According to June 2003 statistics, the building industry is staying in a growth mode, although only growing 1.5% over June 2002 figures. Residential building continues to lead the industry in total dollars, growing 7.5% to $208 billion. While it looks like residential building will continue to provide strong numbers, the rising of interest rates could possibly slow this segment. A few weeks ago, as many of you know, interest rates were at 42-year lows. Now that they have risen to the 25-year low level, there is no need to panic. However, you may want to keep your eye on interest rates when making plans for 2004. In making those 2004 plans, you may also want to consider that office and commercial developments have fallen overall by 4.6 and 14.4% respectively, and by 10.3 and 19.4% in the private sector. Office and commercial development has increased 4.7 and 8.7% in the public sector. In pure percentages, the hardest hit element in put-in-place construction is manufacturing, which dropped 25.9% in the private sector. I was reading an article in U.S. News and World Report that talked about a shift in jobs across the country. Guess what? It pretty much reflects the shift in construction. The article said that the manufacturing, trade/transportation, and business sectors were taking the biggest hits in employment. The construction industry is mirroring this job market with declines of 10.3% in lodging, and only a modest gain of 0.1% ($7 million) in transportation ... OK . . . OK . . . So enough of the grim news . . . All is not bad, (remember construction did grow from June 2002 to June 2003). Things are shifting and those of you who can bob and weave with the market will fair best in the years ahead. For instance, the health care industry is growing at a 13.6% overall rate. Other growth markets include education, amusement/recreation, and conservation. These are all markets that reflect a growing population. So, as you plan for the years ahead, you may want to shift your marketing efforts to include the growth markets, especially those markets that feed on population growth. You should also watch for more competition in the industrial side of the business arena . . . Erosion control is another growth market for landscape contractors. With the weather seeming to become even more unpredictable and severe, erosion control is an area that you can specialize in and generate strong income. From truck-mounted hydroseeding machines to retaining wall construction, holding a slope in place can be a great source of revenue for LC companies. Furthermore, with growth in conservation spending you may be able to tap into those projects if you develop skill in river bank restoration and keep water flowing in the right direction . . . Whatever you do and whatever happens, the industry should remain decent in the months ahead and may even allow for growth for those of you who keep your eyes on the road ahead . . . God Bless . . . George P.S. OK, so I have a little egg on my face . . . certainly not the first time, and most assuredly not the last. What am I talking about? My e-mail address as published over the past couple of issues has been incorrect, and I have heard from many of you regarding that. So . . . you can reach me at gschmok@landscapearchitect.com and throw away any other e-mail address you may have for me. And sob@landscapearchitect.com still won't work . . . ;-)