In my memory, 2008 will rank among the most vivid.  In 2008, the financial system collapsed; century old Wall Street firms folded;  energy costs skyrocketed and then tumbled; commodity prices mirrored energy; and construction lending came to a near standstill.  We will have a tough time forgetting this year despite our best efforts.  But ever the optimist (I can’t help it – I have Irish roots), 2008 will also be a year from which we learned more about managing our businesses than any other.  What have I learned from 2008?

We have learned that the theory of “De-coupling”, in which global trade would make the global economy less dependent on the American financial system, was incorrect.  In essence, 2008 proved to an even higher degree the importance of the much too villified American consumer.  We were blamed while energy prices were escalating for our excess, and pandered to while the global economy was tanking.  For the forseeable future, the American consumer will continue to drive the global economy.  De-coupling is a clever concept on a doctoral thesis.

We learned that rising energy prices and environmental activism will make building science “cool” again.  Many of us in the industry know that the “Green” term of the day is better known as “sound building practice”.  Our industry has been the advocates for proper (often more expensive) building techniques for decades.  We now have the court of public opinion on our side helping to advocate and willing to pay for the best practices that we have been preaching about for years - something I haven’t seen previously in my career.

We’ve seen untold gobs (scientific terminology) of dollars float to building science. Bill Gates once was asked by an interviewer about how the tech bubble of the 90′s was a disappointment.  In essence, he said that the money invested to develop the network infrastructure is not a waste, despite the crash.  I firmly believe the dollars invested in building science during this boom will reward us with handsome dividends for generations to come.  In a few short years we have gone from holding a candle or smoke stick by a window to show a client an air leak to monitoring it with heat seeking infrared technology, recording it digitally and being able to review our repair afterwards.  This is stuff we could ony dream of a short while ago.  Science such as this will make our built environments and those that create them even better over time.

I have  learned that when banks forget their fundamental, core business - (lending the savings of others to those of an excellent credit risk)  Run, Run, Run away from their chosen darling of the day.

As an extension of the item above, 2008 yet again confirmed that proper business fundamentals are the only way to long term wealth and sustainable growth (had to pitch my theme – please forgive me) .  Chasing the cause of the day might work and fatten our pocket books short term, but it is not nor ever will be a long term strategy. 

I have learned that the Law of Unintended Consequences will always occur.  Think of the corn ethanol bandwagon and the subsequent food prices/shortages.  In our industry, think of the best intentions for providing the American Dream to those of modes means that created high risk lending and subprime loans.  But in keeping with one of the statements above, I believe we are in our alternative energy infancy and must invest and fail in order to succeed at some point down the road.  Now we know what works in the lending arena , and what doesn’t

Most importantly, I have learned that the only constant is the love of our family, the daily work that we do, and the habits of constant improvement have made us great as a nation in the past and will get us past this incredibly rough economic time.  2008 was an incredibly curious year that I will never forget.  I am sure the political/economic landscape of 2009 and beyond will look very much different to what I consider the norm in prior years.  Getting back to basics has been and will be the only consistently successful theme across industries.  Those with proper fundamentals are forecasting what 2009 will be like and are having a tough time doing so with all of the unknowns and variables.  Those that aren’t making this effort will undoubtedly be one of the casualties of the crash of 2008.

What have some of you learned from 2008?  I am most curious to hear from you and learn your stories of lessons learned from the “Crash of 2008″ - I bet this would make for excellent reading a few years from now.  Funny thing is, after all of the difficulties of this year, I still hope I get a new tool for Christmas! Despite the deeply cyclical nature of building, I simply will never be able to get it out of my blood.  I wish all of you a blessed and Merry Christmas and Happy New Year.