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By Alan Oakes

Two-by-four-ish

[rnsr, rHE ovERALL NBws for the year still sounds on a good, upwards path, .1] 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 govemment 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 govefnor 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 crazy, 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 2x4.1'm sure I wasn't the only one imagining all the new store signs advertising "1.55x3.62."

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 5Vo.It is estimated we should invest about $500 billion over the next 20 years-fat chance! 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 - starting in Sacramento.

Alan Oakes. Publisher ajoakes@aol.com www.building-products.com

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