In a recent recent blog post titled, “I Repeat: It’s Not Just A “Wall Street Bailout”
Brian Sullivan of Fox Business reminded readers that the housing crisis is not an island to itself, and explained that there are a number of industries that all benefit from home transactions. Sageworks data agrees, and shows that industries related to home building and housing have all been adversely affected by the crisis.
When Sageworks, Inc.’s data was mined for those privately held industries with the slowest sales growth over the last 12 months, it confirmed that a number of housing related industries such as furniture stores, lumber wholesalers, and building materials companies now rank among industries reporting the slowest sales growth in the US over the last 12 months.
Those Industries listed in the top 10th percentile for the slowest sales growth over the last 12 months includes the following:
|
-8.01% |
|||||
|
Lumber and Other Construction Materials Wholesalers |
-7.05% |
||||
|
Sawmills and Wood Preservation |
-6.84% |
||||
|
Activities Related to Credit Intermediation |
-5.58% |
||||
|
Cement and Concrete Product Manufacturing |
-5.05% |
||||
|
Radio and Television Broadcasting |
-2.26% |
||||
|
Building Material and Supplies Dealers |
-1.84% |
||||
|
-1.48% |
|||||
|
Insurance Carriers |
-1.32% |
||||
|
Veneer, Plywood, and Wood Product Manufacturing |
-1.04% |
||||
|
Furniture and Home Furnishings Merchant Wholesalers |
-0.97% |
||||
|
Drycleaning and Laundry Services |
-0.91% |
||||
|
Furniture Stores |
-0.71% |
||||
|
Ship and Boat Building |
-0.32% |
||||
Brian Sullivan also explained that consumer spending was 70% of the economy, and much of that was related to housing. Historically, the ability to borrow and spend has tracked closely with real estate prices. With that in mind, watch retail spending and especially the auto industry (see previous post), where the consumers ability to borrow is directly related to auto sales.
Subscribe to Comments
290 views
Tim from Ambler PA
The trickle down theory has been proven...look at what happened during the 12 years of Reaganomics which led to the ECONOMY that fed the Clinton years the revenue of surplus. It wasnt the TAX plan that enabled that. Besides, the Clinton years werent that great. If Gore invented the Internet (He didnt...DARPANET was the inception of the internet) then him and Clinton was also to blame for the DOTCOM bubble bursting. Remember Bush inherited an economy after year of layoffs from that. I agree Taxes are part of Corporate Overhead essentially. I personally believe this World Economic turmoil has something to do with the World Bank Database intrusions that happened. Economic Terrorism at its finest. Alot easier to topple economies when you have access to the data to find the one pixie stick to topple the whole stack.
jwa
trickle down at its finest. same goes for tax plan of one party. do most people understand companies just pass on tax (for the most part) to consumers and/or reduce spending (fewer jobs and less paid out to stockholders) this all reduces productive cash flow and redistributes money to non-producers who tend to buy goods/services that send $ out of the country.
Tim from Ambler PA
Well DUH, New homes decline you would assume any dependent business' would decline as well. Credit / loans freezes, any company with a dependency on credit/loans would also freeze. The main problem with the housing industry is now we have a growing surplus due to foreclosures. Intrestingly enough, in order to move the stock we have in houses there will be drops in prices to get them off the books, benefitting the purchasers eventually when the housing market comes out of the storm. Re-Enact the Glass Steagle Act, dont make mortgages a commodity. If we learn anything from this at all, learn from history...the 2 times since right before the great Depression that we made the same mistake. Wall street has proven itself to be self corrupting instead of self correcting. Get this fixed America or its gonna happen again...and if it does, we may just not be in a position to dig ourselves out of this whole we are in. The last time it happened WE had the great depression, this time It affected the whole world in a negative way...next time ??
Dan Lozzi
I think there are many more families on the brink of financial failure. The cost of oil has heart so badly, that even the people that were responsible are living paycheck to paycheck. Many homeowners took out lines of credit to improve their homes, they were able to afford it when energy prices were low. When oil was allowed to skyrocket, because of speculation not demand, every bill homeowners received were quadrupled.