(May 22, 2009) — Regarding your May 14 story on PlasticsNews.com, “Small auto suppliers seek help” — enough already. When are we going to allow the business cycle of the free market to do its job?
We are a small Tier 2 supplier. When things were good, our business philosophy was to purchase late-model used equipment, keep capital available for expansion and remain debt free. Other than our building and a small credit line, we have no debt. When the economy went south, we reduced staff, dimmed the lights, and did whatever it has taken to keep us at a break-even or small losses.
During every downturn there are opportunities that arise, and we want to be able to seize them when they appear. When we bid on jobs, we were not always the lowest bidder. We would pass on some work if the margins just were not there.
I understand that not all businesses are in trouble because of their own bad business decisions, but bailing the bad ones out or awarding them with work to keep them afloat is hurting the rest of us by keeping the prices artificially, unsustainably low. Even in our position, if the return on investment is not sufficient, then we would be better off doing something else.
Please, let's allow the free market to do its job and let the strong survive. We will all be better off.
Doug Goolsby
Putnam County Plastics
Molding Inc.
Cookeville, Tenn.