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Post by Deleted on Mar 2, 2011 21:40:53 GMT -5
We are finally seeing some signs that the recession is taking it's toll on other companies in our business. For years companies have been talking jobs at below our cost and for years we have said that they can't keep doing that forever.
One of our big suppliers recently told us that they are closing the doors.
Two of our competitors in the area are rumored to be running into trouble. One having gone through 2 rounds of pay cuts already and the other took a huge loan a year ago to build a large fabricating plant, which has not materialized.
Another company is looking for a buyer because the owners are getting older and can't continue the business without injecting more cash. We are not buying, because it makes no sense for us to do so.
We are buying some equipment at below bok from a company that is getting out of our business and focuing all of its energy on green energy.
We have been hired to finish a job which the previous sub could not becaue they ran into issues. And we think we are going to see more of the jobs that went to the low bidder go in that direction in the near future.
So, I think we may be seeing the culling of the heard that we have been waiting for. Those that can't hack it will be forced out of business and those that survive will be stronger for it.
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verrip1
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Post by verrip1 on Mar 2, 2011 21:48:05 GMT -5
Recession is defined as at least two consecutive quarters of negative real GDP growth. The US hasn't been in a recession for more than a year and a half, as I recall.
Yes we've got unacceptable unemployment, yet to be controlled deficits, a bad business climate and relatively low consumer spending. But the term 'recession' is not applicable.
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Virgil Showlion
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Post by Virgil Showlion on Mar 2, 2011 22:40:40 GMT -5
How about "mancession"?
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verrip1
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Post by verrip1 on Mar 2, 2011 22:52:11 GMT -5
Is that anything like 'moobs'?
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bimetalaupt
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Post by bimetalaupt on Mar 3, 2011 2:02:40 GMT -5
We are finally seeing some signs that the recession is taking it's toll on other companies in our business. For years companies have been talking jobs at below our cost and for years we have said that they can't keep doing that forever. One of our big suppliers recently told us that they are closing the doors. Two of our competitors in the area are rumored to be running into trouble. One having gone through 2 rounds of pay cuts already and the other took a huge loan a year ago to build a large fabricating plant, which has not materialized. Another company is looking for a buyer because the owners are getting older and can't continue the business without injecting more cash. We are not buying, because it makes no sense for us to do so. We are buying some equipment at below bok from a company that is getting out of our business and focuing all of its energy on green energy. We have been hired to finish a job which the previous sub could not becaue they ran into issues. And we think we are going to see more of the jobs that went to the low bidder go in that direction in the near future. So, I think we may be seeing the culling of the heard that we have been waiting for. Those that can't hack it will be forced out of business and those that survive will be stronger for it. Sound like if you can keep a positive cash flow and not get too gready your firm will be the winner in the end.. Some thing is going to rock that ship with all that capital going to a few large banks.. Starting to see some lending.. Just a thought, Bruce |
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bimetalaupt
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Post by bimetalaupt on Mar 8, 2011 23:48:09 GMT -5
We are finally seeing some signs that the recession is taking it's toll on other companies in our business. For years companies have been talking jobs at below our cost and for years we have said that they can't keep doing that forever. One of our big suppliers recently told us that they are closing the doors. Two of our competitors in the area are rumored to be running into trouble. One having gone through 2 rounds of pay cuts already and the other took a huge loan a year ago to build a large fabricating plant, which has not materialized. ;D ;D ;D  Archie, After three years of borrows being treated like a red headed step child we are seeing some lending to A++ credit firms.. Most of the money needed has been gotten from the bond market and Junk is hot.. but Louie is looking for the red handed deals witht he "read" head.. so here is your sign..Jump on it Louie!!!  Another company is looking for a buyer because the owners are getting older and can't continue the business without injecting more cash. We are not buying, because it makes no sense for us to do so. We are buying some equipment at below bok from a company that is getting out of our business and focuing all of its energy on green energy. We have been hired to finish a job which the previous sub could not becaue they ran into issues. And we think we are going to see more of the jobs that went to the low bidder go in that direction in the near future. So, I think we may be seeing the culling of the heard   that we have been waiting for. Those that can't hack it will be forced out of business and those that survive will be stronger for it. Sound like if you can keep a positive cash flow and not get too gready your firm will be the winner in the end.. Some thing is going to rock that ship with all that capital going to a few large banks.. Starting to see some lending..  Just a thought, Bruce Attachments:
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Post by vl on Mar 9, 2011 7:09:43 GMT -5
The problem, Archie... is in your suppliers' Accounts Receivables and Payables and the broad array of variables lying just beyond them. You don't know who's toxic until they go toxic and then a cascade effect failure cripples your business. That's what triggered the original states in depression now. You should be paying off your debt and picking up alternative cash-flow now before you become a- one day he was here, next day he wasn't... kind of guy.
The more you listen to optimistic morons, Arch... the more signs and turns you'll miss.
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Post by mikec on Mar 9, 2011 7:35:10 GMT -5
Just wondering if all morons are optimistic or if all optimistic people are morons???
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Post by Deleted on Mar 9, 2011 8:16:10 GMT -5
The problem, Archie... is in your suppliers' Accounts Receivables and Payables and the broad array of variables lying just beyond them. You don't know who's toxic until they go toxic and then a cascade effect failure cripples your business. That's what triggered the original states in depression now. You should be paying off your debt and picking up alternative cash-flow now before you become a- one day he was here, next day he wasn't... kind of guy. Yeah, that is why we try not to have a large concentration in either suppliers or customers. And for clarification, it is not my business (well, except for the piece I own through the ESOP) I am just a wage slave. The company does not have debt, which is good. We are looking for other ways to expand the top line, but that is slow. We think that when our competition starts closing shop, that will allow us to grab a little more of the market share. |
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Post by Deleted on Mar 9, 2011 8:17:31 GMT -5
The problem, Archie... is in your suppliers' Accounts Receivables and Payables and the broad array of variables lying just beyond them. You don't know who's toxic until they go toxic and then a cascade effect failure cripples your business. That's what triggered the original states in depression now. You should be paying off your debt and picking up alternative cash-flow now before you become a- one day he was here, next day he wasn't... kind of guy. Yeah, that is why we try not to have a large concentration in either suppliers or customers. And for clarification, it is not my business (well, except for the piece I own through the ESOP) I am just a wage slave. The company does not have debt, which is good. Our bank keeps trying to get us to borrow money, but so far they haven't been able to talk us into it. We are looking for other ways to expand the top line, but that is slow. We think that when our competition starts closing shop, that will allow us to grab a little more of the market share. |
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kman
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Post by kman on Mar 9, 2011 9:15:54 GMT -5
V_L, Your taking this all to personal.
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The Virginian
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Post by The Virginian on Mar 9, 2011 16:24:21 GMT -5
Some companies are paying their bills late simply to use their creditors as bank loans. In other words they are using the Recession as an excuse.
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bimetalaupt
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Post by bimetalaupt on Mar 9, 2011 19:48:50 GMT -5
Some companies are paying their bills late simply to use their creditors as bank loans. In other words they are using the Recession as an excuse. Virginian, We are seeing a shortage of drilling pipe and all other steel products.. You can not find a tool pusher or other skilled workers in the oil patch. Now add to that the huge oil shall formations in South Dakota and you have a huge disconnect with the East and the West as to recovery..  ;D  so again.. How goes your recovery!!! I signed drilling papers this AM for more production wells that will be drilled as soon as pipe can be found!!! ;D ;D ;D B.Braunii next!!!!( oil from algae) Bruce Attachments:
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The Virginian
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"Formal education makes you a living, self education makes you a fortune."
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Post by The Virginian on Mar 10, 2011 7:21:08 GMT -5
We have been seeing signs of an improving economy here in Virginia in the form of modest revenue increases for our business so far this year but I am worried that if Gas prices remain high it could all fall apart quickly. I just don't have the exuberance that I should have yet.
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Small Biz Owner
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Post by Small Biz Owner on Mar 10, 2011 10:26:30 GMT -5
Falling apart sooner if these gas prices don't fall soon.
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bimetalaupt
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Post by bimetalaupt on Mar 10, 2011 10:35:27 GMT -5
Falling apart sooner if these gas prices don't fall soon. SBO, Yes, but the cure for high Prices are High Prices.. Gas Prices are not the problem it is Gasoline Prices at the pump.. We could convert to CNG and save a lot of money. The Taxi fleet in New York did that about 10 years ago and are doing well.. Engines last longer and use less energy. Orginally gasoline was durived from the liquipd part of gas that collected in the pipeline. later it was recovered with compressors. Bruce |
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bimetalaupt
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Post by bimetalaupt on Mar 10, 2011 22:01:53 GMT -5
Just wondering if all morons are optimistic or if all optimistic people are morons??? Mike, I take that as a personal attach on me and FTI.. Have you read the COC.. You can bet Rovo has.. Just a bit hurt, Bi Metal Au Pt |
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kman
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Post by kman on Mar 10, 2011 22:34:58 GMT -5
Looks like a gray area Bruce.....
Can you buy cng for your home? I hate the whole therm thing.
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bimetalaupt
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Post by bimetalaupt on Mar 10, 2011 22:51:28 GMT -5
Looks like a grey area Bruce..... Can you buy cng for your home? I hate the whole therm thing. Kman, Yes but Butane works better and has more BTU's.. Works ok in cars in the summer but Propane works in the Winter. Brooklyn Union sells it to the Taxi companies and they compress it for the tank in the Cars. Grey Area.. Yes I think you are correct.. me Bad Just a thought, Bruce I like my Butane grill for the open fire...through on some coffee and relax... Attachments:
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kman
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Post by kman on Mar 10, 2011 23:19:47 GMT -5
Love my Webber, charcoal baby
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bimetalaupt
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Post by bimetalaupt on Mar 11, 2011 0:30:29 GMT -5
Love my Webber, charcoal baby You can just add wet mesquite root or other hard wood for smoke..Now you are talking...35 hamburgers at one time and 100's of Hot Dogs.. With Deer Sausage  Rule the Back 40... Where was that 45/70 .. I hear a Boar in my corn  Attachments:
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Post by Deleted on Mar 11, 2011 8:36:04 GMT -5
Yes, we are in construction. More the erection side than the fabrication side. We see calendar year 2011 as being our worst year, we are projecting a net loss. Then we hope things will have turned around. Our industry lags the overall recovery historically by about 6 months, but I think it will be longer this time due to the depth and length of this recession.
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Post by Deleted on Mar 11, 2011 8:56:07 GMT -5
Had a slight uptick in sales tax collection in our county for the first time in 19 months. Of course the numbers are so bad that some one drops some change on the floor in the hardware store in town, it will show as a % increase.
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bga4444
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Post by bga4444 on Mar 16, 2011 9:05:31 GMT -5
We had a really good first two months of 2011. But March is coming in like a lamb. If it continues the first quarter will be about like 2010 1st Q..... awful! We just really did not need the Japan stuff happening on top of the Middle East stuff. The "non- recession" we are in can not keep taking this crap. Second worse new home building starts on record. Talk of QE III. Inflation1.6%. Keep talking that everything is fine BS. The Fed threw trillions at the stock market and still we can not get back to where we were at before the"recession". I am just glad the recession is over...what a joke. We do a lot of real estate agent work. They tell me the only homes selling are the bank owned, at well below market value!! Everything is fine all fine. I am so glad I am sitting on 100% cash waiting for about a 10% correction to get back in!! Lucky me!!!!
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decoy409
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Post by decoy409 on Mar 16, 2011 9:16:05 GMT -5
Say if I was banking off of other peoples money and things went south....well I would tell them this,
Quote: Good things come to those who wait!
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decoy409
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Post by decoy409 on Mar 16, 2011 10:32:40 GMT -5
Oh no,I fully TRUST in your fireside tales.  |
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that we have been waiting for. Those that can't hack it will be forced out of business and those that survive will be stronger for it.
;D 
