The other day I was in a conversation with a friend that is involved in banking, he wondered how Tempest Company was doing. I said it was tough but we were still in business. He said we were better off than a lot of other companies that were out there. Many were in the process of going out of business and others were lining up to join them.
Omaha, NE is supposedly one of the bright spots in the United States. If that is the case, why is the level of unemployment in the construction trades at 40% or more? I have been told by others in construction that their areas of the country have the same high level of unemployment. So what areas of the country have such low unemployment that the national average is only 20%+ according to the feds?
Omaha, and other areas of the country, are seeing desperate contractors, subcontractors and vendors quoting work 30% to 40% below cost on all sizes of projects. If the economy is on the rebound why can’t the contractors take work at reasonable prices? We are hearing about the manufacturers telling their distributors and wholesalers to watch their receivables. They are warning them of contractors that are such poor business operators that they do not even know they are bankrupt yet. Isn’t the Stimulus Spending bringing us back to prosperity?
I look around areas of the country and read reports to see there are companies earning profits. I also see that they are not spending this money on additions, renovations or maintenance items – by choice. I drive around the country and see that malls, shopping centers and other commercial establishments have few cars in their parking lots – at all hours of the day. If the economy is getting better, why are they not spending the money?
I have spoke with people in the power generation sector. They haven’t been able to build new plants, add to or significantly modify existing plants for several reasons. A lot of the reasons involve federal regulations, among them the potential for the Cap & Trade (Cap & Tax) becoming law. With electricity demand down so much they have not had brownouts or resorted to rolling black outs. I guess it’s a good thing we are in a recession!
Oh, By the Way… According to the federal government our economy is on the rebound. Manufacturing is up. Home sales are up. The Consumer Confidence Index and other indicators are all up! Unemployment is down. I believe what they tell me! Yeah, right!
