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| SMALL BUSINESS TRENDS brings you daily updates on trends that influence the global small business market. | ||
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Anita Campbell, Editor |
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| Past life: CEO, corporate executive, tech entrepreneur, retailer, general counsel, marketer, HR ... (more) | ||
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Small Business Trends Radio Tuesdays, 1:00 PM Eastern U.S. time on Voice America network Click to listen November 1st: Torsten Jacobi, CEO of Creative Weblogging, joins host Anita Campbell. Sponsored by Six Disciplines. Show details. |
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Tuesday, February 17, 2004 | |
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Small Building Contractors Squeezed | |
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Building contractors in the United States are feeling squeezed by rising material costs.
An article in the Detroit Free Press takes a look at the plight of one small contractor in Michigan: Nearly every day, Lee Jasinski, co-owner of a Whitmore Lake commercial contracting company, gets word from one of his suppliers about another price increase.The biggest culprit is steel. Even though the U.S. steel tariffs were lifted in December and contractors had expected prices to go down, the opposite has happened. Demand for steel is higher in the United States due to low interest rates that have spawned a construction boom. Also, favorable foreign currency exchange rates (i.e., a weak American dollar) and increased demand for steel from China have prompted suppliers to sell to markets outside the United States. Small building contractors can absorb only so much in increased material costs. Eventually the increases have to be passed on to consumers and end users. Meaning, inflation? |
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