In the US where the economic downturn hit hardest, businesses across all industries has been slow. For many the key to riding out the recession has been to batten down the hatches and focus on strengths. www.worldplumbinginfo.com spoke to two members of the United States national Association of the Plumbing Heating and Cooling Contractors (PHCC) to get their thoughts.

WPI: What effect has the GFC had on your respective businesses?
A: Ron Newman: We have had very little effect but new construction is off and the contractors that have previously concentrated on that market are creating competition not present in the past.
A: Kenny Calkins: Our revenues are down over 50%.

WPI: What effects do you feel the economic downturn has had on the plumbing community at large?
A: Ron Newman: As noted, the various segments of the industry have blended due to lack of activity in some markets.
A: Kenny Calkins: There are a lot less people spending money on upgrades and repairs and not building as many new buildings as before. Not to mention houses.

WPI: What measures have you implemented within your businesses to counter the downturn?
A: Ron Newman: Maintaining quality and improving service levels has somewhat insulated us from the cheaper competition seeking to pull our customers away.
A: Kenny Calkins: We’ve laid off office staff and field personnel since we do not have the work to keep them employed and eliminated any unnecessary expenses.

WPI: What can the plumbing community do collectively to combat the GFC?
A: Ron Newman: There is little that we can do other than improve our business practices and efficiency streamlining our operations to protect the bottom line until markets improve.
A: Kenny Calkins: We should all think locally with our purchases. Continue to work to strengthen our licenses.

WPI: What markets do you feel have been worst hit? Why?
A: Ron Newman: New construction both residential and commercial/industrial.
A: Kenny Calkins: Housing, because too many people forgot that there house is supposed to be a home not an investment. Also, hi-tech jobs as those are going overseas.

WPI: Has there been any industry upside to the GFC?
A: Ron Newman: The stimulus package with energy tax credits has helped raise average invoice amounts as the customer needs to buy better equipment to meet the qualifications for the program.
A: Kenny Calkins: Not that I can see, although in the long run we may all look back at this as a way to get back to the basics of life.

WPI: When do you predict the markets to turn around?
A: Ron Newman: 2010 should begin a slow turn around with full recovery (?) around 2012 or shortly thereafter.
A: Kenny Calkins: If I could predict the future I would spend my days and nights standing on the edge of a craps table. I didn’t see this coming and I don’t see when it could end.