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How high can it go

Shimmy1

Senior Member
Joined
Aug 14, 2014
Messages
4,260
Location
North Dakota
Fuel up $0.89 this last week, fuel man says that when he dumps the truck on Monday, road fuel is going to be $5.75. It's been holding steady at $4.75 since March, but now it's going to get real. Friend of mine says some guys he's talking to are saying it'll be $7+ by June. What price do you all think is going to blow things up? At some point, something is going to have to give. Anyone changing any plans yet?
 

NepeanGC

Well-Known Member
Joined
Mar 18, 2017
Messages
203
Location
Ottawa, Ontario
Occupation
#dirtherder
We're already at $2.45/L here in Ottawa. That's just over 7 usd per Gal. It's insane. Monday morning we're sending out notices to clients that there's going to be a fuel surcharge. Not much we can do about it. We can't absorb that kind of spike.
 

Shimmy1

Senior Member
Joined
Aug 14, 2014
Messages
4,260
Location
North Dakota
I have to add more than $5 to come out even. For instance, I started figuring after red fuel hit $3, and on the hoe that uses around 5 gph, my scale is $5 for $3+ fuel, $10 for $4+, and $15 for $5+. I sincerely hope I don't have to use a $20 for $6.
 

KSSS

Senior Member
Joined
Feb 27, 2005
Messages
4,319
Location
Idaho
Occupation
excavation
The answer to the most important part of the question is when does it blow everything up? I certainly don't know but at some point, probably not far off, we are going to find out. The cost of doing business, is going to outpace anyone willing to do business. What makes it all even worse is it doesn't have to be like this and we all know it. At least about 70% of the Country knows it, the other 30% is too stupid to understand. I don't know how this is going to end, but we have 2.5 years of executive orders to go. I am guessing it will have to get a lot worse, before anyone changes direction, if they ever do. A lot of people are and will continue to suffer. The music is going to stop, hopefully we here have chair to sit in when it happens.
 

suladas

Senior Member
Joined
Jun 30, 2016
Messages
1,731
Location
Canada
Diesel has went back down a bit from it's peak but sitting between 1.60-1.70L however the government here took off 13 cents a liter tax to help lower it a bit. I have jumped all my hourly rates 10% from last year but I rarely do hourly work anyway. Bid prices i've increased a bit but still honoring anything quoted before that, the cost of fuel is pretty minor for most jobs. I jumped my hourly trucking 5/hr anticipating guy who does my trucking would jump rate but he hasn't said anything which really surprises me. Bin prices haven't changed either yet.

It's busy right now and i'm happy to do as much jobs coming my way as I can as they are still paying well but I don't see it lasting the summer before it really slows down. With interest rates climbing so fast I think housing is going to fall on it's face pretty quick.
 

crane operator

Senior Member
Joined
Mar 27, 2009
Messages
8,275
Location
sw missouri
I'll be a little more clear. All the cranes went up $15/ hour at the first of the year, I was just trying to get ahead of the inflation, everyone got a raise and all my parts etc. cost more.

When fuel first went up, I added the $5 fuel surcharge. So I'm actually up $20/ hour on everything since the first of the year. Which is why I'm still trying to hold back on the $10 for the fuel surcharge.

I may have to do another raise for everyone this summer.
 

Shimmy1

Senior Member
Joined
Aug 14, 2014
Messages
4,260
Location
North Dakota
Like a lot of us, obviously the price of fuel is not going to be the fiery crash, the lack of work is. We all know that infrastructure can never stop. Roads, water, and sewer all have to march on. But, the rest of it isn't required for the world to turn. I can raise rates or add surcharges or just leave things the same, but what I'm wondering is where does the general public say "I'm done"? I'm in the process of purchasing another machine, as the workload the last couple years and forecast for this year are dictating it, but if the work stops, I'll be screwed. I realize that this is nothing unique to my location, but I'm just curious if any one else is having second thoughts right now, or where they think their hard limit is.
 
Last edited:

Old Doug

Senior Member
Joined
Oct 16, 2013
Messages
4,485
Location
Mo
I think fuel will go down. Every time fuel gos up scrap iron gos up then scrap iron will drop bad fuel will go down. Its the only thing i ever saw that you could about bet on. Scrap iron dropped bad last week.
 

JD955SC

Senior Member
Joined
Mar 13, 2011
Messages
1,349
Location
The South
I’m getting the largest dollar wise raises I’ve ever gotten but the most meaningless raises in that my purchasing power for my wage is the same or more likely less than it was when I made $4/hr less.

It’s gonna all collapse at some point. I never wanted to live through a time like my grandparents did during the Great Depression but it’s not like I get a say in the matter. I’m just here for the ride.
 

AzIron

Senior Member
Joined
Jun 14, 2016
Messages
1,541
Location
Az
Went up 12 percent across the board and prices first of the year gave raises I am trying hard to hold but not looking possible

Money has slowed considerably in payment to me in the last 7 months a lot my customers are saying the same thing

This quarter is a lot flatter for us then the first so I already see it slowing down and not so much in direct demand but in ability to schedule and maintain dates we had 3 weeks in the last month we lost 30 percent of billable time do to schedule not being kept cause no one has concrete

We have stopped all growth plans at this point and are focused on taking on niche jobs and no more equipment purchases for the foreseeable future

I hate to say it but there is going to be a lot of people put out of buissness soon because they are making record revenues and lowest profit and no one can stay ahead of it
 

Truck Shop

Senior Member
Joined
Dec 7, 2015
Messages
16,556
Location
WWW.
When I was in high school a friends dad was a economics professor at CWU he explained it this way.

It's a unwritten idea/theory that a unemployment figure below 5% is not good despite common thought.
It causes people to job jump for higher wages which causes inflation. And so is a situation like we have
right now of too many not wanting to work causing wages to rise because business trying to keep employees.
He explained it can be a double edged sword. Unemployment figures that hang in the 5 to 6% range
actually keep a even keel so to speak, and having unemployment at 5% is a necessary evil.
 

673moto

Senior Member
Joined
Dec 5, 2019
Messages
319
Location
NorCal
Occupation
Slacker
I seriously doubt things can continue the way they are going.
I think we all can see the writing on the wall... but what’s to be done?

Charge ahead as usual and risk being caught ill prepared if/when things come tumbling down?

Or plan for the worst and risk missed opportunities/growth when things don’t slow/crash?

Hey, if I could accurately predict the future I’d be in a completely different position in life!
Good luck to you all... as for me I’m focused on limited growth and paying off as much debt as possible.
 

AzIron

Senior Member
Joined
Jun 14, 2016
Messages
1,541
Location
Az
The other thing to all this there has not really been a real market correction in over a decade you have an entire generation of working age folks that have not been through a recession on there own and because of that there lack of understanding to cash is king and debt is dangerous

A couple of the real young guys like 23 and under that work for me dont think prices will ever come back down and that they can have another job for more money tomorrow they are especially I'll prepared for a slow month not to mention a slow quarter
 

fastline

Senior Member
Joined
Aug 8, 2011
Messages
1,104
Location
OK
It really is sad and disgusting how only a select few politicians can make so many millions of people suffer, when it doesn't even have to be like this. One strike of a pen can HALF fuel price in a week! I have noticed things are for sale cheap, because no one is buying. They are too tied down trying to pay the bills! There is no way the economy can survive this. Next will come more "government aid" because.....shocker.....people can't pay! They print money, we see even more inflation, and the revolving door continues. I'm sure folks on here realize, it is not just about the bill at the pump! Every good sold is tied to fuel costs. Farmers everywhere are getting rocked!
 
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