Weese's Pieces by:
 John Weese

The Perfect Storm...and it's rainbow.

    Ever since that darned movie of a few years ago, the words Perfect Storm has become the "perfect cliche", albeit over-used. The perfect Storm is certanly the way to describe what is taking place with many segments that are battling with global recession. GM was in the midst of re-tooling their entire structure when the credit crunch blindsided them. I was told by a General Motors dealer that over 62,000 car deals were squashed at the bank just in the month of October. To make matters worse, not only were they affected by that hurricane, the company was in the eye of it with their off-shoot company GMAC who decided a few years ago to jump into the mortgage business.

    The "perfect storm" for many retailers in my part of the province (Midwestern Ontario...Huron-Bruce-Perth and Wellington Counties) has included nature's show-stopper the weather.    Those who rely on foot traffic  have suffered from the perfect storm of a crappy economy and a winter that just dosen't want to end.

   While a woolly winter that's into extra innings is rough for many, it has been good business for some. The Sifto Salt Mine in Goderich can't dig the salt out and load it up fast enough. It's quite a sight to see the number of big lake freighters arrivng in harbour each day. Heavy transport trucks extend a mile-up the road that leads from the mine to the top of hill at Highway 21.

    Sifto isn't the only good news story out there. You may have to go hunting for good news it  seems, but not all is gloom and doom. Some companies, such as Nestles actually increased their profits 62% year to date. I am also hearing on the radio and seeing on the television a new trend of sorts, a concerted effort by some outlets to feature a positive business story. There's no question that the "low-baring" fruit is the bad stuff, the stock market, more layoffs, etc. and it takes a bit more digging for media outlets to discover something for us to smile about.

   If indeed the biggest enemy to quicker recovery is a lack of consumer confidence, perhaps the wallets will open up more easily if we can convince people that it's okay to come outside and play again. We know there's money "out there" and the government has tossed in some cash (though that tends to have the opposite effect on private investment) to grease the tracks and so the rest is up to us, the consumer. Buy a car, get a mortgage, take a trip and enjoy some of the many bargains now being offered. The same advice is true for business looking to expand. Today's  climate means for good picking on the acquisition front. When this recession ends, and it will (as early as 2010 say some) you can become the King of the Jungle. The rainbow to a Perfect Storm, you could say.  
    
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  contact John Weese at
  johnweese@yahoo.com