Private Equity Goes After The Plumbers

In a top-of-the-fold, front page exposure on Oct. 14, the WSJ highlights what they believe to be a significant change in the US economic picture, private equity firms buying their way into the mechanical service and construction industries. The article fails to mention that the same occurred in a slightly different guise twenty-five years ago. In 2000 US Filter bought a number of western US mechanical contractors. They were following the lead of other consolidators who anticipated a gold rush in infrastructure development, particularly in the growing computer hardware field. This trend, interrupted by the twists and turns of the national economy has continued to this day.

The real question, if there is one, is whom this phenomenon benefits and how much? No doubt some players see that the replacement of obsolete boilers and the introduction of supposedly more efficient heat pumps to take advantage of government subsidies related to the fight against climate change are an opportunity not to be ignored. Simply taking over the family businesses that have been the focus of mechanical service until now probably isn't the ultimate aim. 

The mechanical trades are a tough business. Heavily unionized in the most lucrative areas, they require management with sharp pencils for successful bidding and experienced work crews with highly developed skills. As in many other businesses, the success of the private equity buyers will be contingent on the workers in the field more than the ownership.  

   

A New Executive Vice President For Finance And Operations At The University Of Minnesota

Gregg Goldman

 

Following approval by the Board of Regents today Gregg Goldman will be taking the financial reins of the University of Minnesota on November 11, replacing interim Senior VP Julie Tonneson who replaced Myron Franz on March 1, 2024.

There's been scant information on Goldman's career up to this point. Goldman's age hasn't been mentioned. He has made brief stops at UCLA and Hillspire LLC, the entity that keeps track of Google co-founder Eric Schmidt and wife Wendy's philanthropy and other financial interests to the tune of $20 billion. 

Where Goldman's CV becomes interesting is his tenure prior to UCLA, at the University of Arizona. Tony De Francesco also went on to UCLA. The situation in Arizona  has led to a $10 million law suit. There's a possibility that Mr. De Francesco could eventually have a position in Gopherville as well.

The romance of Mr. Goldman is more interesting yet:

 

Illegal Photography

 

 FILE - This photo shows an aerial view of Camp Grayling Joint Maneuver Training Center in Grayling, Mich., July 19, 2014. (AP Photo/John L. Russell, File)

In August of 2023 five Chinese students from the University of Michigan were discovered sneaking around after dark in the woods near Camp Grayling, Michigan, a national guard training site in the center of north central Michigan at the junction of Interstate Highway 75, US Rte. 127, M-72 and M-93. The students were not arrested but federal authorities have since kept tabs on them, discovering that they may have misled investigators by claiming to have made the trip from Ann Arbor to see shooting stars and later deleted photos of military equipment from their smart phones.

US authorities don't know the location of the five but intend to arrest them if possible.

A further consideration brought by the incident is that there is presently a plan to construct a battery plant only 88 miles from the base involving the presence of an entity with ties to the CCP. Michigan congressman Joe Moolenar said: 

 "This case shows once again that CCP espionage can happen anywhere in America and we must be vigilant. The CCP obviously has an interest in Camp Grayling and this is further evidence it would be a mistake for Michigan leaders to allow Gotion to build in our state. State funding for Gotion’s plan to bring Chinese nationals to Mecosta County is an open invitation for further spying on Camp Grayling.

For national security reasons, Governor Whitmer and the legislature must revoke state funding for Gotion immediately,” the Republican Congressman stated, linking the charges against the students to the battery plant.

The purpose of taking photos at night of a national guard camp in Michigan hasn't been speculated upon by federal authorities. Anyone else could come up with a few possibilities. First of all, is it illegal for anyone to take photos of Camp Grayling or just students from foreign countries? Are foreign students advised upon arrival in the land of the free and home of the brave that taking photos involving the military is illegal? And after the espionage mission is completed what will the spies, and their masters, do with the photos? Could they be useful in planning an attack on north central Michigan? Or could a midnight photo of Camp Grayling shed light on US National Guard training techniques that the godless Commies can adopt for their own evil purposes? Exactly how close can a Chinese be allowed to approach a US missile, howitzer, L-ATV or even enlisted infantryman? Or, did the college students concoct a plan to sell photos of the installation to the Chinese military itself?

Cigarettes Were Banned

                Thursday, June 26, 1947

 

 We are not cheerful. The American government banned the import of cigarettes. And that to a country where now for years Chesterfields are used as the standard currency.

"What do you think is the most effective way to combat the black market?" and American finance specialist asked me recently.

 "By giving us cigarettes," I replied.

 He looked at me disapprovingly. "Might a vanquished people be so addicted to intoxicants?" I interpreted his look. A hundred times I have asked myself the same question. Why do people who have never touched a cigarette before suddenly smoke? Why do they sell their food ration cards just to buy a pack of cigarettes on the black market at an incredible price? Why at a time when the monthly cigarette allotment is twelve cigarettes per person? That is per every male person. Women get only half as many. Why don't we draw the conclusions from this lack of supply and stop smoking altogether? Because we are unable to. Daily, if not hourly, fate presents us with new shocks. The shock of a night of bombs, the fear of being raped, the insecurity of life in Berlin, the whole misery of our life in the ruins---all that cannot be compensated with oatmeal. Or with grits or ersatz coffee. It is the discrepancy between the intensity of our fate and drabness of our daily life that makes us addicted to cigarettes. For a few happier moments they offer escape from an unbearable reality. This is the secret that made Chesterfields into the standard currency. And as we are condemned to cope with so much more than our strength permits, they will remain a focus of our desire.

Now the importation of tobacco has been banned. What an illusion to expect that stopping the supply will stop the demand. If only the occupying powers could show a little more compassion for personal needs. What do the sated know of the hungry? Or people who throw away half-smoked butts about those who eagerly sacrifice three and a half marks for one of those butts. On the black market or wherever they can get it.

 

Battleground Berlin, Diaries 1945-1948; Ruth Andreas-Friedrich, Paragon House Publishers, New York, 1990, pgs. 176-177. 

Sorting Out The Inflation Reduction Act

The Orwellian named Whig 2022 Inflation Reduction Act is being figured out by everyone with an interest in getting a chunk of $369 billion. The  Environmental Protection Agency's National Clean Investment Fund was established by the legislation which has channeled $6.97 billion through Climate United, a non-profit NGO, that is now putting $32 million of those taxpayer dollars into a project being done by Scenic Hill Solar to power the University of Arkansas with solar energy. The EPA is giving away so much money that they must hire outside private organizations to hit the keys that move the funds from the public purse to the private sector. The more entities in the process, the more money that can be siphoned. 

When mountains of money are available opportunists look to be involved. Instead  of battling the renewable energy industry, the hydrocarbon sector has decided to join them. Executives of the major oil companies are worried that if their ally Trump wins the next election the EPA fund will be terminated and their own industries will be negatively affected. They are investing billions in direct capture CO2 and hydrogen  projects and tax credits are a resource for them. Of course the hydrocarbon corporations aren't in favor of every part of the legislation. They oppose tax credits for electric vehicles, among other things. 

Things That Are Needed During and After a Disaster

 

What Does The Longshoreman's Strike Mean?

The east coast longshoremen are now on strike. An increase in wages of 77% over six years or an hourly wage increase from $39 to $69 dollars is their target. An agreement would also entail restrictions on port automation and benefits.

Retailers admit that if not settled quickly the work stoppage will create bottlenecks in already strained supply lines that create shortages and even if resolved in the very near future will raise prices for consumers.

When government officials wanted to create or raise tariffs on imports from certain countries the impact on consumers, higher prices, was merely a buzz in the background. The idea that higher prices on foreign products and their subsequent fall in import volume might lead to smaller demand wasn't a topic of conversation. After all the ability of domestic manufacturers to fill the gap is what the tariffs are all about. 

 

porttechnology.org

 Over 50 container ships are waiting offshore of Atlantic and Gulf Coast ports. The inability to land beef imports and ship out US chicken exports will put pressure on consumers and farmers.

Saving the jobs of some US workers is more important than saving those of others. It's a good thing to restrict imports from bad people if the jobs of some Americans can be retained, a bad thing if the jobs are moving the containers full of imported stuff from ships to docks.

The income of corporate management, financial mavens, legal professionals, university administrators, professional athletes, entertainers and a host of others that don't get dirty at work but are a drag on the overall economy can't be eliminated.

A major concern of the retailing industry is the possibility that there may be a smaller number of gifts under the 2024 American Christmas tree. This wouldn't necessarily be bad for the big box stores but instead devastating for families. While the Christmas holidays were once seen as a celebration of family togetherness and religious awareness, maybe they've now become an embrace of the consumerism that makes the world  go around. The longshoremen are seen as sabotaging that development for their own benefit.

Lost in the current impasse is that the Biden/Harris regime has determined that the huge, remotely operated cranes, made in China, are a national security risk, all 200 of them, the majority of those in use in the US.