Monday, August 2, 2021

Let the Buffalo Bills pay their own bills


Sunday’s edition of the Buffalo New dropped a bombshell: The Buffalo Bills are in talks with New York and Erie County officials about a proposed new stadium and the Pegula family wants taxpayers to foot the entire bill to the tune of $1.1 billion.


While that initial ask is a reach -- stadium projects across the country have been publically-funded at 40% to 70% of their price tags – the Pegula’s know what they are doing.


By following negotiation tactics utilized by countless businessfolk through the ages, they are asking high, understanding that the back-and-forth will whittle the end result down to what they were secretly expecting all along.


They also know that given what has happened elsewhere in the country with other pro sport franchises, they can get funding and lots of it or else they are leaving money on the table and, potentially, leaving the region.


It’s unlikely that they really think the state will throw $1.1 billion their way. But, it’s not out of the question that they’d shoot for $750 million, especially since the state showed that they didn’t mind giving that to Elon Musk and his questionable Buffalo factory.


It doesn’t have to be that way. Somewhere, sometime a stand has to be made against the fleecing of taxpayers to benefit billionaires.


Buffalo needs to be that place, now.


Oh, I know Western New Yorkers love their Bills and would hate to see them leave, but it’s cultish to cater to deep-pocketed ownership that can certainly afford to make long-term investments, just so you can hold on to the belief that a professional sports team somehow defines you and your region.


Just consider these numbers: Terry Pegula’s net worth is $5.4 billion; the Bills are valued at $2.15 billion; the team’s revenue in 2019 was $413 million and, of that, $115.2 million was local revenue.


Those are massive. Regardless of their holdings and revenue streams, the Pegula’s, like all NFL owners, want to do a reverse Robin Hood, taking money from the poor and giving it to the rich.


It’s Terry and Kim Pegula’s business, let them grow it, let them assume the risk. Why should you? Why should I? Isn’t it better spent elsewhere (some would argue better not spent at all)?


Let’s suppose the negotiations work out to be $750 million.  Think of how that could be spent correcting major issues across the state. The lack of first responders in small towns and rural areas is a public health and safety crisis worse than Covid. Major roads are in significant disrepair and the temporary fixes continually done by highway departments can no longer hold. New York has 1,800 structurally-deficient bridges that need repair or replacement. Thousands of New Yorkers, rural and urban alike, still lack access to reliable high speed internet in their homes, schools, and businesses. Food deserts persist in inner cities, depriving people in need of their best health. 100 miles of lead pipes supply water to homes in Buffalo, poisoning families. Brownfields persist throughout the state as tainted legacies of a bygone era. I could go on and on.


I hate to virtue signal but it needs to be known that if my team and I can do it, their team can, too.  


Back in 2016, Confer Plastics invested in one of the biggest blow molding machines in the world. We declined $750,000 in grants to cover some of the cost of that machine, choosing instead to take out a larger loan from the bank. Our view was that as entrepreneurs it’s our obligation to take our own risks, not yours. If the investment is a good one, it will gradually pay for itself.   


Then, at the peak of the springtime Covid shutdown in 2020, we applied for a Paycheck Protection Program loan from the federal government. Once we learned that, one, we would be okay on the other side of the crisis, and, two, that the loan would instead become free money, we returned the $1.47 million. It wouldn’t have been right to take taxpayers money, especially when it is better spent by even smaller businesses for which their future remained unknown.


Such dollar amounts are chump change to billionaires, but they are huge to us as a small business. To put it into perspective, in a normal year our revenues could cover two seasons of the Bills’ contract for wide receiver Stefon Diggs.


Yet, despite the struggles of running a manufacturer -- in New York of all places! -- we’re against taking public money and we’ve made it work. If our established business can survive – financially, and just as importantly ethically and morally, too – without robbing from hardworking taxpayers, the Buffalo Bills can too. It’s called the “free market” for a reason.


Doing what’s right and just isn’t easy – and some corporatists might say it’s illogical. But, in a state that wasn’t socioeconomically healthy to begin with, there’s so much need, especially after families, small businesses, and local governments were gutted in so many ways by Covid and responses to it. There are far more who deserve that money than billionaires who want to provide the newest and prettiest playgrounds to millionaires.  


We, as a people, need to identify our priorities and stand up for them.


Football isn’t one of them.



From the 02 August 2021 Greater Niagara Newspapers and Batavia Daily News

Monday, July 26, 2021

Niagara County’s volunteers provided hope in a natural disaster


If there was one thing that Niagara County residents can take from the powerful storm that besieged the center of the county on July 20th, led to a state of emergency and travel ban, and left infrastructure, businesses, and residences crippled in its wake it is this: We are blessed to have so many people who care enough about our community that they would willingly and freely give of their time and energy to protect people and property.


In the midst of the storm and the night and day that followed, dozens of caring volunteer firefighters and EMS personnel took on the natural disaster and its miserable outcomes. After a day’s work, these tireless men and women gave up their Tuesday evening, overnight, and Wednesday morning to direct traffic, pump out basements, cut fallen trees, tend to disabled people whose crucial medical systems went powerless, and conduct rescues of individuals and families trapped in flooded cars and homes. They were at it at all hours: The storm began just after 4:00 PM Tuesday; twelve hours later, I encountered on my morning drive scores of volunteers who were still diligently pumping out cellars.


Volunteers in the affected communities got little to no rest and when they did, they were spelled by volunteers from other parts of the county unaffected by the storm. That’s how powerful their sense of brotherhood is. And, that’s how strong their sense of duty is. They are there for their community, they are there for the world.   


That evening, the police scanner was busier than I’ve ever heard it. Our county was literally in a natural disaster. But, men and women answered all the calls. And they did all this, too, while no doubt worrying about how their home or how their parents’ homes were faring. That’s some serious self-sacrifice.  


Realize, they don’t do this for pay, benefits, or glory. They give their time, free of charge, and risk their lives because they want to. They are only interested in the rewards of their efforts -- That is: safe property and healthy people.


The volunteers did everything within their power to make sure the damage of homes and workplaces was lessened, that the economy could keep going, public assets weren’t destroyed, and that nary a life was lost. Given how dramatic the floods were, the last point is especially remarkable: The so-called 100-year storm didn’t claim a single life.


That selflessness and success extends beyond that storm. Firemen, firewomen, and ambulance crews do this this daily. Like good doctors, they are on call 24 hours a day, 7 days a week. Houses never catch fire, cars never collide, and people never take ill at a “convenient” time. Those circumstances happen at any time the fates desire. And, it’s these folks who respond, speeding away from family dinner, sleep, an exciting NFL game, or their paying job to save the day. They are true super heroes, only they change into firefighting gear or EMS uniforms -- not colorful capes and masks -- and go unnamed and unrecognized.


Usually it takes a disaster that’s national in scope or coverage, like a 9/11, to make civilians appreciate our first responders. Why should it? Our volunteers shouldn’t be taken for granted because they are out there making a difference each and every day, in every neighborhood across this country.


So, if you haven’t lately, thank a volunteer for what he or she has done. Maybe he helped you during last week’s storm. Maybe she pulled you from a wrecked car. Maybe he stopped a fire from destroying your home.


If they didn’t do any of the above for you specifically, thank them anyways; it’s reassuring to know that they’re always ready at a moment’s notice to be there for you when you need them.


You can do that by donating to a local fire or ambulance company, becoming a volunteer yourself, or simply by uttering those two words they don’t hear enough – “thank you”.   


Volunteers love you.


Show them some love back.



From the 26 July 2021 Greater Niagara Newspapers and Batavia Daily News

Friday, July 2, 2021

The local labor shortage is the new norm


Look around.


“Help wanted” signs are everywhere.


At most workplaces, those signs have been in place for months and will remain there for many more. Businesses and non-profits in every community and every sector imaginable are looking for workers, lots of them.


But, there are few to be had.


The labor market has become so competitive that businesses are raising their wages dramatically or offering sign-on bonuses in hopes of attracting people. That same labor market is so undersupplied that restaurants are dropping hours and whole days, manufacturers are increasing their lead times by months, general contractors are declining new business, and farmers are letting fields and orchards go idle.


In these dire straits, the default response by employers is that the federal government has been too kind to the unemployed, that recent public assistance has become a lifestyle and not a lifeline. They are right…to a point.


When you take New York’s unemployment payout and add to it the federal $300 bonus, expanded child tax credits, recurring stimuli, and tax-free status unemployment and stimulus earnings, it’s pretty easy for a lot of people to do the math, stay at home, and ride out the pandemic’s aftermath until the well runs dry.


While these folks are (ab)using the system, the number doing so is far fewer than what the knee-jerk reaction might lead you to believe.


Anecdotally, think of how many of your workforce-ready family members, friends, and neighbors are not working. I’ve really had a hard time coming up with any in my circle. I’m sure you would, too.


Statistically, we’re accurate in such observations: In May 2019, when the national economy was doing well, the Buffalo-Niagara unemployment rate was 3.7%. In May of this year, with the economy reopening, it was 5.3%. Those numbers aren’t too far apart.


So, once the $300 sunsets in September, there won’t be as many people looking for work as the popular narrative predicts. It won’t be a flood of job seekers. It will be a trickle. We’re talking about fewer than 13,000 workers across the entire region if we want to get back to where we were in 2019. 


If this current federal government largesse isn’t the cause of the labor shortage, then what is?


It’s past and present government largess and largeness at the state level.


We are now seeing the end result of high taxes, ever-growing regulations, and stymied economic development. We’ve encouraged, by discouragement, people to leave the Empire State.


For years now, we’ve fretted about the changing population and demographics here. The population has gotten older on average. Younger people have left for greener pastures. The number of residents – and especially of working age -- has tanked.


Literally, there’s no one available to work.


Things won’t change in September.


This is the new norm.


This is the way it’s going to be for years.


On the bright side, well into the future, this availability of opportunity might be the thing that finally encourages young people – those born here and those here for college – to stay. But, we have to hope that this seemingly-sudden need isn’t temporary – the lack of workers doesn’t cause businesses to cut back on forward strategies, close, or move. Then, we’re right back to square one. 


Regardless, it’s going to take time.


Employers and policymakers have to adjust and adapt to that.


Businesses looking to get back to where they were or where they one day hope to be are going to struggle if they don’t. Plan now to do more with less, whether that’s more work for the principle and her team but less revenues through lower output or fewer hours, or, in some industries, more revenues through streamlining, automation and investment in personnel.


The State and local governments need to look for these businesses to ensure this labor crisis doesn’t crush them. That can be done in two, very immediate ways.


First off, economic development agencies must put a full stop on courting new businesses to come to New York. That may seem nonsensical, but the reality is, economic development begins at home. They need to focus on making existing businesses whole or better by preparing and providing workers to the entrepreneurs who have already staked claim to New York. They shouldn’t be courting outsiders like factories, call centers, and warehouses to come here – they each need employees by the dozens or hundreds. Where will they get them? Those firms, enabled and empowered by grants and tax breaks, will pirate employees from existing businesses already spread thin.


Secondly, officials must apply significant pressure on the federal government about getting back into resettlement. One thing that saved WNY, and especially Buffalo, from falling into the abyss over the past twenty years was the inclusion of refugees and immigrants from Asia, Africa, and the Middle East. Their influx kept our population decline much lower than it could have been and they’ve kept workplaces like mine going strong. But, over the past few years, we’ve seen very few New Americans come to WNY. President Trump had closed our borders to countries like Myanmar and President Biden has been no friend to refugees, too, because his administration seems overwhelmed by and overfocused on issues at our southern border. One border shouldn’t close all of them.  


As businesses weather this labor shortage, along with the consumers who need their goods and services and the governments who want their sales/property/labor taxes, we have to accept as a region, as a state, that it’s not temporary and that it’s deeper than $300.


This is the new norm. Plan accordingly.   



From the 05 July 2021 Greater Niagara Newspapers and Batavia Daily News