TREND WATCH
A roundup of business developments spotted by other publications. Building Blocks: Prefabricated housing hasn’t looked this good in years. Although fewer than 5% of U.S. homes are made of factory-built components, the percentage should rise as more American companies get into the business. Borrowing technology from the Swedes, who build 95% of their homes from kits, American companies are finding advantages to component housing. These include lower prices, short on-site construction time and improved prefab quality. (Newark, N.J.) Star-Ledger
Going to the Country: The popularity of cross-country skiing is on the way up, attributed mainly to the aging of baby boomers and the fact that it is less expensive, more family oriented and less likely to cause injury than downhill skiing. The sport is not only a good form of exercise, but, according to a growing number of enthusiasts, the price is right. The market has shot up in the past five years to $74.3 million from $37 million. Manufacturers are riding the trend with new, high-tech ski wear and more products for participants who have outgrown beginner skis but aren’t ready for the high-end models. Adweek’s Marketing Week
Where America Shops: As the giant drugstores continue to battle for market share, a small competitor in Pittsburgh is attacking from another front. Steven D’Amico has opened a pharmacy in a Pittsburgh-area Sears, with the retailer’s blessing but no monetary backing. The outlet is not the first to operate in a Sears, but it is the only one in existence because all Sears pharmacies closed about 20 years ago. If one-stop shopping continues to be the way to go, the concept should reap profits for both Mr. D’Amico and Sears. Pittsburgh Press
New Uses: Tagamet, SmithKline Beecham’s successful ulcer treatment medicine, may be useful in fighting other diseases. Researchers have found that Tagamet may help in treating AIDS, herpes, some forms of cancer, burns and other immune disorders. Tagamet will probably prove most effective in enhancing other drugs’ efficacy, not as a cure itself. SmithKline is not following up on all possibilities since its patent on the drug will run out in four years. But because it is readying an over-the-counter version, any positive findings by others will be a plus. Philadelphia Inquirer
Air Sickness: After 1988’s record traffic and profits, few in the airline industry expected 1989 numbers to take such a nose dive; takeovers, falling demand and a jump in jet fuel prices took their toll. Industry watchers estimate that operating profits next year will be as much as 28% off 1988’s $2.8-billion mark. Factors affecting next year’s numbers include the economy and the possibility of more takeovers and their resulting high debt. Dallas Morning News
