What Are You Doing?
Business conditions continue to slow down for a lot of companies and more and more members are mentioning that they are not slow but have "excess capacity." Many of the lumber related businesses feel that once the tariff situation is corrected that lumber will be screaming out the door and that sales will be going through the roof. Once supplier asked what she should do if she is unable to keep up with demand for her lumber?
Up until recently business conditions had been great under our present administration and the overall feeling is that things are now starting to slow down. The German economy shrank for the second consecutive month and the Chinese saw factory orders rise to the slowest pace in 17 years. Suppliers returning from Asia are telling us that regardless of the tariff's the only thing they saw in 2-3 weeks of customer visits were warehouses that were overflowing with lumber as their customers had no orders. Price or tariffs were not even mentioned.
For a number of years everyone just counted on product (from soy beans to lumber ) moving to China and the fact that they would make a good profit on it. Many suppliers "forgot" about their domestic customers.
Now everyone is struggling to find new domestic customers as well as other nations to export their products to. The problem is that it usually takes 18-24 months or longer to develop a new customer.
Since 1929 the WPMA has always been focused on providing members with the tools to prosper in the global economy. We continually attend national trade shows to encourage RFP's that we share with all members as well as advertising in the major trade publications encouraging those seeking a supplier to contact us. Many member companies have told us that they have developed new and long-term profitable business from inquiries that we have shared with members.
To learn more about other programs/services that the WPMA provides members to help improve the bottom line, please contact Philip Bibeau, Executive Director at 978/874-5445.