Not good news for resource based towns

Discussion in 'Heavy Equipment & Pavement' started by Gravel Rat, Nov 23, 2007.

  1. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    Watching the news last night and the slowing economy in the US is affecting the forestry based communities. The lumber sales to the states is falling off because the construction industry in the USA is slowed down to nothing. A community like where I live is going to be affect pretty good.

    If the loggers get laid off they are not spending any money. Parts stores and business that cater to the forest industry will have to lay people off. Another industry that will be affected will be the gravel mines because quite abit of gravel is barged to the USA close to 10,000 or more tons a month just from one mine. Less production at the mines more job losses another higher paying jobs gone.

    The economists say you guys south of the boarder are in for a recession how about getting Bush to spend some money on your own country than overseas. Your country is 9 trillion dollars in debt :eek:

    Not good news there will be quite a few famillies in this area alone will be hurting this winter if they loose their jobs. The repo man might be knocking on the door of some of these guys because they are my age just bought a house have 2000-2500 a month house payment and a familly to feed. There will be lots of equipment operators looking for work that are used to making 24 to 30 dollars per hour. There might be allot of used equipment on the market if there is no work for it.
     
  2. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Posts: 2,454

    One of my favorite movies is Kelly's Hero's. Odd-ball, the tank driver, keeps telling one of his crew "that ya have to adjust your attitude, 'cause your negative vibes are killin' me". In this case, as in the last and the one before that..........second verse same as the first. Another good one that comes to mind is the story of Chicken Little. If this response seems trite, it is .....
     
  3. qps

    qps LawnSite Bronze Member
    from Indy
    Posts: 1,484

    It's been a couple of months since we've had a economy thread from GR....:cool2:
     
  4. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    Has it been that long?
    Seems like Yesterday.:hammerhead:
     
  5. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Posts: 2,454

  6. Dirty Water

    Dirty Water LawnSite Fanatic
    Posts: 6,794

  7. wanabe

    wanabe LawnSite Senior Member
    from So. IL
    Posts: 943

    All of the US is not having a recesion. Home building is down a little bit in my area, but the big construction is not. In fact is is crazy. Local labor hall is going to be out of help in a very short peroid and is ready to hire anyone off the street. Anyone who wants to work can and will have a job. The lumber market has been slow for the last 2 years. I put over 100 lumber cars in the storage yard last summer and they are still have weeds growing up arround them.
     
  8. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,118

    Me personally, I like to live one equipment payment to the next, but I also enjoy wearing tin foil on my head to keep the aliens from taking my thoughts.
     
  9. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    There is already 200 guys out of a job this month on Vancouver island because the lumber sales to the West Coast of USA is slowed right down. The logging contractors in my area are struggling for work because there is no lumber sales so no point in cutting the trees down.

    When the logging is slow equipment sales are slow you will see the dealers and salesman take a big hit. The forest industry alone accounts for 50% of the sales at equipment dealers with large machines. Forestry contractors will buy couple excavators in a year to replace old machines. When they are buying brandnew 35 and 45 ton excavators thats a big amount of money.

    The fuel the forestry contractors buy from the fuel suppliers will also drop off. On the average a logging contractor buys 20-25,000 dollars a month in diesel fuel. A bush fuel truck holds 10,000 dollars worth of fuel most contractors go through that pretty quick. Each 350 Excavator goes through 120 gallons of fuel every 2.5 days. The helicopter logging operations go through 10,000 imperial gallons of Jet fuel like nothing.

    Tire dealers are another store that will see some business drop off. A example one tridrive logging truck can eat up a set of 12 drive tires in 3 months at 4500 dollars. Set of supersingle steers at 2000 every 8 months and a set of trailer tires every year another 4500 dollars. One truck needs about 15,000 dollars in tires each year. The off highway trucks are about 45,000 a year for tires but those tires are 2500 each the 10 on the truck and 8 on the trailer.

    Anyhow I laugh when I see you guys that are turning a blind eye to the problem and maybe you guys should get your president to do something about it. Stats on the net there is 3.1 million manufacturing jobs lost in the USA. House forclosures and the repo man knocking on your door. In the Washington state there is something like 3100 foreclosed properties forsale. California is seeing the biggest drop and the problem with that is B.C. sells lots of wood products to California and millions of tons of gravel is sold to California.

    For guys like Bobcat ron the economy in the Lowermainland is good because there is lots of stupid people out there buying houses for redicolous prices driving the housing market. People are buying condos etc that are not even built yet. The cheapest house now in Vancouver is 500,000 dollars. A condo is 350,000. The work in Vancouver to the Valley will probably last till 2011 then after that ?

    You can move to Vancouver to get a job but there is no affordable places to rent or live. You can rent a basement suite for over 1000 a month and its probably a dump. Vancouver is one of the most expensive Cities to live in.

    I'am watching the economy because I want to go back to construction again but if the job market is going to be short lived I don't want to leave a full time job. When the forestry jobs disapear then there will be 150 guys in the area looking for work. The housing market has already slowed and almost stopped so nail pounding jobs are hard to find. The developers have stopped spending money because they are not getting any returns (no house sales).

    Working for a excavation contractor is not a option because they are having hard enough time right now keeping the employees they got working. The trucking companies have seen the freight hauling work dropped off.

    The niche market is non existant. Excavation contactors are doing everything now it used to be mini excavating was a niche market not any more. What I used to do was a niche market now every landscaper does it.

    Ride out the winter and see what happens if the housing market stays the way it is then it won't look good for the guys in the construction industry. Its hard to make equipment payments on work levels we seen in the 90s.

    The gravy train is over it is back to normal work wise but the cost of houses are still 100,000 to 200,000 overpriced still no affordable housing available. Community events are canceled because there is no places for visitors to stay. The motels and accomodations have been knocked down and turned into expensive housing developments. Tourists in the summer time have no places to stay. Resorts that people used to stay at are gone.

    The B.C. gov't needs to make minimum wage 14 dollars per hour heck 21 dollars per hour like I make is poverty level.

    If the Canadian dollar keeps rising we can call the USA Mexico pretty soon :laugh:
     
  10. qps

    qps LawnSite Bronze Member
    from Indy
    Posts: 1,484

    If you put half as much effort in working than complaining you might get out of your parents driveway...and your camper....or R.V.:rolleyes:..I'd step lightly about knocking the U.S. to much....:usflag:
     

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