International Door & Operator Industry

JUL-AUG 2013

Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.

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Page 32 of 119

MAnAGeMEnT (continued from page 29) U.S. Construction Industry 2003 - 2014 (projected) Boom, Bust & Slow Recovery Exhibit I 1,200.0 960.0 400.0 880.0 320.0 800.0 240.0 720.0 640.0 160.0 560.0 80.0 480.0 0.0 400.0 03 04 05 06 07 Total Construction Value Put-in-Place Residential Improvement & Retrofit the United States to soar and prices to drop, a condition that was almost totally unpredicted as late as fve years ago. With electricity generation increasingly supplied by natural gas, the availability of lower cost energy is invigorating the U.S. economy by making it a more competitive place to do business. As a consequence, manufacturing, transportation and distribution sectors are growing, all of which require space and vehicle access points, and that bodes well for the garage door industry. Education & Information – Stimulants of Productivity Few would argue that knowledge, skills, and the health required to put those to work are key components of economic well-being. To the extent that more people have greater access to expanding their knowledge base and skill sets, the problem of unemployment is lessened. The rapid growth of on-line education programs – particularly those generated by 30 $=billions 480.0 1,040.0 Construction Sectors - Total Construction - Value Put in Place $=billions 560.0 1,120.0 08 09 10 11 13 p 14 p New Residential Construction Garage Door Relevant Commercial Construction top-tier institutions – is a major driver of economic expansion. In short, education expands and stabilizes the demand for goods and services as well as driving the search for innovation and supporting the next generation of entrepreneurs. Information technology works in concert with education to create opportunities. Spending for information technology grows because it enables business to boost output without a dramatic expansion of payrolls. The rapid growth of energy development noted above is closely tied to information that enhances the productivity of exploration and refning. Ultimately, information technology becomes a catalyst for improving returns on investment. How We Got to this Point With signals now pointing to a prolonged period of predictable, if unspectacular growth, it is instructive to refect on how the industry arrived at this point. Exhibit I displays how total construction spending (grey bars, International Door & Operator Industry™ 12 left axis) accelerated annually from 2003 to 2006, declined precipitously to the 2011 trough, but has now grown across the last 18 months, and we project that growth to continue into 2014 and beyond. The red, blue and green lines (right axis) respectively indicate annual total construction spending for new residential structures, residential retroft and commercial buildings (only projects that are relevant for garage doors). Spending for new housing has a long way to go to reach the 2005 peak, but commercial construction is within two or three years of matching its best performance, and residential retroft (replacement, upgrading, renovation, additions, etc.) is already within sight of its 2006 high mark. Many changes have occurred as the garage door industry as worked its way out of the recession. Price increases, better doors and a realization by architects and contractors that a garage door is not a good place to skimp on specifcations, have all been benefcial. The mix has improved and since 2005 Continued on page 32

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