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USGNN Original StoryContract Glaziers Hope to Hold Steady in 2009, Survey Says

While expectations may not be for huge profit increases in the year ahead, business continues for glazing contractors surveyed by USGlass as part of its biannual glazing contractors survey. The survey was conducted in September.

According to Vic Cornellier, president of TSI/Exterior Wall Systems, a glazing contractor in Hyattsville, Md., that's because glazing contractors still are working off of a backlog of work. "The real question to ask is how and when you will be able to replace that backlog given the apparent market conditions," he says. "The real concern should be filling your backlog for 2010 and 2011, as today's lending problems will affect the delivery of office buildings in those years."

Ken Smith, president of ASI Limited in Indianapolis echoes those sentiments for 2008 and 2009. "Our current backlog is set with contracts and projects currently under negotiation," he says. "We see 40 percent growth [in 2009]."

"With the general economy suffering with low confidence, anxiety, tightened credit and global uncertainty, we will most likely see restrained or calculated spending," predicts Jim Vogelsberg, president of American Glass and Metals Corp. in Plymouth, Mich. "The health care and educational building areas seem to be the market now and for the next year. Private work still appears to be forthcoming, but will obviously depend on how the economy progresses. The election may also have an influence on all of the above. I would anticipate, at this time, a very similar year next year as we are experiencing in 2008.

For 2009, glazing contractors are largely expecting their sales and profit margins to hold steady-whether that's an optimistic answer is yet to be determined. Nearly 40 percent of respondents are predicting sales will stay at the same place next year as this year, while 52 percent are expecting profit margins to remain the same.

For the full survey results, look for the November issue of USGlass magazine.

 

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