Economy 101

[seppoalanen]

glaverty,
they drive on left side !
Before 1965 or something, in Sweden they plant change their trafic to right side and here we help them becouse we had long experience of right handside trafic.
Our consulting was that they can do it bit by bit. In the 1'st year private cars uses right side and others as before, and the 2'nd year remainder as trailer lorrys etc.

 

[Tom Jenkins]

The price of gas (petrol to many of you!) is interesting but it is not an indicator of economic health, and it is not a result of supply and demand.

We Americans got used to cheap gas when it was a "short" pipeline from well to refinery. Also, because of the huge distances here, most Americans had their own vehicles very early on, usually gas guzzling Detroit iron. High demand actually helped keep gas prices down - enough volume for economies of scale. Gas taxes were kept relatively low because a large portion of the electorate would raise hell if they went up.

In Europe, until the North Sea field came on line, virtually all oil was imported. Even more significantly distances were short, and most people didn't need a car. The rich had cars and most other people didn't, and high taxes weren't a big popular problem. They got used to high gas prices and high gas taxes.

 

[Allen Nelson]

The price of gas (petrol to many of you!) is interesting but it is not an indicator of economic health....

I gotta disagree with that one, in a way. While the ABSOLUTE price of gas is not an indicator of health, the CHANGE in price is.

The economy is the selling of goods and services.
Goods and services get to the marketplace via transportation.
Transportation requires fuel.
When fuel prices rise, the economy slows.

The fact that European petrol is four times the price of American gas doesn't mean that their economy is suffering more than ours. But the rise in gas prices from $0.85 just three years ago (remember that?) to $1.50 today (up from $1.30 last summer), is probably doing more to hurt the economy than threats of war, stock market scandals, the dot-bomb, and all the other negative forces combined.

As an integrator, things are slow for me too. And I agree with Peter and Rick - it's all been retrofits and systems improvements. It's been three years since I was at a construction site.

It's hard to gauge, because this is traditionally a slow time of year. Fiscal year budgets are just getting set, and last year's were used up. There's enough work to keep us active, but not busy. But management is saying that there's lots of work in the pipeline.

Crossing fingers.

 

[rsdoran]

Well y'all do know that the US is the biggest producer and consumer of energy in the world. I kind of think that the reason most countries in Europe etc have high oil prices is the fact they do not produce nor have a reserve to help alleviate demand.

This article explains alot about why the US prices are lower than many countries, it also shows how we (as a country) are blessed as far as resources are concerned.
http://www.eia.doe.gov/emeu/cabs/usa.html

I dont think the price of gas overall is indicative of the economy, when I made the move to Franklin(18 months ago) I owned (still do) a 3/4 ton Chevy that prefers Premium gas which at that time was $1.75US, 1.06GPB,$2.66CAD, 2.97AUD, 9.66FIM, or 1.625EURO. Its less than $1.40US now.

We make xmas paper so naturally this is a slow time of year for us and the fiscal year starts in March.

 

[Steve Meisel]

We are an OEM of throttle bodies to one of the big 3. We also manufacture carburators that go to autopart stores and mail order like Jegs. Things have really started slowing down. 2 years ago we were making over 1000 carburators per day and now 500/day this week and I heard down to 400/day next week. We used to keep approx 100 temporary people in the plant. We haven't had any in a long time.
Quality has become #1 priority. Downtime a real tight second. Engineers are dropping like flys.
Yea, it's slowing down.

 

[EagleElectric]

Buisness Forecast

We are in the Water/Wastewater industry and we have not seen a slow down. Actually just the opposite. However we are also a licensed electrical contracting company so I guess we have one more hole in our ticket. We are able to provide a complete package from Engineering to Installation. Anyway......just my two cents.

 

[David_Emmerich]

Hi ya'll, Gas tonight in Bowling Green, KY is $ 1.699/gal Hitest...and we cann't make enough concrete blocks to meet sales because of the very cold weather we have had for the past week or so.
I would say that while the unemployment rate is up a bit here, we are still very close to the unemployable line....the ones that would not work anyway...Sundays local paper had 7 pages of help wanted.
We just had 4 truckers come in w/ some equipment that we bought from a closed plant near Washington,DC...we were their backhaul from Norfork,VA if that tells you anything...all were in a hurry to reload near here and head east.

David

BTW... its nice to be back here!

beerchug

 

[Mike Williams]

DAMN! Now I know why I was getting paid with chickens and hogs. (sometimes a pie)
JUST WHAT THE HELL IS THIS HERE GAS STUFF

 

[rsdoran]

Mike you gonna have to get out of the country (Alabama, which is a country unto itself) one day.

BTW I am from bama so one day when I am back there visiting maybe we can have lunch or something?

David same with you, I am not far from you either. I havent bought any powerball tickets in long time so am thinking of making a trip up that way to get some, maybe this weekend since I have the whole weekend free.

BTW I think I will buy my gas here before I make the trip.

 

[David]

Petrol here in Australia is AUS $0.99 per/lt.
I think that works out at about US $2.30 a gallon
Maybe thats why we have more 6 cylinder cars than 4's and 8's
We are in the middle between US and UK

Regards David

 

[seppoalanen]

David,
We have cross-contry vehicles for cityes, I don't understand why, because there are asphalt streets in cityes.

In Gas price have ~75% tax. It is very common in European countryes. Positive points are that education is free in all levels and very economical public heald Service because it is well orgnized.

Companyes have made investmenst to other countryes, because there are better employeers (they don't cost 'anything', no trade unions etc.) and wheather is better without snowing and heating costs.
We have lost mutch employments from Indastry and it is common trend in western counryes. If some mill don't make investments, it will come old-fashioned and died, soon or later.

In other hand, good examble is PaperMills. Mills are as hospitals, no dust, no noice, no steam, huminidity and temperature are standard, but NOT NEED MANY EMPLOYERS. Good point is that employers not need safety classes, hearing protectors so much than before.

 

[Mike Williams]

BTW I am from bama so one day when I am back there visiting maybe we can have lunch or something?

That sounds good. I think we work on similar equipment, (flexo press, offset press, sheeters, gluers) except we manufacture about every kind of beverage carton you can think of.

I bet gift paper is tuff, seems tension would have to be precise given the caliper of the paper.