Precast Inc. - March/April 2008 - (Page 28)

PERMATILE CONCRETE PRODUCTS Precast is on the customer. “Call your customers back,” Wehrung said. “We are still told by customers that we were the only ones who contacted them after a request came in. Then, of course, follow-up, follow-up and then follow-up.” While good customer service may be seen as the qualitative side of the business, Wehrung mentioned the quantitative side as well. “Know your costs and bid accordingly,” he said. “Our equipment is expensive and wears out regardless of the price we’re charging. This is a very difficult decision when there is more supply than demand. But we need to ‘sell’ our quality and service against those competitors who don’t have that same level. Maybe we can’t get as high a premium during these times,” he added, “but most customers will pay you something more if you truly have a higher-quality product and service.” After the boom in Florida In Florida, housing prices and new construction rose in meteoric fashion in the late 1990s and early 2000s. After the subprime crisis of the past 18 months, the decline has been just as dramatic. But it hasn’t impacted business for J.E. Hill Precast in Leesburg, Fla. Wylie E. Hill, president, said J.E. Hill had only a small percentage of business devoted to residential work and hasn’t experienced a slowdown in the Orlando and midFlorida region – yet. “I think we will see a trickle down eventually, because our primary market is highway and transportation work.” As a result of the slowing economy in Florida, tax receipts are down and, under Florida’s funding formula, highway work could eventually dip. “We’re expecting less work in the next three years than we have had,” Hill said. For now, though, the company is still benefiting from the trailing edge of the housing boom, thanks to its line of precast modular buildings. “Our primary market for those buildings is parks and recreation departments,” Hill said. “There was tremendous growth and urbanization, and now the parks and recreation departments are playing catch-up. They’re building new green space and having to expand and upgrade facilities. We have a line of modular restrooms – and we can deliver them very competitively – usually less expensive than a site-built building,” he said. “We take advantage of the speed of precast concrete. They get a site leveled off and we’re in and out in two to three hours, and they have an operational restroom. It takes longer for the PVC glue to dry on the plumbing connections than it does for us to set the building.” That catch-up is still going on in the transportation area, even with the uncertain funding. Hill said he has written “significant” amounts of bids for median barrier this year, indicating that opportunities are still there in transportation. On the commercial side, work is lagging, he added. “I think it’s still at a reasonable rate – it’s just down from where it has been the last two years. There’s still a good bit out there, just not the glut of work like there was a few years ago.” courtesy Permatile Concrete Products Old-fashioned recession? If there is any area of the country where the word “recession” is tossed about regularly, it’s the Upper Midwest. It’s an “old-fashioned” recession related more to job layoffs in the auto industry combined with job losses from secondary industries that supply products to the autos shipping manufacturing overseas. Jeff Rasmussen, vice president with Andry Rasmussen and Sons in Cable, Wis., in the northwest region of the state, said he’s anticipating a continued sluggishness in his market area. “I anticipate that the 2008 season will continue to be slow,” he said. “We are getting fewer calls than in previous years.” The cost of materials and continued downward pressure on pricing has been an issue. “Rising costs may make the difference,” he said. “We expect the 28 MARCH/APRIL 2008 | PRECAST INC.

Table of Contents Feed for the Digital Edition of Precast Inc. - March/April 2008

Precast Inc. - March/April 2008 Contents Technically Speaking Concrete Repairs Return-to-Work Programs Marketing in a New World Building Confidence Risk Management Culture Bloquea La Energia – Es Tu Vida! Lock It Out – It’s Your Life! Fiber Optics in Countertops MCPX Wrap-Up Product Profile People & Products Advertisers Index NPCA Calendar

Precast Inc. - March/April 2008

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