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My quick lesson on how interconnnected the economy is today

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My quick lesson on how interconnnected the economy is today

Unread postby strider3700 » Tue 24 Jul 2007, 21:55:00

Well today I was told that I'll be laid off with Friday as my last day. This isn't any real surprise and I don't know if it will be permanent or temporary at this point, I'll talk with the boss tomorrow since this was announced at a group meeting. I have no real concerns other then do I start job hunting now or wait a month and see what happens.

Anyways the reason I'm posting about it was because 4 months ago I was pretty sure Peak oil would be the end of my job. I knew that it's nowhere near PO proof. After a very long chain of events a lot of things we talk about on here regularly are partially responsible for the lay off. My list of things includes, climate change, the falling us dollar and the crashing US housing market. Just how interconnected the world has become is still kind of hard to imagine.

Since I don't have total access to information just like everyone else, here's what I believe happened.

Almost all of the coastal forest companies here have been barely getting by due to the softwood duties.

Lately they've also had to compete with interior companies that are doing massive amounts of cutting to outrun the pine beetle. The beetle is doing great at eating our forests mostly because the winters haven't been as cold lately and a good long cold spell that would seriously cut them back hasn't happened. At this point huge chunks of our province is dead or dying so we're cutting it down.

At the same time as there is huge amounts of lumber being cut the US housing market has tanked. There is now a massive surplus of wood just sitting around waiting to be turned into something.

So we have a huge amount of wood and not much of a market to sell it to. This of course has slammed the price of lumber way down.

Now at the same time the US dollar is very low compared to the Canadian dollar. As a matter of fact yesterday was a 30 year high for the cdn dollar. This is causing problems for our exporters.

So the coastal forest companies have all that going against them and they are barely getting by. To compensate they have been creating more contracted jobs that are cheaper for the companies and can be stopped without big costs unlike having a work force. This screws over current employees and leads to more dangerous work conditions(contractors work up to 16 hour days just to break even on the contracts)

So the employees have finally had enough and went out on strike and are picketting at many of the major mills.

Since the mills are shut down they don't need logs coming in.

Since they don't need logs coming in we don't need to cut them down in the first place.

Since they aren't being cut down they don't need to be scaled.

Since they don't need to be scaled we don't need people to handle the scaling data

Since we don't need people to handle scaling data they don't need people to write software for those people to use.

Since we don't need people writing software we don't need people that design the software, test the software and schedule the programmers namely me.

I've never even been to one of the locations that will have picket lines up but it's cost me my job.

Anyways I just wanted to share my experience with the global workplace. I'm not overly worried about the lay off. At this point I'm trying to decide how quickly I start looking for other work and what it is that I'd like to do. Lots of jobs around here at the moment. Being an all doomer type of prepper I can handle a few months off without any worries. It's the multiyear slow crash that can hurt me right now.
shame on us, doomed from the start
god have mercy on our dirty little hearts
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Re: My quick lesson on how interconnnected the economy is to

Unread postby Roccland » Tue 24 Jul 2007, 22:09:26

That bites strider...unfortunately you seem to be on the front end of this storm...as time passes more and more will post a story of job loss...perhaps me in a short while.

I firmly believe that fields in energy discovery and extraction will thrive as well as food production and delivery.

Tip a few back...grab a handful of popcorn...and enjoy the show.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby Hawkcreek » Tue 24 Jul 2007, 22:12:34

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Last edited by Hawkcreek on Sun 19 Aug 2007, 22:10:18, edited 1 time in total.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby Daculling » Tue 24 Jul 2007, 22:38:33

I was laid off in 2002 and it didn't take...

I have been in constant fear of a repeat.

You may not have lost your job yet, stay cool.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby frankthetank » Tue 24 Jul 2007, 22:45:09

I think you'll manage. I rate you in the upper crust of PO intelligence on this site. Good luck.

I haven't noticed any really great lumber deals locally? I guess someone still needs to make some money (Menards/Home Depot/etc).
lawns should be outlawed.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby seldom_seen » Wed 25 Jul 2007, 00:40:04

I remember when the forest industry went butts up here in Washington.

The loggers blamed the spotted owl, but the reality is that they cut all the big old growth down (90+ percent of it). What was left was replanted monocultures of douglas fir, which you don't need a whole logging town for. You just need one guy driving an air conditioned feller buncher listening to the radio and sipping a big gulp.

Image

How about up there in BC? Is there much old growth left? Does that play a role in the downturn of the industry?

Sorry to hear about the job, but it sounds like you can move elsewhere rather easily. I would reccommend taking the time off. Try to get some sun and relaxation and exercise, and when you start interviewing again you'll be ready.

My last employer had multiple rounds of layoffs, I managed to stick around, but layoffs are stressful even if you keep your job. I pretty much go to work everyday assuming it's my last.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby strider3700 » Wed 25 Jul 2007, 01:29:56

Thanks for the support everyone.

I'm really not too worried about this layoff. Unlike the last big one back in 2001 the IT industry isn't dead and I have a fair chunk of experience under my belt now. Besides the best PO prep I ever made was picking the right wife and she can act as sugar momma for awhile if need be.

I haven't told everyone I know that I've been laid off yet mostly because I do intend to take a month off to get caught up around the house. I'm doing house reno's for the first few weeks at least but after that there is a new woodshed and chicken coup/run that I want to build before I go back to work.

I effectively have an excellent connection with another programming company here in town that has asked me before if I would like to come work there so I believe that offer still stands since I heard it again last week.

Now lets get to the other posts.
$this->bbcode_second_pass_quote('', ' ')I firmly believe that fields in energy discovery and extraction will thrive as well as food production and delivery.


As do I. That other job I mentioned has two products one is something to do with highschool year books but the other product is an inventory system for oil piping. 99% of my IT career revolves around inventory of logs, or general items both serialized and none. I figure oil pipe inventory can't be much different then logs which aren't really serialized but have differening properties that are recorded. That has me a little interested but I only hear about their year book software mostly so I don't know if they are working on the other stuff much. I should have my contact over for dinner and see what she says.

Hawkcreek - sorry I don't know anyone that touches finished product around here. Besides I'm on the island, the extra fees to ship it to the mainland on a truck would easily kill any savings you'd get.

Daculling - yep I've had those shortterm layoffs before. 1 lasted literally 5 hours. I got my ROE went home was watching tv at 10:00 when they called and asked if I could be back the next morning. Never even filed for UI. I'm only in fear for the job if the strike is long. Given a long enough bleed the company could take such a beating it could be forced to give up it's software side in which case it wouldn't want me back. Other then that it would take almost 3 years to get familiarized with the industry and our software/systems well enough to replace me. Unless my retired/sick leave ex boss comes back there is noone out there that knows this stuff like I do. The real question is do I want to wait around or is it time to look elsewhere.

Frankthetank - $this->bbcode_second_pass_quote('', 'I') think you'll manage. I rate you in the upper crust of PO intelligence on this site. Good luck.

I haven't noticed any really great lumber deals locally? I guess someone still needs to make some money (Menards/Home Depot/etc).


Thanks, I'll be just fine. Financially I've always been ultra conservative so we have a reasonable cushion if we had no income at all. The wife still works, I'll get 60% on UI for 6 months so really our life style wouldn't take a noticable hit. No new M-14 for me though. There aren't any great lumber deals because rather then sell the wood for very little profit the companies are sitting on it until they are in a position they have to sell. The natives in the charlote islands are great at this and cleaned up during the softwood issues a few years back. They cut and stockpiled and then made a killing dumping it off when the market turned. Even when the wood is selling cheap that just means that home depot makes more profit. I haven't seen them drop prices ever.

seldom_seen -$this->bbcode_second_pass_quote('', 'Y')ou just need one guy driving an air conditioned feller buncher listening to the radio and sipping a big gulp.


We don't get a lot of logging like that simply due to the terrain but it is not unheard of.
$this->bbcode_second_pass_quote('', ' ')How about up there in BC? Is there much old growth left? Does that play a role in the downturn of the industry?
old growth? whats that? ;) all kidding aside almost everything getting cut here is second growth these days. most of it's from 50 -80 years old and they are buzzing it down. if this economy had hit 20 years ago we'd be screwed because the old growth was mostly gone and the second growth was too small to be worth anything. The companies are currently stripping everything and then selling all of their private lands. Basically means that they have no plans of ever doing a third cut around here.

I did go to a scaling site once just to see the process and while I was there a truck rolled in with I kid you not 1 tree on it. Everyone was laughing about how many laws the guy had to have broke to drive it down there because it was way overweight. It was cedar and had a 14' butt on it. The scaler took a rough guess and said it was probably a $20,000 log. that scale site only dealt in cedar and they paid a premium for the really nice stuff. Finished wood from that one log probably ran in the $50,000 range I'm sure it was amazing while still standing.

$this->bbcode_second_pass_quote('', 'M')y last employer had multiple rounds of layoffs, I managed to stick around, but layoffs are stressful even if you keep your job. I pretty much go to work everyday assuming it's my last.


I actually cleaned my desk out months ago. My first real job ever I got an unexpected layoff. We went for lunch and all was good came back and half the company was escorted to the conference room and told we where gone as of that moment. We where escorted to our desks got to grab our wallets keys and jackets, had to return our security passes and where escorted outside. a week later I got to get my final check and argue that some of the books where mine. I've been cautious ever since.
shame on us, doomed from the start
god have mercy on our dirty little hearts
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Re: My quick lesson on how interconnnected the economy is to

Unread postby PeakingAroundtheCorner » Wed 25 Jul 2007, 01:35:44

Sorry 'bout your luck, strider. I was laid off one month ago. Cost me $2800/month! Anyway, I believe your assessment is a dead-ringer example of the post-Peak slide, before the cliff. We will hear and see it many more times until civilization grinds to a halt...in my lifetime. And I'm 42.
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Re: My quick lesson on how interconnnected the economy is to

Unread postby I_Like_Plants » Wed 25 Jul 2007, 02:33:12

45 here and may, depending on how quickly things fall, naver work much of a "regular" job again.

I'm going out where my cost of living should be very, very low. Imagine making say $24k a year out there, done right, say I get to take home $18k, wow that's my IRS debt in one year! Pay 'um off!

Then the credit cards, which I'm studiously ignoring. Just long enough to get 'em desperate, then perhaps pay them off reallly quick too. Maybe no bankruptcy needed. Just no more $1050 apartment, $600 or more a month car, etc etc etc.

Once past debt paid off, don't accrue any more! Live cheap and rich. Tons of little acorns out there, pinion nuts, game. And green stuff. Take it easy and stay pretty much out of sight. In an environment like that, who cares if the job is working at the hardware strore explaining what a ball-peen hammer is? The pay can be almost all "profit".

Try that out on the coasts!
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