Starting Over - Advice for the Canadian Housing Industry

Day 529, 21:44 • Published in Canada Canada • by AugustusV

Written by Octavian_F, Chief Editor of eWorld Economy Magazine

Is the Canadian housing Industry crippled, or does it just need a wake up call instead?

I have promised that I would try and give a word of advice to my fellow businessmen, and try and help the Canadian housing companies recover from what is said to be a "hard blow" to the Canadian housing industry.

The effects of the new tax on imported houses can already be seen. If you take a look at the Canadian housing market, you will see an influx of foreign housing companies trying to sell off their cheaper houses to Canadian consumers. The foreigners seem to have adapted better to the global economy, and are much more competitive than our own producers, who have benefited from government protection for far too long a long time.

Yet before I start, I wish to share a few common words of wisdom, which may help get my ideas across much better. I believe everyone will find these quotes rather interesting, whether you are a politician, company owner, solider, or just a regular citizen, wisdom speaks for all.

“I can't change the direction of the wind, but I can adjust my sails to always reach my destination.”

"I don’t know what the key to success is, but the key to failure is trying to please everyone"

“What seems to us as bitter trials are often blessings in disguise”

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

“I'm not afraid of storms, for I'm learning how to sail my ship.”

With that being said, I believe we can all try and look at this situation in a slightly different way. To start off, I think it safe to say there is no way to reverse this decision. There was no way the government could please everyone, and unfortunately the housing companies were the ones to suffer in order for Canadians to have access to cheaper housing.

But let us try and think creatively, for I am sure we can find a solution to all this. In fact, dare I say it, but I believe this new import tax was actually very beneficial for our housing industry.

Call me crazy but I believe that by forcing the Canadian housing sector to become more competitive, it may open doors to foreign export, and who knows, with all the cheap wood that Canada has to offer, the Canadian housing industry may just become one of the best in eRepublik!

But everything has a beginning, so lets start off with restructuring.

Canadian housing companies need cheaper prices. Period. Yet how can this be done in a way that keeps them profitable at the same time as well? The answer is simple for the GM's, but a little harsher for their employees. The only solution is to slash salaries. This may hurt at first, but over the long run, when the housing companies start to recover, wages may indeed go up once again.

The GM's must first consider a price for which they will try and sell their houses for. Once the price is established, using this tool: http://erepmarket.co.cc/prodtest.php, GM's can paste their company id's in, and get a wide range of useful statistics concerning the individual productivity of each worker, and the overall profit or loss of their company. The GM's can also see exactly how many products their employees produce.

Once the data is collected, now it is time to adjust the salaries to keep the companies profitable. I can't go into further detail because I have already used too much info from what will be included in the 3rd Part of the eWorld Economy Magazine special report, and unfortunately I will have to save all the details for later. However if you're interested, why not subscribe, and be the first to find out!

Nevertheless, with new wages that empahise profitability, GM's should have no trouble making money again.

Also, since there are so few Canadian housing companies out there, if everyone works together, and establishes a predetermined price, the path to success only gets easier.

Moreover, with continual success (and possible cooperation between the companies), the Canadian housing industry may even force foreigners out of the Canadian market due to competitive pricing, and if more advantage is taken of the very cheap wood that Canada has to offer, the GM's can try and export cheaper houses to the outside markets as well, and generate even larger profits!

Ironically it is the outside competition that will force the Canadian housing industry to become stronger, especially if the GM's cooperate, and work together to force out foreign companies.

And it is not just the housing industry that will have to gain from this. The success of the Canadian housing industry will hopefully encourage more people to start creating housing companies, and try and mimic that success. This would mean larger profits for the Canadian lumber industry, but also more money for the government from taxes. More jobs would also be created, and our government would become stronger. Indeed we all have something to gain should the Canadian housing companies be successful!

And if there is any doubt or skepticism left about whether the Canadian housing industry can recover or not, just remember this final quote:

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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