MOUNTAIN STATES

FRED CARUSO executive secretary

EIUSINESS is looking up for both Edealers and suppliers as the industry rolls into the peak of the 1985 construction season.

According to a survey recently taken by the MSLBMDA, suppliers are much more optimistic about the earlier summer season than dealers. However, both dealers and suppliers report better days ahead.

The association was prompted to take the survey as a result of numerous conflicting reports of both good conditions and bad conditions, of the worst January in recent history versus the best January, and so on. MSLBMDA delegates attending the National Conference with Congress in Washington, D.C. in March observed similar conflicting reports at the national level. While dealers nearly ccnsistently said, "Business looks better next month." it was difhcult to obtain a firm handle on the real state of business conditions anywhere.

The MSLBMDA survey entitled "How's Business?"was sent to members in April. More than 150 surveys were returned. Both dealers and suppliers were asked to show how business was for the months of January, February and March and to project for the months of April and May. They were asked if business was up more than 1090, up 6 to 1090, up I to 590, the same as the previous year, down I to 590, down 6 to 1090, or down more than l09o over the previous year. They were also asked to comment freely about conditions in their area.

Dealers were split regarding business conditions in January. HaIf indicated worse January conditions in 1985, while the other half indicated better conditions than in 1984. The mathematical average reported conditions being "the same as 1984." Again in February, some dealers showed extremely good conditions while others experienced extremely poor business.

In terms of mathematical averages, February found dealers generally down over the previous year, but down less than 2 to 590 as a whole. March was a little worse but still business was not down significantly in terms of mathematical averages.

Retail dealers in the Mountain States region predicted slightly better conditions for May of 1985 comparedwith l984.Some saw improvements of over 1090, while nearly 3090 of all retailers expected business to trail behind that of 1984.

Suppliers in the Mountain States region are more optimistic. Over 7590 predict better conditions this year over last.

Housing Still A Bright Spot

Housing construction is expected to level off at an annual rate between 1.6 and 1.7 million units over the next couple of months, according to John J. Koelemij, president of the National Association of Home Builders.

New housing units were started at a seasonally adjusted annual rate of 1,663,00 during May, down l49o from the rate of 1,927,W recorded in April. Sinele-family starts fell l09o to 1,042,000, while multifamily starts dropped l99o to 621,000. Construction fell in all regions except the Midwest, where the rate rose 5.6 percent to 262.W.