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Posted

I thought some of you might find this interesting......

 

Raises in my department (engineering) are going to average less than 4% this year.  My company is in New England and engineering is a hot commodity here.  This is troubling as last year's raises were significantly better and we still had a 20% turnover rate.  My people are expecting increases on the order of 7% as that's the inflation rate.  Some interesting issues on the corporate side.

  • Corporate decided to hold prices through the past year in order to maintain market share.  The thought was that long term this was a good strategy as the lower sales margins could be mitigated with service contracts and future sales.  This as expected negatively impacted profit.
  • Purchasing parts through the supply chain was difficult as the tight supply forced us to procure from brokers at significantly higher costs.  Raw material costs were higher across the board and increased faster than expected.  Also, machine/fabrication shops are busy, so their pricing was much higher than in the past.   Combined, these price increases were much higher than the company expected.  Also, the nature of these price increases were immediate (rather than a typical phase in) and the company was unprepared to respond to them quickly.    
  • Due to supply chain issues, in December we were unable to manufacture some products.  This problem has gotten worse, and I suspect that revenue will be less than last year due to our inability to ship product. 

Not sure if other companies are seeing the same issues.  For my group the raises will be catastrophic as I can envision losing over 30% of our engineers.  We are in the late stages of a product development cycle so as you can surmise the timing couldn't be worse.

 

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Posted
10 minutes ago, Precision said:

I thought some of you might find this interesting......

 

Raises in my department (engineering) are going to average less than 4% this year.  My company is in New England and engineering is a hot commodity here.  This is troubling as last year's raises were significantly better and we still had a 20% turnover rate.  My people are expecting increases on the order of 7% as that's the inflation rate.  Some interesting issues on the corporate side.

  • Corporate decided to hold prices through the past year in order to maintain market share.  The thought was that long term this was a good strategy as the lower sales margins could be mitigated with service contracts and future sales.  This as expected negatively impacted profit.
  • Purchasing parts through the supply chain was difficult as the tight supply forced us to procure from brokers at significantly higher costs.  Raw material costs were higher across the board and increased faster than expected.  Also, machine/fabrication shops are busy, so their pricing was much higher than in the past.   Combined, these price increases were much higher than the company expected.  Also, the nature of these price increases were immediate (rather than a typical phase in) and the company was unprepared to respond to them quickly.    
  • Due to supply chain issues, in December we were unable to manufacture some products.  This problem has gotten worse, and I suspect that revenue will be less than last year due to our inability to ship product. 

Not sure if other companies are seeing the same issues.  For my group the raises will be catastrophic as I can envision losing over 30% of our engineers.  We are in the late stages of a product development cycle so as you can surmise the timing couldn't be worse.

 

This is not unusual. As an owner of a major company I can tell you that management has gotten very accustomed to low inflation and figure that a 3 or 4% raise will more than suffice for COLA. It’ll take a bit to catch up. I’d imagine most companies want to believe the Biden train wreck will eventually see the light. 

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Posted
4 minutes ago, SoCal Deek said:

This is not unusual. As an owner of a major company I can tell you that management has gotten very accustomed to low inflation and figure that a 3 or 4% raise will more than suffice for COLA. It’ll take a bit to catch up. I’d imagine most companies want to believe the Biden train wreck will eventually see the light. 

I know that's the plan but when I lose a third of my staff it will be difficult to meet our product development launch.  The engineers I lose will be the young motivated ones, I'll be stuck with the old curmudgeons and a bunch of open req's.

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Posted
4 minutes ago, Precision said:

I know that's the plan but when I lose a third of my staff it will be difficult to meet our product development launch.  The engineers I lose will be the young motivated ones, I'll be stuck with the old curmudgeons and a bunch of open req's.

No argument there. Remember that this inflationary surge has messed up everything for everyone except those that are purposely creating it. 

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Posted

Saudi Arabia says it won't take blame for oil shortages after facilities hit by Houthi rebels


Yemen's Iran-backed Houthi rebels hit several Saudi energy targets over the weekend

 

The statement went on to say, "The Kingdom stresses the importance of the international community realizing the gravity of Iran’s continued behavior of equipping the terrorist Houthi militias with the technology of the ballistic missiles, and advanced UAVs with which they target the Kingdom’s production sites of oil, gas and refined products, resulting in serious consequences for upstream and downstream sectors affecting the Kingdom’s production capability and its ability to fulfill its commitments, undermining without a doubt, the security and sustainability of energy supplies to global markets."

 

https://www.foxbusiness.com/politics/saudi-arabia-blame-oil-shortages-facilities-hit-houthi-rebels

 

Posted
50 minutes ago, BillStime said:

I guess tanking the economy like Trump did is one way to do it... vote Q!

 

 

 

In what way did Trump tank the economy?

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Posted
11 minutes ago, Chef Jim said:


No but Kraken is mythical.  Cthulhu is REAL!!   

Damn right I'm real.  

andree-wallin-1117-2.jpg?1615561283

 

Realer than blaming Trump for the Covid economy, anyway.

Posted
6 hours ago, Tenhigh said:

In what way did Trump tank the economy?

 

He didn't.  It was the fault of the unvaccinated...

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Posted
8 hours ago, ALF said:

Saudi Arabia says it won't take blame for oil shortages after facilities hit by Houthi rebels


Yemen's Iran-backed Houthi rebels hit several Saudi energy targets over the weekend

 

The statement went on to say, "The Kingdom stresses the importance of the international community realizing the gravity of Iran’s continued behavior of equipping the terrorist Houthi militias with the technology of the ballistic missiles, and advanced UAVs with which they target the Kingdom’s production sites of oil, gas and refined products, resulting in serious consequences for upstream and downstream sectors affecting the Kingdom’s production capability and its ability to fulfill its commitments, undermining without a doubt, the security and sustainability of energy supplies to global markets."

 

https://www.foxbusiness.com/politics/saudi-arabia-blame-oil-shortages-facilities-hit-houthi-rebels

 

Gee...shocker...this is only slightly less credible than "fire in the warehouse" ....

Posted
8 hours ago, Tenhigh said:

In what way did Trump tank the economy?

 

Trump "tanked the economy" in 2020 but none of 2021/2022 is on Biden.  The hypocrisy is astounding.  

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Posted
6 hours ago, TH3 said:

Gee...shocker...this is only slightly less credible than "fire in the warehouse" ....

You people are crazy. The history lesson is basic, so basic that even the most virulent liberal must at least comprehend that no matter how much they want to plug their ears and kick and scream…. You either Produce your own energy or are subjected to those whom you must buy it from. That’s it. Simple. 
 

Stop pretending the world is dominated by mr Rodgers. It’s not!
 

One guy is eviscerating  thousands of his people and thousands of another countries women and children. That’s happening… do you people think it’s just because Vlad has not heard you belt out kum bye ya yet around an organic low emission bonfire yet?

Posted

The American public should be screaming from the rooftops "NO MORE STIMULUS"  and "DON'T PAUSE THE GAS TAX" but we won't. 

 

The idea to hand out fuel cost stimulus is so completely insane you really think they are trying to destroy the US economy on purpose via wildfire inflation.  

 

Pausing the gas tax just means the tolls you'll be paying on every single bridge in your state five years from now will be 50% higher than they would have been.  States are absolutely aroused at the idea they can toll bridges and corridors in perpetuity.  

 

  

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