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 69 of 119

AssociAtionnews Many IDA members have seen a recovery and resurgence in new projects with many new service calls during the last six months. By Andrew Stergiou Like most small businesses, International Door Association members are looking for ways to cut expenses and maximize profts. From service costs, to rent, to manufacturing and production costs, IDA owners were constantly trying to save the most amount of money during the economic slowdown and construction reduction experienced throughout America during the last fve years. Billionaire Warren Buffett said, "We're still in a recession. We're not gonna be out of it for a while, but we will get out". It looks like the economy and garage door industry is turning the corner! During the past few years, consumers have changed their habits in innovative ways. Many of the IDA owners are changing their approach to purchasing insurance. And in the last 12 months, many IDA members have seen an uptick in service calls and new residential projects. Unfortunately, also during that time, insurance costs have generally risen. According to many economic reports, employment numbers confrm what other housing reports have found: home prices are up, as are home sales and construction starts. Near record low mortgage rates, and a drop in foreclosures, have created a much improved market for builders. And, in January 2013, contractors fled for the greatest number of building permits since 2008. A rebound in home construction may generate as many as 500,000 jobs in 2013 and 700,000 in 2014, including related services, according to Russell Price, a senior economist at Ameriprise Financial Inc. and residential investment could bolster U.S. economic growth by 0.5 percentage points this year according to Michael Feroli, chief U.S. economist at JP Morgan Chase. A projected increase in building permits shows the pace of construction will continue. Applications to build a home increased in March to a 943,000 annualized rate, exceeding the pace of starts, from 939,000 in February, according to the median projection in a Bloomberg survey. Many IDA members have seen a recovery and resurgence in new projects with many new service calls during the last six months. With the new resurgence in the economy, many IDA members are looking for less expensive insurance with broad coverage. During this recovery, many general contractors and owners are increasing their required limits and requiring that their subcontractors have comprehensive coverage. The Solution: As IDA owners re-evaluate their business plans and discuss new projects with contractors, many of them are joining the IDAssurance Program. IDAssurance provides IDA members, which have superior loss experience, the potential to lower their insurance premiums and receive the best and broadest possible insurance coverage that is available in the marketplace, with an admitted and licensed insurance carrier (Liberty Mutual Insurance Company – Rated A XV by AM Best). Cont. on page 68

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