Eldorado Stone is a case study in the domino effect of an economic downturn. And Murphy Lents has had a front-row seat to watch the fallout.
Eldorado Stone Operations LLC makes stone veneer used primarily in housing construction, so when the economy sags, fewer people buy houses, which means fewer housing starts, which means fewer projects for Eldorado, a business with a nationwide customer base.
“In 2006, housing starts were approaching 2 million,” says Lents, the company’s president. “This year, they were forecasting somewhere around 550 (thousand) to 800 (thousand). It’s significantly off the peak. As a nationwide business, we have a pretty good view of what is going on across the entire U.S. What is happening in the building products industry is a direct reflection of what is going on in the housing markets.”
The company has been hit by cutbacks and layoffs, though Lents declined to discuss the specifics of Eldorado’s revenue and staff reduction. Hoovers.com lists Eldorado’s 2007 sales at $171.9 million and its employee count at 1,700.
While navigating the murky waters of an uncertain economic climate, Lents had still been charged with painting a clear picture of his company’s situation for his employees — and he’s had to do that while cultivating a positive, achievement-oriented mindset throughout the company.
“You still have to have an upbeat, positive attitude,” Lents says. “Our business, like most businesses, is about selling things. To sell things, you have to be upbeat and have a smile on your face when you see a customer. You have to be enthusiastic about your product and life in general.”
Lents won’t deny the current state of the economy and the effect it has had on his business. But when it comes to his employees, he can’t let bad news drag them down. It’s a mentality he’s had to tirelessly communicate and cultivate as the economy has worsened.
