Electric Heating Co., Inc

The Recovery?

Construction spending increases in March...Non-residential drives biggest uptick in six months. The Commerce Department reported last week that construction spending increased 0.3% in March, surprising economists surveyed by Thomson Reuters who forecasted spending to drop 1.5%. The increase was driven by a 2.7% jump in non-residential construction, the largest jump in nine months. Eighty-six percent of economists polled feel the U.S. recession will end in the second half of 2009 according to Blue Chip Economic Indicators survey of private economists released last week. With such steep declines in the fourth quarter of 2008 and first quarter of 2009, more economists are becoming convinced the bottom is hit.

That's the latest! I just completed a trip that took me into account after account in which they have laid of one third to two thirds of their company. A number of machine manufacturers have had their talent decimated from top to bottom in both the technical and production sides. My concern is that many of these companies have a much longer comeback ahead if they are able to survive. My guess is that the above prediction is relatively optimistic and even if the economy stages a come- back by the end of the year, many companies will not be poised to take advantage of it.

Many of the production people and engineers with whom we were working on projects are simply not there anymore and that just doubles our work, ensuring that trials have continuity, specifications are completed and followed with our heaters and unfamiliar purchasing people know who we are. Dig in folks, and be prepared for a long 2009 !!!

Friday Funnies

One Sunday morning, the pastor noticed little Alex standing in the foyer of the church staring up at a large plaque. It was covered with names with small American flags mounted on either side of it.

The seven-year-old had been staring at the plaque for some time, so the Pastor walked up, stood beside the little boy, and said quietly, "Good morning, Alex."

"Good Morning, Pastor," the boy replied, still focused on the plaque. Then he asked, "Pastor, what is this?"

The pastor said, "Well, son, it's a memorial to all the young men and women who died in the service."

Soberly they stood together, staring at the large plaque. Finally, little Alex's voice, barely audible and trembling with fear, asked: "Which service: the 9:45 or the 11:15?"

Dalton Electric Heating Co., Inc (978)356-9844
28 Hayward Street Ipswich, MA 01938 USA

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