As the owner of a US manufacturing company, I'm facing a number of challenges as the US economy wades through the mud of the current economic recession. Fortunately, we've been able to avoid layoffs and have a great group of workers who are doing their part until things get a little better.
During my trip to Asia last week, I read some interesting stats about the China economy. While exports were down 25% in the 3rd quarter, domestic retail sales were up over 30%. This resulted in a 8% annualized growth rate for the Chinese economy in Q3. How can a country lose 25% of its export business and still grow at 8%? I believe it has to do, in part, with the mere fact that Chinese consumers are buying more Chinese-made products. They are supporting their own domestic production and keeping their money in their country.
As an economist by degree, I've studied efficient markets, Supply and Demand, price elasticities, and on and on. I'm not a big supporter of tariffs or trade barriers. But in today's economy, there are a number of things working against the US manufacturer. One big issue is the US consumer's (and ultimately, the US retailer's ) push for lower-cost goods. Based on things such as increasing gov't regulations on emissions, pending health care reforms, and increasing corporate taxes, US manufacturers are continuing to move production to countries outside of the US. And we wonder why unemployment is increasing? Come on! There are only so many banks, restaurants and wind farms we can build and work at...then what? When's the last time you made a conscience effort to pay a little more to get better-quality, US-made goods? Well, you probably didn't get the chance because retailers are deciding for you what works best. They need higher profits (that includes lowering costs) because we all complain if our stock portfolios or 401-K's lose money. But by purchasing lower-cost goods from Asia, that means there is less demand for goods made here. Throw in $3/day labor in Asia and lower manufacturing costs (more labor mean less high-cost equipment) and overhead costs. I'm concerned that this vicious cycle is only going to continue.
Now I'm not trying to rewrite the laws of economics, but I want you to think about one little part - if you quit buying the goods we make here, what are people here going to do for a job? You can only reinvent yourself so far. We all can't be the next Bill Gates and come up with the next Windows. But even companies that do continue to push the limits of technology to make new things American's want go to Asia for low cost production (check your Ipod label if you don't believe me.) Can it continue without us continuing to suffer with a weak economy? I don't think so.
October 29, 2009
Sales Tax Shortfalls Force State Cuts
In a press conference Wednesday, Gov. Nixon announced an additional $204 million in cuts in the state's budget as sales tax revenues continue to drop. Those cuts include the elimination of 700 jobs and cuts in a number of programs ranging from bussing aid to public schools to Medicaid to mental health programs.
When you are facing declining revenues over a prolonged period, these types of cuts are part of keeping budgets balanced as required by the State Constitution.
Many cities and counties across the state are feeling similar pains and with recovery still months away, things are very likely to get worse before they get better.
When you are facing declining revenues over a prolonged period, these types of cuts are part of keeping budgets balanced as required by the State Constitution.
Many cities and counties across the state are feeling similar pains and with recovery still months away, things are very likely to get worse before they get better.
October 28, 2009
NDN and I Agree on TDD
It's nice to have support every once in a while. After being gone for a few days overseas, I've been catching up on reading the local papers. It appears that the Neosho Daily and I agree on the recent TDD vote by the Neosho R-5 Board. The NDN's comments almost mirror my comments I made before the board a few weeks ago (I had a post on that as well.)
Thanks for the validation of my thoughts, NDN. It's a great feeling.
You may read the NDN comments here.
Thanks for the validation of my thoughts, NDN. It's a great feeling.
You may read the NDN comments here.
Sales Tax Losses Are Still Impacting Us
Today's Joplin Globe has a story about the impact of declining sales taxes on local governments. Being from Neosho, most of us are already aware of the impact we're seeing: job cuts, pay cuts and service reductions to name a few.
Based on the article, it appears Neosho is suffering more that some. Joplin so far has been spared any job or service cuts for its citizens.
You can read the article here.
Based on the article, it appears Neosho is suffering more that some. Joplin so far has been spared any job or service cuts for its citizens.
You can read the article here.
October 27, 2009
Chinese Owl's Taste the Same
Before I forget, I made a stop at the local Hooters restaurant in Shanghai this past weekend. From the pine walls to the orange shorts to the food on the menu, this restaurant could have just as easily been in Springfield or Fayetteville. The chicken wings had the identical flavor of those I've grown to love here in the US. Another example of American influence on the Chinese culture and how we're trying to capture some of that market with American ideas.
As a point of reference, I also passed 4 McDonald's, 2 KFC's, and 1 Subway along the route.
As a point of reference, I also passed 4 McDonald's, 2 KFC's, and 1 Subway along the route.
Webb City Approves Sewer Rate Hike
As previously discussed on this blog during the proposal phase, Webb City has now approved increases in their sewer rates to help cover costs associated with upgrades being required by the MoDOR and the EPA. This approved increase will raise the the monthly household sewer bill from an average of $20.60 to more than $27, according to City Administrator Steve Garrett quote in today's Joplin Globe. Neosho recently saw similar increases in their sewer rates as part of voter-approved sewer improvements passed in August of 2008.
According to a Neosho Daily News article from April, Neosho's users would be charged a minimum of $6.23 a month plus a unit charge of $3.32 per 1,000 gallons of water discharged. Under another ordinance approved on first reading Tuesday, rates for 3,000 gallons will increase from $10.19 to $16.20, while rates for 5,000 gallons will go up from $13.33 to $22.84.
The full article can be found here.
According to a Neosho Daily News article from April, Neosho's users would be charged a minimum of $6.23 a month plus a unit charge of $3.32 per 1,000 gallons of water discharged. Under another ordinance approved on first reading Tuesday, rates for 3,000 gallons will increase from $10.19 to $16.20, while rates for 5,000 gallons will go up from $13.33 to $22.84.
The full article can be found here.
Rockaway Beach Receives Grant for Water Improvements
Below is an article from today's Springfield Business Journal. Rockaway beach is located about 10 miles NE of Branson and has a population just north of 2600. Their challenges are similar to those being faced by Neosho with regards to water distribution.
Rockaway Beach will receive $500,000 from the Missouri Department of Economic Development for a water-systems improvement project.
The city's water-distribution system is not meeting the existing or projected needs of the town residents, is exhibiting signs of deterioration, and also falls below state guidelines for fire flow and residential pressure, according to a DED news release.
The two-phase improvement project will replace aged pipes and construct additional lines where needed.
The money comes from the DED's Community Development Block Grant program, which provides grants and loans to cities with population of less than 50,000 and counties with fewer than 200,000 people.
The town of Newburg, near Rolla, also received $500,000 from the CDBG program for water system infrastructure upgrades, including water-meter replacement, ground storage remediation and water-main replacement.
Springfield Eyes Tax Oversight Committee
Following the lead of Joplin, the Springfield city council is considering appointing a committee to provide oversight of the various taxes being collected by the city. Joplin's committee is "designed to oversee the distribution of some of Joplin's sales tax dollars" according to an article in today's Springfield Business Journal.
Personally, I like the idea. I've spoken to Doug Doll, chairman of Joplin's Parks and Storm Water, Capital Improvements and Public Safety Sales Tax Oversight Committee, a few times about his role and the function of the committee. He's been very pleased with the work being done there. If nothing else, it helps provide the public with an added layer of confidence related to the collection and spending of taxpayer funds - something I view as critical for any governing body.
While the city of Neosho does have a committee for Economic Development, Joplin has gone further by including most, if not all, of their sales tax collections along with structuring the committee in a very non-partisan and independent manner.
It will be interesting to see how Springfield votes, but I feel confident they will build on Joplin's success story. I hope Neosho follows close behind.
Personally, I like the idea. I've spoken to Doug Doll, chairman of Joplin's Parks and Storm Water, Capital Improvements and Public Safety Sales Tax Oversight Committee, a few times about his role and the function of the committee. He's been very pleased with the work being done there. If nothing else, it helps provide the public with an added layer of confidence related to the collection and spending of taxpayer funds - something I view as critical for any governing body.
While the city of Neosho does have a committee for Economic Development, Joplin has gone further by including most, if not all, of their sales tax collections along with structuring the committee in a very non-partisan and independent manner.
It will be interesting to see how Springfield votes, but I feel confident they will build on Joplin's success story. I hope Neosho follows close behind.
October 24, 2009
Blogging in China ain't the easiest thing to do
Despite China being more open than ever before, the government still enjoys a firm hold on monitoring and filtering information that comes into the country via the internet. There are may US websites that cannot be accessed from China, this site included. Luckily, technology allows a workaround.
In order for me to post to my blog while in China, I have to work through a computer in the US. In other words, I connect my laptop in China thru the internet to a computer in my home. I then work on my home computer as if I were setting there.
It's not the fastest and poor connections make it even worse, but it allows me to do what I need to do.
In order for me to post to my blog while in China, I have to work through a computer in the US. In other words, I connect my laptop in China thru the internet to a computer in my home. I then work on my home computer as if I were setting there.
It's not the fastest and poor connections make it even worse, but it allows me to do what I need to do.
October 23, 2009
30 Minutes of Americana - Love those Golden Arches
I took a break today from the Chinese routine and stopped by the local Yuyao McDonald's restaurant. For 1/2 an hour, it was like being back in Neosho. I enjoyed a BigMac, fries, and a coke, and it was the same flavor as you would get on Neosho Blvd. Even the equipment and layout was the same.
Whether you like McDonalds or not, Ray Kroc's creation has done an excellent job of making sure not matter where you go in the world, if you eat at Mickey D's, you'll know exactly what to expect.
Whether you like McDonalds or not, Ray Kroc's creation has done an excellent job of making sure not matter where you go in the world, if you eat at Mickey D's, you'll know exactly what to expect.
October 21, 2009
School Board Takes the 'Free' Route on TDD
Kudos to the Neosho R-5 board on their decision NOT to spend money on the TDD being proposed for the area around the Neosho Middle School. I'm also glad the TDD group (whoever they are) came back with a no-cost option. It was the right thing to do.
Honestly, they (the TDD organizers) didn't have a real option. They needed the school's support of the project as much or more than they needed the money. MoDOT wouldn't consider traffic signals on Hwy 60 for the Hale McGinty extension without a safety need being in the mix. The school's traffic flow provided that need.
All concerns aside, there will truly be a safety improvement for our kids by having that controlled access.
So while things move forward, I still have my concerns with the whole design and makeup of the TDD. But I applaud all involved who got this part of the issue resolved.
Honestly, they (the TDD organizers) didn't have a real option. They needed the school's support of the project as much or more than they needed the money. MoDOT wouldn't consider traffic signals on Hwy 60 for the Hale McGinty extension without a safety need being in the mix. The school's traffic flow provided that need.
All concerns aside, there will truly be a safety improvement for our kids by having that controlled access.
So while things move forward, I still have my concerns with the whole design and makeup of the TDD. But I applaud all involved who got this part of the issue resolved.
Nighttime TV in China
As my body does its best to work thru the time-zone changes, I've had the privilege of watching a little early-AM television in China. CCTV (China Central Television) dominates. And while I haven’t seen a Chinese Billy Mays, I’ve come close.
The first infomercial I saw was for a hair tonic for bald men. Even though I don’t understand much Chinese, the marketing folks did a good job of conveying the message. This particular tonic shows one hair turning into three. I’ll have to say it looks very promising. After all, you know the pictures are always real and never doctored.
I’ve also watched two shop-at-home channels. It appears the Chinese like watches and lotions. That’s all I’ve seen on those channels. Same cheap-looking mirror base that spins. Same glistening sparkle from the metal frame. HSN – watch out!
The first infomercial I saw was for a hair tonic for bald men. Even though I don’t understand much Chinese, the marketing folks did a good job of conveying the message. This particular tonic shows one hair turning into three. I’ll have to say it looks very promising. After all, you know the pictures are always real and never doctored.
I’ve also watched two shop-at-home channels. It appears the Chinese like watches and lotions. That’s all I’ve seen on those channels. Same cheap-looking mirror base that spins. Same glistening sparkle from the metal frame. HSN – watch out!
October 20, 2009
Is Chinese Health Care the Right Model?
As I've been working in Asia this week, I've made it a point to inquire into a number of things including health care. As a communist country, I would have assumed that all of the Chinese people were covered by government health care. Surprisingly, there aren't.
Chinese people DO have catastrophic protection in the case of an accident or major illness, but for the periodic cold or cough, the Chinese pay just like us. The government knows that it cannot financially provide all of its citizens with a full coverage option. It also forces the people to take part in being responsible for their health and prevents them from dropping by their local ER every time they feel sick.
Quite a novel approach for such a government-centered country.
Chinese people DO have catastrophic protection in the case of an accident or major illness, but for the periodic cold or cough, the Chinese pay just like us. The government knows that it cannot financially provide all of its citizens with a full coverage option. It also forces the people to take part in being responsible for their health and prevents them from dropping by their local ER every time they feel sick.
Quite a novel approach for such a government-centered country.
October 19, 2009
It's the whole AM/PM thing
Well, after a grueling flight, one hour in immigration, and a four hour car ride, things are finally getting back to normal. That is except for my internal clock. The time difference from Neosho to Ningbo is 13 hours. Basically, it is an am/pm flop for your internal clock. I slept some on the plane, but being in coach for 14 hours doesn't lend itself to quality sleep time. I also slept in the car, but periodic honks and rapid lane changes mess that up too.
After a quick dinner in hotel restaurant, I did have a good 4-5 hours of sleep. Unfortunately, my body is now telling me that sleeping at 4pm in the afternoon just isn't going to happen.
The good news is that by next week, I will be completely on China time, just in time to return back to the US. Oh well, it's something you just have to deal with.
After a quick dinner in hotel restaurant, I did have a good 4-5 hours of sleep. Unfortunately, my body is now telling me that sleeping at 4pm in the afternoon just isn't going to happen.
The good news is that by next week, I will be completely on China time, just in time to return back to the US. Oh well, it's something you just have to deal with.
October 18, 2009
Joplin Council Debates Running Trails and Sales Tax Renewal - Lessons we can learn from?
As does Neosho, Joplin currently has on the books a sales tax dedicated for parks and stormwater projects. Their 1/4 cent tax, passed in 2002, is set to sunset in 2012 if not renewed by voters. The Joplin Globe is reporting this morning that the Joplin City Council has started laying ground work to put that sales tax back on the ballot.
On the surface, it seems fairly routine. Unfortunately, some folks in Joplin feel that commitments and promises made to voters during the 2002 lead-up to the election have gone, at least partially, unfilled or undelivered. Now one council member's attempts to possibly scrap some of those promised projects in lieu of new priorities has made some cry foul.
The Neosho council had similar questions come up during the budget reviews meetings this past September. Some in the public were questioning the city's cut backs in park/rec budget and the apparent 'taking' of funds generated from that tax for use elsewhere in the city. While not exactly the same as Joplin, it is just another example of why trust issues exist in government. While the city is completely in the right in how the funds are being applied, simply complying with the letter of the law doesn't go far enough for me. I understand that things happen and sometimes priorities change, but don't you at least owe the voters an explanation as to the 'whys' and 'how comes'? I think so.
If we've learned anything over the past few months (quiet zones and 405 codes to name a couple), explaining and listening need to work hand it hand. And while we won't always agree, at least both sides understand each other's position. If we all don't leave the table feeling somewhat good about how things are going, it might be a sign that something is amiss.
As one of my close friends describes it, "We're still living in Mayberry. Let's talk about these things." While I may disagree in part, I think he's right in that Neosho still has a small town feel and may here still prefer a small town way of doing things.
On the surface, it seems fairly routine. Unfortunately, some folks in Joplin feel that commitments and promises made to voters during the 2002 lead-up to the election have gone, at least partially, unfilled or undelivered. Now one council member's attempts to possibly scrap some of those promised projects in lieu of new priorities has made some cry foul.
The Neosho council had similar questions come up during the budget reviews meetings this past September. Some in the public were questioning the city's cut backs in park/rec budget and the apparent 'taking' of funds generated from that tax for use elsewhere in the city. While not exactly the same as Joplin, it is just another example of why trust issues exist in government. While the city is completely in the right in how the funds are being applied, simply complying with the letter of the law doesn't go far enough for me. I understand that things happen and sometimes priorities change, but don't you at least owe the voters an explanation as to the 'whys' and 'how comes'? I think so.
If we've learned anything over the past few months (quiet zones and 405 codes to name a couple), explaining and listening need to work hand it hand. And while we won't always agree, at least both sides understand each other's position. If we all don't leave the table feeling somewhat good about how things are going, it might be a sign that something is amiss.
As one of my close friends describes it, "We're still living in Mayberry. Let's talk about these things." While I may disagree in part, I think he's right in that Neosho still has a small town feel and may here still prefer a small town way of doing things.
Mat Clark Joins the race for 130th
I see this morning that Mat Clark has joined the race for the seat being vacated by term-limited State Representative Kevin Wilson. According to the Neosho Daily, Mr. Clark will be running on the Republican ticket. Clark will be the third local candidate to announce such intentions. Local Realtor and retired teacher Lynn Otey annouced earlier this year followed by farmer Bill Reiboldt this summer.
Since the filing for this seat doesn't even start for another four months (Feb 23rd I believe), there will plenty of time for others to still get on the ballot and ultimately square of in the August 2010 primary. As of today, I have not heard of anyone running on the opposing party ticket.
It should be an interesting race.
Since the filing for this seat doesn't even start for another four months (Feb 23rd I believe), there will plenty of time for others to still get on the ballot and ultimately square of in the August 2010 primary. As of today, I have not heard of anyone running on the opposing party ticket.
It should be an interesting race.
Congrats to the Neosho Daily News
Congrats to my friend 'Rickie' Rogers and his staff at the Neosho Daily News. If you're not aware, the Daily recently received a number of awards from the Missouri Press Association Better Newspaper Contest. Kudos as well to John Ford for his 2nd place showing for Best Editorial along with Wes Franklin for his 2nd place showing for Best Story About History. Nice to see the boss got 3rd place for Best Photo Package. (Haven't heard yet if it was for the aerials I helped with back in August.)
I have to say that I've been very please with the reporting I've seen during my tenure on the school board and the city council. For the most part, they've always presented the news in a fair, balanced and informed position. It's nice to have that kind of reporting daily in a smaller town like Neosho.
Keep up the great work, Superman. The awards are well deserved by all.
I have to say that I've been very please with the reporting I've seen during my tenure on the school board and the city council. For the most part, they've always presented the news in a fair, balanced and informed position. It's nice to have that kind of reporting daily in a smaller town like Neosho.
Keep up the great work, Superman. The awards are well deserved by all.
Foggy and Frosty Start - Oh the memories
Well, it is a foggy and frosty start this morning. It seems a little early for such a heavy frost. The airport is busy and the unique smell of airplanes, coffee, and glycol (deicing fluid) fills the air. My uncle (who is with me) and I used to work for the airline industry during and after college. We were both commenting how much we missed it. I guess it just gets in your blood.
Boarding starts in a few minutes. I'm going to finish my coffee and read the Daily News before I leave Bentonville. Next stop - Chicago O'Hare.
Boarding starts in a few minutes. I'm going to finish my coffee and read the Daily News before I leave Bentonville. Next stop - Chicago O'Hare.
October 17, 2009
Holy Hot Wings Batman
In case you didn't know, I have a passion for good chicken wings. Today, in preparation for my China visit, I made a trip to Hackett's in downtown Joplin for my last dose of American food for a week. As I write this, there are 30 wings in three flavors being meticulously prepared in the kitchen. To prevent getting sauce in my Blackberry, I decided to post my comments before the honey and barbeque delight arrives. But trust that they will not go to waste and I will enjoy the nourishment!
Saturday Morning Alarm Clock
As much as I liked school, hearing the alarm go off at 7am was never something I welcomed. But come Saturday, I could be up at 7am watching Superfiends and Bugs Bunny with no problem. I've determined that my daughter has inherited my Saturday morning alarm clock. Unfortunately, my genes have mutated and my Saturday morning clock doesn't work anymore. Despite my dislike for early mornings, there is something special about a knock on the noggin' and a 'hey dad-wake up', no matter what time it is.
Subscribe to:
Posts (Atom)