Looking at Business

Looking at Business, compiled at the end of each month by Jack Robertson, examines trends and developments in the store fixturing industry. Select an issue below for more information about materials cost and availability, labor force, new construction, and industry economics.

2009 Archives

The economy continued to bump along, with a few more indexes showing slight gains in May.  The Federal Reserve said the nation’s industrial production rose 1.2% and factory utilization rose 1 point to 74.7%. The unemployment rate notched down to 9.7%, still stubbornly high.  The survey of current economic indicators also rose 0.4%. However, the Commerce Department said new orders for durable goods slipped 1.1% after five consecutive months of increases.  The Conference Board reported consumer confidence in June fell to an index of 52.9 from 62.7 the previous month. Sales of new homes crashed 33% in May, after special tax incentives for home buyers expired. Sales of existing houses fell 2.2% but were up 19.2% from a year ago.

LUMBER PRICES.  The Bureau of Labor Statistics producer price index showed overall lumber price index in May at 180.9 (1982 equals 100), up from 175.5 the previous month and up from 143.7 a year ago. Hardwood lumber was at an index of 188.3, up from 184.8 for the preceding month, and up from 168.5 for the same month a year ago. Millwork prices at index of 207.0, up slightly from 207.3 the previous month, and up from 206.0 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics has consolidated industries in its report of hourly wages and no longer breaks out the fixture and furniture industry separately.  The report now lists the real average hourly wage for manufacturing non-supervisory workers was up 0.3% in April, but was down 0.6% from the same month a year ago. The average work week increased 0.9% from April, 2009.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.44 billion annual rate value of retail and non-office commercial construction in April, up from a revised $3.41 billion the previous month, but down from $5.35 billion for the same month a year ago.

RETAIL SALES. The International Council of Shopping Centers reported that shopping center sales were up 2.1% in April, the fourth consecutive monthly gain. The Census Bureau reported that seasonally adjusted retail sales (excluding automotive) in May totaled $300.66 billion, down from a revised $304.00 billion for the previous month, and up from $283.7 billion for the same month a year ago. Unadjusted retail sales were $309.65, up from $299.97 billion for the previous month, and up from $293.87 billion a year ago. Seasonally adjusted department store sales totaled $15.38 billion, down slightly from $15.66 the previous month, and down from $15.83 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $18.12 billion, down slightly from $18.35 the previous month, but up from $17.41 billion for the same month a year ago.

The nation’s industrial production grew 0.8% in April, after a 0.2% increase in March. Factory utilization increased 0.6 percentage point to 73.7%. Unemployment inched up to 9.9% after remaining at 9.7% for each of the first three months of the year. However, the manufacturing sector added 44,000 jobs in April, and added jobs have increased 101,000 jobs since the first of the year. The Labor Department reported that the U.S. productivity rate in the first quarter was up 3.6%, after a 6% increase in the fourth quarter of last year.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in April at 175.5 (1982 equals 100), up from 169.8 the previous month and up from 145.0 a year ago. Hardwood lumber was at an index of 184.8, up from 182.3 for the preceding month, and up from 168.3 for the same month a year ago. Millwork prices at index of 207.3, up from 206.4 the previous month, and up from 205.9 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics has consolidated industries in its report of hourly wages and no longer breaks out the fixture and furniture industry separately. The report now lists the real average hourly wage for manufacturing non-supervisory workers was down 0.6% in April, but was up 0.4% from the same month a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.44 billion annual rate value of retail and non-office commercial construction in March, up from a revised $3.27 billion the previous month, but down from $5.38 billion for the same month a year ago.

RETAIL SALES. The International Council of Shopping Centers reported that shopping center sales were up 0.6% in April, the fourth consecutive monthly gain. The Census Bureau reported that seasonally adjusted retail sales (excluding automotive) in April totaled $303.54 billion, up from a revised $302.32 billion for the previous month, and up from $282.10 billion for the same month a year ago. Unadjusted retail sales were $299.51, down slightly from $300.31 billion for the previous month, but up from $277.19 billion a year ago. Seasonally adjusted department store sales totaled $15.91 billion, down slightly from $16.15 the previous month, but up from $15.76 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $18.26 billion, down slightly from $18.44 the previous month, but up from $17.28 billion for the same month a year ago.

More economic signs were turning up in March, although analysts are cautious about declaring that the recession is over. The Federal Reserve indicated that industrial production was up 0.1% in March over the previous month, although the manufacturing component was ahead 0.9%. The Commerce Department said new durable goods orders in March declined 1.3%, but if transportation equipment was excluded, new orders were up 2.5%. The Survey of Leading Economic Indicators was up 1.4% in March, after a 0.4% gain the previous month. The Conference Board said the index of consumer confidence in April was 57.9, up from 52.3 a month earlier. New home sales, propelled by tax credits surged 27% in March, the biggest monthly increase in 47 years.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in March at 169.8 (1982 equals 100), up from 166.3 the previous month and up from 144.8 a year ago. Hardwood lumber was at an index of 182.3, up from 179.4 for the preceding month, and up from 170.1 for the same month a year ago. Millwork prices were at index of 206.4, up from 204.2 the previous month, and almost equal to 206.3 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the total number of workers in the furniture and fixture industries in March was 340,000. up from 337,2000 the previous month and up from 365,400 a year ago. The Bureau had consolidated industries in its report of hourly wages and no longer breaks out the fixture and furniture industry separately. The report now lists the average hourly wage for non-supervisory workers in March as $18.45, up from $16.46 the previous month, ad up from $18.14 a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.27 billion annual rate value of retail and non-office commercial construction in February, down slightly from a revised $3.31 billion the previous month, and down from $5.11 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in March totaled $300.46 billion, up from a revised $298.66 billion for the previous month, and up from $282.50 billion for the same month a year ago. Unadjusted retail sales were $297.75, up from $264.72 billion for the previous month, and up from $275.00 billion a year ago. Seasonally adjusted department store sales totaled $16.12 billion, up slightly from $15.96 the previous month, and up from $15.74 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $18.22 billion, up from $17.81 the previous month, and up from $17.24 billion for the same month a year ago.

The GDP for the last quarter of 2009 was revised slightly downward to a 5.6% annual growth rate from an earlier estimate of 5.9% growth. Even so, it was the fastest quarterly growth rate in six years. More currently, the new orders for durable goods rose 0.5% in February, the third consecutive monthly increase. The Federal Reserve reported that all manufacturing rose 0.1% in February and factory utilization rose 0.2 points to 72.7%. The Conference Board survey of leading economic indicators was up 0.1% after a 0.3% uptick a month earlier. The index of consumer confidence, however, plunged to 46.0 in February from 56.5 the previous month. Still the Commerce Department reported that consumer income was up 0.1% in February while consumer spending was up 0.3%. New home sales were down 2.2% and sales of existing homes were off 0.6%.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in February at 166.3 (1982 equals 100), up from 150.1 the previous month and up from 148.5 a year ago. Hardwood lumber was at an index of 179.4, up from 176.8 for the preceding month, and up from 173.3 for the same month a year ago. Millwork prices were at index of 204.2, up slightly from 203.8 the previous month but down from 206.3 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in February was $14.95 an hour, down from a revised $15.02 the previous month, but up from $14.84 an hour a year ago. The average work week of non-supervisor workers was 37.3 hours, the same the previous month, but down slightly from 37.5 hours a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.16 billion annual rate value of retail and non-office commercial construction in January, down from a revised $3.46 billion the previous month, and down from $4.81 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in February totaled $297.66 billion, up from a revised $295.29 billion for the previous month, and up from $285.64 billion for the same month a year ago. Unadjusted retail sales were $264.15, down from $270.57 billion for the previous month, but up from $252.56 billion a year ago. Seasonally adjusted department store sales totaled $15.91 billion, up slightly from $15.73 the previous month, up slightly from $15.89 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.70 billion, up slightly from $17.60 the previous month, but down from $17.82 billion for the same month a year ago.

Despite continued gains in most manufacturing indexes, the Conference Board index of consumer confidence took a nose-dive in January to 46.0 from 56.6 just a month earlier. On the plus side, the Federal Reserve reported that the nation’s manufacturing rose 0.9% in January after a 0.7% increase the previous month, and the Commerce Department said new durable goods orders in January rose 3% after a 1.9% hike the prior month. The Survey of Leading Economic Indicators rose 0.3% in January, on top of a 1.2% gain in December. The unemployment rate in January inched down to 9.7% from 10% a month earlier.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in January at 150.1 (1982 equals 100), down from 154.9 the previous month and down from 163.7 a year ago. Hardwood lumber was at an index of 176.8, up from 175.5 for the preceding month, and up from 175.3 for the same month a year ago. Millwork prices were at index of 203.8, down slightly from 204.1 the previous month and down from 205.8 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in January was $15.00 an hour, down slightly from a revised $15.03 the previous month, and up from $14.91 an hour a year ago. The average work week of non-supervisor workers was 37.7 hours, almost the same as 37.9 the previous month, and up from 37.3 hours a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.75 billion annual rate value of retail and non-office commercial construction in December, down from a revised $4.01 billion the previous month, and down from $5.77 billion for the same month a year ago.

RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in January totaled 295.45 billion, up from a revised $293.76 billion for the previous month, and up from $282.58 billion for the same month a year ago. Unadjusted retail sales were $271.27, down from $351.28 billion for the previous month, but up from $262.24 billion a year ago. Seasonally adjusted department store sales totaled $15.71 billion, up slightly from $15.68 the previous month, but down slightly from $15.76 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.34 billion, up slightly from $17.29 the previous month, but down from $17.30 billion for the same month a year ago.

Most indexes edged upwards in December, but unemployment still remained stubbornly high at 10%. The Federal Reserve reported that the nation’s industrial production in December was up 0.9% and was up 7% for the fourth quarter. New orders for durable goods were up 0.3% in December after a 0.4% decline the previous month. The Conference Board reported that the survey of leading economic indicators was up 1.1% in December and the consumer confidence index had increased to 55.9 (1985 equals 100) from 53.6% the previous month. The sales of existing homes in December took a big fall of 16.7%, but much of the decline was blamed on the expiration of special tax credits for first time home buyers.

LUMBER PRICES. The Bureau of Labor Statistics producer price index showed overall lumber price index in December at an index of 157.1 (1982 equals 100), up from 153.1 the previous month, and up from 154.9 a year ago. Hardwood lumber was an index of 175.5, up from 174.0 for the preceding month, but down from 178.4 for the same month a year ago. Millwork prices were at index of 204.1, down from 205.2 the previous month and down from 206.2 for the same period a year ago.

FIXTURE LABOR FORCE. The Bureau of Labor Statistics reported that the average hourly wage in the fixture and furniture industry in December was $15.19 an hour, up from a revised $14.97 the previous month, and up from $14.92 an hour a year ago. The average work week of non-supervisor workers was 39.2 hours, up from 38.3 the previous month, and up from 37.8 hours a year ago.

NEW STORE CONSTRUCTION. As partially reflected in Commerce Department figures on new commercial construction excluding office and hotels, new stores were part of the $3.99 billion annual rate value of retail and non-office commercial construction in November, down from a revised $4.24 billion the previous month, and down from $6.49 billion for the same month a year ago. RETAIL SALES. Seasonally adjusted retail sales (excluding automotive) in December totaled 293.54 billion, down slightly from a revised $294.03 billion for the previous month, but up from $278.93 billion for the same month a year ago. Unadjusted retail sales were $352.42, up from $295.51 billion for the previous month, but down from $334.46 billion a year ago. Seasonally adjusted department store sales totaled $15.74 billion, the same as the previous month, but down slightly from $15.92 billion a year ago. Seasonally adjusted apparel and clothing store sales totaled $17.46 billion, down slightly from $17.57 the previous month, but up from $16.23 billion for the same month a year ago.