The Refinishing Touch Blog

In my last post I chronicled my recent trip to China and shared more of my personal experiences throughout the journey. I wanted to take some to write about the trip from a business perspective as well and highlight the journey to the stone manufacturers plant as well as share some of my overall business and economic observations that came about during my trip.

The relationship between China and the United States becomes more and more apparent as the financial crisis continues to impact our economy. The housing economy has supported China's growth and the financial issues in the US have greatly affected China as a whole. US factories in China are continually growing more concerned about our economy and the potential loss of business due to our struggling economy. I learned, in fact, that many factories and businesses are closing down due to the economic slow down. China is throttling back exports to avoid overheating internal growth.

As we entered Hong Kong through customs we were the 5^th car in line and saw less than a dozen containers on trucks. Coming through customs usually takes 2-3 hours and seeing thousands of cars and containers on trucks is not an unusual sight. Even the hotels were empty - a sure sign of the times taking effect world wide.

On my trip I travelled to Shenzhen, now known as the furniture capital of the world. More than twenty years ago, Shenzhen just was a small fishing village called Baoan County, but in 1979, it was renamed Shenzhen City. When the Special Economic Zone was built, the city was divided into six zones, four of which are located in the Special Economic Zone.

While in town, I had dinner with a furniture manufacturer for whom we had done business with to finish furniture pieces on their arrival to the states. They own the factories and reported firsthand that many small and large factories are going out of business. Mostly all of the factories were dependent on the housing market bubble in the US, however now because of decline in the housing market they are now shutting down more and more.

The Chinese have a different approach to business. The locals I spoke to share a more thoughtful way of doing business they say it is "communism that works." Despite the fact that there are strong Western influences everywhere, the business side of things is still very rooted in Communism. I learned the average pay of a factory worker is $65-150 per month. I had the pleasure to have dinner with a group of workers from the solid surface factories and these people are highly educated with engineering degrees from universities. What astounded me was that these people make $350 a month at the factory and they are thankful for their pay.

The work ethic, conditions and culture in China are certainly nothing like they are in the US. Something struck me as interesting as I was sitting in the car waiting for some friends, I noticed leaves falling off of the trees onto the side walk- just as they do on an ordinary fall day in the states. The peculiar thing was not the leaves but that there were two women walking up either side of the street sweeping the sidewalks by hand to clear them of the fallen leaves. I couldn't help but think how this incident showed a very distinct culturally difference between the US and China - which is reflected in the culture both personally and professionally. This trip truly enlightened me.

Labels: China, Culture, economy, Financial Crisis

This month I had the pleasure and experience of visiting the People's Republic of China. It was a combination of business - visiting our stone manufacturing facilities- and pleasure, visiting friends.

On October 2^nd after traveling more than 8,400 miles, I stepped off a Boeing 747 onto Hong Kong International Airport to change planes. I've been lucky to travel extensively throughout my life and career, but a 20 hour flight and a 12-hour time difference resulted in one of the most grueling travel experiences.

Security, something that Americans are now getting more used to since the awful events of 2001, was incredibly tight, with various levels of security checks including a point where you have to stand still for three seconds and stare into an infra-red camera.

Finally, after I'd been up for 36 hours straight, I landed in Xiamen. Xiamen is an island city situated on the south east tip. With a population of slightly over two million, it is regarded as "the most agreeable city in China." The port ranks among the country's top ten and it boasts a modern airport that has become a major aviation hub. It has a bustling economy, thanks to its designation as one of several Special Economic Zones in China and the large amount of foreign investment that the hub is known for.

After the grueling journey, I was exhausted but glad to see my friends waiting to pick me up at Xiamen airport. They drove me to the luxury that is the Sofitel Hotel in Xiamen. By then, I urgently needed a rest, and I wasn't disappointed. The hotel's standards were incredibly high with impeccably crisp and clean rooms that would be inviting to any traveler, but especially so to such a weary one!

My whole experience was a mixture of the unusual and the out-of-context, including an Italian meal in Xiamen. As an Italian-American, I have a deep love and appreciation of Italian food - though the meal itself seemed to be lacking in the 'Italian' aspect, aside from the Chianti Classico, which was authentic.

Meanwhile, my temporary 'base' of the Sofitel with its slick service and presentation, reflects my overall impression of the People's Republic of China. As a visitor, I found every part of the country that I visited to be immaculately organized and business-like. Any service was like clockwork, and while smiling and welcoming, there was a work ethic that seems to pervade every person. There was a constant sense of control and management, which, as a business person, I can fully appreciate.

My meetings were fruitful - details of those to follow in my next post - and the time I spent with my friends was unforgettable.

The worst bit? The jet lag, both on the journey out and returning home, took its toll, with my body taking days to catch up. Visiting China made me feel like I'd really traveled!

Labels: China, Hospitality, travel

We've just returned from this week's Buyer Interactive Trade Alliance and Conference: Purchasing and Design West (BITAC) sponsored by Hotel Interactive, and had a chance to meet with both current and potential clients amongst 75 different groups. Amidst strengthening old friendships and forging new ones, we heard a lot of the talk at this year's event about the current conditions of the marketplace and where the hospitality industry stands. Based on the buzz at the event, it continues to ring true that the financial state of our nation has had its effect on the hospitality industry.

In the panic of the financial situation many capital budgets have been frozen and hotel owners and developers are realizing the need to be proactive whenever possible. We learned from our industry friends that the feeling is that renovations are more important than ever. Since a good number of the new builds in the pipeline may be shelved, industry players are coming to realize that keeping existing properties in a competitive stance is extremely important.

Another hot topic at the event was the greening of the industry. A panel discussion at the event discussed the definition of "green" in the hospitality industry and the need for universal standards throughout. The industry brings in a whole new set of issues and obstacles when it comes to implementing green standards and proves to be a challenge that everyone agreed is well worth the effort.

The hospitality business is one built on relationships. BITAC and Hotel Interactive understand this and cultivate it within their events. With a format lending itself to free thinking and relationship building without any constraints, BITAC is always an event that The Refinishing Touch looks forward to and is delighted to participate in.

Labels: BITAC, economy, Green, Hospitality

When we talk about budgets and bottom lines, it's not just the hospitality industry that we're helping. We spend a lot of time using our skill and expertise to help government agencies. Just like any business, these agencies need to ensure, and demonstrate, that they are meeting budgets and furniture standards, while being as environmentally friendly as possible. Furthermore, any government or federal institution has to ensure that they are working with suppliers that meet high procurement standards. The Refinishing Touch meets these standards, and has been awarded several contracts with the US government.

Since then, we have undertaken refurbishing projects for the FBI, a number of Federal courthouses, the U.S. House of Representatives, numerous military housing facilities, and last but not least, The White House. Our work was formally recognized when we were appointed the Evergreen Award from the GSA.

It just goes to show - it doesn't matter if it's a multi-national hotel, a campus-based college or a Federal agency, refinishing your furniture assets has the added bonus of preserving resources and is a good purchasing decision whatever your needs or budget.

Labels: finance, government, saving money

Labels: Green, Hospitality, saving money

The travel and hospitality industries have been driving forces in economic prosperity and growth in America. In today's economic climate, the United States is one of many countries being affected by what is now qualified as a global crisis. Daily we hear mentions of national bailouts and continue to see the effects governmental rescue efforts have on an abysmal time in the stock markets.

Banks and industry players are scrambling to gain much needed support from backers and investment firms as officials continue crafting plans to make strides toward a realistic picture of stability. Through all of this financial turmoil, we are beginning to see former stronghold industries being largely affected by the economic downturn.

The travel industry has recently shown that as in the past, it is not immune to the economic woes of the world. It is an industry that relies heavily on the stability of the economy and the people that drive business. As the global crisis continues to grip the attention of leisure and business travelers many consumers and businesses are having to rethink travel plans. While just a few months ago, the hospitality and travel industries alike could reasonably rely on international travel from abroad, these industries are realizing that this may now not be the case for the future.

With airlines reporting steep declines, travelers are forced to cope with either increased fares or hold off on travel plans in order to save money. The reality is a majority of consumers are cutting back on travel, due to the serious financial problem at large. Though they have since managed to remain unscathed, the hospitality industry is now seeing four and five star hotels being affected by the financial crisis and the hardships of the travel industry.

We here at The Refinishing Touch, like so many of our industry friends, are striving to make a difference in the hospitality industry during this tough economic climate. Now is the time when it makes more sense than ever to look at internal resources, manage assets, budgets and bottomlines. It's during the down turns that companies can become stronger in the long run when they focus on existing assets and resources.

Labels: economy, finance, Hospitality, travel

With all the recent activity on Wall Street, we have been focusing our attention on the world's financial crisis and how it relates to the state of the hospitality industry. Recently, Mario Insenga, our CEO was interviewed by AskMando.com about the current financial crisis and the state of the hospitality industry.

During the AskMando interview, Mario sheds light and understanding of the marketplace to operations and management executives in the hospitality industry to raise awareness of alternative solutions to sustain during an economic slow down. He also addresses the instability of the current marketplace and insight into the future of this business sector with the current credit crunch.

This brief interview is a glimpse at what Mario will also be writing about in an in-depth article that will run in the January/February issue of this publication. In the article he will highlight major trends affecting the industry from economic conditions, cultural changes, and changes in traveler attitudes. He concludes with some personal predictions and insight for how the industry will adapt to evolve to ensure its continued success and profitability.

We encourage you to view the link of the interview and post any comments, we'd like hear your thoughts and feedback.

Labels: Credit Crunch, Cultural Change, Hospitality

Some say that the recent economic downturn has been a long time coming. This week we've seen international governments follow suit in our nation's recent "bailout" with the lending of government funds to the global banking circuit. With the global economy showing the gripping effects of fear, we are watching history in the making. As the news unravels, we are seeing this situation is much more than just a "credit crisis."

At a time when economists and investors are shocked with minute-by-minute news on the state of Wall Street and global economy forecasts, we become subject to take a long hard look at the way enterprises conduct business.

Hospitality, as we've voiced before, is an industry that will continue to be an indispensable part of our economy. The need for business travel will remain necessary as part of the pursuit for new business and economic expansion, however, there will be a shift in the types of companies that are conducting business travel.

Current conditions are having a crippling effect on expansion plans across all industries and the hospitality industry is no exception. Industry statistics show that while travel may be down, an increased focus on the customer experience has paid off. Hospitality Net released figures, just a few months back, indicating an increase in customer satisfaction within the hospitality industry within the first half of 2008.

As a self-financed company, The Refinishing Touch recognizes the value of keeping our customers happy and consistently striving for an unparalleled customer experience. In a time when expansion projects are being put on hold, hospitality industry players are using this opportunity to turn their focus to the quality of service to existing and new customers while also reviewing existing resources.

With the current financial climate, the last few weeks have prompted businesses across the globe to look at their assets and realize the now urgent need for steadfast, wise management. As an industry leader in providing a means for sustainable asset management, it is an important practice to consistently look to existing assets to keep costs down and look at how the bottom line is effected - whether in an economic down or a steady economy

Labels: Asset Management, economy, Hospitality, Sustainability

Labels: economy, Hospitality, Wall Street