I spent my fourth anniversary as publisher of the Slippery Rock Gazette at a stone fabricator’s shop in Illinois. I had a wonderful time getting to know the people, learning how they did things and some of the challenges that they have faced over the last few years. This shop has survived and prospered by focusing on improving internal productivity and keeping a constant focus on the quality of the product. In other words, working smarter and not sacrificing standards out of fear.   

Trying to make sense of the last four years has been a challenge for me, but here are a few observations:

1. The people who have survived the great recession (not that it is really over yet) are a tenacious bunch. Using government published figures, the housing industry is down almost 80% from 2006. Until now, I have not experienced or even read about an industry that survived this kind of downturn.

2. Adversity really causes the mind to work overtime. I have heard many stories over the last four years where people learned how to improve productivity and quality simultaneously. This activity has resulted in new products that save time and money.  

3. Marginal products and marginal firms have been, and are being, squeezed out. I know that one of the presidential candidates has caught a lot of flack over the comment,  “creative destruction of capitalism.” Like it or not, there is evidence for the concept.

4. It is important to be an artist, to know how to create beauty, but it is not enough. You also need to be smart in running a business, knowing how to handle debt, serve customers and deal with burdensome government intrusions.

5. From my first trade show (Coverings 2008) till the present, I am simply awed by the beauty that is being created through the hard work of the readers of the Slippery Rock Gazette.  Natural stone, porcelain tile, and decorative concrete help make the world that we live in a little better, and that is a very good thing.

For those of you who are doubtful about the decline in the industry, I would suggest that one of the best indicators of the housing industry is the unadjusted, single family, new home completion numbers published monthly by the government. The latest numbers out at the time of this writing are January 2012. You might find the chart below illuminating.  

Housing Completions
Single family only, unadjusted monthly

      January

      Units
      2012       25,800
      2011       28,400
      2010       30,000
      2009       39,000
      2008       69,000
      2007       103,900
      2006       115,100


If you make it to Coverings 2012 in Orlando, stop by the Braxton-Bragg booth (#3496); I would love to meet you.  

Hope you enjoy the read.

Rich Hassert

Email responses to: publisher@slipperyrockgazette.net