Woodworking & the bad economy...

[Jason White]

Just wondering how the current economic "crisis" is affecting your woodworking.

Are you buying fewer tools and materials? If you're a pro, are you without customers/clients?

Just curious.

Speaking for myself, all future power tool acquisitions are on standby.

JW

[Matt Benton]

I'm a strict hobbiest, and relatively new at that.

In my view, the market for new tools doesn't move nearly as much with the economy as the used market. As the supply of used tools increases, as it has in the last 6 months or so, prices have come down. Much like the housing market, if you have the financial means, I can't imagine a better time to invest in tools (used, that is)...

[Rob Diz]

Funny I was thinking about the same thing - as I reviewed my most recent credit card bill and thought about the charges last month for my CI router table, extension wing, and a rail and stile set. I was thinking that I would be taking a bit of "tool diet" in the course of the next few months.

[Shawn Christ]

Like Matt, I too am a weekend hobbyist with (knock on wood) a stable, full-time job. As long as I have that job and the accompanying paychecks, my woodworking hobby will not be affected. I would guess that stability of employment is probably the largest factor for most hobbyists.

That said, my wife and I are not taking on any more debt and have delayed major house projects, like finishing our basement, for another year or two just to see how the economy pans out. We just don't know what could happen. My dad (54) is still a full-time carpenter but just got laid off from his company. Unfortunately his woodworking hobby won't pay the bills. It's tough out there for some people.

[Dave Lehnert]

I am in the middle of the road about things. On one hand I am afraid to spend, may need the money down the road. But on the other hand Money I had invested in stocks is gone so I should just have spent the money on myself for tool and not give it to some CEO to give away.

[Vince Shriver]

Good question, Jason. My thought is that new construction is probably way down, i.e. cabinet shops making and installing new fixtures in new homes and business, but that the remodel market may compensate for some of this lean-time economy. Interesting to see how folks here that make a living in the trades are doing.

[Anthony Whitesell]

Luckily I made my big tool purchases before the end of the year with the aid of Microsoft, so the credit card hit isn't too bad. Based on the timing, it appears that I bought and paid for two tools and Microsoft bought my christmas gifts for everyone (as the cashback via PayPal will pay off this months charges, the christmas gifts).

I am definately not going to be purchasing any new tools. I'm trying to avoid buying accessories and saving my cash for the disposables and consumables (sandpaper, blades, wood, hardware, etc.). Even the disposable purchases I'm trying to minimize.

[Todd McGeachy]

I think it is going to be a very painful few years ahead for us, especially since no-one knows how bad things really are. Much of the debt is private…so this is going to be a long year of unhappy disclosure...

If you have no little or no debt and a stable job you will be in great shape as the retailer try to lower their stocked goods and bargain priced used gear abounds; especially a year from now when it hits folks that this isn’t going to be a dip, this is a reset of a flawed economy. Too many businesses were servicing industries built on unlimited credit...this is going to be industrial and retail Darwinism...

Most craftsmen should be alright in the higher end market, some people always have money to spend. It's the low end that will take the hit as those with limited disposable money pull back.

I am seeing this now at work, this is the slowest Christmas in 26 years I am told.

The thing I have noticed is that prices are going UP on new tools and equipment in some cases as well. I've noticed a jump of a couple of hundred per item on stationary tools in the last couple months. I wonder if that is because quantity sales are dropping and overhead is increasing. This may show who can last in this market, because obviously that isn't helping.

So good used tools are going to be around and wood should be easier to find from people supplementing their income...good for hobbyists.

This is going to hurt production shops though. Suppliers may dry up and such. The little guys doing things for neighbors and so on will be ok, but I wouldn't want to have a staff... But as always, the smart, the talented and especially the lucky will get by.

[Jason Whitaker]

Truly interesting topic..

As someone who lost his day job in Dec, but is fortunate enough to be in a good position I am in the beginnings of starting up my own little shop. I have not even finished yet and I have 4 large pieces of furniture and several smaller items already on "order" with a few deposits. So it is always interesting to see where /who has the money and what they are willing to spend it on. I think people who are in a decent position are still willing to spend their money, but more than ever I talk to people who want quality..which might help some smaller craftsmen , just my current observation The Used tool market has some great deals right now, though I am still curious to see where it may go. Locally, I know several relators who have never moved as many houses as they are right now, so I guess it all depends on where you are. I think there is a lot of difference from locality to locality...state to state...region to region. I certainly wish everyone here all the best in getting through these lean times.

[Joseph Hadley]

As the crisis seems to be based, in large part, on the failure of several industries that don't actually make anything of lasting value (banks, mortgage brokers, Madoff who made off with the money, appraisers....in short, the monetary vulture crowd, I have found that when I enter the shop to work on something with my bare hands, and arrive at something of which I am even a little bit proud...even if it is just an amazing pile of shavings....I feel better that I am working in the real world, in real time, as opposed to an imaginary construct based on taking advantage of people's needs and/or greed.

It is deeply regrettable that so many, with no hand in the orchestration of this chaos, have been blindsided and have lost so much.

I find that I am building and contributing more things I have made to fundraisers for the community and for schools.

In terms of tool purchases, I am seeing that more cabinet shops are going under, and I see more industrial weight heavy metal for sale....mostly 3 phase gear, or things that I can't shoehorn into my shop for lack of space, or things that I probably couldn't figure out how to use.

[Jeff Duncan]

Last month I spent a little over $3k on a new machine and new cutters for the shaper. This spring I'll hopefully be bringing in a vertical panel saw. Between now and then though I'm going to be a little more careful with my spending.
People with money are still spending and I'm working extra hours right now to keep up with the demand, at least while it lasts. But you just never know when things might dry up so I'll be stashing a little extra away just in case.
Jason, I wish you luck as this is probably the worst time to try to make it with custom furniture. The good thing is if you can start up and survive in this economy, you'll do great once it turns around
good luck,
JeffD

[Justin Leiwig]

I don't know...I'm on the fence. I've been buying some things, but never with credit, and never over $100 at a time (except for the tablesaw I bought used at $160). I'm also trying to pay down my debt. I'm starting to follow the Dave Ramsey FPU series. I've got my $1000 in the bank, and I'm going to be putting extra towards my credit card payments every month to pay them off hopefully by the end of this year.

However, I'm worried about job stability. Admittedly I work for the government, but if tax revenues continue to fall like they have for the past three years, then I could be laid off. I've been told by the bigwhigs that we are in good financial shape for 2009, but if there is something major that happens that all goes out the window.

If I lost my job now, there is no way I think I would be able to keep my house, and that keeps me up at night. I'm trying to do things to keep things in check, like planning a bigger garden, canning and preserving. I'm also conserving what I can, but not severely.

[Rod Sheridan]

Strictly a hobby guy, however I work in a fairly stable job, almost all my children have left home, and I don't have any debts.

I'm looking at a new saw/shaper combo, and may purchase it in February, even though the Canadian dollar is down.

If everyone stops buying, we'll create our own massive downturn in the economy. To me, much of the media talk seems to foster this, which reminds me of the anecdote about the hot dog vendor.

One thing in my favour is that the Canadian economy hasn't been hit as hard as others, (yet?).

Regards, Rod.

[glenn bradley]

I am just a hobbyist. I would starve if I had to make a living at this; I'm too slow. I am however, enjoying the current economic impact on our providers. If you look around and know what you want, there are some great deals out there. Folks are looking to move stock. Take advantage of it if you can.

So I guess my purchasing is actually way up from normal. If only I could find a 70% off, everything must go, clearance on Honduran mahogany ;-)

[Todd McGeachy]

hmm there is a thought. I went down to Nicaragua last year and toured some furniture factories, beautiful stuff. I have the pictures here if anyone wants to take a peek. You should have seen the huge logs of heartwood set aside for table pedestals They consider mahogany a weed

The owner showed my all the different woods they had access to, there were dozens! Anyway my thought is: I wonder what it would cost to fill a container and send it up here?