What does this mean for us?

Discussion in 'Lawn Mowing' started by Frue, Jan 11, 2008.

  1. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    they are calling a recession now,I see threads on here about the economy but I want to know what this means for you? For you older guys have you been through this and what should we expect?

    I believe by the end of the year we will be on our way back.
     
  2. dutchhook

    dutchhook LawnSite Member
    Posts: 93

    I almost started a big truck leasing business in Newcastle PA about 5 years ago. That town looked in pretty bad shape when I was there then. I remember driving down some hill on the main drag and about 1/4 of the buildings being vacant. We were going to lease about 400 semi rigs out across the country, but something bad happened.

    Here's what happened to me the last recession. I was selling lawn care, and as I was selling to customers, they were saying, well, the economy isn't very good, so we're not going to spend money this year, and I would say yeah but has YOUR pay gone down? aren't you doing as well as last year, and they would reply, yes we are, but we're just cutting back, it's an attitude thing. If they have the attitude, there's not a lot you can do about it, but the really important thing is that if YOU have the attitude, you're screwed!!!!!
    So, what to do?
    Don't assume a recession at all, I'd get out an additional 30% bids out in the next month to cover any nervous cancellations, watch your spending until you know how the spring bidding is going, keep an eye on pricing and you'll be fine!
     
  3. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,362

    Back to what? A better economy? :confused:
     
  4. dutchhook

    dutchhook LawnSite Member
    Posts: 93

    The economy isn't shot. Unemployment is still at 5% as of today, inflation is in check, first time unemployment claims are up a bit.
    What IS shot is the mortgage and realtor market. I had a mortgage biz for about 6 years, and that is NOT coming back for a year or two, but that doesn't mean your business is going to suffer.
    We talked to a supplier at a trade show who sells edging machines in the US. Because of the weak dollar, their sales into Canada and around the rest of the world has exploded!
    Maybe you can find a couple of good manufacturing sites with a couple of acres who are rolling in the dough?
    Maybe you can market to small investors who are buying these distressed homes and apartment buildings out of foreclosure, fixing them up and renting them to the same people who can't get a mortgage because the Dang State Legislatures cut out "stated income" and other programs to "protect" the homebuyer.
     
  5. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    great post. We were the last to lose the mills and we never replaced them with commerce. Just wined and moned about how bad it is now we are financially depressed according to the state.
     
  6. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    better economy
     
  7. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    great ideas
     
  8. dutchhook

    dutchhook LawnSite Member
    Posts: 93

    Frue,
    Did they ever think about taking down the buildings with broken windows, and cleaning them out so something else could be built? Did they ever do any rehabbing?
     
  9. DAV Mowers

    DAV Mowers LawnSite Member
    Posts: 127

    There is NOT a recession.

    There has to be TWO QUARTERS with negative growth, we've only had one negative quarter. We've had 18 straight POSITIVE QUATERS until the last one, that's unheard of.

    The unemployment is 5% today like he said. Over the last 30 years it's averaged 6%, it's still below average.

    90% of this crap is caused by negative talk, we're hearing it everyday, day after day. Where is it coming from, who's been talking negative for the last 6 years??

    Until we see what the next quarter is we will not know until the reports come out which will be another 2 months away.
     
  10. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    yes did alot of work downtown it avtually looks great, but the tax code is pretty bad for those in the city. I actually moved out to the township to avoid them
     

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