In assessing the power tool industries, it can be found that there are several general economic indices which have are important in assessing the viability of the industry. There are four of these which could be assessed for the purpose of the Able Corporation as they pursue their goals with their products. These four general economic indices include housing starts, expenditures for residential construction, expenditures for commercial construction, and expenditures for home repairs and improvement.
First, the housing start statistics which have become relevant to the industry “represent the beginning of the construction of new privately owned single-family homes, townhouses, and multifamily apartment buildings” (Frumkin, 2005, p. 132). Moreover, it excludes infrastructures for housing which fall under mobile homes, group quarters, public housing properties, renovations made to existing houses, and converted housing from non-residential to residential housing (Frumkin, 2005). From the historical data presented from the US Census Bureau, there is an erratic trend that can be seen from the year 2004 to 2008.
However, it is apparent that there is a continuous decrease from the year 2005 up to the 2008 leaving the year 2004 as the only exception. The respective values for each year are 1,955,800 for the year 2004; 2,068,300 for the year 2005; 1,800,900 for the year 2006; 1,355,000 for the year 2007; and 905,500 for the year 2008 (“New Privately Owned,” n. d. ). From the trend shown, it is made apparent that the housing units which have been started are becoming lower every year from the US data.
Second, there are also relevant data which are made available for the expenditures which are placed for residential repairs and improvement. This type of data shows the amount of money that has been used for the purpose of improving the residential places for purposes of repairs and improvement. For the year 2003, the data shows that $179,700,000,000 has been spent on the first quarter, $173,200,000,000 has been spent on the second quarter, $187,400,000 has been spent on the third quarter, and $166,700,000,000 has been spent on the fourth quarter (US Census Bureau News, 2008).
On the other hand, there are costs of $198,900,000,000 for the first quarter, $192,600,000,000 for the second quarter, $202,100,000,000 for the third quarter, and $200,500,000,000 for the fourth quarter (US Census Bureau News, 2008). For the year 2005, the respective value for the first to fourth quarters are $213,600,000,000 $192,800,000,000, $220,900,000,000 and $235,500,000,000 (US Census Bureau News, 2008). For the year 2006, the values for the respective four quarters are $232,200,000,000, $225,000,000,000, $231,000,000,000, and $226,000,000,000 (US Census Bureau News, 2008).
As for the year 2007, the value for the first to the fourth quarter is $230,900,000,000, $227,700,000,000, $213,200,000,000, and $236,600,000,000 (US Census Bureau News, 2008). From these values, it is shown that the expenditures for each quarter and across the years are increasing such that there has been more cost spent for this on the latest years of the historical data. Third, the report of the US Census Bureau also shows that there are also expenditures for residential construction which can be studied from the year 2003 to 2007. For the year 2003, the total expenditure is $705,276,000,000.
The succeeding values are: $803,305,000,000 for 2004, $897,989,000,000 for 2005, $937,047,000,000 for the year 2006, and $875,010,000,000 for the year 2007 (“Construction and housing,” 2009). While the trend shows that here is a constant increase from the year 2003 to the year 2006, there is a sudden plunge for 2007 which can be accounted to several economic factors that prohibit the construction of new residential infrastructures. Fourth, there is also an economic index available for expenditures on nonresidential units, which is also taken from the US Census Bureau.
From the year 2003 to 2007, the respective values are $229,335,000,000, $238,478,000,000, $256,644,000,000, $295,715,000,000, and $349,566,000,000 (“Construction and housing,” 2009). From these data, it can be observed that there is a continuous increase in the amount spent for the purpose of construction nonresidential units. In relation to the power tool market, these economic general indices are considered to be important because of the role it plays in terms of the demand for power tools which are required for construction.
The housing start data would dictate how many new power tools may be required together with the amount of expenditures that are seen to be used for improvements and construction of new infrastructures. The fact that power tools are considered to be a necessity for the construction and repair of housing and nonresidential units relates this industry to the construction of housing and nonresidential ones. During cases where there are disparities, it is important to note that these general economic indices will be of great help only when accuracy is present.
However, when there are cases where it is difficult to see which of the current findings are accurate, there should be information from other related economic factors that come from the government which could be a reliable source of data. Thus, it can be seen that there are several factors which affect the power tool market considering the economic relations it has with the construction industry. There are several ways through which the economic forecasts for the power tool industry can be obtained in relation to the construction data. References Frumkin, N.
(2005). Guide to economic indicators (4th Ed. ). Armonk, New York: M. E. Sharpe. Newly Privately Owned Housing Units Started. (n. d. ). Retrieved April 23, 2009, from http://www. census. gov/const/startsan. pdf. Section 20: Construction and housing. (2009). Retrieved April 23, 2009, from http://www. census. gov/prod/2008pubs/09statab/construct. pdf. US Census Bureau News. (2008). Expenditures for improvements and repairs of residential properties estimated at $226. 4 Billion in 2007. Retrieved April 23, 2009, from http://www. census. gov/const/c50_curr. pdf.