Norm Murray's 2010 Outlook

Norm Murray is the president of IHLA Member U*C Coatings Company, and he is one of the truly dynamic leaders within our industry. He gave me his permission to share his 2010 outloook with you:

"Our Anchorseal index shows is that hardwood production has bottomed out, moving within a range which is about 35% below a year ago, which was already down 15%. That means that overall hardwood production is down 45% - 50% from two years ago, but has firmed up at this level.

We should see very modest but regular increases in hardwood demand during the next six months, as the recession actually ends during early 2010. The improving housing market will lead the economy out of the recession, but it will be slow and gradual. The hardwood business will lag the general recovery by 6 - 9 months, so we need to be operating in a conservative mode for the next year, adjusting for slow, incremental growth and preparing for larger late-2010 improvements in hardwood demand.

There are still buying opportunities for those who have the capital to invest in businesses, equipment or real estate. The low interest rates will not continue past mid-2010 as the national deficit, debt and increasing entitlement programs begin to drive up the cost of money.

The business for hardwood producers, processors and users will improve markedly as we move through 2010 and we will have 18 – 30 months of improved, stable business going into 2011 and 2012."

Best regards,

Norm
Norman E. Murray, CEOU•C COATINGS CORPORATIONPO Box 1066 • Buffalo, NY 14215tel: (1) 716-833-9366 • fax: (1) 716-833-0120US/CN Toll Free: 1-888-END-COAT (363-2628)email: norm@uccoatings.com • web: www.uccoatings.com
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