Home Insurance Increases

[John Mercier]

The inflation is too much demand on labor, and not enough customer efficiency.
I live with it every day.

We can't find employees... and the customers will not change their pattern to be more efficient. In fact, they have chosen to be less efficient.

That causes more need for labor... and as the demand on labor increases... labor inflation takes hold.

Hence why large FED interest rate increases have not even created a dent.

[Major]

Originally Posted by John Mercier

The inflation is too much demand on labor, and not enough customer efficiency.
I live with it every day.

We can't find employees... and the customers will not change their pattern to be more efficient. In fact, they have chosen to be less efficient.

That causes more need for labor... and as the demand on labor increases... labor inflation takes hold.

Hence why large FED interest rate increases have not even created a dent.

I disagree. Increases in the cost of labor is a result of high energy costs, which increased the costs of everyday goods. The high energy costs were the genesis of the inflation, not labor shortage, which we were dealing with prior to January 2020.

[John Mercier]

Originally Posted by Major

I disagree. Increases in the cost of labor is a result of high energy costs, which increased the costs of everyday goods. The high energy costs were the genesis of the inflation, not labor shortage, which we were dealing with prior to January 2020.

I paid more for gasoliine and pre-buy heating oil in the summer of 2008.
I currently make more than double the wage for roughly the same work.

I use less gasoline now than then (more efficient vehicle) and less heating oil (improvements in my home).

All the local lumber yards have been in hire mode for months...
We acquire employees from each other, and sometimes from our contractors (which unfortunately hurts the contractors).

Even our vendors in other parts of the country are experiencing the same thing... window demand is so high that what used to be a four to six week lead time is now in some cases more than twelve weeks. By raising the prices, they can afford the higher cost of acquiring labor... and we thought... slow the demand. Demand doesn't seem to be slowing...

High energy prices would show up in activities that require lots of energy being avoided... so high gasoline should show up as less vehicle travel and less boating.

We just are not seeing it happen.

As for policy, record setting net exports last year for 1.6 million barrels per day of oil and over 20 million cubic feet per day of natural gas... even coal was a net export with over 80 million short tons for the year, though not as high as in 2012.

Good investors know the numbers...
They also pay attention to productivity enhancing technology and seek out management teams that know how to use it.
Those companies lead the future because the ROI will be higher per employee.