The headwinds are strong for CSR. But not unmanageable.Building...

The headwinds are strong for CSR. But not unmanageable.

Building and construction activity continues trolling at cyclical bottoms. There is a real possibility of further falls, but let?s not panic.

Macro-factors working against CSR include the high dollar, carbon tax scare, rising input costs and negative consumer sentiment.

I firmly believe there will be no significant improvement in building and construction activity in this country while the present federal government remains. It is widely perceived to be weak, ineffective and untrustworthy. It appears to generate dread, fear and uncertainty.

Various state governments can help by easing processes and levies for local developments.

But this federal government is a major obstacle to restoring economic confidence.

This means we have to wait about another 2 years, barring the unforeseen, until conditions are in place for recovery.

In the meantime, CSR management should:

- improve operating efficiencies across all divisions, as in most cases they appear to be doing;

- improve margins (even though opportunities for revenue growth appear temporarily restricted);

-concentrate on turning around Viridian into a consistent profit-making operation;

-maintain affordable promotions designed to keep our respected iconic brands in the ?eyes and minds? of the community (you can have the best products, but if no-one knows about them they are useless);

-continue to pay adequate dividends to maintain shareholder support and underline the investment value of the stock (otherwise, the share price will continue its decline);

-continue with sensible earnings-accretive cash bolt-on acquisitions at bargain prices to drive organic growth.

On this last point, management must keep shareholders informed on the progress of acquisition negotiations (without breaching any confidentialities).