An Industry Perspective

It's certainly not news that New England's construction market has been impacted by the economic realities of the past few years. A significant number of financial, high-tech and telcom businesses have severely cut back their spending, and in many cases closed down or abandoned facilities, more than offsetting the stability provided by the continued strength in infrastructure, educational, healthcare and biotech construction.

Additionally, the resulting surplus of office and manufacturing space that has suddenly become vacant will certainly slow the pace of future construction as much of this space will need to be absorbed before a sustainable development cycle can begin.

It is during difficult times like this when the landscape of industries can be transformed. There can be a market shift where well-managed and/or financially stronger businesses gain share while others may choose to downsize, sell or simply don't make it. Just look back to the last major downturn during the late 80's and early 90's when some of New England's most visible industry names sold or closed including: Mass Gas & Electric, Wolfers Lighting, Electric Specialty, Kearns Electric, Economy Electric, Trodella Electric, Lord Electric and Guzovsky Electric Ð just to name a few.

Regardless of whether these businesses sold for personal reasons, or succumbed to the weight of financial burdens, more often than not the decision was a reflection of the contracting business cycle.

Today, no different than in the past, the companies that are committed to move forward, regardless of the business (contracting, distribution, manufacturing, etc.), must understand that building stability through managing their bottom line is essential.

Attempting to maintain historic revenue levels by pursuing unprofitable business, typically at increased risk, is neither a sound nor successful strategy.

In the end, our industry is best served by having healthy and vibrant businesses with the talent and resources capable of delivering a premium value to their customers and employees. Ultimately Ð that is the true criteria for success.

As always, thank you for your continued support. Standard Electric stands ready, willing and able to serve your needs!

Sincerely,

Dennis E Miller
President & CEO