To put the shocking monetary statistics into perspective, the national U.S. debt has passed the $14.5 trillion mark, which is 100% of the nation's world-leading gross domestic product. Percentage-wise, only the lower tier of the 17 Eurozone nations do as bad or worse. Only in 1947, as America began paying off its post-World War II debt, has the debt/GDP relationship been this bad.
Since our plumbing-heating-cooling-piping sector, estimated at over $100 billion dollars per annum at the distribution level, is primarily comprised by independent businesses, this sub-sector has performed admirably during the past three desolate years. But these embattled companies have been the most egregious victims of government regulations, new healthcare legislation, and hostile edicts that discourage hiring, expansion, or entrepreneurial activism.
It's remarkable that the thousands of manufacturers, distributors, contractors, and biz/industrial firms have amassed the financial success, reflected by first half 2011 statistics. This has been accomplished in spite of federal government hostility, such as regulatory restraints and additional benefit overheads, which 'small business' can ill afford in the current 'no-growth' economic environment.
Employment cutbacks, technological implementation on the shop floor and back office, doing 'more with less' people and overhead, has proven to be the survivalist answer.
Although new construction, the backbone of our plumbing-heating-cooling-piping industry continues to wallow at near depression levels, the ingenuity of industry decision makers has focused on the salient opportunities available.
In the PHC arena, the nationwide move from home ownership to rental has generated a new wave of multi-story apartment building in metropolitan areas, as well as developing smaller units for potential lease in suburbs and rural areas alike. Also becoming more prevalent are the energy efficiencies and modernization of existing homes, which is becoming increasingly popular, according to latest statistical information. This area of repair, maintenance, and renovation, is proving an increasing boon for producers, distributors, and contractors alike.
The PVF sector, which has experienced a remarkable rebound this year, has become the beneficiary of new 'fossil fuel' breakthroughs through 'shale fracking,' especially the Marcellus Range in New York and Pennsylvania, and the Williston Belt in the Dakotas and Montana. Most recently, a new discovery of oil/natural gas shale has just been discovered in West Texas.
Refineries, benefitting by lower costs in the major crude oil reserve in Cushing, Oklahoma, and the higher prices for the refined product are catching up with maintenance, repair and expansion, providing increased order levels to manufacturers and distributors of PVF products.
Even renewable energy, such as the major thrust into solar power, plus the mandated use of ethanol, has proven a boon for the makers and distributors of a great variety of pipe, valves and fittings.
Last, but not least, is the accelerating shift to "Buy American." Although originally motivated by the increasing spate of serious product failures, such as last year's Gulf of Mexico deep sea drilling disaster, the higher cost of imports, and the need for "just in time" inventory replenishment, has benefitted domestic manufacturers, and American producers with worldwide facilities for which they are responsible.
By accenting the positive aspects of an overall depressing scenario, our resilient industry continues to display the ability to maintain its achievement momentum, despite the major obstacles thrown in its path.
