Is now a bad time to invest in new equipment?

Discussion in 'Business Operations' started by queen of spades, Dec 11, 2007.

  1. queen of spades

    queen of spades LawnSite Member
    Posts: 219

    I started a part time tractor services business last year and would like to expand. With the economy teetering is now such a good time to upgrade my equipment? My first impulse is to hold off, but I may be overlooking something.

    Ideas?
     
  2. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    I didnt know the economy WAS teetering. I think things will be stable until 2009 when the new president comes on and changes things. Namely capital gains taxes.

    I wouldn't worry about how the economy is going. You can't predict it so you might as well ignore it and just do what you were going to do anywya. My 0.02.
     
  3. queen of spades

    queen of spades LawnSite Member
    Posts: 219

    I don't mean to argue, but the housing industry is going through difficult times and we've only identified 50 million of 400 million in foreclosures. The dollar is dropping in value and our trade deficit is $850 billion dollars.

    We're spending $400 million per day in Iraq. At the same time we cut taxes on the top 1% of income earners - during a war -- while we are spending $400m a day. That is awful stewardship of our national treasury and all we have to do is look at the past 20 years of leadership to see how we got to where we are today.

    Since we are running a 9 trillion dollar deficit where do you think we get $400 million a day to fund the Iraq war? We *borrow* it from China. So these tax cuts mean we have to borrow even more money from a growing competitor & possible enemy. We have no idea what China's military is up to or capable of.

    Does anyone not remember what happened to the Soviet Union when they spent themselves into ruin in the 80s?

    I'm registered as an independant.. I didn't vote for clinton and won't vote for clinton if she is involved next year. But to blame the turbulent economy on capitol gains taxes is ridiculous.

    Thanks for your advice.
     
  4. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    I dont think the economy is going into the crapper; not yet at least. Not enough to where you shouldnt buy equipment if you need it. Yeah people are losing their homes, but it's not like these are cream of the crop home owners who know what to do w/their $$$ anyway. Can we say non-paying-customer??

    I agree CGs wont kill the economy, but starting in 2009 a lot of the Bush tax cuts sunset. Everything from capital gains to income taxes. That worries me since the tax money is going to come right out of the pockets of all our customers.
     
  5. willietd2

    willietd2 LawnSite Member
    from OHIO
    Posts: 210

    I dont know what your calling cream of the crop home owners. i know a couple thats lost their 70,000 $ home and a guy that is losing his million dollar home and people everywhere in between. my wife is in the mortgage biz and went from closing 50 loans a month to 2. i seen a sign at a chevy dealership last week that said free oil changes for life and free tires for life. tell me the economy is not bad, wake up america. i hope that things change before they start affecting our line of work. it is real convenient for home owners to pay for our services,but when money gets tight there gonna start doing the math. willie
     
  6. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I agree! If this is an easy way to save money, then we might be first on the chopping/budget block.
     
  7. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    Well, I can't see the economy any further than my own front door...but...

    We have 3 properties that we maintain going south, and I am filing liens to try to recoup. We've lost 3 resturaunts that wanted to cut spending and do it themselves (p.s. they look so bad I wouldn't want to eat there...the city will be on one of them soon for weeds getting too high) and David has given bids that havn't been accepted because people are going for the low-ballers.

    This year we've been treading water with all the unexpected equipment problems...all three mowers have been in the shop...one still is. Good, they've all got new engines, not so good it strapped us financially. Our income from the business is HALF of what it was in 2006.

    SO...

    David is worried about the economy as a whole, and I am concerned with our own personal economy. HOWEVER, he is still going to persisit in bidding and gaining momentum, with all his equipment in good shape he would be silly not to put it work. He's planning to invest in a 2nd truck and trailer and build regardless of the econ. as a whole. We want to pay off as many bills and put as much away as possible, both money and storable supplies. We're hoping for a good year.
     
  8. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    This is a good economy compared to what it's been in some years. Have you forgotten about 2002-2003? How about 1988? Or all of the 70s?

    All I'm saying is that we aren't even near a bad economy as far as unemployment goes. What is it now like 4-5% nationwide? Here in the midwest it is in the 4% range. Basically if you WANT work you can work.
     
  9. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    Maybe it's just our perception.

    Yes, we can work because the unemployment rate is down. And we seem to be making plenty, at least enough to live on relatively well.

    But, our spending habits and debt (both personal and national) are out of control. All the news is about people borrowing to buy and spending and what have you. Debt will make you feel like the economy is shattering.
     
  10. willietd2

    willietd2 LawnSite Member
    from OHIO
    Posts: 210

    A friend of mine ownes a construction company in columbus ohio. now i know this is the slow time of year for site development but he ran a one day ad in the dispatch for help wanted and recieved 219 calls in two days. alot of site companys lay off about christmas time every year,alot of companys layed everyone off at the beginning of october. so to all the people who are out of work,losing your home,or wondering what your kids are gonna get for christmas,its your fault. the guy in the quote above say the work is there,basicly your to lazy to do it. willie
     

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