New Homes, Furniture and Consumer Trends, Discussion

Some look back on the economy of 2000 through 2002 and say what a disaster 3 million jobs lost? Well one could also argue that the 43 million Americans who moved into new homes far outweighs the 3 million citizens who were looking for work. There are more people who are still looking for work who have gone into what they considered substandard vocations for instance they may be working as a manager at a Home Depot store when they were formerly an aerospace engineer with a Ph.D., this is a little disheartening to say the least but it is a fact of life in America. As people are tapped out and maxed out with their credit cards they do not have the buying power necessary to be able to continue with the trend associated with new housing starts in the average of $6500 been spent after the fact for the following period of one year.

I remember talking to a furniture sales rep, who in 2001 said he just gone through the worst sales year in his history as a salesman in 2000. Mostly due to all those new houses sold where the customers had come into buy furniture on time with companies who had in house credit which were now burdened with no pays, obviously these companies were not restocking and those competing against such companies had cut back in inventory having been out sold in the past. He decided on buying a franchise from us, The Car Wash Guys in San Antonio, Texas. The next year after he started his business mostly cleaning new car dealerships, which were very good due to the fact many people were buying new cars and Mexican nationals were coming over the border from Laredo, Texas gate to buy cars in San Antonio since their economy had picked up in response to the manufacturing which was moved over the border to cut costs in the downturn in the economy and the trend of folks coming here to work and sending money back to Mexico. The furniture salesman found himself quite busy with more business than any one person can handle and subsequently within a very short time, was able to make friends with all the major car dealership owners of the area in increase his business to four units and a detail shop. Still he was strictly working for car dealerships with only a fraction of the total business maybe 15%. Then what happened?

The housing boom picked up in people or buying furniture again, at the furniture trade shows everyone was preparing for in incredible year as a matter fact they were preparing for incredible five years, he could not help but moon light in his old profession as sales came easy once again. In 2002 the furniture business did pick up in response to new homeowners moving into new homes. These new home-buyers were expected to spend between 4000 in $6500 each on things such as upgrades to the home, swimming pools and furniture. Drought related issues cut short the number of people buying new swimming pools. Instead they bought barbecues, new decks, landscaping, SUVs, boats and FURNITURE. The cycle had come full circle and it is what every career person calls those golden years. Although the $6500 per new home sale did not quite pan out with the new ownership society it was substantial due to the number of new homes.