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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Jack of All Trades who wrote (125479)9/25/2001 4:21:03 PM
From: Earlie  Read Replies (1) of 436258
 
Jack:

The larger outfits are the epitome of "high fixed costs" situations. Yes, the smaller shops may be able to pick up the small job lots, but the bigger guys don't want them and for good reason.... set up times, etc. Also, the total amount of work that is available today is way down over a year ago, which puts pressure on pricing. Most of the contract guys have been forced into serious concessions lately. I don't see how this whole negative situation gets turned around until the amount of work available starts to trend up.

Finally there is far too much capacity in the industry, even before things started to cool down.

Best, Earlie
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