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By Alan Oakes

Two-b!-fouy-ish

[rlnsr, rHE ovERALL News for the year still sounds on a good, upwards path, I-'while trailing most economic forecasts for new building starts. Telephone calls have shown reasonable support for the year to end on a good note, although I still hear that "we are busy three days a week, but the other two are dead."

Economic issues remain that suggest there will still be the occasional bump in the road, and that is why I sometimes shake my head at what I see happening on a state government or local judicial level. There are states that have created a real pro-business atmosphere. Utah, Wyoming, Nebraska and Virginia are high on my list, for example. Among large states, there's Texas.

On the other hand, my attention is more on California, where I reside-the world's eighth largest economy and a state with one of the highest poverty levels (about23Vo).It is often appears so anti-business it can make you want to pack your tent and move out-as, of course, many have. I saw that first-hand with a company I bought about 15 years ago, as prior ownership on a tax change bailed to Nevada overnight.

This week, I could not help note the Tesla company deciding on Nevada over California for its new battery plant, which would bring about 6,500 jobs. I cannot argue on whether or not it was worth it to California, considering the incentives that needed to be given, but as I have seen this decision before, I would expect that there were other concerns about how our state government operates and how to get things done after the initial agreements are signed. Tesla stated that Nevada was a "get things done state." Our governor stated that it would have cost the state's taxpayers too much. Of course, there are a lot fewer of us than there used to be.

I also note that in a state where government pensions are highly underfunded, the board of CaIPERS arbitrarily decided that 99 special bonuses that are paid to public employees can now be allowed for pension calculation. Understand that many of these bonuses are paid for jobs they should be doing anyway. This type of decision is absolutely uazy,but commonplace.

I feared we had reached a tipping point, upon learning that several California counties, including Marin (surprise, surprise), had gone after Lowe's for allegedly selling dimension lumber that didn't quite measure 2x4.I'm sure I wasn't the only one imagining all the new store signs advertising"l.55x3.62."

Fortunately, that seems unlikely (see story, page 13), but the fallout from relentless regulation is real. Our wonderful state (and I mean that) continues to crumble. Our infrastructure is falling apart. We were a leader creating energy and water systems, dredging harbors, building freeways. But today, instead of investing 20Vo of our budget in infrastructure, we are now down to about 57o.It is estimated we should invest about $5O0 billion over the next 20 vears-fat chancel Consequently, coupled with high taxation, we have become a target for other states to poach our companies, entrepreneurs, tech base, and skilled employees.

I am sure California is not alone, but each and every state needs to create a business environment that allows companies to grow and invest and provides less incentive to flee.

On the other hand, I could not but notice while there a few weeks back, the EEC in Europe has now banned high-powered domestic vacuum cleaners. Perhaps they can be shipped here, to help clean up some of this mess-startins in Sacramento.

Alan Oakes, Publisher aioakes@aol.com

Bpii

Building Products lligest

www. bu ild i n g-prod ucts. com

A publication of Cutler Publishing 4500 Campus Dr., Ste.480, Newport Beach, CA 92660

Publisher Alan 0akes ajoakes@aol,com

Publisher Emeritus David Cutler

Director of Editorial & Production David Koenig david@building-products.com

Contributing Editors Carla Waldemar, James Olsen

Advertising Sales Manager Chuck Casey ccasey@building-products.com

Administration Director/Secretary Marie Oakes: mfpoakes@aol.com

Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

Ghuck Casey

Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com

Alan Oakes www. bui lding-products.com

Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com.

CLASSIFIED MARKETPLACE

David Koenig

Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly

Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S,A.: One year (12 issues), $24 Two years, $39 Three years, $54 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $49 Other countries, $65 Air rates also available.

SINGLE COPIES $4 + shipping

BACK TSSUES $5 + shipping

BUILDING PR0DUCTS DIGEST is oublished monthly al 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872, (949) 852-1990, Fax 949-852-0231, www.buildingproducts.com, by Cutler Publishing, Inc. (a California Corporation). lt is an independently owned publication for building products retailers and wholesale distributors in 37 states East of the Rockies. Copyright@2014 by Cutler Publishing, lnc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. BPD reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials fumished to it.

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