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Commercial Drywall, Inc.
Commercial Craftsman
Volume I, No. 6
April 1980
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Despite matioini^s economic woes
OOD future continues bright
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While the nation is apparently in the midst of an economic slowdown, Houston’s economy appears to be “holding its own" thus far. Despite the economic woes of the country, the construction industry in Houston seems to be affected less than would be expected. While Houston is escaping the brunt of this downturn, certain effects of the gloomy money situation have settled here as they have elsewhere in the nation. ^^Interest rates, especially the prime ®^rate, have skyrocketed in the big money centers of New York and Chicago. Consequently, the price of money in Houston has reached new levels, while at the same time, inflation is rising at an incredible 18 percent annual rate so far this year. What does all of this mean, especially to those of us whose jobs, as well as our livelihood, are so directly affected by the price and availability of money for new construction? First, the residential market has been the worst hit in the construction industry. New housing starts are off 50 percent in the city, a dramatic drop. However, Commercial Drywall with its impetus in the commercial market receives only the ripple effects of the housing downturn. The cause for such a slowdown in the residential market stems primarily from the same source that could affect the commercial end of .the industry as well. Tight money or ^«xpensive money is the felon. Developers in Houston are paying top dollars for the money used to finance new projects. The risk is that should the money situation continue to worsen, investors and developers
Despite a downturn in the economy as a whole, the commercial construction market has remained fairly strong in Houston. The downtown skyline changes rather quickly with the addition of several new high-rise office buildings, the vast majority of which are CDI projects.
city. It merely indicates that CDI, barring any unforeseen or dramatic dip in the Houston economy, should remain in a very favorable position in Where do we as Commercial the market. Drywall employees fit in this mixedTo CDI employees, it means that up, but obviously not-so-bright job stability, always in the minds of picture? CDI, thanks to its aggressive those in the construction industry, posture and farsighted management, especially during bad times, is has contract commitments that carry basically provided. But, it also means us into 1982. That means that should that to maintain a backlog that commercial construction bottom out enables us to function in a changing in the year ahead, CDI with its business environment, we must all present backlog of business, could work to see that we are contributing conceivably ride the crest of such a our fair share toward the success of downturn. the Company. These contributions in production and ideas have placed That does not mean to say that CDI in its present enviable position Commercial is in a position not to and will be what is necessary to worry, because obviously we cannot keep us number one regardless of sit unaffected by any severe economic trouble in the nation or the the economic situation. may hold off until the financial situation eases, bringing developers’ interest rates down.