So the economists finally come around to realize what hey!!! We have a
ressesion going on. They could have just talked to my dad about that,
things in his business have been going downhill for nearly a year. My
dad is a contractor. First of all he was hit by commodity prices
rising at levels never seen before. He was able to adjust to that
though by doing what most other contractors did, which is to not
gaurantee the price of copper and other metals. That worked out okey
and the world spun just as it should. About six months ago though
people stopped paying. A lot of the construction business is done on
credit, and contractors depend upon the credit worthyness of their
clients, and construction supply stores depend upon the credit
worthyness of the constractors. The clients my dad has are mostly
business, clients like Sour Danfass, Ball Corp, Pella Windows, Barilla
and a host of local business. About six months ago he started to
notice that more and more of his clients had accounts past due, about
1/3 of them. Well its gotten even worse and now over half of his
clients are at least 90 days past due in payments that they owe him.
Some are trying to arrange to pay less, others just ignore his calls
all together. His situation is not unique, every one of his friends in
the same business are experiencing the exact same thing. This is not
in a place that got overheated like Florida, or a state in an obvious
recession like Michigan. This is in Iowa, rural Iowa where the ethonol
boom is still making some people wealthy beyond what they ever thought
could happen to them. So, its good to see the economists finally come
around to see what businessmen have known for some time. Another
friend of mine owns a t-****rt store near Siesta Beach in Florida, his
sales are the worst they have been since the late 80's, he is thinking
about just closing the store and finding something else to do.
Feel free to check out my blog @[EMAIL PROTECTED]
www.brandonfredrickson.blogspot.com
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