Synergy Thermal Foils

Consumers and business powered the economy to an estimated 2.6% growth in GDP during the fourth quarter of 2017. While this fell short of some economists original forecasts of 3% growth, overall during 2017 the economy grew 2.3%, compared to 2016 which only saw a 1.6% growth. This is the longest continued expansion of GDP on record.

Consumer spending accelerated to 3.8% annual pace of growth, the fastest it’s been in almost two years. Business also increased spending on equipment by 11.4% and investment in new housing jumped 11.6%.

The economy continues to hum along,” according to Ryan Sweet, an economist at Moody’s Analytics. “This is far from doom and gloom. Businesses are investing aggressively and consumers continue to spend at a very strong pace. We got a bit spoiled by 3 percent-plus growth in the last couple of quarters, but that streak was eventually going to come to an end.”

Recently passed tax cuts for individuals and business are expected to give the economy another major boost in 2018. The Atlanta Federal Reserve is already projecting a very robust first quarter of 2018, stating the U.S. economy is on track to grow at a 5.4% annualized rate.

Image courtesy of Global Business Outlook

The beginning of 2018 has proved to be off to a good start in the U.S. job market. After a slight lull in December, nonfarm payroll increased by 200,000 in January surpassing original forecasts according to the Labor Department. The unemployment rate held at 4.1%, matching the lowest since 2000.

Breaking down January data, construction reported by the biggest gain by sector with 36,000; manufacturing also showed a gain of 15,000 and durable goods-related industries added 18,000. The focus on construction and manufacturing indicates a resurgence in factory activity and rebound in housing.

As the economy moves towards full employment, more companies are finding it harder to hire qualified candidates. In order to attract qualified workers companies are now increasing wages at a rate unseen since 2009. January experienced a 2.9% increase in wages, a sign that the booming economy is finally starting to reach American’s pocketbooks. Separate data released by the Bureau of Labor showed that private-sector wages and salaries rose 2.8% in the fourth quarter of 2017, compared to a year earlier.

Even claims for state unemployment benefits decreased 9,000 to a seasonally adjusted rate of 221,000. Last week marked the 153rd straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest stretch since 1970 when the labor market was much smaller.

Image courtesy of Hubspot

Sales for the FDMC 300 group grew 5.4% in 2017 over the previous year to $52.209 billion. A year ago, the sales for the group of companies grew 5% in 2016 over the previous year to $48.786 billion.

This group of the 300 largest North American cabinets, millwork, furniture, and fixture manufactures recorded a sixth consecutive year of sales expansion, after the recession which sale declines from 2007-2011.

For more information:  FDMC 300

Image courtesy of Wood Working Network

U.S. furniture factory orders grew 8% in October 2017 over the same period in 2016. According to the monthly report of residential furniture manufacturers and distributors, shipments increased 8% over October 2016. Receivable levels increased 1% over October 2016, very much in line with shipments.

Inventories were up 5% over October 2016. October levels seemed to get back in line with current business conditions.

Source: Shipperoo

U.S. kitchen and bath cabinetry sales in November 2017 rose 1.8% from November 2016, according to the Kitchen Cabinet Manufacturers Association’s (KCMA). Year-to-date cabinetry sales increased 2.8% over the same period in 2016. Semi-custom sales were up 3.7% in November and were 3.5% higher through the first 11 months compared to 2016. Custom cabinetry sales improved 2.2% from the same month last year. Stock sales inched upward by 0.1% in November and year-to-date sales increased from 2016 by 3%.

A kitchen decorated by STF

What do you think of when hearing the word Laminates?

Typically the response we hear has been kitchen cabinets. However, within recent years  3D laminates have expanded into other markets such as retail fixtures, wall paneling, healthcare, and education. As a more versatile material than traditional laminates to work with, the applications are endless for any project.

Take a look, at the gallery below to see the range of applications for a local grocery chain that utilized STF’s Marseille.

“There’s no place like home.” A quote from the classic movie, The Wizard of Oz, has become the mantra for many Americans who are pursuing the American Dream of homeownership. Reaping the benefits of the growing economy; healthy job market and income growth has fueled demand for houses, including more millennial first-time buyers. Existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years. According to the National Association of Realtors, existing homes sales were up 5.6% in November over October, a seasonally adjusted annual rate of 5.81 million. The fastest pace since July 2007, new single-family house sales increased 17.5% in November over October to a seasonally adjusted annual rate of 733,000. This is a 26.6% increase over the same time last year.

“The greater home sales will stoke the fires for stronger economic growth next year as consumers spend more to furnish their new homes with new appliances and furniture and all the decorations and trimmings,” said Chris Rupkey, chief economist MUFG in New York. Even though the housing market has experienced robust growth at fast paces there are continuing constraints that will affect the housing market going into 2018. Total housing inventory at the end of November decreased 7.2% and has fallen year-over-year for 30 consecutive months. Current inventory levels are at a 3.4 month supply. Low inventory has elevated home prices and has sidelined some first-time buyers who cannot find suitable lower end market homes. Due to low inventory, the median home price has increased 5.8% from a year ago, the 69th consecutive month of year-on-year price gains.

Additionally, for new homes being built, a consistent shortage of skilled labor and lots has tightened many builders ability to add new homes to the market. Builders are pushing for more housing starts, with a 3.3 percent increase in housing starts in November over October. However, the supply is unable to keep up with current demand.

The National Association of Realtors says it anticipates a slightly negative impact on the housing market from the overhaul of the U.S. tax code. The cap for property and state and local income tax is now set at 10,000, the prospect for a bigger tax bill may discourage some buyers. Moody's Analytics chief economist Mark Zandi has warned that the tax revamp would weigh on house prices, with the Northeast corridor, South Florida, big Midwestern cities, and the West Coast suffering the biggest price declines.

Sales of new U.S. single-family homes unexpectedly rose in October to a 10 year high. In October, sales were at a seasonally adjusted annual rate of 685,000. This is a 6.2% increase over September 2017 and an 18.7% increase over October 2016. The sale of new homes sales consists of eleven percent of overall home sales.

Mild weather helped to boost new home sales last month. Sales soared 30.2% in the Northeast to their highest level since October 2007. They rose 1.3% in the South also to a 10-year high. Sales jumped 17.9% in the Midwest and climbed 6.4% in the West.

Existing home sales also increased in October to their strongest pace since earlier this summer, a 2% increase over September. But supply shortages have continued to lead to fewer closings on an annual basis for the second straight month.

The U.S. job market has finally begun to shake off the last impacts of the hurricane season that hit Florida and Texas earlier this year. In November, 228,000 nonfarm jobs were added to the economy, as the unemployment rate remained at a 17 year low of 4.1%.

Most notably, the manufacturing segment had the largest gains with a 1.5% increase in jobs in 2017 over 2016. Manufacturers added 31,000 jobs during November alone, with unemployment in this sector at 2.6%, the lowest on record for the series since January 2000.

STF is ending  2017 on a high note by adding one more design to our growing RTF collection: Try Cherry.

A medium tone grey woodgrain, Try Cherry is perfect to add a timeless look to your design. With grey tones here to stay, Try Cherry is sure to be the cherry on top for any project.

The corresponding TFL can be found from Tafisa: Grenada (L499) and Panolam Trytoo Savatre (W155).

Source: Media Venue

Millennials, a term that we have begun to hear more often, that refers to the age of people born roughly between 1980 and 2000 that has peaked at 93 million people. Baby boomers, born between 1946 and 1964, numbered 78.8 million at their peak and today have 74 million, according to the 2016 U.S. Census Bureau.

The largest single age cohort today in the U.S. is the 26-year-old, who number 4.8 million. People 25, 27, and 24 following close behind. Many of these are on the verge of life-defining moments such as choosing a career, buying a house and having children.

As a whole, the largest demographic bubble they have begun to transform popular culture, retailing, media, and lifestyles. According to Zillow Group, they make up for about 42% of all home buyers and 71% of all first time home buyers. They are also more likely to invest in their home, with 86% of millennial home buyers making at least one improvement to their home in the past year, more than any other generation.

The millennial influence has already begun to shape today’s design trends that focus on key elements such as long-term use, functionality, eco-friendly and cost-effectiveness.

Millennials are more motivated on making sure style, color, and materials used to stay relevant as long as possible. That includes the use of more neutral colors such as whites and greys in finishes such as high gloss and super matte for a beautiful contemporary design that will always be in style. There is also a heavy emphasis on eco-friendly products, making value-engineered wood products a go-to solution because of the versatility of the products along with many options for finish and design type.

Source: Simply Hired Blog

The US economy continues to surprise economists and with no signs of slowing down despite the impact of two hurricanes in the Southeast. Exceeding original forecasts, GDP growth in the third quarter of 2017 reached 3% following a GDP growth of 3.1% in the second quarter.

The GDP growth can be attributed to an increase in inventories, exports, and consumer spending during the third quarter. U.S. consumer spending recorded its largest increase in more than eight years, according to the Bureau of Economic Activity there was a 1% increase in September, likely as those affected by hurricanes replaced flood-damaged vehicles.

Along with GDP growth, jobs within the U.S. have also continued on an upward trend. With 261,000 jobs added in October, unemployment fell to an unprecedented rate of 4.1%, the lowest since 2000. This marks the 85th straight month of job growth within the U.S.

The manufacturing sector has seen its 14th straight month of expansion according to the Institute for Supply Management’s report on Business. Of the 18 manufacturing industries, 16 reported overall growth with continued growth in new orders, production and employment.

Amidst a booming economy, the U.S. housing market has also begun to see some noteworthy figures. New single-family home sales had an 18.9% increase in September over the August 2017 rate and a 17% increase over the September 2016 estimate.

The sale of existing home sales finally began to rebound in September with a 0.7% increase after three straight months of declines, but ongoing supply shortages and recent hurricanes have muted the overall activity.

Altogether these indicators point towards continued expansion and a healthy outlook for the U.S. economy going into the 4th quarter and 2018.