My advanced age makes me too weary to even attempt further games.
I would like to introduce myself to this board. My name is Jerry Cavit. I stumbled upon this site a while back and have enjoyed reading all the forums. I do feel inclined to post more since my time will not be spent worrying about business and such. I would like to pass on an issue that has lead to my current epiphany. I worked my way through college, undergraduate studies, as a metal fabricator. My metal fabrication work lead into the creation of several businesses, Delta's Fabrications. I worked as a small town physician for 40 years before retireing. And during that time, my lovely wife ran the three fabrication plants. After retirement, the wife and I turned over the managment of Delta to my eldest son, who has done a fantastic job. Recently, my son and I were running through the books while preparing our taxes, which lead us to look into the future of the company. As we were doing so, we pulled out the tax books and started looking at next years projected profit margin. As of now, we have weathered the economic storm fairly well. Work has been steady and we have been able to keep all employees, as well as our standard salary growth scale. Mostly due in part to our low bid contracts. We have been able to underbid most other metal fab plants. In the past, we pick up many Federal and local contracts, with Federal contracts being the bread winner of the government contracts. With our success mentioned, it does not look like we will be keeping our doors open. Reason I say this is in part due to my age and my Son reaching his retirement years, as well as the new government regulations. We will lose our ability to bid on Federal contracts as a result of an executive order banning non union companies from bidding on Federal contracts. This lose of revenue is expounded by the upcoming 23% tax on investments found in the new Health Care bill, and the capital gains tax increasing to 20%. I would like to keep the company open and all three plants running, but my concern for others has been over taken by my longing to relax and the lack of will to struggle to make ends meet. I know this sounds callus, but there comes a time in ones life that the over burden of functioning is superseded by ones lack of will. As of yesterday, we informed the employees that we will be closing shop in a year and liquidating all assets. I do not like the idea of closing shop, putting hundreds out of work, but I am not up for draining my retirement assets in an attempt to keep my bottom line healthy. And by closing shop, before the equity is used up, I will be able to better my grandchildren and great grandchildren. I would prefer to sale the company but there is no market. And I can make more liquidating.
Thank you for your time
Jerry Cavit
Last edited by JerryCavit; 04-17-2010 at 10:34 PM.
I'm not sure if contracts are only let out to union shops.
You should consider other options than liquidating the company, like selling. Either way, you are losing control of a family business. And, either way you should examine closely the tax ramifications.
Beau
I appreciate your reply. As I mentioned, fabrication plants are not selling. Our equipment is in high need, so there is a market for our tools, but not workers or plants. I would be selling the name and nothing more. A practice to simply eliminate the competition. Our assets are far more lucrative than selling the name only. As for the federal contracts, we have already been denied a few. Our bids were not even considered because of our inability to unionize. My employees voted it down many times. And since we are considered a construction company we must unionize to be eligible for Federal contracts, all a result of Obama’s executive order he signed into law a few weeks after taking office.
Very sorry to hear of your perdicament Mr. Cavit. Small business is the lifeblood of our economy, and small business doesn't normally unionize. Not that bho cares--it's all about paybacks, chicago style. As someone noted on a different thread, the parasites are too stupid to realize that when they kill the host, they also die.
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The last four letters in American..........I Can
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We will lose our ability to bid on Federal contracts as a result of an executive order banning non union companies to bid on Federal contracts. This lose of revenue is expounded by the upcoming 23% tax on investments found in the new Health Care bill, and the capital gains tax increasing to 20%.
Jerry Cavit
Welcome aboard Jerry and your post is very revealing about some of the further burdens being placed on businesses.
The above quote kind of says it all. People should pay close attention to things like this as this unfortunate situation will likely be replicated throughout the country.
Here's a link to the Executive Order that I believe Jerry is referring to and some of the likely language below in quotes.
(b) If an executive agency determines under subsection (a) that the use
of a project labor agreement will satisfy the criteria in clauses (i) and
(ii) of that subsection, the agency may, if appropriate, require that every
contractor or subcontractor on the project agree, for that project, to negotiate
or become a party to a project labor agreement with one or more appropriate
labor organizations.
Sec. 4. Any project labor agreement reached pursuant to this order shall:
(a) bind all contractors and subcontractors on the Construction project
through the inclusion of appropriate specifications in all relevant solicitation
provisions and contract documents;
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Curious Jerry as to what your company is fabing directly for the government. Generally the government awards their work to say GE, Rockwell International, etc. and in turn they sub-contract these projects out to their bidding partners. This is the way bussiness in this field has always been conducted, for obivious reasons.
Beau
I appreciate your reply. As I mentioned, fabrication plants are not selling. Our equipment is in high need, so there is a market for our tools, but not workers or plants. I would be selling the name and nothing more.
Then sell the equipment, or let the workers buy the company and attempt to run it themselves.
Quote:
Originally Posted by JerryCavit
And since we are considered a construction company we must unionize to be eligible for Federal contracts, all a result of Obama’s executive order he signed into law a few weeks after taking office.
Good luck. I find this an excellent example of the "law of unintended consequences." The law of unintended consequences states that the magnitude of unintended consequences of a federal law or executive order or what have you is greater than the magnitude of the intended consequences. Here I am looking at the magnitude of the unintended consequences of (1) the executive order relative to use of Union contracts and (2) the effects of the healthcare legislation. Of course, this is just one story. I assume this one story is one of very many and different stories of things that flow from the healthcare legislation. We will have plenty of time to meditate and to think about those unintended consequences, I think.
My advanced age makes me too weary to even attempt further games.
