Maybe I am being optimistic because my job depends on the success of the stone industry, but it seems that in conversations that I have had with fabricators over the past couple of weeks, I am hearing that business seems to be picking up with a greater level of consistency than a month or two ago. Back then, it seemed that a shop could have a good week or so, but then it would be followed by two or three slow weeks. Now the growth seems to be more consistent. With this in mind, I asked the following question to a group of professionals from the Stone Fabricators Alliance (SFA) earlier this week. "Does your business seem to be picking up on a consistent level? Are you still getting beat up on price? What seems to be the mindset of customers who approach your shop?"
The responses I received were quite positive, particularly with regard to the short term.
"We're so slammed right now that its very difficult to keep up," said Cameron DeMille of DeMille Marble and Granite Inc. in Palm Desert, CA. "The shop starts at 5:30 a.m., and we work six days a week. As of right now, we have 35 jobs that we've committed to before Christmas -- half of them being kitchens. We're a small shop, so that's a pretty large order for us."
A similar view was offered by Tim Scarlata of Atlantic Granite & Marble of Rochester, NY, although he was somewhat tempered in his enthusiasm. "We have picked up over the last couple months, but I think it is a holiday rush and the winter will be tough," he said, adding that he predicts business will pick up as 2010 moves along. "I expect the spring to be busy. From talking to local contractors and builders, people are starting to book remodels again, and new homebuyers are starting to look again."
SFA Director Dustin Braudway of Cape Fear Tile & Marble Inc. of Wilmington, NC, agreed. He said that while some of the short-term growth is due to the season, business overall seems to be on the rise. "We have been busy throughout the summer," he said. "But looking at it from a footage point of view, the retail side is gaining momentum versus wholesale side. Naturally, most people are going to be busy with that holiday rush, but from the vendors and slab suppliers that I have talked to, there seems to be a consensus that people are getting busier. I would say that business is picking up. Overall, the market seems to be consistent in the last six months of the year versus the first six months. At least according to my footage/weekly processed material data that I have collected over the year seems to tell me that."
Speaking on the mindset of consumers in the marketplace, Braudway said that while it is still a mixed bag, homeowners seem to have increased their general knowledge of stone. "The quality of customers seems to be improving with their education level," he said. "It shows that they have shopped around and educated themselves a bit on the different price ranges and what is to be included in the project. Most still shop by price and are looking for the best deal, but some want what they want."
When dealing with customers who are buying on the basis of price, Braudway reiterated that lowering prices is a poor strategy for those looking for long-term success -- a sentiment shared by many veteran stone fabricators. "Right now, I think that you should still price the projects accordingly and try not to just buy yourself a project because you need something to do," he said. "A lot of shops that I see in our area seem to be filling up on the cheap work just so they can turn numbers. I think that is also the mindset of the Big Box retailers. Give something away or 'buy now and pay later' seems to be what they use to draw in that extra dollar."
So while we are certainly not out of the woods yet, it is amazingly refreshing to hear some positive sentiments as we close out a very difficult 2009. Next month, Stone World will be presenting the results of our annual Fabricator Market Survey, which is sent to thousands of North American stone fabricators, and I hope to see a similar sense of optimism.