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CURRENT ECONOMIC CONDITIONS
12 Months Ended
Jan. 02, 2016
CURRENT ECONOMIC CONDITIONS  
CURRENT ECONOMIC CONDITIONS

11. CURRENT ECONOMIC CONDITIONS

 

Construction activity along the Southern Front Range of Colorado, around Colorado Springs, exhibited modest and thus far sustained improvement over the past two years. Residential construction is expected to remain below prior, more robust periods, however commercial construction is improving. A new street tax passed in Colorado Springs is expected to spur some municipal projects over the next five years. The area closer to Pueblo has not shown a similar recovery as construction activity continues to be quite slow.  Economic growth in Southern Colorado continues to lag behind the growth experienced in the Denver area. Although pricing improved in the CACS segment during 2015, bidding on jobs has been and is expected to remain highly competitive. Further improvement in the CACS segment will require sustained improvement in the Colorado Springs market and a recovery in the Pueblo market.

 

The markets for products manufactured or fabricated by the Heating and Cooling segment, the Evaporative Cooling segment and the Door segment are expected to improve somewhat mainly due to an anticipated continued construction spending in the lodging industry. As has historically been the case, sales of all segments, other than the Door segment, are influenced by weather conditions.