Stone in 2004: Looking Good

CLEVELAND – If there’s going to be a slowdown in stone this year, it’ll be a surprise to one key group – the stone industry.
Nine out of ten stone professionals surveyed at StonExpo 2003 in Atlanta last December indicated that their business would maintain current levels or grow in 2004, and more than 80 percent thought that the additional work would outpace current inflation rates.
The survey of 400 show attendees, commissioned by the Cleveland-based Marble Institute of America (MIA), also showed that 85.4 percent of them thought the overall U.S. economy would grow as well, although at a slower rate.
When looking at their own businesses, the largest segment of those surveyed – 26.4 percent – expected a growth rate of 3 percent to 5 percent, which still outpaces the 1.9-percent U.S. consumer price index (considered the benchmark inflation rate) for 2003. Some 13.2 percent of respondents thought their business would grow by 7 percent to 10 percent, while 12.1 percent of those surveyed planned on business growth of 10 percent to 20 percent.
Optimism appeared to be boundless at StonExpo: 18.4 percent of those surveyed thought their business would grow by more than 20 percent in 2004.
As far as the overall U.S. economy, 26.6 percent of those surveyed expected growth to continue close to the current inflation trend; 24.3 percent though it will grow by 2 percent to 3 percent; and 13.9 percent expected growth of 3 percent to 5 percent.
Stone professionals also planned to put their money towards that growing market in capital-equipment investment in 2004; 26 percent of survey respondents plan to spend $100,000-$250,000, and 16.8 percent are budgeting more than $250,000. Other respondents aren’t being pikers, as 42.2 percent plan on investing up to $100,000 on equipment.
If there’s a major concern, it isn’t the business coming in the door – it’s making sure that there are enough people back in the shop. Three out of four stone professionals surveyed plan to hire new employees in addition to replacing current work slots; not surprisingly, 26.7 percent of respondents also listed personnel as the top business problem/challenge.
Other leading concerns of stone professionals included the competitive market (22.3 percent); cash flow (20.4 percent); the economy (11.2 percent); and suppliers (6.8 percent).
“The general optimism this survey reveals among natural stone professionals is well-founded,” says Garis F. Distelhorst, MIA executive vice president. “Demand for natural stone continues to build in the commercial and residential marketplaces despite the lagging economy.”
The Hudson Economics Group of Hudson, Ohio, administered the survey for the MIA.