The long days of summer have come to a close and fall is upon us. Through 2009 we’ve tracked the condition of our marketplace here and now seem to have come through the roughest period. All data from housing, manufacturing, lending and Wall Street show a turn upward. It’s a small upward tick but it seems clear that most economic factors have found their bottom. Fall is a good time to be optimistic.

Like your business, the chapter is also gearing up for the last four months of the year. A special Midwest IEC open house is planned for Thursday, September 17 from 6 to 7:30. The purpose of the meeting is to invite all merit shop owners in our region to come see what we have to offer. Chapter Exec Kevin McNulty has been reaching out to our list of prospects, specials emails will remind all members and non-members AND WE NEED your assistance.

If you know a contractor that is not a member of IEC please let us know. It’s possible they are already on our list. But next chance you get, jot down a list of companies that come to mind and give Kevin a call with the name(s). He’ll take it from there. We also have a standard invitation that goes to each prospect and one that can be formatted from you. We will send them the letter and ask you to also call with a reminder of our meeting on the 17th. The Board of Directors will be calling a list of assigned names, as well. So if you know one or two prospects, give us a call and invitations will go out.

Our October membership meeting will feature a speaker on “Green” electrical. What is it? Well, there is a lot of new technology coming to the marketplace that presents electrical contractors new opportunities for work. It’s not a fad but a growing sector. In many parts of the country, electrical contractors have failed to get involved in this work and electrical work is being done by carpenters, engineers and crane companies. Everyone in the IEC should become familiar with the opportunities in this sector. Mark your calendar for October 15!

The Annual Convention in St. Louis is upon us. The dates are October 21-24, 2009. There will be some strong presentations designed to help contractors find new opportunities, increase your service offerings and increase margins through operational efficiency. It’s a drivable distance and a great opportunity to attend our national convention close to home.

One final note, I have been serving as chairman of the national membership committee over this past year and there are some new IEC chapters being created in areas of the country where merit shop owners seek the support and networking of a solid local chapter. Even in tough years like this one, contractors are seeking to form chapters to provide support services to their companies. It’s a demonstration of the importance of IEC programs and services. It is also a hopeful sign that we’ve come off the mat and, as has happened many times before, our industry will be strong again soon.

Gary Dykstra, President - Midwest IEC

TEMPERATURE DROPS – SOME BUSINESS RISES

I heard a TV commentator describe the graphic shape of our economic situation as a V-W shaped recovery.” The theory is that some segments of the economy bounce right back while others experience something different.

The V’s

The V part of the VW economy includes dynamic growth companies and large exporters. Apple is enjoying a V recovery. Salesforce.com just reported a big, booming V quarter on Friday. Mobile broadband is an entire industry that will enjoy sustained V growth. Low-tax states like Texas, Tennessee and North Dakota are experiencing V recoveries.

The w’s

America’s W economy includes all those companies, industries, states, cities and personal careers where deteriorating value propositions were masked in good times. It always happens that way. Recessions unmask bad business models. Today’s W economy: newspapers, McMansion builders, inefficient manufacturers, high-tax state and local governments, and workers unable to adapt, relearn and relocate.

Warren Buffett described it as a “tide economy” where the tide goes out and everyone sees who’s “swimming naked.” That’s a funny one – but it does describe a lot of what has gone on this year. You know, the surest sign that we have too much economic time on our hands is when I read three different graphic descriptions of the economy in one edition of the Wall Street Journal.

Well, business owners have known that a long recovering was in the offing for some time. They started planning and taking action back in 2008. What I see in our area of the country is business has been reducing costs – labor, capital investment and inventory. In contracting – inventory is not a cost we take on in a dramatic way. Hopefully your capital equipment was in a healthy state at the start of the recession. Labor. That is our big cost. Contractors look labor cost in the eye every day.

The so called “job recovering” (which is what economic development is really all about - anyway) will be slow. Depending on where an industry falls on the “V-W” graphic, jobs in certain industries will “come back” at varying speeds. "Jobs coming back" is more of an on-off thing for many industries. In contracting, we adjust all the time. When’s the last time you heard a story about manufacturing sharing labor. Never. It’s not in the DNA of their business. It IS in ours.

I know one thing for certain. Our industry ALWAYS adjusts for labor and we’ve done it in some extraordinary ways this year. Adjusting labor in 2009 has been a matter of degree not novelty. IEC members who work together have been able to hedge unilateral adjustments in labor by working with each other. Adjusting for labor needs is one of our strengths – though none of us like it. Electrical contractor jobs will “come back” one job, one week at a time and the come back will often mean going from 25 hours to 40 hours per week. Consider how other IEC owners can help you bridge the labor gaps from slow to busy. We’re experienced at this and it is our strength whether we are a “V” or a “W.”