Monopolies abound, despite deregulation
Deregulation is only a myth [contending] that if the U.S. government indicates it is going to deregulate a form of business, the result will be more competitors. Let's look at some of the industries that were deregulated.
Railroads: Green Bay, Wis., had three railroads serving the area before deregulation. Now we have one.
Banks: Wisconsin had over 625 independent banks six years ago; we now have fewer than 250. Rural Wisconsin is being raped by the interstate banks. If you as a small business (whether plastics or other types of small business) want to start up or get a loan, it is almost impossible. The large banks buy up a rural bank, and within two years all of the former key people at the bank are terminated or moved to another location. These key bank employees were probably involved in the local fund-raisers for rescue squads, church organizations, Boy Scouts and Girl Scouts, fire departments, public schools, etc. The leaders in the community with money are gone, and are replaced by entry-level personnel.
Electric deregulation in Wisconsin is in a holding pattern. A year ago there was a lot of talk about electric deregulation. Of the five electric utilities, two have started merger proceedings. That would have eliminated one immediately. Where's the competition?
As much as I do not like big government, I believe some items should be regulated. Take a look at the telephone system. How can your 80- or 90-year-old parents know whether the phone problem is inside or outside the home? At 20§ below zero will your local electrician come out to determine if the problem is in the home or outside the home?
N.E.W. Plastics Corp.
Mold makers critical to molders' success
In response to Richard Petrus' [Lewis Plastics Co. Inc.] Dec. 1, Page 8 response to my Nov. 17 letter headlined ``Good mold makers, bad businesspeople'':
I am not ``blaming'' all molders [for the business problems that arise between molders and mold makers]. I have worked with many very responsible molders and have made a lot of money with them. But some molders can be major contributors to the pressures brought to bear on mold makers. If all parties—including the customer—do their homework, communicate clearly and act responsibly, we all will have rewarding business.
Today we live in a globally competitive business environment. Molding contracts are bigger than ever, the monetary stakes can be immense. To land the big ones, salespeople find themselves in compromising positions, and cutting profit margins, tooling budgets and delivery dates to the bone are commonplace.
The mold maker, without a doubt, plays the largest part in the financial success of the molder, because he will find a way to design and build the foundation of the molders business: profitable tooling.
But as a successful mold builder and medical molder, I know when to say when.
Core Dynamics Inc.