CURRENT ECONOMIC CONDITIONS

12 Months Ended

Dec. 30, 2017

CURRENT ECONOMIC CONDITIONS

CURRENT ECONOMIC CONDITIONS

11. CURRENT ECONOMIC CONDITIONS

Construction activity in the Colorado Springs, Colorado vicinity is expected to improve from the levels seen during 2017. However, this increase is in large part due to the cold and wet weather experienced during much of the first half of 2017 which delayed or postponed several projects to 2018. Contractors found it difficult to identify and hire additional qualified labor to recoup activity scheduled during the first six months of 2017. Although pricing is expected to increase, it is almost entirely in response to higher costs. Pricing on larger bid jobs remains sharply competitive.

The markets for products manufactured or fabricated by the Heating and Cooling, Evaporative Cooling and Door segments are expected to remain fairly constant compared with the 2017 levels although sales of fan coils in the Heating and Cooling segment are anticipated to grow as construction spending in the lodging industry continues to increase during 2018. As has historically been the case, sales of all segments, other than the Door segment, are influenced by weather conditions.