing your part, it does have an impact on the economy, supports American jobs, and will help bring manufacturing jobs back to the United States.

In addition, by limiting how much we purchase from abroad we can close the gap from the amount we import to the amount we export.  As a nation that was built on infrastructure and producing products domestically, we have skewed from our founders vision, but need to rejoice around the foundation and rebuild what we have let slip.  By increasing GDP (Gross Domestic Product), we will increase U.S. jobs, equalize the global marketplace, and help rebuild our economy.  With an increase in the amount of Americans working, and American companies paying taxes in the United States, it also will help pay down the nations extraordinary debt as well.

In an effort beyond patriotism, buying locally and buying American Made goods is vital for the long term success of our nation.  Having personally made a vow to support American Made goods, I have realized the challenge, but embrace the opportunity to help this great nation and get excited when I find that Made in the U.S.A proudly stamped on the item or package.

So with little time left before Christmas and many Holiday Celebrations ahead, I ask you to please make a diligent effort to support American Made products.  With products like Ocean Tamer Bean Bags, Scorpion Gourmet Hot Sauce, among thousands of other American made products, there are many products to complete that gift list and support American Made products built by people like you and I right here in the United States of America.

I would like to “Thank You” in advance for doing your part to support Made in America products, and may you have a Wonderful Christmas and Holiday Season.    

What is Causing the Increase in Poor Stock Performance?

As we march ahead into the Holiday Season, with Black Friday and Cyber Monday now past, I sit back and ponder some thought.  Although Black Friday Sales are said to be down for most retailers, while showing an overall increase in sales for the entire weekend of about 9%, and some reports of 30% increases for Cyber Monday from retailers across the United States, What is causing poor stock performance?

Every month I track 29 stocks which consist of a wide variety of retailers and various product categories.  In addition, I also track Sweet Crude Oil to see if stocks are being directly affected by oil prices.  This week as I tracked the stocks, I was pleasantly surprised to see that of the 29 stocks, 24 had a decrease in stock value from last month.

Although I would have speculated with the perception that an increase in sales would add some reassurance for potential shareholders, I am surprised to see the opposite response in stock values.  As I looked at the value of oil per barrel, it has fallen $7 a barrel since October which should increase consumer confidence and loosen the grip of some hard earned dollars for goods and services.  In addition, as I look at oil prices, they are actually the lowest they have been since June.  While there still is some global turmoil, with little chance of needing American military intervention, that should have little affect on the immediate stock values as well.

As I narrow down what could be causing many of these stocks to deflate in value from last month, I have also concluded that upper executive management decisions or marketing changes are not the cause.

Since people are spending, unemployment is falling, and home sales are on a rise, the only other reason I can conclude for the stocks falling is due to future projections beginning in 2013.  Although it appears sales are going to power through the end of the year finishing retail numbers out stronger than 2011, with some uncertainty of the near future, stocks are not mirroring sales.  With a slew of new taxes to be imposed in January, with both personal and corporate pocketbooks to be affected, one can only conclude that this is the cause for the immediate stock value decreases.  In prior months, it is likely that people purchased stocks which drove the increase in stock value due to Presidential Election Projections, which likely is not the outcome they had wished for.

Despite the outcome of the election, I feel confident this is likely the cause for investor uncertainty and for the stock value decreases.  Since there is much instability for what impact these imposed taxes could have on the economy, I believe people are holding steady until things are presented more clearly.

So what is causing the increase in poor stock performance?  It is most likely the outcome of the election and investor uncertainty for what could begin in 2013.  Although it should be of no surprise, once people are impacted by the imposed taxes, it could have an affect on expendable income and consumer confidence, which directly relates to corporate spending on capital improvements and profit sharing.  With many unknowns for what 2013 holds, the safest investment option is holding onto and preserving what you have until a better educated decision is available.  Since we can narrow all of the other reasons for the stocks falling in value, this would be the best explanation I can conclude for its cause, and hope that the future flourishes with economic growth.   

How Will ObamaCare Affect Economic Recovery?

While the end of 2012 is fast approaching, few people have a clue what 2013 has entail.  Since ObamaCare is to go active in January, we must be prepared for the fallout that this could cause.  Although some people believe ObamaCare is “FREE”, one must remember Nothing in Life is Free and actually with the imposed policy we will all have to reach deep in our pockets to pay for President Obama’s Health Care Policy.  Having heard some preliminary cost figures around $3500 a year per taxpayer no matter if you are an employee at McDonald's or an Orthopedic Surgeon, it will affect each and everyone.  In addition to the imposed cost involved, it is extremely likely with the imposed compliance regulations and employer mandate taxes that a reduction in jobs and less business expansion will occur.

ObamaCare will affect the economy, but not in a positive light.  Mandating additional taxes, when the economy is not fully recovered from the deep recession that has left many people’s pockets empty, is a disaster waiting to happen.  With many people still struggling to survive and then having their paycheck whacked to pay for this healthcare policy, it could cause a financial catastrophe similar to the Great Depression.  Other nations have tried centralized heath care using similar lingo to the way ObamaCare is written, but all of them have failed. 

Although each and everyone will be affected by ObamaCare, those in the lower class and lower middle class will be affected the most by the new policy.  With roughly $3500 a year coming off your paycheck, it will affect an employee at McDonald's more than an Orthopedic Surgeon.  Since inflation won’t rise high enough to help equalize the cost increase for health care, it is bound to adjust your spending budget.  Less cash to spend creates lower consumer confidence, therefore less spending of expendable income, and spending is what generates growth. 

By now, you can probably see that you are going to be affected by ObamaCare, but it’s too late to do anything other than endure the pain we all will be affected by starting in January.  Whether you are in manufacturing, retail, the automotive industry, or the hospitality industry, everyone will be affected.

Is this the jobs plan President Obama had in mind?  It is estimated that ObamaCare could result in 800,000 fewer U.S. jobs, and add trillion of dollars in debt for future generations to pay for.

Because ObamaCare imposes many regulations on physicians, many doctors are considering no longer accepting government health programs.  Since Medicaid only reimburses doctors 56 percent of the market rate for medical procedures, and with an increase of 18 million additional people to the program, it is super unfavorable for doctors to accept government health programs.  Not only is ObamaCare bad for doctors, it is also bad for seniors as well because doctors they previously visited may no longer accept the government programs.  Although many people believe doctors make too much money, many people forget the extreme costs involved to become a doctor, or the medical malpractice insurance that is very costly, or the frivolous law suits many doctors face.  Unfortunately, with all of those factors, many doctors don’t make that much money per year for the amount of stress and headache they endure to save lives.

So, how will ObamaCare affect our economy?  Not good.  I would suspect that we will see an increase in foreclosures again, debt will continue to rise astronomically, growth will cease, unemployment will increase, and our economy could fall beyond the impact of the recession, and that we will be left with a giant economic mess for future generations to clean up.

Increasing taxes does not generate economic growth, and distribution of wealth does not create incentive to overachieve.  Distribution of wealth rewards mediocrity and poor performance, and creates a nation of stagnant growth.  So as the end of 2012 comes near, be prepared to open your wallets, and wait for the fallout that will come from the Centralized Health Care policy known as ObamaCare.  It’s not if the affects of ObamaCare come, it’s when the affects of ObamaCare come, Be Prepared and Have a Plan.  Although I would like to think that ObamaCare is a positive thing, unfortunately when you dig into the facts of the policy, it has Failure written all over it.  To find out more about ObamaCare, here’s a resource I thought was interesting from The Heritage Foundation. 

What to Expect this Holiday Season

Now that the elections are passed us, many retailers are getting into full swing for the holiday season.  With many retailers who have released Black Friday ads already, consumers are getting energized with the holiday spirit.  While some have wondered what to expect this holiday season, many expectations are optimistic.  Having the 4^th quarter start off so strong, it is expected whether you are a manufacturer, retailer, or consumer, you can expect continued growth through the beginning of 2013.

 

As fuel prices have been falling, and consumer confidence continues to rise, positive growth prevails.  While we can hope that the trend continues, only time will tell.  Now that the elections are over, stock market volatility should be reduced and become more docile.  If we can keep the Dow Jones up, Economy Strong, and keep Consumer Spending up, we should be moving in the right direction for the beginning of 2013.

 

In addition, we also can expect to see lower unemployment numbers in the coming months as companies hire seasonal workers.  With more people working earning a wage, people have more excess capital to spend, which also will help the continued growth of this great nation that we all reside.

 

Whether you are a democrat or republican, there is now no time for bickering as we must move forward.  It is with God that we put our trust that the next 4 years will continue to improve and the economy will rejuvenate with sustainable growth.  It is only with growth that we can reduce poverty, build jobs, and generate products for the greater good. 

 

While the holiday season is a major part of people’s lives, it also is a major time for businesses to generate enough profit to help them wade through the slow times of the year.  In an effort to help this nation, I would urge everyone to look at the labels and support American Made Products whenever possible.  Although it seems all products are produced abroad, you may be surprised to find that products such as Carhartt Clothing, Kershaw Knives, Ocean Tamer - Marine Bean Bags, and many many more products are produced here in the United States.  To find additional resources for American Made Products this Holiday Season, I found a huge list at www.AmericansWorking.com.  No matter if you are an individual shopping this season for personal gifts or management personnel looking for retail displays, take a few extra minutes to research American Made Alternatives that may be comparable in price and keep jobs in America.

 

It is only with the help of everyone that we insure the Holiday Season is Successful and that we keep the positive economic growth in America.  As Americans we must be United as One or Divided We Will Fall. God Bless You All this Holiday Season and Let’s Finish the 4^th Quarter of 2012 Strong with a Successful Holiday Season.

Go Vote Today!

Today is the Day, for YOU to Make a Difference. November 6th, 2012 is HERE. Execute Your Right to Vote, and get to the polls.  Every Vote Counts!  He/ She who doesn't vote, can't complain about the outcome of the election or the changes from Amendments whether they be positive or negative.

Lessons Learned & The Positives Derived by Hurricane Sandy

While Hurricane Sandy has caused severe havoc on the Northeastern United States and resulted in the loss of lives, she also will produce many positives as well.  With every negative situation, I try to find the positives in order to move forward.  Even though some initial reports have estimated more than 50 billion dollars in damage, it will result in rebuilding and provide many types of jobs as well.

For the loss of lives, we send our deepest condolences and prayers to all of those families.  With God Speed we hope you find the peace needed in order to move forward.

While Caribbean Nations, Floridians, and the Southern United States are well accustomed to hurricanes and the potential hazards they inflict, many northern states appear ill prepared for such natural disaster.  Although there were many variables that caused this storm to be catastrophic, when provided with all of the materials from early detection technology, the loss of lives should be prevented.  Even though Hurricane Sandy was only a Category 1 storm, with all of the other known details provided by the National Weather Service, she was no beast to recon with.  Taken from this storm, can be the lessons learned by listening to the warnings.  I also would claim that an increase in building codes is likely needed in order to be able to sustain such storm.  Since it is known that the most damaging aspect of a storm is the storm surge, the structures along the coast should be elevated, and built to withstand the sustained winds.

Having been called the “Frankenstorm”, for its arrival so close to Halloween and extremely late in the hurricane season, it has caused a huge nightmare for millions of people near and afar, but will have positive outcomes.  In order to generate power a combination of negative and positives are needed.  Although it is not always easy to extract the positive in a negative situation, they do exist.  Having a positive outlook on the situation will lead to a generation of growth.  With the storm having caused such devastation, all industries will be affected by the storm and its aftermath.  Plumbers, electricians, home builders, truck drivers, furniture stores, department stores, etc, etc, etc all will see an increase in business and provide jobs that may have otherwise been not available.  As those areas affected by the storm are cleaned up and rebuilt, many jobs will be needed and will put people back to work.

As I have experienced the tragedies and worked with the victims caused by hurricanes and natural disasters numerous times, I know first hand what those affected are experiencing.  Often times after the storm people will realize the storm brought neighbors closer together, bridged the gap with seniors and youth, and opened the heart of those around them to lend a helping hand to each other.  With the inability to rely solely on government entities, FEMA, and assistance organizations, I have found that natural disaster like this do bring many positives along with the negatives, so I would urge those affected and nearby to lend a helping hand to each other, keep a positive outlook on the situation, and remain strong through this tough time.  Better things are yet to come, and many lessons will be taken from Hurricane Sandy.  God Bless.        

Presidential Selection with an Eye on Manufacturers

As November 6^th fast approaches, manufacturers across the country are patiently waiting to see the outcome of the election.  While many of us have our own views, opinions, and political preference, for many manufacturers the outcome is crucial for what the next four years will entail.  Although both candidates have made references to manufacturing during the debates, and their plans for an economic recovery strategy, I found my selection after hearing both parties to be simple.

While many Americans vote strictly by political affiliation, I urge everyone to evaluate both Romney and Obama, and take a scope outside the media jargon to ensure the best political candidate takes office.  Even though neither of the candidates are “perfect”, I would push voters who are undecided to educate themselves completely on ALL of the major issues, as well as taking an in depth look at both candidates over the past four years.

With a number of important issues to keep in mind, you can find many resources online along with fact checkers to insure the information you are reading is factual.  Unfortunately, since anyone can make claims and write them “as a matter of fact,” most are not true and should be verified before rendering a conclusion who you should vote for come November 6^th.

Since the President of the United States is a global icon, it is very important that we pick the candidate that most resembles our nation as a whole and who has the ability to guide our nation effectively.  With our national debt exceeding 17 trillion dollars and rising, I also would urge voters to elect the candidate you believe has the best plan to reduce the national debt.  In addition to the nation’s debt, lowering unemployment, and rejuvenating the United States economy should be major areas you take a look at.

Choosing the Best Presidential Candidate Takes Time and should not be selected using “ennie meanie minnie mo” on Election Day.  Selecting the President is a very important civic duty we each have for the future of the United States and the image we wish to administer across the world.  So I ask each of you on November 6^th, to Please Vote Responsibly with an Educated Vote for the candidates.  Manufacturers across the United States are patiently waiting for the answer to unfold, in order to better plan for what the next 4 years could entail.         

Is the Presidential Election Driving an Increase in Manufacturing?

Is the Presidential Election driving an increase in Manufacturing?  With less than a month remaining on the campaign trail, manufacturing across various industries are showing significant increases from this time last year.  Over the past 2 months manufacturing has continued to strengthen, and has many businesses booked into the middle of next year.  With manufacturing having been so slow for so long and then the rapid spike of production, many manufacturing facilities are playing catch up hiring additional employees in order to fill orders being placed.  In addition to hiring additional employees, getting them trained, filling orders, and taking additional product orders many have asked what caused this sudden increase in production? 

Although there is still turbulence abroad, with the 4^th quarter of 2012 well under way, one could speculate that an increase in consumer confidence is driving the increase, or that the presidential election is playing a role in driving the increase for manufacturing.  Since fuel prices still remain high, yet consumers continue to spend disposable income freely, it is difficult to determine what has actually occurred in order to cause this spike. 

Since oil prices are still high we can rule that out, and since people’s wages have remained relatively constant or slightly down, we can rule out that everyone has more money.  Is the spike caused by the slow trickle of the federal stimulus? ...I doubt it.  While I can’t pinpoint the exact cause for the increase in manufacturing, I can only presume that with the national election near, that it is causing this manufacturing boom.  Staying away from the party line debates, I am thankful for the manufacturing increase no matter what the cause.  Since manufacturing is a staple of our economy, it is great to have the increase, but hope it isn’t temporary.

Manufacturing facilities nationwide have been experiencing this boom and say, it will help close the year out and start off 2013 in the right direction.  No matter what the cause, lets all remember to help support U.S. business by buying Made in the U.S.A. goods whenever possible.  We also must push for bringing more manufacturing jobs back from overseas.  We have a very competent workforce within the United States that are capable of producing high quality goods at an affordable price, but we must have the facilities over here in order for that to happen.  Let’s join together and continue this push of supporting our fellow American, and insure this increase in manufacturing that we are currently experiencing is not short lived.

Market Showing Strength

In an effort to determine market trends, I monitor 30 stocks on a monthly basis, and was shocked to see September’s numbers so high.  With the current strength being the strongest since February when 27 out of 30 showed an increase in value, I am baffled to see this month that 28 out of 30 stocks monitored showed an increase in value with the volatility of world affairs, and sweet crude around $95/barrel.  Since last month when 15 out of 30 showed positive increases and sweet crude was around $93/barrel, this is an obvious shift of market strength. 

Whether it be an increase in consumer confidence or inflated numbers from family vacations and back to school, seeing such an incline in market strength is a positive for our economy.  While not all the questions can be answered by these results, one must hope for this trend to continue.

Included in the list of stocks I follow, there is a wide array of industries including retail, construction, health care, consumer goods, food & beverage, along with others to establish a viable basis to determine market strength and trends.  Although the list only includes 30 companies, I believe it provides a sound base in order to provide enough evidence to make an educated determination of market strength and industry trends in a timely fashion.

Although there is a number of variables that control a stocks increase or decrease in value, I monitor sweet crude oil to determine the effects fuel prices have on a particular industry.  While we are all aware, when fuel prices increase in value, we usually notice a reduction in consumer confidence, and then see a reduction in stock value based on less spending of non needed items.  In addition, the longer the trend exists the harder the consumer confidence is to rejuvenate or restore to a respectable level.  Since peoples incomes do not fluctuate up and down as fuel prices increase and decrease, we are forced to alter our budgets and spend money more wisely.

Whatever the case may be for September’s trends, although it is still too early to tell what the following months will bring, I hope the trend continues.  While we can stand to see fuel prices fall to a more moderate level, with a continuation of positive market strength across all industries, we will ensure a strong and healthy economy.                       

Fuel Prices Adversely Effect Manufacturing

Although fuel prices have recently crept back to record highs, we anticipate the fallout to cause unfavorable effects soon.  Since we know fuel prices adversely affect manufacturing, it is only a matter of time until consumer confidence falls and spending of discretionary income comes to a halt.  While many retailers have recently relinquished funds for capital improvements, when consumers quit spending, they too quit spending until consumer confidence is restored.  With 2012 being an election year and many other variables, we can only hope that fuel prices fall before consumers pull back on spending.  Although manufacturing has been very favorable over the past few months and projections are solid for the next couple of months with plenty of contractual obligations, it is the scope beyond that is unknown.

We have spoken about consumer confidence before, but it is imperative for manufacturers to monitor.  Since we are directly affected by the amount of business that retailers receive, we must monitor consumer confidence in order to be cognizant of the potential shortfalls in work, and excess labor.  Unfortunately, when consumers quit spending it is a vicious cycle, and causes many negative affects to occur.

While the workload for the next couple of months is favorable, with many retailers having released funds to complete capital improvements, it is the first quarter scope that could prove troublesome if work is not acquired and consumer confidence is not restored.

Having spoken with several manufacturers throughout various industries, they too are “feeling the heat” caused by the increase in fuel prices.  Although we all know fuel is crucial in our lives, economic leverage is often barred on its price being low and affordable for most. 

Since the government has required oil companies to produce a cleaner fuel which now includes ethanol which is derived from corn, and bean crops, our food prices have increased as well.  Although alternative energy is important, I would point to the ineffectiveness of ethanol as a viable source.  While the concept of cleaner energy is wonderful, when incomes and inflation can’t keep up with the increases, it causes negative affects on the economy.  Fuel is vital in all of our lives weather we like it or not, but should not dictate our economy.  With plenty of oil and alternative energy sources like hydrogen (most abundant element on earth), we have the potential to be sustainable for numerous years, and generate a strong economy with a consumer confidence that is unparalleled.  You probably are asking yourself “If ethanol isn’t the best alternative fuel source, why did oil companies go this direction?”, the answer is, it was the best short term solution to a long term problem.  In order to meet the regulations that the government had implanted, they had to act fast in order to satisfy the guidelines.  Although hydrogen is the most abundant element on earth and “pollution-less”, it is very hard to extract, which would cause it to be expensive, but with some government help could likely be achieved more easily.  I also would say that when the extraction takes place on economies of scale that the price would become more affordable, and is by far a better alternative fuel source than ethanol.

By using a viable alternative energy source that is sustainable, we as a nation would be less dependent on oil and our economy would be rejuvenated with jobs and expendable income that could be used within retail establishments, restaurants, entertainment, etc, or to start a new company.  Since consumer confidence is based off of expendable income, I believe we should look ahead at the real problem and fix the problem at hand which is FUEL PRICES.  If we can get closer to a controlled fuel price meaning alternative fuel source, we can create a STRONG Economy and Manufacturing Will Be Sustainable.  Until then, we are tied to the hips of oil companies and must hope that fuel prices fall, consumers keep spending, retail establishments continue to flourish, and that a viable fuel source is created to lessen our dependence on oil companies.  

Manufacturing in the 21st Century

Manufacturing has been established for thousands of years, but distinctly different now.  Although time has evolved manufacturing, the basic principle of producing an end product has remained the same.  Along with the evolution of tools for manufacturing, now comes automated machinery.  While Manufacturing in the 21^st Century is significantly different than even 25 years ago, we must continue to look to the future in order to continue staying profitable and remain a valid competitor within the industry.  In this blog post, I will be focusing on the vision of automated machinery and how it will forever change the manufacturing of store fixtures and industries alike.

Although some believe automated machinery is causing fewer jobs, from our experience and from what numerous statistics show, I find that claim to be FALSE.  While automated machines Do Not Cause staff reductions, They Do Cause a shift in job placement.  With the need for fewer employees doing what once was performed manually, there often is an employment shift to running the new machines, some into various departments like assembly, as well as some in to management roles.  Since automated machines improve performance, it allows for the ability to increase production, which in turn will increase gross revenue, profits, and continue to generate jobs throughout the future.

With automated machinery being the true direction of the manufacturing industries future, investing into automation is a MUST.  In an effort to reduce the labor factor per unit and increase precision, moving in the direction of automated machinery is a great solution.  In addition, by switching to automated equipment it allows the ability to moderate production times, and provide little variance unlike humans.  By converting to automated equipment, it also allows a company to become more competitive within the global marketplace. 

Since many products we produce within the United States are also produced in countries like China, Japan, the Philippines, and other similar countries where labor is significantly less, we are forced to operate within the spectrum of the global marketplace for fear of losing business to foreign competition.  While some clients are still very focused on supporting U.S. businesses, the loyalty to buy made in the United States products has fallen to “price” by foreign competition.  In an effort to remain globally competitive, automated machinery is vital.

Even though the cost involved to purchase automation machinery comes with a hefty price tag, the Savings involved are Huge.  While automation equipment can range from $60,000 to $250,000 per machine or more, with all of the capabilities they allow in addition to the growth potential, the machines often pay for themselves relatively quick.  Obviously, depending on how much automation equipment you have installed will determine your ability to increase efficiency and manufacturing productivity.

Having monitored the trend and watched fellow competitors move toward automation throughout the last 10 years, I would conclude that automation is the developing trend of the 21^st Century for Manufacturing Companies throughout the United States and abroad.  In order to evolve with Manufacturing it is crucial to switch to automated Equipment before the evolution passes and you are no longer globally competitive and out of business.  While we at Interior WooDesigns have several pieces of automated equipment within our current manufacturing facilities, it is with time, that we too will slowly transform with more automation to remain globally competitive and allow the ability to increase our capabilities. 

Automation Equipment is the key to success for Manufacturing in the 21^st Century and should not be overlooked as a fad, but more as a developing long term trend of manufacturing.  With tools having evolved a long way over the years, it is with great pleasure we welcome automated equipment into our lives, to increase productivity and enhance our capabilities.  With such measures, we can ensure sustainability throughout the future near and afar.  

Account Diversification a Must for Manufacturing Companies

While statistics nationwide show U.S. Manufacturing to be down, diversifying your client portfolio is a MUST.  Just like stock brokers diversify their portfolio over high risk, low risk, and a variety of stocks, it is equally important for manufacturers to establish themselves into various types of the market as well.  Having All of your Eggs in One Basket would be considered high risk, and potentially catastrophic if you are solely focused rather than having a scope on a broader spectrum for company revenue. 

Although a horizontal diversification strategy should be implemented first, with a relatively low amount of risk it will help penetrate into similar businesses that the manufacturer is already serving.  With this strategy it requires the creation of additional product/products that would likely serve the clients you already have captured.  While a horizontal diversification strategy is important, it should not be implemented alone, in order for the company to be fully sustainable if a particular industry calls for a decrease in manufacturing output. 

Along with the horizontal diversification strategy, it is suggested that a concentric diversification strategy is also in place.  Even though it is a basic principle which identifies the strategic advantage your manufacturing plant has over your competitor, managers often forget to monitor this on a regular basis.  Identifying what or where you have a strategic advantage manufacturing your current products over your competitors is something that should be monitored regularly and be tweaked when necessary.  Monitoring a concentric diversification strategy also helps identify inefficiencies and helps to ensure industry quality standards are being achieved.

Another diversification strategy which can be implemented, but should be monitored closely due to it volatility and riskiness is a lateral diversification strategy.  Because a lateral strategy calls for the creation of new product/products that are unrelated and completely different than currently produced, they hopefully will reach an all new client base.  Due to the high risk associated and significant investment which is required to develop and market a completely new product to a different client base, it must be monitored closely.  While leveraging a manufacturers other profits to establish a lateral diversification strategy, it can generate a great ROI, but must be monitored to ensure smooth operations.

Even though a Horizontal Diversification Strategy is most common with the least amount of risk, and has the best ratio of success, one cautions no matter what strategy your manufacturing plant is implementing that maintaining profitability throughout the transition is crucial.  Like a stock broker monitors stocks, manufacturers should monitor there diversification strategy to ensure a company is sustainable if an industry in which you serve is negatively affected and there production needs are reduced.  Diversifying your client portfolio is a must, but should be implemented with caution and a close eye.  Consulting with a team of experts is often a good idea, and should be instituted with due care.

Repair VS Replace During Times of Struggle

Recently we have been plagued with automation malfunction which sparks the question, “Repair VS Replace during times of struggle?”  Although there are many Pros and Cons for both ways (if thinking optimistically in regards to the economy), one must choose wisely.  While manufacturing has been relatively slow over the past 8 months, and the economy is still sluggish to regain strength, many questions are raised.

Although we believe the economy is going to slowly regain strength and retailers will begin investing back into capital improvements, at Interior WooDesigns we haven’t seen the increase in production that speculators have stated.  Having spoken with other manufacturers, they too are embracing similar issues.

While some automation equipment can range in replacement value from $100k to $250k or more, they come with a significant investment decision.  On the other hand, when a piece of automated equipment goes down, it could be as little as $500 to as much as $3000 or more in a single visit.  Although our occurrences for needing repair are not frequent, with several machines more than 10 years old, one must ask, “Is Replacement Needed?”  Although automation equipment when properly maintained can last a long time, when repairing at the tune of $3000 or more per visit, it can certainly add up quick. 

Although most machines are depreciated out over 6 years, with the replacement value so great and manufacturing having been so slow, justifying capital improvements VS repairing a machine is a brain battle, and a strategic decision that doesn’t come easy.

Many manufacturing plants are facing similar situations, and some that have chosen to purchase new machines instead of repairing are no longer in business.  Although having new automated machines could provide a strategic advantage and would likely allow additional benefits, during struggling times spending excess cash on capital improvements could be a “cut throat” decision causing a company collapse.  At Interior WooDesigns we are constantly re-investing profits back into the company, maintaining the machines we have to the best of our ability and praying they last for a while longer.  With the economy having remained relatively stable over the past 18 months with a  slow progression, we believe that the best choice is to maintain what we have, invest back into the company, hold cash, spend wisely, continue to produce top quality store fixtures for our clients, and wait for the recession to fade and the golden economy to emerge.

Even though this is our plan of action, with aging machines and a sluggish economy for manufacturing, big investments with little work are nightmare decisions I can only pray we are not forced to make.  For those manufacturing plants that do have to replace machines, I wish you the best for I know the challenge of relinquishing cash in order to continue company operations.

The decision of “Repair VS Replace During Times of Struggle”, is not an easy choice, but one that should be well thought out and administered with due care.

How Will The Drought Effect Manufacturing

Although manufacturing store fixtures isn’t directly effected by the severe drought throughout the United States, we certainly are impacted indirectly.  While the drought is causing havoc on corn farmers who supply corn crops for ethanol which supply’s about 10% to our U.S. Gas Supply, we soon will feel the ripple effects from the extremely dry conditions.  Using some basic economic principles I will show you how we too will be affected, and how consumers will be affected as well.

While sources suggest a spike of nearly 15 cents a gallon in the months to come, and currently recording record high prices for corn, consumers can anticipate paying more for many items that are derived from corn or need corn to be produced.  With the increase in costs for food along with fuel increases, it will decrease expendable income.  Since manufacturing store fixtures is based off of consumers expendable income in buying non necessity items from retailers, if retailers are negatively affected they too will pull back spending on capital improvements.

Since the Supply of corn is low, and the Demand is remaining constant, Price is bound to increase.  Unfortunately, when commodities increase in price and cost of living remains constant, unless someone strikes rich, the expendable income decreases, and consumer confidence often falls as well.  Since Consumer Confidence can quickly slide, with a slow trek back upward, it is crucial we pay close attention to this drought crisis.

With manufacturing having been hit hard over the past 5 years with the recession, this drought I fear could be a final blow to many.  Since many manufacturers have been holding on by threads for some period of time, it would be no surprise if the drought doesn’t cause some manufacturers to go out of business.

Since Manufacturing is a staple to the well being of our U.S. Economy we ALL should be concerned about the drought, and will be affected by its wrath.  Unlike a Hurricane, Tornado, Fire, Earthquake, Tsunami, etc, which occur leaving a disaster zone in a specific area, this drought will affect our entire nation and should be taken very seriously.

So, although Manufacturers won’t be directly affected by the drought, I hope you can now see how we will be affected indirectly and the severity of this natural disaster.  For the unforeseen rain storm I hope it floods the crops with the necessary water to help provide healthy corn crops, and that we bounce back quickly stabilizing commodity prices, which will help stimulate economic growth.                    

Source: Martha White – www.MSNBC.com -

http://bottomline.msnbc.msn.com/_news/2012/07/19/12834892-gas-prices-may-go-up-too-because-of-drought?lite

You Get What You Pay For

We have all heard the phrase "You Get What You Pay For", and we believe that statement to be TRUE.  While we are constantly monitoring our fixture quality compared to others, and after years of modifying to reduce costs we are confident that customers "Do get what they pay for".  While Store Fixtures years ago were manufactured with real wood, then went to Laminate Fixtures with Real Wood Trim accent, and now are primarily laminate fixtures, chrome fixtures, or cardboard fixtures.

Although some consumers may overlook the product display, I would argue the point that it is hard to sell a $20 pair of socks from a cardboard box, whereas if the product was displayed in a descent fixture, it may help persuade consumers to buy with the ideology that it must be of a higher quality than the other socks.  I truly believe that display of a product is crucial in order to maximize a retailer’s return on investment.

In addition to helping diversify your products from the competition, with the higher quality fixtures, the fixture life expectancy is extended dramatically and is one less burden for a human to constantly monitor.  Depending on the quality of the fixture you choose, durability and life expectancy are 2 characteristics that are diminished with the lesser quality a client chooses.  Having manufactured thousands of store fixtures to client specifications and needs, we have witnessed first hand the damage that is incurred when using the philosophy "Cheaper is Better".  While real wood fixtures can last for 12-15 years or more and be presentable, when we compare that to solid laminate fixtures we typically see them last 7-10 Years under normal operating conditions before needing to be replaced.

Another thing to check is the materials being used to make sure that a comparison of "Apples to Apples" is being made before ordering your store fixtures, no matter what level of quality you choose for your retail environment.  We often find when we are doing comparisons that other manufactures in order to win a bid will use less expensive materials such as .5mm Edgebanding as compared to 2mm or 3mm which will help protect the edges of the laminate from some damage.  Although it doesn't sound like much of a difference, it can help extend the life of a fixture dramatically under normal conditions.

Since many retailers often move fixtures around the store and change the appearance, it can be expected that they probably will bump into another fixture or be drug without casters under them, but as a fixture manufacturer it is our job to make them as durable as possible.  Since store fixtures are not indestructible, it is important when making a comparison that "Apples to Apples" are being made.

We make every effort to provide our clients with the Very Best products we can possibly produce meeting the criteria of our clients needs.  Although the product may not last as long as the higher end product would, it is the nature of the beast.  Since many clients often wonder why our fixtures last longer no matter the base material, it's because we at Interior WooDesigns use the best quality materials, craftsmanship, and take extra precautions to insure our products outlast our competitors.  Having been in business more than 25 years, and having an extensive background in the retail industry we know the use and the abuse that the store fixtures receive.   

So I ask, "Do You Get, What You Pay For?" Yes, you do get what you pay for and the longevity of a store fixture is heavily based on the materials and craftsmanship of each and every fixture produced.  I also would be cautious when making comparisons from one manufacturer to another that Quality isn’t being sacrificed to win the bid.  At Interior WooDesigns we are firm believers in Quality over Quantity, because “You Do Get What You Pay For.”   

Supporting U.S. Businesses

As a Manufacturer of Store Fixtures we are constantly trying to utilize businesses within the United States.  Although many of our competitors have chosen to outsource business overseas, WE have held true to our word of Supporting U.S. business whenever feasible.
In addition to supporting businesses within the United States we are doing our part to Keep Jobs in America, and supporting Our Economy.  If everyone would take the same steps as Interior WooDesigns to support U.S. Businesses, we could put many people back to work, and would be less dependent on Imports from other nations.
It is time for Americans to realize the impact that our dependency of other countries is having on U.S. Businesses.  If we choose to "Cherry Pick" products for the lowest price, which often comes from Japan, China, Korea, Philippines, and other nations where the cost of manufacturing is significantly less than America due to labor figures, WE WILL continue to deplete U.S. jobs, increase our nations debt, and have no quick way to fix our economy.  In addition, when the quantity of the product you desire is not available and you are waiting on products from overseas, you can expect to wait a minimum of 6-8 weeks for arrival, whereas the lag time between order and delivery of product on U.S. soil is significantly less.  Point being that although your initial cost may appear slightly higher to support a U.S. business, if you are required to wait on an item from overseas to complete an order, it would likely outweigh the cost to do business within the U.S.  "Time is Money", is a term we forget when we are at the store, but a term businesses are all too familiar with.
Companies that are reliant on sources from overseas, in order to have enough inventory of that particular item, must store enough excess to account for the "Lag Time", and storage comes at a cost which can be directly reflected in the cost of the end product.  IF, your end product was completely manufactured or made in the U.S., it would allow businesses to inventory less supply material, with the understanding that it can quickly be replenished when it runs short, whereas the overseas lag time could be lengthy.  As a result, many of the U.S. manufacturers would be able to pass the saving on to customers and be more competitive in the global marketplace.
No matter what the end product is, we can all rest assure if it was assembled or manufactured in the U.S. but required any supply item from overseas that the cost to the end customer is higher than if it was completely manufactured in the United States by U.S. Goods and Services.
Although the cost per item may be slightly higher than current figures, U.S. Businesses would be booming, people would be employed and spending money, and our economy would be re nourished, and the cost increase per item would be such a small fraction that it wouldn't be a concern to most Americans. 
Supporting U.S. Businesses is crucial to our Nations Long Term Future.  Having exported many jobs overseas and wondering "Why" our economy has fallen in a deep recession, I would ask each and every one of you reading this to, take a step back and think "Are you doing YOUR part to support U.S. businesses?"  It is time we as Americans reevaluate and look to the future of America and help support our nation before it is too late.  The founding fathers of this great nation would be ashamed that many of us are supporting other nations, at the farewell of our own nation that they fought for.
Let’s all do our part to Fight for Our Nation and Support U.S. Businesses and Our Economy, and things are bound to get better.