jakez4ut
Patience... It's what's for dinner
- Joined
- Jul 7, 2005
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- 72,001
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for the better part of the last 18 months we've all been party to the regualr goings on about the state of our economy, unemployment and otherwise bad news from the finance sector.
my company, er, former company has had 4 layoffs since October of last year, and all totaled, about 6 over the last 10 years. over 1/3 of the workforce prior to 10-1 is no longer employed. I made the cut on all of them, except the last one.....
pretty good for a batting average, not so good considering the end result.
anyway, as i've been networking and re establishing contact with former co workers and customers, and watching the nightly news, one thing occurred to me.....if everyone keeps telling you it's bad, don't at some point you just begin to believe it, even if it's not all together true?
not to say it's not bad. i can vouch for how bad it is. i went from an established career with a good job, great benefits and planning for the future.....to trying to figure out how i'm going to eat lunch next week.
but, the decision makers out there at all these various companies, at some point, have realized there are some advantages to be had with a poor economy. My former company for example reported PROFIT for FY 2008. Their operating income fell short of goal, but was improved over FY 2007, and EPS also fell short of goal, but again, improved over FY 2007.
in my industry, margins are razor thin anyway. the most profitable compaies in my industry generally report OR's between 88 and 95....that's right....5-12 cents on the dollar. to earn a profit in that environment, especially given the current economic climate, almost seemed like working a miracle. As tonnage and revenue softened, we were still able to control enough cost to show profit to the shareholders.
a feat that might have some singing praises.
which brings me to my point....could it be that, not just my former employer but others as well in select industries, are simply "following suit" by continuing to layoff in an effort to show increase in profits or at least cost reductions, by virtue of doing nothing but cutting jobs? I mean it's not like they are going to be able to anything that much better or more efficiently than before, probably the contrary, as more of the smaller, less financially stable companies in my industry go under, and capacity demand increases. or show revenue increases so much that it says they cornered the market so to speak. If the industry trend shows that this is what's going on, and you as a decision maker see an opportunity to follow suit and call it "due to economic issues in the industry", why wouldn't you make that decision, especially if it doesn't interupt the ability to simply be open for business tomorrow? Plus as job demand goes up, when business levels do return to normal levels, labor will be cheaper based on the current demand.
Right about now, i'm wishing i had made it to that decision making level...sounds like a nice gig.
I realize this sounds like someone that's got sour grapes after being let go, and i understand that my own opinion on this can't be taken w/out some bias as i have been affected by it. but, despite the loss, there is some excitement felt at what opportunity might be out there for me...and in the end, this may be the best thing that could have happened to me. check back with me in a few months, and i'll let you know if that's still the case or not.....
either way, i, like probably many of you, get the opportunity to compete with 5,000,000 other people for what jobs are out there. And if you're looking for jobs, you likely have noticed what i have....what our economy no longer has available in the quantity that i believe it should to be a strong economy is manufacturing/industrial type jobs. ie, this country doesn't make anything anymore. we've turned in to a giant distribution center; where products are made, and all facets of the production process, have moved over seas or across borders. the fact that it's cheaper to build it in China, put it on a boat, bring it thru customs, to a port, then put it on various modes of transportation to "finishing plant" then on to distribution to finally be sold in anywhere USA, rather than build it in Ohio, ship it to California for distribution and retail sale ought to speak volumes.
and we need more regulation and oversight? we need more bail out money for the powers at be that mismanaged this thing to begin with? and i have to pay for it?
don't even get me started on insurance.....
I'm Joe American, and that's why i don't wach the nightly news anymore.:thumbsup:
my company, er, former company has had 4 layoffs since October of last year, and all totaled, about 6 over the last 10 years. over 1/3 of the workforce prior to 10-1 is no longer employed. I made the cut on all of them, except the last one.....
pretty good for a batting average, not so good considering the end result.anyway, as i've been networking and re establishing contact with former co workers and customers, and watching the nightly news, one thing occurred to me.....if everyone keeps telling you it's bad, don't at some point you just begin to believe it, even if it's not all together true?
not to say it's not bad. i can vouch for how bad it is. i went from an established career with a good job, great benefits and planning for the future.....to trying to figure out how i'm going to eat lunch next week.
but, the decision makers out there at all these various companies, at some point, have realized there are some advantages to be had with a poor economy. My former company for example reported PROFIT for FY 2008. Their operating income fell short of goal, but was improved over FY 2007, and EPS also fell short of goal, but again, improved over FY 2007.
in my industry, margins are razor thin anyway. the most profitable compaies in my industry generally report OR's between 88 and 95....that's right....5-12 cents on the dollar. to earn a profit in that environment, especially given the current economic climate, almost seemed like working a miracle. As tonnage and revenue softened, we were still able to control enough cost to show profit to the shareholders.
a feat that might have some singing praises.
which brings me to my point....could it be that, not just my former employer but others as well in select industries, are simply "following suit" by continuing to layoff in an effort to show increase in profits or at least cost reductions, by virtue of doing nothing but cutting jobs? I mean it's not like they are going to be able to anything that much better or more efficiently than before, probably the contrary, as more of the smaller, less financially stable companies in my industry go under, and capacity demand increases. or show revenue increases so much that it says they cornered the market so to speak. If the industry trend shows that this is what's going on, and you as a decision maker see an opportunity to follow suit and call it "due to economic issues in the industry", why wouldn't you make that decision, especially if it doesn't interupt the ability to simply be open for business tomorrow? Plus as job demand goes up, when business levels do return to normal levels, labor will be cheaper based on the current demand.
Right about now, i'm wishing i had made it to that decision making level...sounds like a nice gig.
I realize this sounds like someone that's got sour grapes after being let go, and i understand that my own opinion on this can't be taken w/out some bias as i have been affected by it. but, despite the loss, there is some excitement felt at what opportunity might be out there for me...and in the end, this may be the best thing that could have happened to me. check back with me in a few months, and i'll let you know if that's still the case or not.....
either way, i, like probably many of you, get the opportunity to compete with 5,000,000 other people for what jobs are out there. And if you're looking for jobs, you likely have noticed what i have....what our economy no longer has available in the quantity that i believe it should to be a strong economy is manufacturing/industrial type jobs. ie, this country doesn't make anything anymore. we've turned in to a giant distribution center; where products are made, and all facets of the production process, have moved over seas or across borders. the fact that it's cheaper to build it in China, put it on a boat, bring it thru customs, to a port, then put it on various modes of transportation to "finishing plant" then on to distribution to finally be sold in anywhere USA, rather than build it in Ohio, ship it to California for distribution and retail sale ought to speak volumes.
and we need more regulation and oversight? we need more bail out money for the powers at be that mismanaged this thing to begin with? and i have to pay for it?
don't even get me started on insurance.....
I'm Joe American, and that's why i don't wach the nightly news anymore.:thumbsup:
