Trailers, what a difference a year makes.

[ddbackhoe]

Speaking about finding help, Just exactly where did everyone go to create so many job vacancies? Are people just not working and back living with mom & dad or what?

Good question. I wonder the same about the unemployment numbers vs lack of help. If you arent receiving unemployment and do not get a job before the benefit runs out, what happens? Does the unemployment number only reflect the number of recipients and not the actual count?

 

[ddbackhoe]

But some people and companies that are in REAL need of replacement are getting screwed. Not everyone has the luxury of waiting for prices to come back down, IF they ever do.

What REAL need? No one screws anyone that doesnt agree to it. How many posters just here on TBN have a true need vs. desire? Rental equipment still exists to fill some gaps. If there were true needs, wouldnt people be demanding Ca. change their rules and get the ships unloaded?
I have been wanting to add another tractor to make life easier, But with the “supply chain” issues, I have curbed my desire and will focus on maintenance and repair of our aging stuff. If we have to, we can always strap a motor to the haying equipment and hitch the horses to the front. It wouldl certainly take longer, but it is an option.

 

[Hay Dude]

That’s an easy question. There’s companies that wreck and wear out equipment and have a REAL need replacement. There’s also ones that have a chance to expand and have REAL need additional equipment for big opportunities. That’s a basic part of the American dream for a business owner. Succeed and expand into new opportunities. Then theres ones in need of equipment purchases for tax write offs or they pay higher taxes.
Many companies, including mine, have proposals and offers out to customers that could come back signed. If they do and equipment is needed to fulfill those obligations, I guess for all the above, we have to pay double.
Rental is an option for some things, but like I said, if the prices never come down, then yes, we are screwed.

Lets be real, all the inflation, higher fuel prices are partially, if not mostly self imposed. We know the cargo ships could be unloaded faster with eased regulations at loading docks. We know pump prices could be lower if there wasn’t a war on domestic fossil fuel production. But now its on the doorstep of political and that’s not allowed.

 

[Hay Dude]

Good question. I wonder the same about the unemployment numbers vs lack of help. If you arent receiving unemployment and do not get a job before the benefit runs out, what happens? Does the unemployment number only reflect the number of recipients and not the actual count?

Unemployment statistics are tricky. They stop counting you as unemployed after a certain amount of time passes. I think they consider you out of the workforce and no longer looking for employment.
There’s legions of people in that category in mom & dads basements all over the country.

 

[Torvy]

Good question. I wonder the same about the unemployment numbers vs lack of help. If you arent receiving unemployment and do not get a job before the benefit runs out, what happens? Does the unemployment number only reflect the number of recipients and not the actual count?

Official unemployment numbers are tricky. People who give up looking or don't want a job are not counted. Neither are those who are underemployed...took a pt job or two. If the benefit runs out, but you are still looking, it counts. Full employment is generally considered to be an unemployment rate of 5% or less. That is because there will always be people between jobs. Unemployment comes in 3 categories...frictional, cyclical and structural. Frictional is the between jobs type. Cyclical is like it sounds... this can be due to the business cycle (recession) or seasonal jobs, structural is when the job hunter lacks the skills for the available jobs.

 

[ddbackhoe]

There’s companies that wreck equipment and need replacement. There’s also ones that have a chance to expand and need equipment for big opportunities.
Many companies, including mine, have proposals and offers out to customers that could come back signed. If they do and equipment is needed to fulfill those obligations, I guess we have to pay double.
Rental is an option for some things, but like I said, if the prices never come down, then yes, we are screwed.

P&L vs NEED. I see similar difficulties with our construction business. Rental, lease and subcontracting present the most viable options until this covid mess shakes out.

 

[ddbackhoe]

Official unemployment numbers are tricky. People who give up looking or don't want a job are not counted. Neither are those who are underemployed...took a pt job or two. If the benefit runs out, but you are still looking, it counts.

I was thinking of the ones that do not give up but quit playing the game with the unemployment office. There are some who became unemployed during the Covid panic that were not eligible to claim unemployment, yet they were indeed unemployed.

 

[Hay Dude]

I don’t think everything can be rented or subcontracted. Think more broadly. You and I may disagree a lot on things, but in construction and farming, most things could be rented.
But what about machinery that’s in a factory lost in a fire? Stuff that cant be rented?
These high prices are crippling those in need of replacements now.

 

[Midniteoyl]

Does the unemployment number only reflect the number of recipients and not the actual count?

Yes.

 

[coobie]

I have seen a 40 percent increase in trailer prices in the last year around here.

 

[JDZ735M]

More inventory but not any real bargains I'm seeing.

In the market for a landscaping trailer and just not seeing any.

 

[ddbackhoe]

I don’t think everything can be rented or subcontracted. Think more broadly. You and I may disagree a lot on things, but in construction and farming, most things could be rented.
But what about machinery that’s in a factory lost in a fire? Stuff that cant be rented?
These high prices are crippling those in need of replacements now.

more broadly, why? I prefer to focus on my little world and what affects it. fertilizer, seed, feed, lumber, brick and block are near the top, fuel and lubricants are close to the top. Even today, these things effect the P&L more than anything else. my family and I will push through, employees are a huge concern because their livelihood is also in our care.

 

[ddbackhoe]

More inventory but not any real bargains I'm seeing.

In the market for a landscaping trailer and just not seeing any.

retailers rarely put new merchandise on clearance sale.

 

[TGM5040]

The 15k 22' tilt deck trailer I bought at Kaufman trailers in Beaver City, NE 3 years ago is about $1000 ( 15-20%) more expensive now. Not so bad an increase as everything else I buy seems to be up 30-50% or more. I drove a few hours from CO to pick it up, so there was no delivery charges. It was the least expensive quality built trailer that I could find in this area. I think Kaufman mfg's in Nebraska and North Carolina.
I just saw a John Deere 570A grader that needed $5k of tires, was trashed, had oil in the coolant sell for $22K at auction. 3 years ago decent ones were selling for 47-9K. A 30+ year old 2yd loader with 20K hours and a bad transmission sold for $10K. On the other hand, if you have broken down, junk equipment to sell, times are good!

 

[dcarman]

Steel price has gone through the roof. I just finished an 18' car trailer and back in December when I checked on 1/8" diamond plate for the decking they wanted $13.39/sq ft thats $2.17/lb. At 135 sq ft thats $1800 just for the deck material. I found some 1/8" diamond plate for the fenders farther away at $9.50/sq ft. So it now has a 2 X 8 all weather wood deck which still cost $650. The fenders are formed diamond plate that can be driven on if need be. I had a lot of the materials already or it would not have paid to try and build the car trailer at the price of steel today.

 

[JBF43]

I believe that it’s a bit of both. I believe that a lot of people who were getting toward retirement took it early. The stock market helped them out.

That's what I did. My job situation was changing and could make as much/ more to stay home so I did. Just a couple years early.

 

[Jstpssng]

That's what I did. My job situation was changing and could make as much/ more to stay home so I did. Just a couple years early.

Good for you! Take it while you are young and healthy enough to enjoy it.

 

[MHarryE]

I don't really understand steel pricing. I live in the heart of USA's sole iron mining area. One of the large operation is laying off from Mid-March to at least end of August due to iron stockpiles. My dental hygienist told me she and her husband were negotiating on a house when he got word of his impending layoff due to oversupply. Companies seem to be taking advantage of the rumor mill. On the other hand, USA is like the 8th largest producer of iron ore. Most of our steel is imported so out of our control. On the other hand, scrap iron price is up and scrap can be cost effective vs new production from raw ore.

Something that might affect trailer prices is customer demand. I bought my first trailer in 2009 and added a second from the same manufacturer in 2016. The price was 50% higher but quality from this supplier, PJ Trailers, was greatly improved. The 2009 is a rust pile I only use if nothing else is available. However, the next year they made major improvements to the model I bought in 2016 that also brought a hefty price increase but I would have gladly paid if I hadn't already upgraded.