Iron Turns to Gold

The mood has changed in the last few weeks in the precision machining world. It became real to me as I talked to folks at the Asset Sales auction at Caire Medical in Indianapolis last Thursday.

The people of the machining world are happy again. They have a bit of visibility about orders. Washington has been neutered. Tax breaks are out there to shield income. Free cash flow is increasing. The dollar is weak and interest rates are low.

The banks may be Scroogy, but just about everything else looks good. I see people rushing to get the last of the 2009 bust bargains, and since there are very few left they are willing to push up the price of used machinery to get the expensing tax goodie if they buy before the end of the year.

I can’t back this conclusion up with statistics, but if you are slugging it out in the market everyday like I am you can feel it. The iron gets a life of its own. It morphs from cold casting to artistic sculpture and then into a gold and green life form. We are passing through one of those rare passages at the moment, and I am living in the present and loving it.

Question: Do you feel good about the new year?

Turning Iron into Gold

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One thought on “Iron Turns to Gold

  1. AvatarKelly Hagberg

    Question: Do you feel good about the new year?
    A resounding “I don’t know”. With the current regime that can’t even figure out tax rates that go into effect in 50 days how can you have any feeling but distrust. But then again feelings aren’t based on facts just feelings, so given those constraints I guess I’ll follow the yellow brick road and find my way home.

     

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