1 00:00:05,920 --> 00:00:08,719 Speaker 1: This is America's Trucking Network with Kevin Gordon. 2 00:00:10,720 --> 00:00:14,400 Speaker 2: Welcome aboard, Thanks for tuning in on this Wednesday morning. 3 00:00:15,160 --> 00:00:18,760 Speaker 2: We are finally starting to see a bit of a 4 00:00:18,880 --> 00:00:21,440 Speaker 2: decrease in terms of gasoline prices. 5 00:00:21,480 --> 00:00:23,560 Speaker 3: We saw that right before. 6 00:00:23,280 --> 00:00:27,240 Speaker 2: The Thanksgiving holiday, and it's been interesting over the last 7 00:00:27,480 --> 00:00:33,440 Speaker 2: well since inauguration that generally what you see around vacation time, 8 00:00:33,920 --> 00:00:38,680 Speaker 2: what you see around holidays and even weekends, sometimes the 9 00:00:38,800 --> 00:00:41,560 Speaker 2: gas prices seem to go up just a little bit 10 00:00:41,920 --> 00:00:46,519 Speaker 2: right before those peak driving periods. And you know, the 11 00:00:46,680 --> 00:00:50,080 Speaker 2: justification has always been, well, you know, it's a matter 12 00:00:50,120 --> 00:00:52,640 Speaker 2: of supply and demand. When there's a lot of demand, 13 00:00:53,040 --> 00:00:56,000 Speaker 2: the supply is pretty much the same. You can only 14 00:00:56,040 --> 00:01:00,040 Speaker 2: put so many gallons in the tank underground and go 15 00:01:00,200 --> 00:01:02,760 Speaker 2: on and that. If there's a lot of demand for that, 16 00:01:02,880 --> 00:01:04,880 Speaker 2: then of course people are going to be you know, 17 00:01:05,400 --> 00:01:07,760 Speaker 2: the demands there, so the supply is less and of 18 00:01:07,840 --> 00:01:10,880 Speaker 2: course the prices go up. But over the last year 19 00:01:10,920 --> 00:01:14,039 Speaker 2: we've seen pretty much around the time of thinks well, 20 00:01:14,360 --> 00:01:20,360 Speaker 2: Independence Day, Memorial Day weekend and there that gas prices 21 00:01:20,400 --> 00:01:23,759 Speaker 2: actually came down a little bit, were held steady right 22 00:01:23,840 --> 00:01:26,319 Speaker 2: up to the Thanksgiving holiday. A lot of people were 23 00:01:26,319 --> 00:01:28,560 Speaker 2: talking about and actually in the news they were talking 24 00:01:28,600 --> 00:01:30,760 Speaker 2: a little bit about this, which was kind of interesting 25 00:01:31,160 --> 00:01:35,120 Speaker 2: because it was positive news for the Trump administration, which surprise, surprise, 26 00:01:35,160 --> 00:01:39,120 Speaker 2: they actually reported on, but talking about that gas prices 27 00:01:39,200 --> 00:01:42,080 Speaker 2: were approaching the lowest that they had been in over 28 00:01:42,160 --> 00:01:42,800 Speaker 2: four years. 29 00:01:43,160 --> 00:01:46,400 Speaker 3: And that's that is not chump change. 30 00:01:46,480 --> 00:01:48,720 Speaker 2: It's less than what I would want it to see, 31 00:01:48,760 --> 00:01:51,520 Speaker 2: given the fact that we look at oil prices and 32 00:01:51,560 --> 00:01:55,520 Speaker 2: oil prices basically well just let's get to it. West 33 00:01:55,520 --> 00:01:57,920 Speaker 2: Texas Centermedia crewed Carling is at fifty eight dollars and 34 00:01:58,000 --> 00:02:01,160 Speaker 2: sixty six cents a barrel. That's down sixty six cents 35 00:02:01,160 --> 00:02:06,000 Speaker 2: from yesterday, which since the beginning of the year, West 36 00:02:06,000 --> 00:02:09,839 Speaker 2: Texas Intermedia crews down eighteen dollars and twenty three cents 37 00:02:10,200 --> 00:02:14,160 Speaker 2: a barrel, or twenty four percent. Rent crued sixty two 38 00:02:14,280 --> 00:02:18,440 Speaker 2: forty six, down seventy one cents. That is down seventeen 39 00:02:18,480 --> 00:02:21,760 Speaker 2: dollars and forty four cents since Inauguration Day, or twenty 40 00:02:21,800 --> 00:02:24,680 Speaker 2: two percent. And I've been talking most of the summer 41 00:02:24,680 --> 00:02:28,040 Speaker 2: we actually since oil price has been falling, that we're 42 00:02:28,040 --> 00:02:31,480 Speaker 2: not seeing this reflected in gasoline prices. And I have 43 00:02:31,639 --> 00:02:34,280 Speaker 2: quized several people on that. We've had Phil Flint on 44 00:02:34,320 --> 00:02:38,680 Speaker 2: this program talking about that. And when they talk about 45 00:02:38,720 --> 00:02:41,440 Speaker 2: going into the summer season, you have the summer blends 46 00:02:41,520 --> 00:02:44,440 Speaker 2: and you have to have certain additives to that for 47 00:02:44,520 --> 00:02:51,000 Speaker 2: pollution controls, and you know, the distillates and the processing 48 00:02:51,680 --> 00:02:55,600 Speaker 2: going through the refinery and the costs of that. Also 49 00:02:55,800 --> 00:02:58,440 Speaker 2: in the spring, when they start gearing up away from 50 00:02:58,520 --> 00:03:02,000 Speaker 2: the heating oil and the decent you know, the heating 51 00:03:02,000 --> 00:03:05,400 Speaker 2: oil during the winter months and getting into the gasoline season, 52 00:03:05,880 --> 00:03:08,919 Speaker 2: then you have the changeover and the refineries and the prices. 53 00:03:09,000 --> 00:03:11,880 Speaker 2: You know, the supply goes down because they're not refining 54 00:03:11,880 --> 00:03:13,600 Speaker 2: as much. And then at the end of the term 55 00:03:14,000 --> 00:03:16,320 Speaker 2: when the summer driving season is over and then shifting 56 00:03:16,320 --> 00:03:19,440 Speaker 2: to the winter blends, that the maintenance goes down, and 57 00:03:20,160 --> 00:03:20,960 Speaker 2: you know, all. 58 00:03:20,800 --> 00:03:21,720 Speaker 3: That sort of stuff. 59 00:03:22,040 --> 00:03:26,200 Speaker 2: But overall, the prices have not come down the way 60 00:03:26,280 --> 00:03:28,360 Speaker 2: I would have expected them to see. I mean, given 61 00:03:28,360 --> 00:03:32,200 Speaker 2: the fact that the raw material process going in there 62 00:03:32,560 --> 00:03:36,240 Speaker 2: is down fifteen to twenty twenty five percent over the 63 00:03:36,280 --> 00:03:40,119 Speaker 2: previous just since January, and you're not seeing that reflected 64 00:03:40,160 --> 00:03:43,040 Speaker 2: in gasoline prices. We are starting to see a little 65 00:03:43,080 --> 00:03:47,160 Speaker 2: bit of a decrease in gasoline prices generally because of 66 00:03:47,440 --> 00:03:49,640 Speaker 2: what they talk about. Towards the end of the season, 67 00:03:49,680 --> 00:03:51,960 Speaker 2: after you get out of the summer driving season, when 68 00:03:52,000 --> 00:03:56,440 Speaker 2: you have the peak gasoline demand, the demand isn't there 69 00:03:56,520 --> 00:03:59,360 Speaker 2: as much, and so then the prices come down. It 70 00:03:59,440 --> 00:04:02,200 Speaker 2: made the net well headlines from the National News talking 71 00:04:02,240 --> 00:04:05,560 Speaker 2: about the gasoline prices fall to a four year low 72 00:04:05,640 --> 00:04:10,520 Speaker 2: on cheap oil, flat demand. Now again, when I look 73 00:04:10,560 --> 00:04:14,320 Speaker 2: at gasoline prices and for the first time for a 74 00:04:14,360 --> 00:04:19,800 Speaker 2: long time, technically nationwide the average for gasoline is down 75 00:04:19,839 --> 00:04:23,080 Speaker 2: below three dollars a gallon. But you know, the way 76 00:04:23,120 --> 00:04:28,080 Speaker 2: they put the prices on the Marquee and whatever, it's always, 77 00:04:28,279 --> 00:04:31,360 Speaker 2: you know, two dollars and seventy five cents point nine. 78 00:04:31,680 --> 00:04:33,480 Speaker 2: You might as we'll call it two dollars and seventy 79 00:04:33,480 --> 00:04:36,599 Speaker 2: six cents. But right now the national average is two 80 00:04:36,640 --> 00:04:41,120 Speaker 2: dollars ninety nine cents point eight, so eight tenths, so 81 00:04:41,440 --> 00:04:44,240 Speaker 2: it averages out or you know, round up to three dollars. 82 00:04:44,279 --> 00:04:47,680 Speaker 2: But it is technically below three dollars a gallon, which 83 00:04:47,720 --> 00:04:51,320 Speaker 2: is a good thing. Uh, And prices are coming down. 84 00:04:51,560 --> 00:04:54,479 Speaker 2: In the story they're talking about while gasoline prices tend 85 00:04:54,480 --> 00:04:58,920 Speaker 2: to fall after the peak summer demand months, demand months 86 00:04:59,000 --> 00:05:01,600 Speaker 2: when drivers hit the rather on vacation. The cost to 87 00:05:01,640 --> 00:05:04,240 Speaker 2: fill your tank has been relatively flat this year, with 88 00:05:04,360 --> 00:05:07,800 Speaker 2: prices held down by cheaper cruit. Now on the plus 89 00:05:07,839 --> 00:05:11,040 Speaker 2: side of that, the gasoline prices haven't gone up. If 90 00:05:11,040 --> 00:05:13,280 Speaker 2: you look at the prices as what they were last 91 00:05:13,400 --> 00:05:16,560 Speaker 2: year versus this year, they are relatively the same or 92 00:05:16,640 --> 00:05:19,120 Speaker 2: within a couple of pennies of each. So as far 93 00:05:19,160 --> 00:05:22,440 Speaker 2: as inflation is concerned, when you look at energy prices, 94 00:05:22,440 --> 00:05:25,600 Speaker 2: where you look at gasoline prices, that isn't affecting your 95 00:05:25,760 --> 00:05:29,480 Speaker 2: your bank account or affecting your your you know, your 96 00:05:29,520 --> 00:05:32,560 Speaker 2: monthly payments, your budget for the year or for the 97 00:05:32,600 --> 00:05:37,280 Speaker 2: month on a on a major way, because again you're 98 00:05:37,320 --> 00:05:40,440 Speaker 2: paying the same amount basically this year as you were 99 00:05:40,520 --> 00:05:43,239 Speaker 2: last year, and depending upon how you drive, the fuel 100 00:05:43,279 --> 00:05:46,400 Speaker 2: efficiency and so on will make a big difference. But 101 00:05:46,880 --> 00:05:49,360 Speaker 2: it's been interesting that actually people are starting to talk 102 00:05:49,400 --> 00:05:51,960 Speaker 2: about that and the fact that I'm actually starting to 103 00:05:52,000 --> 00:05:56,080 Speaker 2: see this price is narrowing to the point where it's 104 00:05:56,160 --> 00:05:59,440 Speaker 2: it's noticeable, but not as noticeable as it could be. 105 00:05:59,800 --> 00:06:03,080 Speaker 2: And as I've mentioned, if prices on gasoline were about 106 00:06:03,120 --> 00:06:06,799 Speaker 2: fifteen percent lower where I think they should be. We'd 107 00:06:06,800 --> 00:06:09,200 Speaker 2: be paying a national average of about two dollars and 108 00:06:09,240 --> 00:06:12,040 Speaker 2: fifty five cents a gallon, and there needs to be 109 00:06:12,080 --> 00:06:16,440 Speaker 2: a little bit of Now. I know, these refineries are 110 00:06:16,480 --> 00:06:20,599 Speaker 2: working at massive amounts. I mean they are working at 111 00:06:20,680 --> 00:06:25,440 Speaker 2: ninety six ninety seven percent capacity, which is in efficiency, 112 00:06:25,839 --> 00:06:29,840 Speaker 2: which is a lot higher than most businesses operate. And 113 00:06:29,920 --> 00:06:33,200 Speaker 2: so credit to that. But again, as I mentioned before, 114 00:06:33,240 --> 00:06:36,360 Speaker 2: we have not built a major refinery in this country 115 00:06:36,400 --> 00:06:41,120 Speaker 2: in over forty seven years. We've upgraded some, we've expanded 116 00:06:41,200 --> 00:06:45,960 Speaker 2: some within the territory or within the location of these refineries, 117 00:06:46,200 --> 00:06:49,600 Speaker 2: but in terms of actually manufacturing a new or building 118 00:06:49,640 --> 00:06:53,120 Speaker 2: a new refinery, it just hasn't been done. And then 119 00:06:53,200 --> 00:06:55,880 Speaker 2: you see the gasoline prices out in California, which are 120 00:06:56,000 --> 00:06:59,240 Speaker 2: more than two dollars, more than two dollars a gallon 121 00:06:59,640 --> 00:07:03,400 Speaker 2: than the cheapest gas in the country right now, Gasoline 122 00:07:03,400 --> 00:07:05,960 Speaker 2: in California is at five four dollars and fifty four 123 00:07:06,000 --> 00:07:09,159 Speaker 2: cents a gallon, and at Oklahoma is two dollars and 124 00:07:09,240 --> 00:07:13,400 Speaker 2: forty cents. Folks, that is a two dollars and fourteen 125 00:07:13,560 --> 00:07:18,400 Speaker 2: cent difference. And you've got all these regulations on the 126 00:07:18,520 --> 00:07:23,880 Speaker 2: gasoline prices in producing in California. They put all this 127 00:07:25,240 --> 00:07:28,280 Speaker 2: mandates in terms of additives that have to go into 128 00:07:28,680 --> 00:07:32,520 Speaker 2: the gasoline there to control, as they say, pollution in 129 00:07:32,560 --> 00:07:36,000 Speaker 2: that part of the country. Yet they will push all 130 00:07:36,040 --> 00:07:39,880 Speaker 2: these environmental controls in certain areas, but then allow these 131 00:07:39,880 --> 00:07:43,040 Speaker 2: wildfires to go crazy, which wipes out all the stuff 132 00:07:43,080 --> 00:07:45,320 Speaker 2: that they've done in terms of cleaning up the climate 133 00:07:45,600 --> 00:07:47,360 Speaker 2: or cleaning up the environment. 134 00:07:46,920 --> 00:07:49,240 Speaker 3: Out there, and it's all destroyed. 135 00:07:49,600 --> 00:07:54,320 Speaker 2: Twenty to thirty years of looking after, you know, trying 136 00:07:54,320 --> 00:07:58,280 Speaker 2: to reduce carbon footprint and to reduce pollution in California 137 00:07:58,360 --> 00:08:02,080 Speaker 2: were wiped out in twenty two when that wildfire went 138 00:08:02,080 --> 00:08:05,440 Speaker 2: through there. And when you look at the gat the 139 00:08:05,480 --> 00:08:07,840 Speaker 2: pollution that was caused by the. 140 00:08:07,640 --> 00:08:09,600 Speaker 3: Fire in January of this year that. 141 00:08:09,600 --> 00:08:13,360 Speaker 2: Wiped out the palisades, that pushed them back another ten 142 00:08:13,360 --> 00:08:16,560 Speaker 2: to fifteen years. So everything they've done out there has 143 00:08:16,600 --> 00:08:20,440 Speaker 2: been useless based on their environmental policies as far as 144 00:08:20,480 --> 00:08:23,280 Speaker 2: clear cutting, making sure that they keep the brush low 145 00:08:23,520 --> 00:08:26,680 Speaker 2: and by the way, if you've got fire hydrants, make 146 00:08:26,720 --> 00:08:29,440 Speaker 2: sure that they have water in them, filling the reservoir, 147 00:08:29,600 --> 00:08:32,080 Speaker 2: doing the basic things that government are supposed to be 148 00:08:32,160 --> 00:08:34,960 Speaker 2: doing so on top of that, on top of being 149 00:08:35,440 --> 00:08:39,839 Speaker 2: a situation where you have a fire hazard on a 150 00:08:40,000 --> 00:08:43,800 Speaker 2: yearly basis, and then you've got these right now, what 151 00:08:44,000 --> 00:08:46,320 Speaker 2: I think, I don't even think of the eleven thousand 152 00:08:46,400 --> 00:08:50,360 Speaker 2: structures out there. I think last count was that there 153 00:08:50,360 --> 00:08:55,000 Speaker 2: had been something like fourteen hundred applications that have been filed. 154 00:08:55,840 --> 00:08:59,400 Speaker 2: And again that number is down because of all the 155 00:08:59,440 --> 00:09:02,920 Speaker 2: restriction and all the requirements going into cleaning up the 156 00:09:02,960 --> 00:09:05,200 Speaker 2: site and making sure that it's ready to be built 157 00:09:05,240 --> 00:09:08,520 Speaker 2: on before you even apply for the application. So the 158 00:09:08,559 --> 00:09:11,840 Speaker 2: building permits that have been issued are paltry, the amount 159 00:09:11,920 --> 00:09:15,720 Speaker 2: of applications are low because of all the government red tape, 160 00:09:15,840 --> 00:09:18,600 Speaker 2: remember the press conferences that we're going to streamline all 161 00:09:18,640 --> 00:09:22,920 Speaker 2: these things. So you've got this crazy situation out there, 162 00:09:23,080 --> 00:09:25,080 Speaker 2: and plus the fact that they're paying two dollars and 163 00:09:25,120 --> 00:09:29,120 Speaker 2: fourteen cents more per gallon because they have special refineries 164 00:09:29,160 --> 00:09:32,800 Speaker 2: out there, and then they criticize those refineries and put 165 00:09:32,920 --> 00:09:36,040 Speaker 2: more restrictions on them to the point where where the 166 00:09:36,080 --> 00:09:39,880 Speaker 2: refineries there that can actually produce the type of gasoline 167 00:09:40,040 --> 00:09:43,800 Speaker 2: that is demanded by that state they're moving out. So 168 00:09:43,840 --> 00:09:48,160 Speaker 2: it's even more high because there's even less refineries that 169 00:09:48,240 --> 00:09:51,679 Speaker 2: are doing that. So this environmental policy out in California 170 00:09:51,760 --> 00:09:54,320 Speaker 2: is nuts. But at least across the country, what we're 171 00:09:54,320 --> 00:09:57,600 Speaker 2: seeing as far as gasoline prices, they're starting to come down, 172 00:09:57,720 --> 00:10:01,400 Speaker 2: and of course based on some of the more inexpensive 173 00:10:01,400 --> 00:10:03,920 Speaker 2: they keep calling it cheap oil, but it's just less 174 00:10:04,000 --> 00:10:07,240 Speaker 2: expensive oil that we have in this country. Coming up, 175 00:10:07,280 --> 00:10:10,160 Speaker 2: we're going to be talking about some manufacturing numbers that 176 00:10:10,160 --> 00:10:14,319 Speaker 2: we saw, which kind of a good news bad news situation. 177 00:10:14,440 --> 00:10:20,320 Speaker 2: I'm Kevin Gordon, America's truck a network seven hundred WLW. 178 00:10:20,440 --> 00:10:23,600 Speaker 1: What need this is the racing repord on America's drugging 179 00:10:23,640 --> 00:10:26,000 Speaker 1: network on seven hundred WLW. 180 00:10:26,800 --> 00:10:30,000 Speaker 4: NASCAR's anti trust lawsuit got underway on Monday and North 181 00:10:30,040 --> 00:10:33,720 Speaker 4: Carolina Jerry selections and opening statements took place twenty three 182 00:10:33,800 --> 00:10:36,640 Speaker 4: eleven in front Row suing NASCAR at October of twenty 183 00:10:36,679 --> 00:10:40,520 Speaker 4: twenty four, claiming the sanctioning body runs a monopoly using 184 00:10:40,559 --> 00:10:44,320 Speaker 4: its charter system, supplier contracts, and track agreements and to 185 00:10:44,360 --> 00:10:47,840 Speaker 4: take it or leave it contracts to suppress competition and 186 00:10:47,960 --> 00:10:51,559 Speaker 4: limit teams in commercial freedom. The twenty twenty five Formula 187 00:10:51,559 --> 00:10:54,320 Speaker 4: One season will come down to one race. Following the 188 00:10:54,360 --> 00:10:57,319 Speaker 4: action over the weekend at Abu Dhabi, Max verstapp And 189 00:10:57,400 --> 00:11:00,360 Speaker 4: won the race and a championship leader Lando Norris fishing 190 00:11:00,480 --> 00:11:03,720 Speaker 4: fourth for a staff and is now Norris's closest rival 191 00:11:04,120 --> 00:11:07,160 Speaker 4: heading into next weekend, just twelve points behind. 192 00:11:07,200 --> 00:11:11,839 Speaker 5: Norris mentioned it before, it's US, of course, nailing weekends, 193 00:11:12,080 --> 00:11:16,880 Speaker 5: maximizing points, not making mistakes where others do make mistakes. 194 00:11:17,559 --> 00:11:20,560 Speaker 5: If that's driving mistakes, the mistakes, but we're in it 195 00:11:20,760 --> 00:11:22,800 Speaker 5: and it will keep it interesting. 196 00:11:23,040 --> 00:11:25,839 Speaker 4: Oscar Piastre slipped the third place in the standings with 197 00:11:25,920 --> 00:11:28,360 Speaker 4: the second place finished, he's sixteen back. 198 00:11:28,440 --> 00:11:31,640 Speaker 6: Pretty pretty gut wrenching, to be honest, I think you know, 199 00:11:31,640 --> 00:11:36,600 Speaker 6: it felt like I drove probably the best weekend I've 200 00:11:36,880 --> 00:11:40,920 Speaker 6: had this year, if not in F one. So to 201 00:11:40,920 --> 00:11:45,360 Speaker 6: not have the to not have the results US is painful. 202 00:11:45,960 --> 00:11:48,400 Speaker 4: And Norris clinging to the top spot with a race 203 00:11:48,440 --> 00:11:48,800 Speaker 4: to go. 204 00:11:49,240 --> 00:11:49,840 Speaker 3: Car was good. 205 00:11:50,000 --> 00:11:52,240 Speaker 7: Oscar finished second and he was very quick, so nothing 206 00:11:52,280 --> 00:11:55,959 Speaker 7: to complain about, just strategy as the second car is 207 00:11:55,960 --> 00:11:57,719 Speaker 7: always just a bit worse, and how do you know 208 00:11:57,840 --> 00:12:00,280 Speaker 7: it today? So no, not even that well and even 209 00:12:00,280 --> 00:12:01,959 Speaker 7: the fight for a second call, we we should have 210 00:12:02,000 --> 00:12:03,480 Speaker 7: done what we did, so simple as that one. 211 00:12:04,280 --> 00:12:04,520 Speaker 3: I know. 212 00:12:04,720 --> 00:12:08,080 Speaker 1: This is the breathing repoard on America's Drugging Network on 213 00:12:08,240 --> 00:12:13,840 Speaker 1: seven hundred WLW, say Dennison for a t N. 214 00:12:18,559 --> 00:12:24,280 Speaker 2: I'm Kevin Gordon, America's struck in Network, seven hundred WLW yesterday, 215 00:12:24,520 --> 00:12:27,160 Speaker 2: actually the day before yesterday, I guess since we're into 216 00:12:27,200 --> 00:12:31,920 Speaker 2: a new day the ism. The Institute's supply Management came 217 00:12:32,000 --> 00:12:36,640 Speaker 2: up with their numbers for manufacturing sector in November, and 218 00:12:37,320 --> 00:12:40,520 Speaker 2: the top number doesn't look so good, but some of 219 00:12:40,520 --> 00:12:44,640 Speaker 2: the stuff underlying that looks pretty decent. The US factory 220 00:12:44,679 --> 00:12:47,840 Speaker 2: activity shrank in November the most in four months, as 221 00:12:47,960 --> 00:12:52,120 Speaker 2: orders weekend, indicating manufacturers are struggling to break free from 222 00:12:52,120 --> 00:12:56,959 Speaker 2: the extended period of malaise. Now, if there are less orders, 223 00:12:57,040 --> 00:12:59,560 Speaker 2: that means that they're that, you know, the customers have 224 00:12:59,600 --> 00:13:02,800 Speaker 2: slowed down. And why has the customer slowed down? Have 225 00:13:02,880 --> 00:13:06,240 Speaker 2: they slowed down because of pricing or because of demand? 226 00:13:06,640 --> 00:13:09,480 Speaker 2: And if it's demand, could it possibly be because the 227 00:13:09,520 --> 00:13:12,200 Speaker 2: interest rates are too high? If people are wanting more 228 00:13:12,200 --> 00:13:14,880 Speaker 2: products and they're going to go out and have some 229 00:13:14,920 --> 00:13:18,880 Speaker 2: of this stuff manufactured and provided for them, that maybe 230 00:13:19,000 --> 00:13:23,360 Speaker 2: the market isn't there yet because of waiting on interest 231 00:13:23,440 --> 00:13:27,280 Speaker 2: rates to come down. And it was funny yesterday going 232 00:13:27,320 --> 00:13:32,520 Speaker 2: into actually going into Monday, all I saw, as far 233 00:13:32,600 --> 00:13:37,200 Speaker 2: as the headlines Jerome Powell to speak. And this was 234 00:13:37,240 --> 00:13:40,320 Speaker 2: the thing is if some you know, you're waiting for 235 00:13:40,480 --> 00:13:43,400 Speaker 2: the Messiah or somebody to stand on a mountaintop and 236 00:13:43,440 --> 00:13:46,360 Speaker 2: give some sort of a grand and glorious speech in 237 00:13:46,440 --> 00:13:49,200 Speaker 2: terms of what's going on as the economy is concerned. 238 00:13:49,360 --> 00:13:50,000 Speaker 3: And it's been. 239 00:13:49,840 --> 00:13:52,520 Speaker 2: Proven time and time again that lion Jerry Powell doesn't 240 00:13:52,559 --> 00:13:54,800 Speaker 2: have a clue as far as what's going on in 241 00:13:54,840 --> 00:13:58,960 Speaker 2: the economy. He's not a supply side economist. And I'm 242 00:13:58,960 --> 00:14:02,000 Speaker 2: not really sure that easy knowledgeable in terms of what 243 00:14:02,200 --> 00:14:05,520 Speaker 2: goes on as far as the economy is concerned at 244 00:14:05,520 --> 00:14:08,840 Speaker 2: all in the first place. But again, you know, and 245 00:14:08,880 --> 00:14:11,160 Speaker 2: I backed that up by the fact that when you 246 00:14:11,320 --> 00:14:15,600 Speaker 2: look at his track record during the Biden administration, when 247 00:14:15,640 --> 00:14:19,000 Speaker 2: you had inflation month after month after month after month 248 00:14:19,080 --> 00:14:22,120 Speaker 2: going up and up and up, he kept saying, well, 249 00:14:22,160 --> 00:14:25,000 Speaker 2: you know this, this inflation is transitory, and no, we 250 00:14:25,080 --> 00:14:27,280 Speaker 2: don't see in a situation where we need to raise 251 00:14:27,320 --> 00:14:29,880 Speaker 2: interest rates in order to slow the economy. Down any 252 00:14:30,160 --> 00:14:33,600 Speaker 2: or to slow the inflation rate down, none of this 253 00:14:33,680 --> 00:14:37,600 Speaker 2: sort of stuff until it got to a point in July, 254 00:14:37,800 --> 00:14:40,320 Speaker 2: in June of twenty twenty two, when we hit a 255 00:14:40,600 --> 00:14:44,560 Speaker 2: nine point one percent I can't emphasize that enough. Nine 256 00:14:44,600 --> 00:14:48,480 Speaker 2: point one percent inflation rate. It was the highest in 257 00:14:48,680 --> 00:14:53,120 Speaker 2: forty years. Let that sink in for a moment. And 258 00:14:53,200 --> 00:14:57,040 Speaker 2: yet the Federal Reserve kept talking about transitory inflation. This 259 00:14:57,160 --> 00:14:59,240 Speaker 2: is only temper, it's not you know, it's not going 260 00:14:59,320 --> 00:15:01,800 Speaker 2: to be there forever. Well, the problem is, and I 261 00:15:01,880 --> 00:15:04,040 Speaker 2: keep pointing, and I kept pointing it out at the time, 262 00:15:04,080 --> 00:15:08,200 Speaker 2: even and even today given some of the numbers, is 263 00:15:08,200 --> 00:15:11,040 Speaker 2: that it's not a matter if you're starting off at 264 00:15:11,520 --> 00:15:14,520 Speaker 2: at you know, if you're talking about a dollar today, 265 00:15:15,120 --> 00:15:18,440 Speaker 2: it's not as if the inflation for that month bumps 266 00:15:18,560 --> 00:15:21,040 Speaker 2: up and then you start all over back down to 267 00:15:21,080 --> 00:15:25,520 Speaker 2: a dollar. So if your inflation goes up three cents, 268 00:15:25,840 --> 00:15:29,920 Speaker 2: then the next month you've got a dollar three, and 269 00:15:29,960 --> 00:15:32,440 Speaker 2: then if it goes up three percent from there, then 270 00:15:32,480 --> 00:15:35,520 Speaker 2: it's now up to a dollar six, but a little 271 00:15:35,560 --> 00:15:37,920 Speaker 2: bit higher than a dollar six, because you're taking three 272 00:15:37,960 --> 00:15:42,240 Speaker 2: percent of a dollar three, not not three percent of 273 00:15:42,280 --> 00:15:44,760 Speaker 2: a dollar. And so then the following month, if it 274 00:15:44,800 --> 00:15:47,480 Speaker 2: goes up three percent, it's not going up three percent 275 00:15:47,560 --> 00:15:50,160 Speaker 2: based on that dollar. It's going up based on what 276 00:15:50,240 --> 00:15:52,880 Speaker 2: has already been layered on top of that. And then 277 00:15:52,920 --> 00:15:55,120 Speaker 2: in the month at June when it went up nine percent, 278 00:15:56,000 --> 00:15:58,960 Speaker 2: it doesn't come back down from that. The only way 279 00:15:59,000 --> 00:16:02,160 Speaker 2: that that comes down is if you increase activity, you 280 00:16:02,280 --> 00:16:06,320 Speaker 2: increase the purchases, and you increase the economy to the 281 00:16:06,400 --> 00:16:09,400 Speaker 2: point where those prices do come down because there's so 282 00:16:09,520 --> 00:16:13,800 Speaker 2: much being it costs less to manufacture the facility, the 283 00:16:13,840 --> 00:16:17,000 Speaker 2: items that you're producing, or the amount of items that 284 00:16:17,000 --> 00:16:20,040 Speaker 2: you're buying. Look at a truck. I mean people in 285 00:16:20,080 --> 00:16:22,960 Speaker 2: the trucking industry, you know all about this. If you're 286 00:16:23,040 --> 00:16:27,800 Speaker 2: driving a truck and the truck is full, then you're 287 00:16:27,840 --> 00:16:30,480 Speaker 2: getting the most bang for your buck in terms of 288 00:16:30,560 --> 00:16:35,800 Speaker 2: those items in there, and it's costing you. It costs 289 00:16:35,800 --> 00:16:38,720 Speaker 2: you the same to run that truck. But if the 290 00:16:39,000 --> 00:16:43,400 Speaker 2: load is full, then you're spreading that over the total 291 00:16:43,440 --> 00:16:46,800 Speaker 2: of what's in the truck itself. So if your truck 292 00:16:46,880 --> 00:16:50,400 Speaker 2: is empty, then you're costs for skyrocketed because obviously you've 293 00:16:50,440 --> 00:16:52,760 Speaker 2: got no revenue on the other side. But the more 294 00:16:52,840 --> 00:16:55,880 Speaker 2: revenue you have to offset that that cost of operating 295 00:16:55,920 --> 00:16:58,920 Speaker 2: that truck comes down per mile based on what you 296 00:16:59,040 --> 00:17:02,680 Speaker 2: have in terms of you know, the cost. The cost 297 00:17:02,800 --> 00:17:05,919 Speaker 2: is the same per mile, but it spread over a 298 00:17:06,000 --> 00:17:08,880 Speaker 2: larger amount of revenue, and so it doesn't look as 299 00:17:08,920 --> 00:17:11,280 Speaker 2: bad and it's and it helps your bottom line. 300 00:17:11,520 --> 00:17:12,960 Speaker 3: Same thing in the economy. 301 00:17:13,160 --> 00:17:15,480 Speaker 2: If you don't have the goods being manufactured, and you 302 00:17:15,520 --> 00:17:18,520 Speaker 2: have only a few amount of goods being manufactured because 303 00:17:18,520 --> 00:17:21,600 Speaker 2: of things slowing down, but the demand is there, the 304 00:17:21,640 --> 00:17:23,760 Speaker 2: price of those items are going to go up. But 305 00:17:23,840 --> 00:17:27,000 Speaker 2: the more that it's available, then those prices come down. 306 00:17:27,359 --> 00:17:30,400 Speaker 2: So and then on top of this, and I've been 307 00:17:30,400 --> 00:17:34,639 Speaker 2: talking about this at nauseum here for several months, is 308 00:17:34,640 --> 00:17:38,399 Speaker 2: that if you once you factor in not only you 309 00:17:38,440 --> 00:17:41,680 Speaker 2: have the prior inflation of the Biden administration that you're 310 00:17:41,680 --> 00:17:44,919 Speaker 2: dealing with. Now now you can you know, control that 311 00:17:44,960 --> 00:17:48,480 Speaker 2: to a certain extent by lower energy prices and those 312 00:17:48,520 --> 00:17:51,640 Speaker 2: types of things, cutting out some of the government regulations 313 00:17:51,640 --> 00:17:54,720 Speaker 2: so it doesn't cost you so much in terms of compliance, 314 00:17:55,000 --> 00:17:57,560 Speaker 2: which adds to the cost of the thing, the item 315 00:17:57,600 --> 00:18:01,439 Speaker 2: that you're selling. So those prices will come down. But 316 00:18:01,920 --> 00:18:06,919 Speaker 2: when you have so much activity going on, then it 317 00:18:07,200 --> 00:18:11,720 Speaker 2: increases the amount of items available. So the only way 318 00:18:11,760 --> 00:18:14,400 Speaker 2: to get those prices down is more volume. And if 319 00:18:14,400 --> 00:18:17,240 Speaker 2: you have more volume and more people buying, then you 320 00:18:17,320 --> 00:18:21,879 Speaker 2: wind up having the prices come down tremendously. But what 321 00:18:21,960 --> 00:18:25,360 Speaker 2: they're not talking about is when you look at how 322 00:18:25,400 --> 00:18:32,119 Speaker 2: many contracts have been negotiated the UAW, the railroad workers, ups, 323 00:18:32,520 --> 00:18:39,280 Speaker 2: the dock workers. I mentioned railroad who else the well, 324 00:18:39,280 --> 00:18:42,240 Speaker 2: I mentioned auto workers, and there's a couple other ones, 325 00:18:42,280 --> 00:18:45,480 Speaker 2: But there's been some major contracts the dock workers on 326 00:18:45,520 --> 00:18:47,760 Speaker 2: both the East Coast and the West coast. When you 327 00:18:47,800 --> 00:18:52,440 Speaker 2: factor in those those prices in terms of the increase 328 00:18:52,720 --> 00:18:56,560 Speaker 2: to produce those items or to move those items, that 329 00:18:56,680 --> 00:19:00,280 Speaker 2: adds to the cost of the item itself. And so 330 00:19:00,840 --> 00:19:05,920 Speaker 2: when you have added prices in terms of payroll is concerned, 331 00:19:06,480 --> 00:19:08,439 Speaker 2: those prices are going to go up. You're not going 332 00:19:08,520 --> 00:19:11,440 Speaker 2: to go back in at some point in time and say, okay, 333 00:19:11,840 --> 00:19:16,639 Speaker 2: you know, in this contract UAW or railroad workers, you 334 00:19:16,720 --> 00:19:21,359 Speaker 2: are getting a ten percent increase in your salary each year. 335 00:19:22,040 --> 00:19:25,040 Speaker 2: And then when inflation starts coming down, you're not going 336 00:19:25,119 --> 00:19:26,800 Speaker 2: to go back in there and say, well, we're going 337 00:19:26,840 --> 00:19:30,399 Speaker 2: to take a percentage or two percent off of your pay. No, 338 00:19:30,600 --> 00:19:32,680 Speaker 2: that pay is in there, and that's already baked in. 339 00:19:33,280 --> 00:19:36,760 Speaker 2: Now again, I'm not criticizing, I'm not saying that people 340 00:19:36,840 --> 00:19:40,760 Speaker 2: don't deserve higher wages, and especially when you take into 341 00:19:40,840 --> 00:19:45,080 Speaker 2: consideration that there was such a freeze on wage increases 342 00:19:45,440 --> 00:19:48,879 Speaker 2: going back to some of the pre pandemic some of 343 00:19:48,880 --> 00:19:52,040 Speaker 2: these government some of these contracts with these union workers, 344 00:19:52,640 --> 00:19:55,480 Speaker 2: it was locked into place and didn't come up for 345 00:19:55,680 --> 00:19:59,199 Speaker 2: negotiation until twenty twenty, And of course they're not going 346 00:19:59,280 --> 00:20:02,240 Speaker 2: to do anything to go siations during twenty twenty during 347 00:20:03,000 --> 00:20:07,600 Speaker 2: the pandemic, So whatever contract expired in twenty twenty was 348 00:20:07,640 --> 00:20:10,800 Speaker 2: pushed off and wasn't negotiated on until twenty twenty one, 349 00:20:11,119 --> 00:20:14,159 Speaker 2: and even into twenty twenty two when they finally hashed 350 00:20:14,200 --> 00:20:16,480 Speaker 2: out all the deals, because again, when you had the 351 00:20:16,520 --> 00:20:19,080 Speaker 2: supply chain issues and that going on, it was no 352 00:20:19,200 --> 00:20:22,000 Speaker 2: time to go back in and renegotiate these contracts. So 353 00:20:22,040 --> 00:20:24,320 Speaker 2: a lot of these contracts were on hold and people 354 00:20:24,359 --> 00:20:26,639 Speaker 2: had not had some of the workers had not had 355 00:20:26,680 --> 00:20:30,639 Speaker 2: a pay increase since twenty nineteen. So when you factor 356 00:20:30,720 --> 00:20:33,840 Speaker 2: that into that twenty twenty three contract, of course that 357 00:20:34,840 --> 00:20:36,960 Speaker 2: number has got to be made up. You've got to 358 00:20:37,000 --> 00:20:40,680 Speaker 2: try to increase that a little bit because they have 359 00:20:40,760 --> 00:20:45,000 Speaker 2: been basically losing money because if your price is fixed, 360 00:20:45,200 --> 00:20:48,000 Speaker 2: if your hourly rate is fixed, and the inflation that 361 00:20:48,080 --> 00:20:50,439 Speaker 2: was during the Biden administration was going up and up 362 00:20:50,480 --> 00:20:53,640 Speaker 2: and up, you're actually losing money on a daily basis. 363 00:20:53,840 --> 00:20:57,200 Speaker 2: So catching that up. But once that contract is in there, 364 00:20:57,440 --> 00:20:59,520 Speaker 2: and that is part of what it costs to either 365 00:20:59,640 --> 00:21:03,920 Speaker 2: move these goods, manufacture these goods, sell these goods, import 366 00:21:03,960 --> 00:21:07,080 Speaker 2: these goods, export these goods, that's all going to factor 367 00:21:07,119 --> 00:21:09,440 Speaker 2: in and that price is not going to come down. 368 00:21:09,760 --> 00:21:13,760 Speaker 2: So if that's and that is in the inflation number now, 369 00:21:14,119 --> 00:21:16,880 Speaker 2: and rather than trying to blame it off on tariffs 370 00:21:16,960 --> 00:21:20,000 Speaker 2: or blame it off on other things, be specific about 371 00:21:20,040 --> 00:21:22,960 Speaker 2: where these increases are coming from and be straight with 372 00:21:23,040 --> 00:21:24,080 Speaker 2: the American. 373 00:21:23,640 --> 00:21:25,960 Speaker 3: Public so that they get a full picture of. 374 00:21:25,920 --> 00:21:28,600 Speaker 2: What's going on. And that's the thing that I've been 375 00:21:28,640 --> 00:21:31,320 Speaker 2: talking about. Now, getting back to manufacturing, we'll pick this 376 00:21:31,480 --> 00:21:35,800 Speaker 2: up coming up, because manufacturing numbers are down again. Is 377 00:21:35,840 --> 00:21:38,760 Speaker 2: it because of the consumer demand or is it because 378 00:21:38,760 --> 00:21:41,000 Speaker 2: of the weight and see in terms of people not 379 00:21:41,280 --> 00:21:44,320 Speaker 2: wanting to jump in and have that increase as far 380 00:21:44,440 --> 00:21:47,840 Speaker 2: as the interest rates being high and what that does 381 00:21:47,880 --> 00:21:51,240 Speaker 2: to your operating costs. I'm Kevin Gordon, America Struck a Network. 382 00:21:51,320 --> 00:21:53,280 Speaker 2: Seven hundred WLW. 383 00:21:58,320 --> 00:22:00,720 Speaker 8: Here's your trucking forecast that Tri State. It in the 384 00:22:00,720 --> 00:22:03,440 Speaker 8: rest of the country and the tri sit overnight, mostly cloudy, 385 00:22:03,440 --> 00:22:06,240 Speaker 8: the low down to twenty mostly sunny. Wednesday, highs in 386 00:22:06,280 --> 00:22:09,359 Speaker 8: the mid thirties, partly Sunday. Thursday high of thirty one, 387 00:22:09,520 --> 00:22:13,160 Speaker 8: partly sunny. Friday a high of thirty five Nationally more 388 00:22:13,200 --> 00:22:15,680 Speaker 8: moderate to heavy snow moving across the interior New England 389 00:22:15,680 --> 00:22:19,280 Speaker 8: States through tonight. Arctic air forecast over the Midwest Thursday, 390 00:22:19,480 --> 00:22:22,440 Speaker 8: while snow showers linger across the Great Lakes region along 391 00:22:22,440 --> 00:22:25,480 Speaker 8: with the Great Basin and the Rockies. Moderate to heavy 392 00:22:25,560 --> 00:22:28,280 Speaker 8: rain emerging along the western to central Gulf Coast. 393 00:22:32,320 --> 00:22:36,000 Speaker 2: Seven hundred WLW. I'm Kevin Gordon. This as America Struck 394 00:22:36,040 --> 00:22:38,360 Speaker 2: a Network. If you miss any of our previous segments 395 00:22:38,400 --> 00:22:40,680 Speaker 2: or any of our other shows, hit up that iHeartRadio 396 00:22:40,720 --> 00:22:43,000 Speaker 2: app and of course brought to you by our friends 397 00:22:43,040 --> 00:22:46,240 Speaker 2: at Ross Truck Centers. Came back to this manufacturing slump 398 00:22:46,320 --> 00:22:50,600 Speaker 2: deepens in November again. There's some mixed bag of information 399 00:22:50,680 --> 00:22:54,080 Speaker 2: in here. Again getting back to the original paragraph, US 400 00:22:54,119 --> 00:22:56,920 Speaker 2: factory activity shrank in November, is most of the most 401 00:22:57,000 --> 00:23:00,800 Speaker 2: and four months as orders weekend, indicating manufacture are struggling 402 00:23:00,800 --> 00:23:04,320 Speaker 2: to break free from the extended period of Melee's Institute 403 00:23:04,359 --> 00:23:09,080 Speaker 2: for Supply Management Index eased point five percent basically, well, 404 00:23:09,200 --> 00:23:11,960 Speaker 2: actually a half a percentage point to forty eight point 405 00:23:11,960 --> 00:23:14,960 Speaker 2: two according to the data release December first, the measure 406 00:23:15,000 --> 00:23:20,240 Speaker 2: has been below fifty, which indicates contraction for nine straight months. Again, 407 00:23:20,680 --> 00:23:24,720 Speaker 2: even at forty eight percent, going down, going, let me see, 408 00:23:24,800 --> 00:23:29,159 Speaker 2: going to fifty forty eight point seven percent, down to 409 00:23:29,200 --> 00:23:30,160 Speaker 2: forty eight point two. 410 00:23:30,480 --> 00:23:31,680 Speaker 3: It's still a little bit. 411 00:23:31,560 --> 00:23:36,280 Speaker 2: Of a drop, but I'm not a major bottom falling 412 00:23:36,320 --> 00:23:41,080 Speaker 2: out type drum. Survey suggestination manufacturing base remains bogged down 413 00:23:41,080 --> 00:23:45,800 Speaker 2: by trade policy uncertainty and elevated production costs. Production costs 414 00:23:45,800 --> 00:23:48,720 Speaker 2: based on what could it possibly be salaries. Of course, 415 00:23:48,760 --> 00:23:54,200 Speaker 2: they're not going to talk about that USMISM. Manufacturing prices 416 00:23:54,400 --> 00:23:56,639 Speaker 2: paid for materials picked up for the first time in 417 00:23:56,720 --> 00:23:59,800 Speaker 2: five months and is about eight points higher than a 418 00:23:59,840 --> 00:24:03,960 Speaker 2: year year ago. Now again based into that could possibly 419 00:24:04,000 --> 00:24:07,719 Speaker 2: be terrorists also could be baked into those numbers, is 420 00:24:07,920 --> 00:24:11,720 Speaker 2: the cost or the salary increases from the employees that 421 00:24:11,800 --> 00:24:16,600 Speaker 2: actually make up those raw materials, mine those raw materials, 422 00:24:16,840 --> 00:24:21,000 Speaker 2: gather those raw materials, or ship those those raw materials. 423 00:24:21,240 --> 00:24:24,120 Speaker 2: So again, there's all kinds of factors that go into that. 424 00:24:24,240 --> 00:24:27,840 Speaker 2: It's not straight terriffs as far as that's concerned. And 425 00:24:27,920 --> 00:24:30,480 Speaker 2: if it were teriffs, based on the numbers that they've 426 00:24:30,480 --> 00:24:33,760 Speaker 2: been telling us, that eight percent, that eight points higher, 427 00:24:33,960 --> 00:24:36,840 Speaker 2: is a lot lower than what they were predicting. Customer 428 00:24:36,880 --> 00:24:42,000 Speaker 2: demand has largely been uninspiring as well. Orders contracted in 429 00:24:42,119 --> 00:24:46,400 Speaker 2: November as the fastt paced since July, while backloads shrank 430 00:24:46,680 --> 00:24:51,119 Speaker 2: for the most in seven months. Well that's with the 431 00:24:51,160 --> 00:24:55,160 Speaker 2: backlogs shrinking, that's not so bad. I mean, that's good 432 00:24:55,160 --> 00:24:57,639 Speaker 2: on the one hand, because if you've got a bunch 433 00:24:57,640 --> 00:25:00,800 Speaker 2: of orders that you're not getting to, then those people 434 00:25:00,920 --> 00:25:03,800 Speaker 2: get a little frustrated because they're not getting what they're wanting, 435 00:25:03,960 --> 00:25:07,800 Speaker 2: getting what they were requesting, and if they're not getting that, 436 00:25:08,080 --> 00:25:10,760 Speaker 2: it's possible that they may choose to go someplace else 437 00:25:10,800 --> 00:25:13,360 Speaker 2: and you wind up losing that customer. So if you're 438 00:25:13,400 --> 00:25:15,919 Speaker 2: working off the backlogs and getting those down to the 439 00:25:15,920 --> 00:25:18,719 Speaker 2: point where they're more manageable. Then you don't have as 440 00:25:18,800 --> 00:25:21,720 Speaker 2: much in the pipeline. The problem is to get down 441 00:25:21,760 --> 00:25:24,600 Speaker 2: too low, then you don't have anything coming in that pipeline, 442 00:25:24,680 --> 00:25:27,840 Speaker 2: so that pipeline draws down, you wind up with zero, 443 00:25:27,920 --> 00:25:29,640 Speaker 2: and then you wind up having the lay people off 444 00:25:29,680 --> 00:25:33,560 Speaker 2: because you just don't have the business. Susan Spence, chair 445 00:25:33,680 --> 00:25:38,240 Speaker 2: of the ISM Manufacturing Business Survey Committee, said uncertainly about 446 00:25:38,320 --> 00:25:41,720 Speaker 2: tariffs is driving the pullback because customers are holding off 447 00:25:41,720 --> 00:25:44,520 Speaker 2: on orders until there's more clarity as to the cost 448 00:25:44,880 --> 00:25:47,399 Speaker 2: on the cost of goods. Well, you know, if the 449 00:25:47,440 --> 00:25:50,760 Speaker 2: demand is there, if your customer base is looking for 450 00:25:50,800 --> 00:25:54,520 Speaker 2: those items, and if they need those items, then based 451 00:25:54,600 --> 00:25:57,480 Speaker 2: on the law of supply and demand, if the prices 452 00:25:57,560 --> 00:26:00,200 Speaker 2: go up a little bit, they're still going to pay 453 00:26:00,240 --> 00:26:03,880 Speaker 2: for that. But again, if the customers are holding off 454 00:26:03,960 --> 00:26:07,119 Speaker 2: because they're expecting to see interest rates go down so 455 00:26:07,160 --> 00:26:10,520 Speaker 2: that the cost of them buying those goods come down, 456 00:26:10,680 --> 00:26:13,639 Speaker 2: that's a whole nother story and something that not a 457 00:26:13,640 --> 00:26:16,119 Speaker 2: lot of people. People are just not talking about it 458 00:26:16,160 --> 00:26:18,480 Speaker 2: as much as I would like them to talk about it, 459 00:26:18,520 --> 00:26:21,560 Speaker 2: because every time we talk about every time I pick 460 00:26:21,640 --> 00:26:26,800 Speaker 2: up the news on oil prices. They'll talk about, you know, 461 00:26:26,880 --> 00:26:28,960 Speaker 2: leading up to the Federal Reserve, as to whether or 462 00:26:29,000 --> 00:26:31,080 Speaker 2: not they're going to cut interest rates. They'll say that, well, 463 00:26:31,080 --> 00:26:35,840 Speaker 2: with interest rates high, that lower interest rates spurs the economy, 464 00:26:36,080 --> 00:26:40,359 Speaker 2: builds the economy, and that thus makes more demand for oil, 465 00:26:40,520 --> 00:26:42,880 Speaker 2: and that would boost the price of oil because against 466 00:26:43,200 --> 00:26:47,840 Speaker 2: are more demand based on the supply. But they recognize 467 00:26:47,960 --> 00:26:50,120 Speaker 2: and then and all these other stories that I read, 468 00:26:50,320 --> 00:26:54,840 Speaker 2: they always refer to lower interest rate increases business activity, 469 00:26:55,000 --> 00:26:57,000 Speaker 2: puts more money in the pockets of the people that 470 00:26:57,040 --> 00:26:59,800 Speaker 2: are looking to buy these things. They have more disposable 471 00:26:59,880 --> 00:27:03,120 Speaker 2: end come to spend, and therefore they spend more, they 472 00:27:03,160 --> 00:27:06,840 Speaker 2: buy more, which then boosts the economy. So again, the 473 00:27:06,880 --> 00:27:10,520 Speaker 2: interest rates are a factor here, and you know, only 474 00:27:10,640 --> 00:27:14,400 Speaker 2: rarely are people focusing on it except here on america'struck 475 00:27:14,440 --> 00:27:17,520 Speaker 2: a network looking at some of the other things in here. 476 00:27:17,560 --> 00:27:21,760 Speaker 2: The soft demand conditions help explain a deeper contraction in 477 00:27:21,880 --> 00:27:25,840 Speaker 2: factory employment. Last month, Roughly twenty five percent of respondents 478 00:27:26,160 --> 00:27:32,040 Speaker 2: reported lower employment, the largest share since mid twenty twenty. Meanwhile, 479 00:27:32,119 --> 00:27:36,280 Speaker 2: the group's production index rebounded in November, expanding at the 480 00:27:36,359 --> 00:27:40,600 Speaker 2: fastest clip in four months. Despite the advanced output this 481 00:27:40,680 --> 00:27:46,520 Speaker 2: year has been uneven. Again the term uneven. It hasn't 482 00:27:46,560 --> 00:27:53,000 Speaker 2: been that the numbers that the fastest clip, that the 483 00:27:53,040 --> 00:27:57,560 Speaker 2: production numbers have fallen dramatically. It's that they have been 484 00:27:57,760 --> 00:28:00,600 Speaker 2: uneven throughout the year. They're not saying that they're down, 485 00:28:00,640 --> 00:28:02,679 Speaker 2: they're not saying that they're up. They're not saying that 486 00:28:02,720 --> 00:28:05,439 Speaker 2: there's been these large peaks or large valley It's just 487 00:28:05,520 --> 00:28:10,000 Speaker 2: been uneven during the year, which bottom line, isn't all 488 00:28:10,040 --> 00:28:13,520 Speaker 2: that bad given the dire predictions that we're receiving back 489 00:28:13,560 --> 00:28:16,800 Speaker 2: on Independence Day, a liberation day, i should say, back 490 00:28:16,800 --> 00:28:21,080 Speaker 2: in April, when these terraffs were put into place. Eleven 491 00:28:21,119 --> 00:28:26,280 Speaker 2: manufacturing industry contracted in November, led by apparel, wood and 492 00:28:26,359 --> 00:28:31,880 Speaker 2: paper products, and textiles. Four industries, including computer and electronic products, 493 00:28:31,880 --> 00:28:35,920 Speaker 2: reported growth, the fewest in a year. Survey also showed 494 00:28:35,920 --> 00:28:40,360 Speaker 2: the supplier delivery times of materials for manufacturers quickened for 495 00:28:40,440 --> 00:28:45,480 Speaker 2: the first time in four months. So the ability to 496 00:28:45,600 --> 00:28:49,040 Speaker 2: get the goods to manufacture the raw materials in has 497 00:28:49,120 --> 00:28:52,120 Speaker 2: picked up considerably, so that end of the supply chain 498 00:28:52,400 --> 00:28:56,600 Speaker 2: has improved. If the activity getting that in there has 499 00:28:56,680 --> 00:29:00,600 Speaker 2: been building up and is available, then you not having 500 00:29:00,640 --> 00:29:05,240 Speaker 2: to pay higher prices because that truck or whatever delivering 501 00:29:05,280 --> 00:29:09,480 Speaker 2: those goods isn't busy someplace else. So if you're having 502 00:29:09,480 --> 00:29:12,960 Speaker 2: the opportunity to get those goods in the door, that's 503 00:29:12,960 --> 00:29:13,520 Speaker 2: a good thing. 504 00:29:13,800 --> 00:29:14,880 Speaker 3: Producers and customers. 505 00:29:14,920 --> 00:29:18,760 Speaker 2: Inventories continue to shrink, although the slower paces than a 506 00:29:18,840 --> 00:29:23,600 Speaker 2: month early, so people will have these inventories, and generally 507 00:29:23,600 --> 00:29:25,920 Speaker 2: what you do is you have enough inventory to get 508 00:29:25,960 --> 00:29:28,920 Speaker 2: you through or you know, they just in time ordering, 509 00:29:29,040 --> 00:29:31,920 Speaker 2: which has been very popular over the years, is that 510 00:29:32,320 --> 00:29:35,080 Speaker 2: you have only the amount of inventory on hand that 511 00:29:35,120 --> 00:29:38,280 Speaker 2: you need in order to conduct sales, and so that 512 00:29:39,080 --> 00:29:41,680 Speaker 2: if the timing is right, when the last item comes 513 00:29:41,760 --> 00:29:44,040 Speaker 2: off the shelf, the next item is right behind it 514 00:29:44,120 --> 00:29:47,200 Speaker 2: getting loaded onto the shelf, and so you keep that 515 00:29:47,240 --> 00:29:49,840 Speaker 2: supply chain going. And then what we experienced during the 516 00:29:49,920 --> 00:29:53,800 Speaker 2: pandemic and there shortly after, because you had this interruption 517 00:29:54,280 --> 00:29:57,320 Speaker 2: and because you had a break there, you had some 518 00:29:57,400 --> 00:30:00,000 Speaker 2: of the shelves that were empty. But then gearing up 519 00:30:00,080 --> 00:30:03,680 Speaker 2: and then restocking those shells became an issue. And also 520 00:30:04,000 --> 00:30:07,680 Speaker 2: because of people being available to stock those shelves, people 521 00:30:07,720 --> 00:30:12,160 Speaker 2: being able to transport those goods, all of that stuff 522 00:30:12,280 --> 00:30:15,400 Speaker 2: was backed up, getting people back into the workforce. People 523 00:30:15,440 --> 00:30:18,960 Speaker 2: were being available to come back to work. Companies hiring, 524 00:30:19,840 --> 00:30:21,640 Speaker 2: whether or not they were hiring back to the same 525 00:30:21,720 --> 00:30:24,160 Speaker 2: number of employees, trying to take a look at what 526 00:30:24,200 --> 00:30:27,240 Speaker 2: their orders were, to see what their business was and 527 00:30:27,320 --> 00:30:30,360 Speaker 2: adjust it accordingly, because you don't want to bring everybody 528 00:30:30,400 --> 00:30:32,840 Speaker 2: back at one time. You had to layer that in 529 00:30:33,240 --> 00:30:37,080 Speaker 2: otherwise you would have your employee costs way high and 530 00:30:37,120 --> 00:30:39,880 Speaker 2: you don't have a whole lot at revenue. And on 531 00:30:39,960 --> 00:30:42,440 Speaker 2: top of being shut down and not having any revenue 532 00:30:42,520 --> 00:30:45,840 Speaker 2: during that period of time and barely getting by now, 533 00:30:45,880 --> 00:30:48,960 Speaker 2: suddenly you throw into that more losses and that would 534 00:30:49,000 --> 00:30:53,000 Speaker 2: push a couple of companies, would push companies under into bankruptcy. 535 00:30:53,280 --> 00:30:56,440 Speaker 2: So again, with all that in mind, the fact that 536 00:30:56,880 --> 00:31:00,480 Speaker 2: people are having inventories not only at the wholesale but 537 00:31:00,600 --> 00:31:04,880 Speaker 2: at the retail level, that those inventory levels are shrinking, 538 00:31:05,400 --> 00:31:08,560 Speaker 2: that to a certain extent to a you know, at 539 00:31:08,600 --> 00:31:11,240 Speaker 2: some point is good when it gets down to the 540 00:31:11,360 --> 00:31:14,200 Speaker 2: level of where that can be replenished on a regular basis, 541 00:31:14,240 --> 00:31:17,840 Speaker 2: you don't run out of anything. But it's not they're 542 00:31:17,880 --> 00:31:20,040 Speaker 2: not talking about that being in a dangerous level at 543 00:31:20,040 --> 00:31:23,200 Speaker 2: this point. So some good news, bad news in the 544 00:31:23,280 --> 00:31:27,080 Speaker 2: report and hopefully we can see again. 545 00:31:27,280 --> 00:31:29,920 Speaker 3: I can't I can't stress enough. 546 00:31:30,040 --> 00:31:33,760 Speaker 2: I am feeling so good in terms of what's going 547 00:31:33,760 --> 00:31:36,440 Speaker 2: on as far as our economy is concerned. I see 548 00:31:36,440 --> 00:31:38,520 Speaker 2: a lot of things on the on the horizon that 549 00:31:38,560 --> 00:31:41,760 Speaker 2: are looking very good. The problem is is that we 550 00:31:42,040 --> 00:31:45,959 Speaker 2: just don't have the Federal Reserve on board helping along 551 00:31:46,000 --> 00:31:48,920 Speaker 2: the line. And it doesn't help that the spoon fed 552 00:31:48,960 --> 00:31:53,320 Speaker 2: regurgitators in the mainstream media every opportunity they have, they 553 00:31:53,320 --> 00:31:56,040 Speaker 2: will talk down the economy. They will talk down the 554 00:31:56,080 --> 00:32:00,360 Speaker 2: economic policies of this president, even though they know what 555 00:32:00,400 --> 00:32:03,280 Speaker 2: the track record was. They knew what the track record 556 00:32:03,400 --> 00:32:07,360 Speaker 2: was back in twenty seventeen when he took office, what 557 00:32:07,520 --> 00:32:12,000 Speaker 2: the economy was humming along in twenty twenty, and the 558 00:32:12,120 --> 00:32:15,600 Speaker 2: disaster that we had during the Biden administration. You would 559 00:32:15,680 --> 00:32:19,680 Speaker 2: think that for the basis of their customers and because 560 00:32:19,800 --> 00:32:23,400 Speaker 2: they concern about the American public in general, that they 561 00:32:23,440 --> 00:32:27,520 Speaker 2: would be rooting for the economy to be strong. But again, 562 00:32:27,760 --> 00:32:30,000 Speaker 2: you'd have to have a group of people that actually 563 00:32:30,360 --> 00:32:33,440 Speaker 2: liked this country. I'm Kevin Gordon, America's truck a Network 564 00:32:33,520 --> 00:32:36,400 Speaker 2: seven hundred w from the spoon Fed regurgitators. In the 565 00:32:36,400 --> 00:32:41,239 Speaker 2: mainstream media, we hear about all the dire predictions and 566 00:32:41,880 --> 00:32:44,760 Speaker 2: the unrealistic predictions that they make, even though we have 567 00:32:45,240 --> 00:32:50,960 Speaker 2: kept seeing you unexpectedly low employment, unemployment unemployment claims, we've 568 00:32:50,960 --> 00:32:56,080 Speaker 2: seen unexpected job increases, we've seen unexpected retail sales, we've 569 00:32:56,080 --> 00:33:00,320 Speaker 2: seen unexpected generally on the good side, and yet we 570 00:33:00,400 --> 00:33:04,080 Speaker 2: don't hear. All we hear from the spoon feeder regurgitators 571 00:33:04,480 --> 00:33:08,280 Speaker 2: is bad news. They keep talking about how the trade 572 00:33:08,320 --> 00:33:11,600 Speaker 2: policies with the terriffts, that is, that is hurting the 573 00:33:11,640 --> 00:33:15,240 Speaker 2: American public, that is hurting our businesses. When you take 574 00:33:15,280 --> 00:33:17,920 Speaker 2: into consideration the purpose of the terriffs that they were 575 00:33:17,960 --> 00:33:21,640 Speaker 2: retaliatory against countries that have been taking advantage of US 576 00:33:22,080 --> 00:33:28,120 Speaker 2: dumping their cheaper goods into our economy because they either 577 00:33:28,160 --> 00:33:31,960 Speaker 2: subsidize those or there are lower terraffs on their products 578 00:33:31,960 --> 00:33:35,120 Speaker 2: coming in here, and there are barriers to our products 579 00:33:35,120 --> 00:33:37,800 Speaker 2: going into their countries, so that they have the best 580 00:33:37,800 --> 00:33:41,200 Speaker 2: of both worlds. They have cheaper products coming into this country, 581 00:33:41,480 --> 00:33:45,440 Speaker 2: which is better competitive with our goods, then they are 582 00:33:45,480 --> 00:33:49,680 Speaker 2: blocking their entry of our goods into their country. So 583 00:33:49,720 --> 00:33:53,200 Speaker 2: all they have is what's produced by their manufacturers, so 584 00:33:53,240 --> 00:33:56,560 Speaker 2: there are a tremendous advantage. Trump tried to lower that, 585 00:33:57,320 --> 00:33:59,960 Speaker 2: lower that playing field and make sure that we had 586 00:34:00,080 --> 00:34:04,160 Speaker 2: fair trade, not necessarily free trade. And what is happening 587 00:34:04,320 --> 00:34:07,520 Speaker 2: is that you know, any of these countries that started 588 00:34:07,560 --> 00:34:11,360 Speaker 2: talking about having economic problems or that it was affecting 589 00:34:11,400 --> 00:34:15,160 Speaker 2: their economy because of the tariffs, it's a very simple fix. 590 00:34:15,560 --> 00:34:20,160 Speaker 2: Come to negotiating table, Negotiate with the president, negotiate with 591 00:34:20,200 --> 00:34:23,640 Speaker 2: his team, get the prices down, get the tariffs down 592 00:34:23,800 --> 00:34:27,000 Speaker 2: so that we have a better flow of goods and 593 00:34:27,080 --> 00:34:32,000 Speaker 2: so that there's more competition out there, and that your 594 00:34:32,160 --> 00:34:36,160 Speaker 2: people are not standing by the sidelines not working because 595 00:34:36,400 --> 00:34:38,040 Speaker 2: the tariffs coming into the United States. 596 00:34:38,760 --> 00:34:40,040 Speaker 3: You are in control of that. 597 00:34:40,520 --> 00:34:43,000 Speaker 2: You can actually sit down at the negotiating table and 598 00:34:43,040 --> 00:34:43,720 Speaker 2: get that down. 599 00:34:44,200 --> 00:34:45,920 Speaker 3: But it's interesting to see. 600 00:34:46,080 --> 00:34:51,640 Speaker 2: I saw the story Canadian steelmaker al Goma Steel Group Inc. 601 00:34:51,960 --> 00:34:56,000 Speaker 2: Will let go one thousand employees and close its blast 602 00:34:56,120 --> 00:34:59,920 Speaker 2: furnace in northern Ontario within months as it seeks to 603 00:35:00,160 --> 00:35:05,440 Speaker 2: stem losses resulting from US teriffs. Now, if they're manufacturing 604 00:35:05,480 --> 00:35:09,600 Speaker 2: steel there, and they're manufacturing steel at a cheaper price 605 00:35:09,800 --> 00:35:14,239 Speaker 2: and bringing that into our country, which an and then 606 00:35:14,280 --> 00:35:18,160 Speaker 2: they have an unfair trade or a balance of trade 607 00:35:18,480 --> 00:35:24,000 Speaker 2: or unfair cost of their steel to our steel in 608 00:35:24,040 --> 00:35:26,759 Speaker 2: the United States, then of course they're going to have 609 00:35:26,880 --> 00:35:29,760 Speaker 2: more sales here. But if we level that playing field, 610 00:35:30,040 --> 00:35:33,600 Speaker 2: then that puts them on part with our steel manufacturers 611 00:35:33,600 --> 00:35:36,399 Speaker 2: in this country, and so people are inclined to buy 612 00:35:36,560 --> 00:35:40,080 Speaker 2: more American steel. And which has happened, and the fact 613 00:35:40,080 --> 00:35:44,359 Speaker 2: that Algoma Steel is now laying off one thousand employees 614 00:35:44,719 --> 00:35:47,920 Speaker 2: because they're not selling as much into the United States. 615 00:35:48,200 --> 00:35:50,640 Speaker 2: I mean, if you're selling something, if you're selling the 616 00:35:50,719 --> 00:35:55,640 Speaker 2: same item, the same exact item, into a particular country 617 00:35:56,080 --> 00:35:59,000 Speaker 2: and you can produce it cheaper because you're paying your 618 00:35:59,040 --> 00:36:04,720 Speaker 2: employees less us you're subsidizing those country companies and propping 619 00:36:04,800 --> 00:36:08,359 Speaker 2: them up, then their prices coming into our country are 620 00:36:08,400 --> 00:36:10,560 Speaker 2: going to be cheaper. And so if you've got the 621 00:36:10,600 --> 00:36:14,440 Speaker 2: same item, the same quality, you're going to choose the 622 00:36:14,480 --> 00:36:18,800 Speaker 2: item that's the cheapest. But now if you've now put restrictions, 623 00:36:19,000 --> 00:36:22,040 Speaker 2: and then on top of that, you know it's cheaper 624 00:36:22,080 --> 00:36:24,919 Speaker 2: coming into this country, but then our goods are being 625 00:36:24,960 --> 00:36:29,719 Speaker 2: prevented from going into their country, so they're definitely in 626 00:36:29,760 --> 00:36:32,680 Speaker 2: an unfair advantage. So if you then put up the 627 00:36:32,719 --> 00:36:35,120 Speaker 2: barriers and prevent their items coming in here or the 628 00:36:35,200 --> 00:36:38,200 Speaker 2: items that do are now on par with ours, people 629 00:36:38,239 --> 00:36:40,040 Speaker 2: are going to pick and choose which ones are going 630 00:36:40,120 --> 00:36:42,400 Speaker 2: to buy, and a lot of times don't wind up 631 00:36:42,400 --> 00:36:45,240 Speaker 2: buying whichever one is manufacturing in the United States. 632 00:36:45,920 --> 00:36:48,239 Speaker 3: But not necessarily. I mean, you have customer loyalty and 633 00:36:48,280 --> 00:36:48,600 Speaker 3: so on. 634 00:36:49,280 --> 00:36:51,920 Speaker 2: But the fact that there's been this barrier, there's not 635 00:36:52,040 --> 00:36:56,880 Speaker 2: as been as much purchasing and much orders going into Canada. 636 00:36:57,320 --> 00:37:00,400 Speaker 2: They have had to now cut back and they're looking 637 00:37:00,440 --> 00:37:03,440 Speaker 2: to lay off a thousand people. But what is interesting 638 00:37:03,480 --> 00:37:06,440 Speaker 2: when you dig deeper into the story, the company, based 639 00:37:06,520 --> 00:37:09,800 Speaker 2: in the city of Sault Saint Marie, is also shuttering 640 00:37:09,840 --> 00:37:14,840 Speaker 2: its coke making operation as it plans to transition to 641 00:37:15,000 --> 00:37:19,520 Speaker 2: making steel solely by electric arc furnace in early twenty 642 00:37:19,600 --> 00:37:23,120 Speaker 2: twenty six, a year ahead of schedule. Al Gooma said 643 00:37:23,280 --> 00:37:27,319 Speaker 2: December first in an email statement, they don't say in here, 644 00:37:27,560 --> 00:37:31,400 Speaker 2: but I'm wondering if the coke making operation, if there 645 00:37:31,400 --> 00:37:35,000 Speaker 2: are these coke fired plants, that if those are more 646 00:37:35,440 --> 00:37:40,880 Speaker 2: labor intensive as opposed to these electric plants, could that 647 00:37:41,000 --> 00:37:44,879 Speaker 2: be part of the reason that they're laying off employees. 648 00:37:45,680 --> 00:37:48,000 Speaker 2: They want to blame it on tariffs, They want to 649 00:37:48,040 --> 00:37:50,840 Speaker 2: blame it on the United States. But is it true? 650 00:37:51,239 --> 00:37:53,480 Speaker 2: And I guess we'll have to see coming in the 651 00:37:53,520 --> 00:37:55,880 Speaker 2: next few days, or at least maybe I have to 652 00:37:55,920 --> 00:37:59,040 Speaker 2: dig into it and find out for myself. Spokesperson for 653 00:37:59,120 --> 00:38:03,640 Speaker 2: the company, Devone, the Trump administration's fifty percent tariffs on 654 00:38:03,719 --> 00:38:10,560 Speaker 2: foreign steel have fundamentally altered the competitive landscape and sharply 655 00:38:10,640 --> 00:38:14,800 Speaker 2: limited our ability to access the US market. So again, 656 00:38:15,520 --> 00:38:19,839 Speaker 2: raising the barriers on par with their barriers on our 657 00:38:19,880 --> 00:38:23,680 Speaker 2: goods are leveling the playing field and they are finding 658 00:38:23,760 --> 00:38:26,000 Speaker 2: it difficult to compete. Well, you know, if you've had 659 00:38:26,040 --> 00:38:28,560 Speaker 2: an advantage all these years and now suddenly you don't 660 00:38:28,600 --> 00:38:31,279 Speaker 2: have that advantage, yes, it does make it difficult free 661 00:38:31,360 --> 00:38:35,560 Speaker 2: to compete. Algoma sales dropped thirteen percent in the third 662 00:38:35,600 --> 00:38:39,040 Speaker 2: quarter and it's reported a direct tariff expense and they 663 00:38:39,560 --> 00:38:44,480 Speaker 2: it was like eight eighty nine point seven million Canadian dollars, 664 00:38:44,520 --> 00:38:48,239 Speaker 2: saying the US steel market had become largely closed to US. 665 00:38:48,600 --> 00:38:51,440 Speaker 2: The company, which currently has about twenty five hundred employees, 666 00:38:51,840 --> 00:38:58,040 Speaker 2: was given a five hundred million Canadian subsidy in emergency 667 00:38:58,040 --> 00:39:01,520 Speaker 2: loans from the governments of Canada onto. So again they're 668 00:39:01,560 --> 00:39:05,560 Speaker 2: subsidizing their companies up there, whereas you know, our country 669 00:39:05,600 --> 00:39:09,120 Speaker 2: companies are having to compete with that. Let's see the 670 00:39:09,160 --> 00:39:13,399 Speaker 2: layoffs come into effect on March twenty third. Also in 671 00:39:13,480 --> 00:39:17,720 Speaker 2: the statement, they said transition is necessary to protect Algama's 672 00:39:17,920 --> 00:39:22,360 Speaker 2: future in the face of these extraordinary and external marketing forces, 673 00:39:22,560 --> 00:39:25,439 Speaker 2: and we will continue to advocate for competitive and fair 674 00:39:25,480 --> 00:39:29,440 Speaker 2: trading environment for Canadian steel. Well, talk to your government, 675 00:39:29,480 --> 00:39:31,640 Speaker 2: talk to the people that are in charge of negotiating 676 00:39:31,719 --> 00:39:34,200 Speaker 2: up there. Make sure that they're doing the things that 677 00:39:34,280 --> 00:39:37,440 Speaker 2: make you more competitive with what's going on as far 678 00:39:37,480 --> 00:39:39,880 Speaker 2: as the United States is concerned, and that you're not 679 00:39:40,000 --> 00:39:43,200 Speaker 2: charging less as far as teriffs, or that you're charging 680 00:39:43,200 --> 00:39:45,680 Speaker 2: more on tariffs on our goods coming in there and 681 00:39:45,719 --> 00:39:48,040 Speaker 2: not so much on your goods coming in here, so 682 00:39:48,080 --> 00:39:50,240 Speaker 2: that we are now on a more competitive basis. 683 00:39:50,280 --> 00:39:53,640 Speaker 3: So again, interesting, I. 684 00:39:53,560 --> 00:39:57,040 Speaker 2: Saw this story FedEx to slash eight hundred and fifty 685 00:39:57,040 --> 00:40:01,200 Speaker 2: six Texas jobs after a customer moves its business. Now 686 00:40:01,239 --> 00:40:05,719 Speaker 2: this isn't a well, it's a reduction of processing in 687 00:40:05,760 --> 00:40:10,960 Speaker 2: that particular location because a particular company, a particular client 688 00:40:11,160 --> 00:40:14,000 Speaker 2: has moved, So it's not something that FedEx has done 689 00:40:14,120 --> 00:40:16,520 Speaker 2: or anything that the employees have done. It's been the 690 00:40:16,560 --> 00:40:20,000 Speaker 2: company that they were that they were providing these services 691 00:40:20,040 --> 00:40:23,759 Speaker 2: for has moved. FedEx Corporation plans to cut hundreds of 692 00:40:23,840 --> 00:40:28,120 Speaker 2: jobs in Texas after a third party logistics customer opted 693 00:40:28,160 --> 00:40:30,440 Speaker 2: to move its operations to a new location in a 694 00:40:30,440 --> 00:40:35,560 Speaker 2: different company. Memphis, Tennessee based courier will discontinue operations. 695 00:40:35,000 --> 00:40:36,440 Speaker 3: At Copple, Texas. 696 00:40:36,640 --> 00:40:39,719 Speaker 2: FedEx said that it will close its facility layoff eight 697 00:40:39,800 --> 00:40:43,000 Speaker 2: hundred and fifty six workers after customers shifted its business. 698 00:40:43,400 --> 00:40:46,719 Speaker 2: Company attributed the costs of the customer's relocation decision and 699 00:40:46,840 --> 00:40:50,920 Speaker 2: noted they will occur in phases through late April, so 700 00:40:51,760 --> 00:40:55,520 Speaker 2: that going on. FedEx said some of the employees may 701 00:40:55,560 --> 00:40:58,400 Speaker 2: move into other roles or receive assistance as the firm 702 00:40:58,440 --> 00:41:02,440 Speaker 2: continues a broader restructure of its shipping operations. Now, the 703 00:41:02,480 --> 00:41:05,920 Speaker 2: interesting thing with us is the fact that a company 704 00:41:05,960 --> 00:41:10,320 Speaker 2: moved away and moved their operations and chose a different 705 00:41:10,360 --> 00:41:14,520 Speaker 2: carrier in a different location. So this isn't necessarily something 706 00:41:14,840 --> 00:41:17,279 Speaker 2: that's bad as far as FedEx is concerned, or the 707 00:41:17,320 --> 00:41:20,680 Speaker 2: products that they're doing or how they're moving things. FedEx said, 708 00:41:20,719 --> 00:41:23,560 Speaker 2: notify the employees at the site will move in advance, 709 00:41:24,120 --> 00:41:29,000 Speaker 2: and that some workers are eligible to other positions. Let 710 00:41:29,000 --> 00:41:31,560 Speaker 2: me see they talk, and again they have to throw 711 00:41:31,640 --> 00:41:34,560 Speaker 2: this in here just I guess as a dig. The 712 00:41:34,600 --> 00:41:37,000 Speaker 2: move comes towards the end of the turbulent leayer with 713 00:41:37,080 --> 00:41:40,319 Speaker 2: a logistics company which has been jolted by President Donald 714 00:41:40,360 --> 00:41:44,360 Speaker 2: Trump's trade policies and have strained key shipping lanes, especially 715 00:41:44,360 --> 00:41:48,319 Speaker 2: between US and China. Again, how can you squawk at 716 00:41:48,320 --> 00:41:52,080 Speaker 2: a country that we're basically are, that is not a 717 00:41:52,200 --> 00:41:55,520 Speaker 2: friend of the country and is an enemy of ours, 718 00:41:55,719 --> 00:41:59,000 Speaker 2: that is trying to unfairly compete with us on the 719 00:41:59,040 --> 00:42:02,319 Speaker 2: world stage, and for some of the disruptions that they're 720 00:42:02,320 --> 00:42:05,800 Speaker 2: causing around the world. I mean, are you so concerned 721 00:42:05,800 --> 00:42:09,640 Speaker 2: about your bottom line that you're willing to deal that 722 00:42:09,680 --> 00:42:12,000 Speaker 2: you care more about dealing with an enemy of the 723 00:42:12,080 --> 00:42:15,480 Speaker 2: country rather than cheering for our country to be on 724 00:42:15,520 --> 00:42:19,399 Speaker 2: a competitive basis with them. Again, the way people look 725 00:42:19,440 --> 00:42:21,640 Speaker 2: at these trade policies and the way they look at 726 00:42:21,640 --> 00:42:25,080 Speaker 2: these teriffs is just mind boggling to me. Well, folks, 727 00:42:25,600 --> 00:42:27,760 Speaker 2: does it for us? Stay tuned for Red Eye Radio 728 00:42:27,760 --> 00:42:31,000 Speaker 2: at the Top the Hour, I'm Kevin Gordon, America's Trucking 729 00:42:31,080 --> 00:42:34,440 Speaker 2: Network seven hundred WLW