Tougher Times Ahead

[iTec]

strathfield folding again has nothing to do with "situations like these".. WHO BUYS ANYTHING FROM STRATHFIELD regardless off how good times might be!

just a good excuse to close em down or clean it up, the sooner tricky dickies joins em the better!

[tmac450]

That was my point. Strathfield's issues have very little to do with the current economic climate. I don't know about their current incarnation, but in a previous life, it was rumoured that Strathfield was an elaberate front for laundering organised crime money, which is why they tend to specialise in low end, cheap crap with high turn overs.

The aftermarket audio industry has been in trouble for years. Standard equipment in cars for the last few years has been too good (or too hard to replace, with head units integrated into the consoles, etc) and the market for upgrading has been dramatically reduced. I used to have a client who ran a big, sucessful car audio shop. They won dozens of installation awards, their workshops were constantly busy and it was widely known that if you wanted quality, you went to them. Things started to go sour for them about 10 years ago, when CD players and decent systems started to apear as standard fitment to cars. Last time I saw him, about 5 years ago, he was in a small shop, mainly surviving on speaker upgrades and insurance work.

[ronburgundy]

I have a client in a similar situation actually - specialising in 'high end' home theatre/hi-fi etc. Used to do really well until LCD/plasma took off.

We just let 8 people (out of about 100) go here today. Not a fun place to be right now.

[hypnodoc]

Follwing info comes from the London Times today re the US economic situation, and it's not much better here in Pomgolia.

GM to lay off 37,000 workers worldwide as part of global restructuring

BMW ceased production of the Mini yesterday and laid off 850 workers with 3 hours notice

Fiat admits it is becoming non viable for the company to continue manfacturing cars.

In the US

81% rise in foreclosures last year

404,000 foreclosures in 2007

1 in 54 households recieved at least one filing notice in 2008

225% more filings in 2008 than in 2006, before the housing market collaspsed

23% drop in house prices across the US since their peak in mid 2006

California prepared to make 20,000 public employees redundant last night as the state teetered on the brink of Financial Collapse.

All public works projects are being cancelled, schools are facing closure, the Department of Motor Vehicles has closed many of its offices and the states bonds are virtually on Wall Street at any price. This has pushed up the cost of borrowing, forcing the state into a spiral that has laid waste to thousands of businesses lately.

"we are dealing with a catastrophe of unstoppable and unimaginable proportins," said Alan Lowenthal, the state senator and chairman of the senate tranasporation committee.

Many aspects of the crisis are making an already grim economic much worse: thousands of construction workers are being laid off from road and bridge repair projects and it is becoming more time consuming to arrange the paperwork to buy a new car and almost inpossible to get the finanace for a purchase.

California, which is home to 37 million people has a $1.8 trillion economy, had a budget of $131 billion in 2008. The budget has doubled in size in the past decade but the state has a $47 billion shortfall because of a decline in tax revenues caused by the recession.

Arnold Schwarzeneger, the governor, failed to negotiate a compromise over how to close the deficit. He has proposed $15.1 billion in spending cuts, 414.4 billion in temporary tax increases and $11.4 billion in borrowing.

In a statement about the 20,000 redundancies Aaron McLean, a spokesman for Mr Schwarzenegger, said: "In absence of a budget the Governor has a responsibility to realise state savings any way he can. This is unfortunately a necessary decision.

Time to get out of debt and tighten the belt, as I don't think Australia will be immune form this sort of scenario for too much longer.

Gald I'm not Schwarzenegger or Obama.

Edited 18/02/09 12:09 PM by hypnodoc

[seventytwo]

No way have we seen the worst of it, I am just glad I am in a recession proof industry.

[discostig]

Alcohol or prostitution?

[Kimberley Scott]

HYpnodoc

I though you were meant to make people feel better.

Scotty

[turbotrana]

The world markets are tanking and Gold is in a bull market. I have doubled my money on Dominion mining in two months and I expect them to double again.

[hypnodoc]

Hey Scotty. Yeah I try my best, but sometimes reality isn't always feel good, and those that prepare for it if this scene hits Aussie are going to feel better than those who stick their head in the sand and pretend it isn't happening. Anyway feeling better can always be enhanced by Beer. :titwave:

Edited 18/02/09 02:57 PM by hypnodoc

[tab]

HYpnodoc

I though you were meant to make people feel better.

Scotty

Don’t like reading your posts any more Doc. Too depressing.

Might just stick my head in the sand and pretend nothing is happening like your mate Kevin747 was doing until recently