April 2009
To Our Valued Customers and Employees,
As 2009 begins, it is a time to reflect on the events of the previous year. We appreciate the opportunity to comment on what we believe is one of the most historical years in our companies lifetime.
2008 Summary:
The dramatic inflationary pricing of 2008 (many raw material costs up more than 70%), combined with the overall diminishing market demand (most building products segments down 15-50%) made business in challenging to say the least. Combine this with the national and international economic crisis and an historic election - what a combination of unprecedented events! Needless to say, 2008 ended up being a challenging year to manage for all of us. Historical data and intuition offered little help this year, and it can be unsettling navigating a storm with no proven instruments.
However, even through the most challenging times, there are so many things to feel good about. We're thankful for our customers and employees continued support. We are sincerely grateful for each and every person we have the privilege of being in contact with on a day to day basis. Regardless of the business climate, people are the core of our business at Industrial Spring Company and Holmes Spring Manufacturing.
And that remains constant even during the most unpredictable times.
2009 Outlook:
Most people predicted the first quarter of 2009 would be more difficult than anything we've seen in 2008. This seems to be proving true. Beyond that, there are several differing opinions about the remainder of 2009. Some say April of 2009 will bring a slow crawl in a positive direction. Others are predicting a flat year as compared to 2008 showing no improvement. And, others say conditions will even worsen throughout the 2009 year with no real sign of recovery until 2010. No one really knows what 2009 will be like.
In times of uncertainty, we here at Industrial and Holmes rely on the following: Stay positive, remain competitive, focus on the customer, stay true to our values, and hope for the best in 2009! We believe if we remain true to our core principles and stand firm on what our company was built on, there are opportunities for an organization to grow and prosper even in the most challenging of times.
Pricing Reductions:
It appears the pricing peak on steel related products is now behind us. The bubble has burst, and pricing is falling accordingly. We will be as forthcoming with price decreases as we were on price increases. Industrial Spring Company and Holmes Spring Manufacturing will evaluate current material cost the 1st of each month and adjust downward as raw material costs fall. Where the new bottom will be is yet to be seen.We have worked hard to position both our Minnesota and Arizona operations to remain steadfast in our ability to consistently provide the very best delivery in our industry and at competitive prices. We sincerely appreciate our customers and employees support.
Happy Spring! Here is to a positive attitude in 2009.
Respectfully yours,
Jodi Boldenow
General Manager
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