The housing slump hit companies like Caterpillar, which saw a 21 percent drop in profit its second quarter this year.(David Boily/AFP/Getty Images)
The housing slump hit companies like Caterpillar, which saw a 21 percent drop in profit its second quarter this year.
(David Boily/AFP/Getty Images)

Housing Slowdown Spreads to Secondary Industries

August 15, 2007  •  From theTrumpet.com
The housing slowdown is spreading to construction suppliers and home improvement chains. Will squeezed profit margins lead to job cuts?
 

Many companies are absorbing the effects of the year-long slowdown in housing construction and sales. Other companies are not, as bankrupt mortgage lenders New Century Financial, American Home Mortgage, and dozens of other busted lenders can attest to.

Outside the frontline financial and home building sectors, however, little attention has been paid to the secondary housing-related sectors that are suffering the effects of the slowdown.

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