Saturday, May 14, 2016

More bad economic news

Wyoming Machinery, the large manufacturer here in town that makes all sorts of heavy stuff, including the buckets for giant mining dump trucks, is laying people off.  This follows the very large and significant Power Services doing the same according to the Tribune.

And Wyoming natural gas producer LINN Energy filed bankruptcy last week as well.

Every week you suspect that we surely must be at the bottom of these layoffs and bankruptcies, but frankly with the most recent group we are entering a new cycle of this which looks very grim.  An economy may absorb a certain number of layoffs and slowdowns, but only so many.  Now the situation in the energy industry is very much rippling, indeed rippling in a tidal wave fashion, into major service industries and this will have an impact on local communities in all sorts of ways.  Indeed, it already is.

At the same time, it might be noted, the City of Casper determined to go ahead with renovations on its facilities at the Hogadon Ski Area. The city is taking some criticism for this, but as noted earlier, government funding of construction is one of the few things keeping the Wyoming economy afloat right now.  With the number of layoffs now occurring, however, it clearly won't be able to make up the losses going on right now.  Contrasting with the city's approach, the state cutback in all areas means that t he University of Wyoming is scaling back, although it says not significantly, on its outreach program.

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