2010 – 2011 Q1…Where are we headed?
We’ve wrapped up the first quarter and by all measures it was a dramatic improvement over Q1 2010 with growth ranging from 20-40% in all segments of the business. It’s not just a rebound from a bottoming in 2010. Some segments in 2010 were up 30-50% for the year. What’s driving this growth and can it continue?
We’ve done several things at Tiffin to drive growth. New product development is key…we’ve expanded the markets we are able to serve. We’ve sought out input from our customers on how we can better meet their needs. We have also gathered competitive intelligence to better understand our strategic advantage.
Where we thought, along with a number of economists, that the construction market was bottoming in 2010, it now looks like it is bottoming in 2011. New Housing starts in February hit an all time low. Thankfully, they showed some improvement in March. While further strengthening in the market is expected, it is anticipated to be slow in coming.
The current Poll on our website, asking about the outlook for 2011, shows the following results:
37% – more of the same
36% – slight improvement
14% – vast improvement
13% – worse than in 2010
We would like to get your insights and hear your thoughts on the markets. Feel free to respond or take the Tiffin Parts Poll on our website to weigh in on what you expect 2011 will bring!
Out in the field…April 2010
This week I’ve been in the great state of Texas. I drove from Dallas to Houston and back. I was told that Spring blooms from Houston to Dallas at a rate of 20 miles a day…the blue bonnets, yellow wildflowers and red clover were spectacular.
There is also a feeling that typically Texas goes into a recession last and comes out last. The oilfield industry is picking up. The optimism is unlike what I have seen elsewhere as I have traveled throughout the country. Perhaps Texas will lead the country in coming out of the economic doldrums.
Forestry was soft earlier in the year due to all of the bad weather that moved through the Southeastern US. The weather cleared and March was strong and April is starting even stronger. Sales of Industrial Engine Parts used primarily in forklift applications have been strong this year as well. The Material Handling Dealers and Independent Repair Facilities in Texas are busy. The telehandler utilization rates are low here as they are elsewhere, but there does seem to be some early movement. The optimism is that things will really begin to pick up over the next couple of months, where what I heard in other parts of the country was people talking about this year remaining flat with some slight improvement in 2011.
Let’s hope that the signs of economic improvement in Texas spread to the rest of the country like the wild flowers are spreading from Houston to Dallas!
All the best!
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