Economic Downturn Has Finally Arrived!!

[Marilyn]

Well, we were doing pretty good down here until very recently. My business is still good because we are shipping orders we've already sold, and should remain good for 2 more months. After that, who knows!!

I'm on the board of our local subsection of the American Society of Mechanical Engineers. We had a luncheon today which is very unusual. Normally we have evening meetings with an agenda. Our president called the meeting, as I learned today, so that we could all exchange personal e-mail addresses and have a meeting together before some of the board members move on to other jobs. It seems that the plants in the area are beginning to announce lay-offs. Our subsection president is the first casualty that I know personally. He will probably be moving to Corpus Christi, but isn't sure yet. A lady in the group is one of 12 engineers in a mechanical reliability group, 3 of the 12 are leaving, and she's afraid she may be one of them. She's, I'm pretty sure, a single mom and is from South America with teen aged children and only received her degree recently and thought she had a secure job. Others may be forced to take early retirement. One of the companies (they have 3 plants in my territory) is laying off 20% of their employees. Another company has reduced all contractors to 32 hours a week. It's getting crazy out there.

Work we were planning to sell valves for has been postponed until we don't know when. My job should be secure. My income, however, will be greatly affected. I'm salary plus commission. My salary is good, so we will be okay, but commission is a big part of my total pay, so this could be a big cut.

If one of the big 3 automakers goes under, we will all be in trouble. So many of the plants' production is the raw form of plastics, polyethylene, polypropylene and PVC. Think of all the plastics in cars. Downturn in construction is already hitting us. Think of all the PVC pipe in subdivision development, housing and commercial construction, and all the plastics coating wiring and cables for transmission of electricity.

We've been through times like this before, but this looks worse than ever before, and we are being told will probably last longer than before.

Our company has in the past had employees take an across the board 10 percent cut in pay rather than laying anyone off. Just hope if things get bad that they will do this again. We are a good team and are willing to sacrifice if necessary to keep our coworkers employed. However, we're not publicly traded anymore, and are owned by private investors, so it's a completely different set of leaders.

What a mess!!!!! We all need to be praying for our nation and our world that not too many people suffer because of this. Hate to be negative, but I'm afraid it's going to get much worse before it gets better.

[2tiredmom]

I keep praying for the good to happen. But it's not looking good anywhere right now. My husband came home last night (He works in Agriculture) and they have
cut hours at his work. We also have a Chevy Truck Plant up here that may end
up closing due to the vehicle situation. I work for county government no raises here. But the County Council has decided to do an income tax of 1 1/2 percent
of our incomes for anyone who works in our county. So I will be making less next year. I'm afraid alot of people will be going on shooting sprees before this is all over. Not a good time to be a "working middle class" person. Time to reassess our money what there is off it.

[goofywife]

I really think there is going to be a lot less "working middle class"

[Ponyup]

The company I work for has a plant in El Paso, TX. They just recently laid of 90 people out of 160; that's 56%. So far we havent' had many lay offs up here in Northern indiana, but they are coming. The company that bought us is publicly traded & there stock is down 30%, they are predicting big cuts for the 4th quarter. We've always ran 24/7 with swing shift employees. They are talking about going to 24/4 which means only 1 day & 1 night operator per machine, which means half of the operators could lose jobs. I've been working 10 hour days & most weekends because they've laid off people in my area & I have to pick up the slack. I'm not really worried about my job at this time, but I'm worried about my husbands. But we'll make it.

[Janet]

It's bad all over for most middle class and I believe you're right Michelle, there will be many moving to the lower/poorer class. I don't mind being honest with everyone, I make just a little under $11,000.00 a year. Not much I know, but if afforded my for the last seven years to be home with my son when he was ill and during school breaks and summer. I didn't want someone else raising my son, so the money took a second seat. It did help that I have great insurance. Husband had back surgery in August of 2007 and we have yet to pay a dime.

Now my husband is without a job. He has helped the neighbors with harvesting, but that's done. He goes out and job hunts or sends resumes out via computer. There just aren't many out there. He did testing yesterday for SIA (an automobile plant in Lafayette) that is supposedly hiring, but not until January. Today he has an interview with a neighboring school corporation as a custodian. Not really what he's wanting, but he has never done anything but auto body repair and well, people are keeping the money instead of fixing their cars. So hopefully this custodian job will work because it is making him despressed staying home. He has always had a job and is feeling like a failure.

He is able to draw $305 unemployment, but that is just barely enough. We have cut things drastically. Have yet to turn on the furnace...we're heating with wood in our fireplace insert. Not real comfortable, but hey...we can't afford to be right now.

I'm not complaining, but it's getting harder and harder not to.

[Tiramisu]

I've been trying to "cut back", but we're already pretty simple. Hubby and I have always worked and make decent money, putting four kids through college and saving everything we can for retirement. We have basically lost our last five years of savings in the last few months and that will take more than five years to recoup, meaning that I won't get to retire next year or maybe never.

I'm not extremely worried about my JOB or getting a pay cut, but I do worry about a couple of my kids losing theirs.

Jonathan is going to work in Iraq and Laura should be able to find a teaching job.
Jeff got back from Iraq and started a job and Emily teaches kindergarten.
Kenneth is struggling selling houses and Paula teaches kindergarten.
Roxann teaches 5th grade Math.

So, I feel OK about the "teachers", but worry for Jeff and SILs: Jonathan and Kenneth. Jeff can teach school, but other jobs pay more. He's working 3 months probation and hopes to be hired.

And, I worry about my friends here!