Manufacturers Are Benefiting From a (Slowly) Recovering Housing Market

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The new-housing market is one of the main engines of the U.S. economy, so plenty of manufacturing CEOs have welcomed even the erratic recovery that has been taking place lately.

That’s been especially true for Eduardo Cosentino, scion of a Spanish architectural-materials company that is in the midst of a major expansion in the United States which depends on housing to keep growing. And he has an optimistic forecast that should cheer other housing-dependent CEOs.

“We expect the housing recovery to remain relatively gradual over the coming months.”

By now, chiefs of companies in industries from toilets to draperies have gotten used to the frustrations of monthly and quarterly snapshots of the U.S. housing market that show, at best, only a stutter-step recovery from the depths of the Great Recession, when new-home construction virtually halted in many places. While mortgages remain cheap, many American consumers are still feeling financially strapped, and CEOs can’t be confident that the housing recovery has long-distance legs.

The most recent report, on October 24, showed that sales of new single-family homes in the U.S. rose to a six-year high in September, increasing 0.2 percent to a seasonally adjusted annual rate of 467,000 units, the highest reading since July 2008. But that report was accompanied by a sharp downward revision in August’s sales pace.

“We expect the housing recovery to remain relatively gradual over the coming months,” Gennadiy Goldberg, a TD Securities economist, told Reuters.

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The new-housing market is one of the main engines of the U.S. economy, so plenty of manufacturing CEOs have welcomed even the erratic recovery that has been taking place lately.

Cosentino established a U.S. headquarters in Houston several years ago to build distribution for its Silestone material that is used in countertops and other applications in new homes. Silestone competes with DuPont’s Corian as well as with granite, Formica and other laminates, and other materials. Cosentino also felt comfortable enough with the market bounceback that he has  added a new product line called Dekton.

“Our expectation is that we will grow sales by around 20% in 2015.”

The company has 27 sales-and-service centers in the U.S. and plans to open 34 by the end of 2015, to handle what he sees as bullish growth for the U.S. housing market. “Our expectation is that we will grow sales by around 20% in 2015, which is bigger than the market growth we’re expecting,” he said.

Of course, this is just one CEO’s outlook. But all headlines show that this Titanic is slowly turning around. “The market is full of growth opportunities in most areas of North America,” Cosentino said. “We’re focusing on delivering the increasing demand we see in residential remodeling as well as in new construction. And they will continue to grow in coming years.”

Is your business dependent on the housing market? Let us know how you’re business is doing in the comment section below.

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