State of the Union

[XcYZ]

2 years ago, we had a complete hiring freeze - no hiring under any circumstance (which directly effects me, I'm now on-call over 2,200 hours per year). We're hiring again to replace retirees and people leaving, so that gives me *some* hope that maybe things are at least trending for the better.

But really, I have zero confidence in our country's leadership.

[Fluid Power]

I guess my outlook is different. I probably am ahead of the curve as I own an industrial distribution and engineering firm. I deal directly with manufacturers. We do nothing in Automotive (thankfully). The bottom fell out for us 3rd quarter of 2008, probably a little early than most recognized. 2009 was a disaster and 2010 saw a huge increase for us. We finished the year up about 21% over 2009 which brought us up a tick over 2008. We have been WOT since 3rd quarter 2010 and so far this month. We deal with Whirlpool, PPG, GE, Emerson, Coca Cola and other big companies. Coke is doing a $280 million plant expansion in our back yard. Whirlpool added shifts and re-opened 2 lines. I had a meeting with the Emerson people yesterday and they claim to be headed for the best year ever in 2011. Kenworth just announced that they are adding 85-90 people at a plant we work with. Steel prices and other metals are way up due to demand. I think we see the bottom first and the light at the end of the tunnel first. Hopefully, you guys see the turn around soon.

Darren

[fesler]

Some good points but if you really want to solve some of these issues we have cut the government in 1/2 we don’t need that many people working for us. WE THE PEOPLE BY THE PEOPLE not WE THE GOVERNMENT TELL THE PEOPLE WHAT THEY CAN AND CANNOT DO OR WHAT THEY CAN AND CANNOT BUY. It’s time for us to stand together and take back this country and stop all the nonsense spending and laws being created. Close the boarders and make all people come into America the same way and if you don’t like it get out. I live in AZ and the numbers coming across our desert daily are crazy.

It’s simple and will take a few years to do and get through but we and I mean all of us have got to start buying and building things in America. Try to only buy things from US companies and support your country. Buy CHEVY, DODGE or FORD stop buying the foreign cars. The American car companies are there now, the cars are built very well and will last for years. We bought 12 Chevy’s for projects last year to help support this country and will do so again this year. If you shop at Wal-Mart you are part of the problem because almost everything in that store is from overseas. If you want to support China then shop away at these places. You may spend a little more but at the end of the day you know you are helping out your fellow American and that means more to all of us.

We are feeling this economic crises just as much as anyone but we do what we can to spend our money with American companies and products. At the rate we are going we will not have our country much longer and if you don’t care then don’t do anything but if you do stand up and support your country and your military. FREEDOM is not FREE and buying American products keeps the money in America and that is what we need. If we stop buying stuff from other countries and work to make it ourselves like America used to do we will be back on top in no time but if we keep buying and relying on other countries we will fall to the ground and fall fast.

[dropped72ss]

Well said Chris!

[Sieg]

Chris - Couldn't agree with you more in every aspect. One significant problem I see is the younger generations were never taught these core values and just don't get it. Their focus is for lack of a better word selfish.

[NOPANTS68]

I hate shopping at Walmart, however I'm buying the identical products there as I do anywhere else for far less. I also like buying products there so I can avoid my dollars going to the unions. I only buy canned goods, cereal, trash bags etc. there - and it pisses the libs off so I grin while I do it.

I feel that until you get the fed to slow down its spending spree you will continue to have a problem. I also feel that in many ways the government is one of the biggest obsticals for small businesses to overcome. Have you seen what it takes to hire an employee in CA or NY for that matter? If they would stop throwing cash at a problem they created, the wheels of the machine just might start moving.

One of the toughest parts we will HAVE to overcome are these out of control entitelment programs. 99 weeks of unemployment? Outrageous pension programs? Reid's push for the stupid Dream Act? A mysterious, clouded, expensive health care program? These are all things that continue to dig our hole deeper.

I read some weeks back that as of mid 2010, private sector incomes were 40% behind public sector salaries. That's pathetic. It takes a dozen private sector employees to pay for one public sector's salary, benefits, pensions, payroll taxes etc. I feel the fed is so disconnected from reality, they don't understand how the gears and levers of the country actually work. At this rate it won't be long before there is no middle class and it will be the "haves" versus the "have nots".

[Vegas69]

I've been in residential Real Estate sales in Las Vegas since 2000. To say I've been on a roller coaster ride would be an understatement. The market was neutral when I started with reasonable affordability. Things got extremely overpriced and out of hand. My buddy puts it best. "They would loan you money on a pinky swear" I have no money to put in the pot, I can't prove I'm employed, etc. The signs were very apparent that the gravy train had to come to an end. I feel my experience is invaluable but the commissions and median price was way out of hand. When the police officers, teachers, dealers can no longer afford to buy a home, you have a problem.

One of the scenarios that really put the writing on the wall for me was on a listing I had in 2006. It was listed at $679,000 and was bought by an investor from Utah with 0 down. When you looked at the ROI he was in the hole over $2,000 per month. Where is the investment? Speculation... I later found out that he got out from under it with his shorts and the next guy let it go back to the bank. Big surprise.

Once the balloon popped. People were buried in their homes nearly over night. I've seen people buried in their homes that purchased in the 80's! (Less than desirable areas) Even in the best locations, we are back to 2001-2002 now.

Up until the balloon popped, I enjoyed Mom and Pops selling their home and buying a home from a REAL seller. Now, people wouldn't get off the fence due to the declining market and thought their property value would come back. So I spent about 3 years without ONE sale between a normal buyer and seller. All my deals were bank owned properties. 2010 was the first year where REAL sellers got back in the market if they had equity. They finally realized that property values aren't coming back anytime soon and making a lateral move isn't the end of the world.

I've had to adapt to the market endlessly. Median prices are back to about the same level as when I started in 2000. I wasn't one of those Real Estate agents that burn't all my bridges when things were at full sail. I also didn't go out and buy the biggest house I could afford at my peak income years. I've blown my fair share of money. Take a look at my build thread. After the dust settled, I've been forced to have 2 employees to make this deal work. I could spend 10-15 hours a week just on paperwork. The paperwork has quadrupled in 10 years and every deal is 3 times harder to close. Buyers that think they are stellar can't get financing. Better than half my listings are Short Sales. (Owe more than the house is worth) Now I'm negotiating with debt collectors. I thought I sold houses? You talk about a long haul. In the last 6 months, EVERY transaction has been from referral or a repeat client. I'm glad I still took care of those folks when things were fantastic.

Personally, I don't see anything changing on this front anytime soon. I can't blame people from walking away from their mortgages. If you were buried with no light at the end of the tunnel, your outlook may change. I've got people that put down their life savings and still can't sell conventionally.(200k or more)

The positive side of this whole deal is affordability. The police officers and teachers are my clients again. In fact I have 3 of them right now. Prices are really close to where they need to be economically. You can often own for less than you can rent. Now that makes sense.

My opinion on this Country is that everybody is going to be forced to accept a new reality. Where is all this money coming from? I sure as hell don't have that much left over at the end of the year. I trim my budget as tight as possible but at the end of the day, I have costs that are hard. I'm forced to work harder and adapt to make this business profitable. I'll take the great with the tough. I may bitch a little along the way but I saw the writing on the wall.

Eleven years ago I moved here with my parents flower couch and the smallest uhaul trailer behind my S10.(22 years old, the good old days) I had no job, no place to live, and $3000 to my name. I lived behind the Gold Coast for 6 months. I wouldn't get out of the car in that area now. I didn't know any better at the time. Just a couple rednecks from Iowa that moved to the big city. My point, I had nowhere to go but up. I've worked my ass off to get where I am today. When your back is against the wall, you find a way to make it happen. If this deal gets to the point where it's not profitable, I'll be forced to find another avenue or even a new place to call home. I have no regrets and wouldn't change a thing.

I struggle with a good attitude somedays just like the rest of you. I'm a firm believer that the world is saturated with to much information. Watching the news makes a guy want to pull the trigger. Who needs that crap. I'm going back to my buddy again. He puts it best, "You go to work with a good attitude, the rest takes care of itself." It works......

[dropped72ss]

I am a union plumber 29 years of age and agree 100% with Chris Feslers post. I try and only buy american, have never shopped at walmart, and do not see anything wrong with a hard working educated individual making a good wage and being able to retire when the time comes. Am i missing something nopant68? U would rather give your money to a big corporate company who pays there employees peanuts and actually sets them up with government assistance, then give your money to a hard working american? This is why our country is in the hole from guys like this!!!!!!!!! Its not the unions that created this hole we are all in!