Menards Pulls Back on Expansion Because of Obamaconomy
Well, that’s pretty much to the point.
A Menards spokesperson says the company no longer plans on adding a store in O’Fallon, Missouri because of the President’s economic policies.
“We are on schedule to open our new stores in O’Fallon, IL and St. Peters, MO this Spring, 2013. For O’Fallon, MO, I’m very sorry, but we are a family owned business and with the Obama Administration scaring the dickens out of all small businesses in the USA at present, we have decided not to risk expansion until things are more settled. Thank you for your patience and understanding.”
While there may be some legitimacy to this, we should also consider that President Obama might simply be the en vogue thing on which to blame any reversal in action. Fact is, neither you nor I likely have the facts by which to ascertain a true motive, and absent that, taking a company at its word is more an act of faith than anything.
Posted by Recess Supervisor on December 12, 2012 at 1409 hrs
Great comment from the page you linked:
I am familiar with Menards (from WI) and they have over 270 stores in the US, and their stores are larger Home Depot and Lowes. Sales in 2007 was over $8 Billion dollars, so they are no small business. Taxes are lower now than in the last 50 years, and corporations paid an effective tax rate (what they actually pay) of 11% last year, with many of the largest companies paying nothing at all or getting credits. I’m sure they require huge tax subsidies / credits from the cities they are moving into, so don’t count on local communities getting any tax revenue from them anytime soon if ever. I think the real reason they aren’t opening this store is someone realized that it would be dumb to open a store in St. Peters and O’Fallon MO, within a few minutes of each other.
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1455 hrs
Not second guessing the business decision, just echoing Rdub on the small business malarkey.
http://www.forbes.com/profile/john-menard/
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1505 hrs
Ironically, despite its latest protestation, the Eau Claire-based Menards chain is continuing to expand nationally at a prodigious pace. So it’s interesting that when, for some obscure business reason, the firm decides not to expand in one particular location, it can’t suck it up and tell local burghers the real reason why. Nope, it’s simply Obama’s fault! But all those huge profits Menards continues to rake in? Hey, nothing to do with Obama.
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1507 hrs
The fact that they can say it’s Obama’s fault and it has credibility says it all…
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1542 hrs
can’t suck it up and tell local burghers the real reason why. Nope, it’s simply Obama’s fault!
Nope, it’s Bush’s fault!
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1630 hrs
Owen, hmmmmm…...a bunch of posts just demonstrated that you are wrong on this one—this was a Menard’s decision that they blamed on Obama so they did not have to own up to a poor decision they made. Admit you are wrong.
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 1937 hrs
Yes, Owen, when a number of anonymous business geniuses show up on your combox and declare that John Menard is an idiot and a liar, who are YOU to disagree??
Please take down your post immediately. How COULD you put up such claptrap, maligning the name of the Anointed One, SCOAMF, Lord and Savior of the USA?
Posted by dad29 on December 12, 2012 at 2150 hrs
Admit you are wrong.
He’s quoting an article that had a Menard’s representative. In no way can Owen be “wrong”.
I suspect that in the next 4 years you will hear a lot of speculation and mind reading to determine the reasoning of continual business disparities. The results will never be current policy or the current administration…
Posted by .(JavaScript must be enabled to view this email address) on December 12, 2012 at 2218 hrs
It is not just Menards that is cutting back unless you have had your head buried in the sand since election day it’s common knowledge all companies are cutting back on expansion plans and capital improvement’s in general.
We had a busy year coming up but by the end of election week everyone had canceled on projects for 2013. An entire year of work wiped out in three days , I never seen anything like it.
All my years in business I have seen ups and downs, I know things get slow at the holidays , I know things get slow at every election cycle, I know election years and holiday time combined is a double whammy but I have never seen the spigot turn off so fast and so hard like what happened this November.Menards is not moving as much product as they would like out the door and the forecasts for future sales look dim.Like everyone they have a magic formula or quota to meet and if the numbers don’t jive you put on the brakes, they are also well networked with builders and suppliers they know whats coming down the pike this year that being a whole lot of nothing.
I am seeing way to many skilled trade guys sitting at home, I don’t see architectural firms with a backlog of projects on the boards in fact most are also starting to downsize.
With the fiscal cliff issues hanging out not to mention the health care scramble and retention of employees one can see why every company has the jitters, hell who would be crazy enough to commit to any type of physical expansion with so many other hurdles to get over.In my line of work it came fast and hard for others it may come slower just brace yourselves and hold on tight you all will be feeling the shock wave sometime soon.
We can sit here and point fingers all day but the fact remains a big can of whoop ass is already here and has no intention on leaving anytime soon.Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 0936 hrs
Funny they are still expanding to St Peters though so Obamas not stopping that expansion.
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1028 hrs
More funny that since they did not completely stop all expansion it’s NOT Obama’s fault.
If they can blame Obama and it sticks, it’s Obama’s fault…
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1042 hrs
In one positive sign, the number of available construction jobs jumped to 130,000, from 82,000 in September. That’s the most in more than four years.
Guess we will have to wait and see what the future holds.
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1111 hrs
“It is a far, far better thing to have a firm anchor in nonsense than to put out on the troubled sea of thought” according to JK Galbraith.
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1139 hrs
# 1 Fu if your betting the farm on the opinions and leanings of the Daily Reporter your in for a rude awakening, they cant even fill the back page anymore with used equipment ad’s, try reading between the lines not just absorbing the talking points carefully placed to grab your attention.
#2 The article seems to reference September and October, I also thought these were productive months. November is when all the real fun started.For the most part my industry is always first on the chopping block first so I was just throwing out feelers to anyone interested, I hope for everyone’s sake you can call me a liar in six months.
We have just spent a considerable amount of time and energy doing face to face sit downs with a large customer base to gauge the upcoming year and came away seeing it as very scary , very quiet, a very ugly situation.. I don’t care what you read or absorb on tv the proof is in the pudding fella.
My opinion once the holiday hoopla is out of the sludge factor the typical signage will become alot less blurred .
The Daily Reporter a product of the Dolan group your killing me fu next time just cite us Msnbc or Rolling Stone and call it a day, thanks for the laugh. I am sure you would spout off in the same manner if I linked you to Fox.
Even back in the great depression people ate, projects went forward, some business even expanded the entire world will continue to spin meaning you will always see some bright pockets. Nothing ever will come to a complete stand still, I have no motive in seeing everyone come to crawl, expansion means business to me I just am not seeing enough of it and those that did abruptly stopped any plans in the immediate days after the election.
Go argue with yourself till your blue in the face as there is not much you or I can do to change anything. Sooner or later the reality bug will get ya.
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1347 hrs
Go argue with yourself till your blue in the face as there is not much you or I can do to change anything. Sooner or later the reality bug will get ya.
Getting ahead of yourself aren’t you crusher?
Credibility of sources?
Hmmmm..let’s see, if you had to pick between an anonymous source named crusher on B&S or a news gathering group with the
focus of the Daily Reporter who would you pick?Relative to the lack of availability of used equipment. I am wondering what that says about stability relative to declines and liquidations in an industry?
Are you in the roadbuilding business?
What do you think?
My inclination is more in this direction, relative to what to expect in the future based on the past.
http://hnn.us/articles/hollowing-out-america
I believe we are in for more of a decline before we begin to level off for any significant length of time.
Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1434 hrs
I am not offering advice fu , by all means go out and spend expand to no end build to the moon it all sounds great to me.
In regards to used equipment advertising I think you took me wrong. If a paper this size cant even generate an entire page of classified advertising perhaps they have problems and have about as much credibility as a blog poster. I was not weighing used equipment as an economic factor.
No I do not build roads . I guess my entire point was business is starting to decline retract not expand Menards included , perhaps its because of a weather pattern I don’t know, hell maybe it’s global warming if thats what you want to hear, its no doubt all coincidence that it reared its ugly head right after the election. Happy ?
My main point is the monster is starting to come back and haunt us.
Better yet make a note in outlook and for kicks and giggles get back to me in lets say March ? Lets see where we stand at that point in time.
Menards sells milk and frozen pizza not because they are building materials but because they can make a few cents on every transaction something tells me these guys are quite good at figuring out the math.Posted by .(JavaScript must be enabled to view this email address) on December 13, 2012 at 1613 hrs
I wonder if this has anything to do with your particular situation here in Wisconsin crusher?
http://www.forbes.com/2009/09/23/best-states-for-business-beltway-best-states.html
Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 0754 hrs
Sorry wrong link:(
Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 0800 hrs
If your question is union vs non union I don’t see it as a factor in terms of construction spending as per the suppliers that service both this appears to be a non factor the work seems to be evenly distributed which is the common in this state. Not everyone will agree with me but both these divisions have particular areas they both excel at in terms of skilled trades. Everyone has there own niche and to be profitable you don’t wonder far from it. There has always been room for both and once your away from the two big cities its very much a non factor.
Come the new year maybe things will change one should try and be positive. What is a huge hole or slow down now even for a couple of months will eventually cause a ripple effect months down the line once backlogs are completed in many other sectors. I think expansion is the last thing on anyone’s mind right now, we see some positive signs but what is troublesome is not the fall just the sudden stop.
You figure it out fu let me know please I am all ears. Hope I covered it not quite sure what your specific question was. But hey I have time lots and lots of time lately.Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 1428 hrs
Construction in the St. Louis area is heavily union. Wisconsin has nothing comparable. I wouldn’t attempt a non union job in St. Louis. It does affect construction costs in that area.
Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 1439 hrs
Bottom line—Menards is expanding in all areas, but has cancelled one expansion in an area where they are opening another store in close proximity. Yet that is Obama’s fault??
If Obama and his policies were an issue, Menards should stop all expansion. Seems like another attempt by a Repbulican millionaire—John Menard—to BS to discredit the president.
Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 1520 hrs
Nobody need help Obama when it comes to discredit he does a great job all on his own. And John Menard is the bad guy because he started with nothing and built an empire, that dirty sob how dare he. Depending on how much you have invested and commitments made its not always be feasible to pull the plug on every development.
Obama’s fault?
Well elections do have consequences.Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 1612 hrs
Crusher, get you head out of whatever is is in and open that little mind.
Menards is expanding this year—John Menard has said so. But one expansion is called off and the company states that “and with the Obama Administration scaring the dickens out of all small businesses in the USA at present, we have decided not to risk expansion until things are more settled. Thank you for your patience and understanding.”
If it was truly an issue of Obama, then Menards would do no expansion. Typical, John Menard needs someone to blame for the bad publicity he is surely getting for cancelling the expansion.
Posted by .(JavaScript must be enabled to view this email address) on December 14, 2012 at 1905 hrs
While Menards may not be a “small business” in the literal sense of the term, the fact is that most of their customers are. And if the small businesses in a particular city they are planning on building in wont have the money to build/remodel it makes perfect sense for them to cut back.
Posted by Michael J. Cheaney on December 15, 2012 at 0642 hrs
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