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The Silver Lining... |
October 04, 2005 |
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Posted by Joe Lewis at October 4, 2005 01:45 PM |
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As millions of people from the gulf coast to the eastern seaboard of the USA know each year, we are still in the hurricane season. These awesome storms illustrate the fierce power of nature and the uncertainty of being in their path. The recent hurricanes Katrina and Rita have had devastating impact, both in terms of the impact on the lives of those in their path as well as in financial terms. I continue to pray for those so negatively impacted by this natural disaster and at the same time look forward to the good that can come from it as we recover, help the victims and re-build.
Has your business been impacted by this directly or indirectly?
In addition to the impact on our country's petroleum refining capacity and fuel distribution system, how many industrial businesses have been severely crippled and/or shutdown? I haven't heard any statistics but I can't help but think of the production facilities in the chemical, plastic processing, aggregate production, food and other industries that handle powder and bulk materials that have had their production temporarily stopped and facilities lightly or severely damaged.
What about the trickle-down effect?
All of the plants and industrial businesses that have been closed or have had their production stopped or substantially reduced because of a displaced workforce have stopped, temporarily, buying raw materials and components they need to manufacture their products. Their suppliers have been impacted, haven't they? Is the economy and demand for powder and bulk solids material handling and processing equipment so strong that we haven't felt the effect? Or have we?
The Silver Lining
Even given the negative impact of this natural disaster and the impact on our fellow citizens one can't help but think about moving forward, restoring order and prosperity to those areas hardest effected. This requires re-building, retrofitting, new construction, new plant and new equipment. While we have the continued opportunity to show our compassion, kindness and love for those that continue to suffer (and this is a wonderful opportunity), I feel our country, economy and industry will be even stronger than before. The industries we all serve or participate in will have new and added opportunities.
Note of Caution in My Optimism
What concerns me for the long term is the continued rise in interest rate by the Fed. The last rate increase was the eleventh straight since June 2004. This pushed the rate to its highest level since the summer of 2001. Much of our manufacturing industries had been in a recessionary state for months if not a couple of years at that time, precipitated in part, I believe, by the persistent raises of rates by the Fed. Will this raising of rates continue? I remain cautiously optimistic about our economic future.
Joe Lewis
Vice President
Marketing & Sales
Monitor Technologies LLC
Phone: 800-766-6486 or +1-630-365-9403
Email: jlewis@monitortech.com
