The year 2008 is shaping up to be a very interesting one. Nationwide housing starts are at 20-year lows. Recently, we have seen the stock market rise to record highs and then, in more recent months, plummet by hundreds of points at a time in a pattern that economic pundits refer to as “market corrections.” Banks and lending institutions have announced record foreclosures and tighter lending policies, making it more difficult – and expensive ­– to obtain a mortgage.

In the meantime, the subprime mortgage meltdown continues to wreak havoc across all segments of the economy. Depending on the region, the nation’s economic outlook is tenuous at best and recessionary at worst. Contributing to economic woes is the loss of consumer confidence, the rising cost of oil and sky-high domestic manufacturing prices. And we are in an election year. If history holds true to form, the economy will be flat in 2008, as this has been the case every year in which two non-incumbents vie for the presidency.

Despite the uncertainty about where things are heading, certain segments of the decorative plumbing and hardware industry do not apparently believe that economic conditions apply to them. This is evidenced by their desire to increase sales anywhere from 10 to 30% in 2008 – and their confidence in their ability to do this.

While a 30% increase in sales may not be realistic in some areas of the country, times of economic uncertainty can create opportunities for the best companies to shine. Manufacturers, reps and dealers must recognize and understand that now, more than ever, we must work together if we are going to respond effectively to the hands we are being dealt.

Manufacturers need to provide the tools necessary to maintain and expand market share. These include targeting architects, designers and custom builders through aggressive marketing and advertising campaigns, introducing new and innovative products and, most importantly, making it easy for dealers to specify and sell products.