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Yellow | YRCW To Cut $100M In Job Costs

Traveler said:
It seems to me that it is set up now that the only way a person can manage to save and grow money is to invest it in themarket. With interest rates being what they are it really is'nt that profitable to simply put your money in a savings account or even in the bond market because the returns are so poor. So in order to make any respectable gains you have to put your money in the highly volatile stock market and hope you don't lose your shirt.
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Traveler :1036316054:

You are correct that you will have more net gains investing in the growth of companies by having an equity stake in their future growth than you would make by lending them your money in fixed income vehicles.
You always need to look at the taxes and inflation that eat into any gains.
So if you have a bond fund yielding 5% and inflation is 2+% and you are in the 25% tax bracket (rich folks are in the 35% bracket) you are lucky to net a 2% gain. With the devaluation of the dollar you may even be losing buying power later on.
If on the other hand you can invest tax differed like in a 401K plan or a Roth IRA your money will grow that much quicker if you can average a 10% return or better.
Today it is not good enough to just invest in the Fortune 500 companies like you would with an S&P 500 fund or a Total Stock Market Fund, but you also have to have some of your money invested overseas to protect yourself from the decline of the US dollar.
Plus International Stock Funds have been seeing some very handsome returns the last few years. Some over 30%. You only have to look at the growth in China and India to see that many International companies are seeing some spectacular growth.
We'll just be flipping burgers and counting our money.

:smilie_132:
 
Friend of the frog said:
Manufacturing is only one factor for our economic growth. We still excel with information technology and medical fields. So our economy can still be strong even though our trucks may not be as full.

But to call this a booming economy is way off. It is soft at best, but we have not fallen into a recession just yet. I remember the late 80's when we where in the middle of the last recession and I was working for an electronics company and business was just terrible.

If you look into your local Best Buy, you will see tons of HDTV, I Phones and lap top computers still flying off the shelves.


Now when the bubble bursts with the sub prime mortgage fiasco in the 4th quarter and 1st quarter next year....its a whole different story
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Friend of the frog :1036316054:

Very good comments.
Our exports are helping to offset any losses in the auto industry and the sub prime melt down.
That is why more than 50 of our top Fortune 500 companies are making gains with their overseas revenue.
A la Microsoft, Apple, to name a few.

:smilie_132:
 
Yes but River you also have to look at orders for hard durable goods and those have been down for the last couple of years and continue to fall as more manufacturing jobs move off shore. This Hard durable goods are the bread and butter of the LTL and quite possibly the entire trucking industry. Orders for domestic products keep dropping and the freight get spread thinner and thinner. Couple that with the increase in the cost per mile to ship products and it's not hard to see why we are where we are. We have all of these co. competing for the same freight and they cannot afford to cut the rate to get the business. Our country produces next to nothing on it's own any more and we are now starting to reap the benefits of the policies that have let us to this end.
 
Traveler said:
Yes but River you also have to look at orders for hard durable goods and those have been down for the last couple of years and continue to fall as more manufacturing jobs move off shore. This Hard durable goods are the bread and butter of the LTL and quite possibly the entire trucking industry. Orders for domestic products keep dropping and the freight get spread thinner and thinner. Couple that with the increase in the cost per mile to ship products and it's not hard to see why we are where we are. We have all of these co. competing for the same freight and they cannot afford to cut the rate to get the business. Our country produces next to nothing on it's own any more and we are now starting to reap the benefits of the policies that have let us to this end.
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Traveler :1036316054:

You have spelled out the dilemma that we face just perfectly.
The harder it is for companies to make a product at a profit the more companies you will see trying to move their operations overseas or go out of business.
Too bad that some politicians think that most companies should just bend over and act as non-profits.
Even Yellow is going to China to look for growth.

:smilie_132:
 
You are spot on there River Yellow opened operation in China About a year ago But as far as I can see there hasn't been much of an increase in business here in the U.S. because of it. We aren't getting the freight and I don't know who is but it hasn't seemed to be helping here.
 
Traveler said:
You are spot on there River Yellow opened operation in China About a year ago But as far as I can see there hasn't been much of an increase in business here in the U.S. because of it. We aren't getting the freight and I don't know who is but it hasn't seemed to be helping here.
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Traveler :1036316054:

As far as the Yellow China operation I only know what they have made public so far.
The idea was to improve the trucking operation in China that is still in the stone age. Not very many big trucking operations and Yellow probably wants to help with logistics.
So instead of filling one container in a factory with products to different destinations in the US, they want to do the breakbulk work in China and fill one container for each US city.
So if that container is destined for Chicago then it could ride the boat over from China and then the rail to Chicago. The only one gaining work would be the city driver in Chicago. That is if they don't decide to use a cheapo local cartage outfit to make the last mile delivery.

:smilie_132:
 
Maytag in Milan Tn is closing within the next 3 months. This is a parts dist. center. Both Yellow and Holland. Small town losing a lot of needed jobs. GRIZZ
 
Let me try that again. Maytag in Milan TN. is closing within the next 3 months. Both Yellow and Holland haul the majority of their frt. Small town losing a lot of needed jobs.GRIZZ
 
Grizz said:
Let me try that again. Maytag in Milan TN. is closing within the next 3 months. Both Yellow and Holland haul the majority of their frt. Small town losing a lot of needed jobs.GRIZZ
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Grizz :1036316054:

Sorry to hear about the Maytag factory closing. But I thought that Whirpool bought out Maytag a couple of years ago and maybe they are consolidating their manufacturing and moving the Maytag work over to the Whirpool factories.

:smilie_132:
 
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