Sunday, August 14, 2011

Quote of the Day: "If you don't have the demand, you don't hire the people"

by Bill McBride on 8/14/2011 10:02:00 AM

From Alana Semuels at the LA Times: Companies are afraid to hire, even if business is improving

Though South Coast Shingle Co. is in the black for the first time in a few years, [Ross Riddle, the president] is fearful of hiring more people in what he believes is a shaky economy.

"I hear politicians say that businesses have money and they should be hiring," said Riddle ... "But if you don't have the demand, you don't hire the people."
Surveys have been showing that lack of demand has been the number one small business problem for over three years.

And it seems like a vicious cycle:
The economy won't improve until businesses hire, but many won't hire without consumer demand, which is weak because of the current state of the job market and concerns about the future.
...
Riddle is also wary. Having ridden out the housing downturn, he seems as eager to pinch pennies as a grandmother who suffered through the Great Depression. He's decided to put off buying new trucks and forklifts this year, although he usually buys one of each annually.

"We're making money now, but we still have five months left in the year," he said. "Who knows what's going to happen?"
Yesterday:
Summary for Week Ending August 12th
Schedule for Week of August 14th