The Meridian Star reported Peavey Electronics is closing one plant in Mississippi. Mr. Peavey told the newspaper it was much harder for him to compete and that the state is not "business friendly" while the Governor could not believe the business owner could think such a thing. Terri Ferguson Smith reported:
Peavey Electronics' announcement of job cuts is simply a matter of survival, according to the company's owner....
Last week, (Hartley) Peavey announced that it was closing its A Street plant, and according to information from the Mississippi Department of Employment Security, 99 people will lose their jobs.
At the time of the announcement, Peavey officials said it is part of a restructuring to remain more competitive. On Wednesday, Hartley Peavey said it was a necessary decision.
"If we are not competitive, we lose business to somebody else. That's what's happening to Meridian and that's what's happening to Peavey," he said. "We are going to do what we have to do to survive."
The U.S. has become increasingly unfriendly to business, Peavey said. High corporate taxes — and locally, higher electricity rates and other growing expenses are making it more difficult to do business in the U.S., he said. His competitors know this, Peavey said.
"I have huge competitors that build absolutely nothing in the United States," Peavey said. "Some of the biggest names in the business don't build anything here."
Most of that industry has gone to China, he said.
"You can't keep increasing taxes and increasing medical care costs. You can't do that so long but then it starts to have an effect," Peavey said. "We've increased our prices to the point to where we can't increase them any more. In order to preserve the jobs for the people I have, which is a lot more than were laid off, we had to do this."
Peavey also said Mississippi isn't business friendly.
"Our government, state and federal, has made doing business ever more difficult in the United States and in Mississippi," Peavey said.
Peavey said the carrier of the company's health insurance informed them within the last year that costs are going up 49 percent.
Another problem his company faces, he said, is finding skilled workers.
"One of our ongoing problems always has been, going way, way back is we can't find trained people," Peavey said. "I've told a succession of people here that one of the problems we have here is we can't find skilled people."
There are about 150 people at the company's headquarters in north Meridian on Hartley Peavey Drive. There are between 50 and 60 employees at the distribution center in the Sonny Montgomery Industrial Park. There are between 70 and 80 people at the international service center on old Highway 80, he said....
In 2010, the company received a $200,000 grant from the Mississippi Development Authority, which was awarded to help protect jobs threatened by overseas competition. Peavey said those funds were used to help pay for new air conditioners for Plant 3, where they had placed the recently acquired company Composite Acoustic that makes graphite fabric guitars. That plant is still in operation, he said.
"If the average person knew how much governmental intrusion we have, they would do backflips but people like me have to deal with it," Peavey said. "That's what's going on. Our country has become very business unfriendly."
Our resident business expert, the Governor, tried to show his expertise in business:
"It's remarkable to me that Hartley would say that. I think he's had great success in Mississippi and made a very good living," Bryant said. "He's done a good job of helping provide jobs in Mississippi."
Bryant said he first learned about the layoffs through the media and his administration has offered help to the company.
"I would hope that business people in Mississippi would be somewhat positive, particularly those that have been successful with business in Mississippi," Bryant said. "They work hard but there are also a lot of people who helped build Peavey Electronics. That includes the Mississippi workers and we are very proud of them as well.".... Rest of article.
Business owner versus the politician. Who ya gonna believe?
58 comments:
"...and locally, higher electricity rates and other growing expenses are making it more difficult to do business".
We tend to forget here in Jackson, where Energy does a good job, that Mississippi Power's rate increases for the now $5.6 Billion plant (for which rate payers are on the hook for almost $4 Billion), are a substantial tax on Meridian and Southeast Mississippi. The plant is not even due to open until the end of June 2015, but the starting rate increase is already in effect. Included is a $1Billion bond gifted by the Legislature for the plant that will have to be paid back unless someone finally says no. Can't blame Hartley for being pissed.
I read into this that the Governor believes Peavey should not do this just because they have been profitable in MS in the past. I guess the Governor does not understand that businesses prefer to by profitable in the future also.
"Our government, state and federal, has made doing business ever more difficult in the United States and in Mississippi," Peavey said.
Peavey said the carrier of the company's health insurance informed them within the last year that costs are going up 49 percent.
Typical. Blame "gov't" and then cite a private company's raising rates. The insurer is happy to blame the gov't for its Ever So Reluctantly Just Having to Raise Prices. The real mystery is, why otherwise intelligent people accept this without question.
Mr. Peavey is a "tell it like it is" guy. Not in it for a personality contest.
His business is more competitive than ever. He loves Meridian more than anything else. He is a hard but good man. I believe he is doing his dead level best to keep things operating in Meridian.
If the State can help KEEP jobs that is as important (if not more important) than trying to lure "beef plant" or "solar" jobs....
In other words...lets spend money to help what exists rather than chase fanciful dream jobs.
The Repubs in the House and Senate were FOOLS to pass SB2793. Another screwing of Mississippians by Haley Barbour.
@10:46 obviously you don't understand how insurance rates have been effected by the Govt mandated Obama care. Bryant has never,ever, signed a paycheck. never created one job. Bought equipment for a business. He was a cop and now an elected official. He has about as much experience as our president when it comes to business. Peavey kept a lot of jobs in Mississippi while is competitors moved over seas. He should have moved with them, but he stayed. Was it smart, probably not but he obviously has some loyalty to his home state. So if a man who started his business ina garage and built it into a world wide known product, stayed in a state he should have left decades ago and wants to speak his mind about whats wrong with the business climate,not only does he speak from experience but he has earned the right. Maybe Phil should take the time to sit down in Meridian with HP and get some well needed advice...though I doubt Phil will understand half of what the man is saying.
I know that a few years ago the Ms Dept of Revenue tried to say Peavey Electronics owed over a million dollars in taxes because they vending machines for there employees and they weren't paying taxes on it. It cost them a million just to prove they didn't owe anything. I would be pissed too.
Of course the increased cost of health care for Peavey is government-driven.
The ACA mandates more expensive "features" for the health insurance that is sold. The Government also restricts insurance company competition. It's the government, and more specifically, the ACA, that puts the insurance companies in the cat-bird seat to raise rates.
Peavey could have switched over to a catastrophic-only health care insurance scheme to save costs, but the government just outlawed those.
That should be very easy for people to understand.
But apparently, not.
10:46 Just crawled out from under the rock you've been sleeping under since 2009? Missed that whole government intrusion into the health care market, did you? Like forcing my parents to buy "better" (read: more expensive) insurance to ensure they have full pediatric coverage at their age?
Insurers are no saints but every mess since 2009 can be blamed squarely on the Democrats who forced these changes without a single Republican vote. Don't forget all the postponements that are not authorized in the statutes that the Premium-Raiser-in-Chief has granted politically favored groups until after the election (just a coincidence, I'm sure).
Don't piss on my leg and tell me it's raining.
What is SB2793?
10:46 let me enlighten you about govt intrusion and insurence way before Obama care. In Ky about 15 yrs ago the state legislature passed a bill that said ALL health ins providers must accept any and all without exception including previous health problems, including AIDS. most health insurence providers left Ky. Now, a friend of mine there as almost identical coverage as do I and it's TWICE as much.
at my work, under the ACA, our coverage remained the same and rates went down. i'm guessing that the 49% increase was due to other factors...
aca hasn't been all good or all bad...
Funny how we all just assume that Mr Peavey is being completely transparent with us. The 49% increase he cites means nothing without more detail. Has he looked for other insurance companies and tried to negotiate them against each other? What kind of insurance was he offering before? Could his employees survive with the coverage he offered, or would one serious illnesses wipe them out?
I have little sympathy for businesses that are now being told to offer real insurance to their employees, such that a cancer diagnosis or other serious health condition doesn't financially cripple them for the rest of their lives.
To 11:44am:
Do you believe people with pre existing conditions should not be able to find insurance? So if someone has a heart attack, or kidney problems, or cancer, and later on changes jobs, the new companies insurance carrier should be able to say "Nope?"
Of as you say what happened in Ky really did happen, the solution is to stop having 50 different sets of regulations. Insurance companies should behave under a single set of rules for the USA.
Pitt-
Do you know that their previous insurance was lackluster? Have you worked there? Not very smart to assume. In fact, it's unfair and stupid to accuse.
But hey, since we're assuming (I bite), I'd assume that Peavey would offer at least a reasonable offering, as those go...
Very difficult to run a labor intensive business in Mississippi. There is a large entitlement population supported by a federal govt well-intended programs which has only helped to perpetuate stagnation and decline. i wish the State of Mississippi had been more aggressive with tort reform. Employees game the workers comp sytem as well as unemployment benifits. The straw now resting on the camels back is the nasty effects of OBAMACARE. It has had one major impact and that is to raise insurance costs for everyone. the poor people who entered exchange plans will very soon realize that they have been handed a very rotten egg. The plans that are heavily subsidized will turn out to be an empty plan. while everyone else, the cost of insurance will rise.
Obviously Pity-panther has never run a business and to think a man who runs a several hundred million dollar giant doesn't look for any cost saving her can find, including the massive amounts he pays for insurance, not just for health care but PC is an arm chair wanna be know it all who owns nothing and has nothing but a car and house note. It amazing me how some people are so stupid that they are even able to function throughout the day without getting themselves killed.
A civilization that quits making things, quickly ceases to be a civilization.
While a pipe dream, if either party ever made a real decision to be for the American worker and American made products, and I don't mean the lip service the Democratic party does, they would have total hegemonic domination. It'll never happen, Wall Street owns both way too much to ever elect someone actually for the American worker, but one can dream.
"at my work, under the ACA, our coverage remained the same and rates went down. i'm guessing that the 49% increase was due to other factors..."
Is that how your momma taught you to say "thank you" to those of us whose premium increases and coverage decreases are subsidizing your plan?
"What is SB2793? "
Google starts with two entries: one for commercial driver's licenses, the next for utility increases. I have no idea which of these (or others) that clown was ranting about.
NB: If you can't make yourself understood clearly, expect to be ignored.
PS I've been playing Peavey amps since the mid-70s - they are the best!
I think we just need to give the Communist Democrats a little more time to make their plans work. Surely, they want what's best for everyone, don't they?
1:01
federal government well-intended programs? Is that why Lyndon Johnson was quoted (and never denied) as saying, "I'll have those n______ voting Democrat for the next 200 years"?
There has NEVER been anything well-intended about any government program.
OK...I'll post this here and let it go. Mississippi is the most bloated and corrupt state in the nation. Mississippi has too much government and the only thing our politicians do with any success is point fingers at Washington. Our people are basically stupid. 150K plus voted for a dumbass goofball in the Republican primary. With stupid people like that being eligible to vote, we're in trouble.
Here's my best shot at a solution.
Mississippi has 82 counties. We need 20 or fewer, but I'll say 20 because it is easy to work with. Reducing the number of sheriff's, chancery clerk, circuit clerks from 82 to 20 would put a helluva lot more money in the pockets of taxpayers. Reducing the number of county jails from 81 to 29 and reducing the number of idiot supervisors from 410 to 100 and making the position of "supervisor" a part time job would rid us of 310 idiots and hopefully attract a few successful businessmen to run for the part time policy making board for the counties.
90% of the clerical work done by the chancery clerks and circuit clerks can now be done on computers faster and more accurately at at 10% of the costs.
The current courthouses could be maintained for the court system which does not have to change (except for country judges and county prosecuting attorneys [not district attorneys]).
There are more than 100 school districts in the state. While there would still be too many school districts, the number of county districts would drop from 82 to 20.
Public Service Commissioners should be required to have a college degree in accounting at a minimum. Some of those poor folks who buy electricity from Mississippi Power Co. are looking at $400 per month power bills because the Public Service Commission is a corrupt joke.
Since we have the Internet, is it really necessary for the Legislature to meet in Jackson every year? Can't they do their business from home?
Hartley Peavey is right and the governor is a dumbass. Mississippi government is a cesspool of corruption and stupidity.
Tell your neighbors.
150K plus voted for a dumbass goofball in the Republican primary.
After you subtract the DEMs that crossed over for Senator Geriatric your approximation is right on the money. Thanks for clearing that up.
The Tea Party is the most racist active organization in America. Instead of "crossover DEMS," why don't you just use the n-word. There are no "crossover DEMs" in Mississippi because there is no party registration. Dumbass lost by more than 7K votes and there were fewer than 1K that voted in the first DEM Primary and then in the second REP primary and we don't know how many of those votes were cast for dumbass. So, knock it off. Just say the n-word.
So when does he open a factory in Mexico or China ?
It's not a Mississippi problem as much as a free trade
problem. Hard to compete with cheap wages unless
you automate production almost entirely.
A former sheriffs deputy, State Auditor and National Guard member really doesn't know much about business, other than grants and tax breaks. Actually running a business requires accountability and Phil unfortunately hasn't a clue. Hell when the recent oil spill occurred in the GOM he said the fumes people were smelling were lawn mowers from people cutting grass. Phil is a joke.
Not sure what Mr. Peavey wants us to do about his rate increases . I understand his feelings about his competitors , but where where was he when Packard electric was being beet up , did he call Trent Lott? . On education , he could have partnered with MCC , ECC , and EMCC to give him some quality electronic employees . Mr. Barksdale put his money were his mouth is .
Health Care , would he prefer to pay those same community college graduates to come work for him with no benefits ?. They can go on the ACA ,but will still have tax some entity to pay for it , who?.
Didn't hear from him when McDaniel spoke of cutting funding for the department of education either , but I have to give him credit , he was here before Nissan and Toyota , why not give him more of the brake that we gave them too. You Churches and schools out there, buy local before you Yamaha, forget about lowest bid .
4:28pm, thank you. Pleaser run for public office. You get the obvious sh&t the rest of our dumbass electorate can't.
Please post if you need campaign contributions, I will be your first.
He only had to say he was against Washington ,The Kennedy's , Liberals (Blacks),Jesse Jackson, LGBT, and abortion. He is also Christian , to win.
You wear your apoplexy well 7:26 PM. Keep deluding yourself. It will help you in the denial process.
Problem with Phil and all other politicians -- they've only signed the back of the check, not the front.
I've been at a lot of Phil Bryant speaking engagements --- his consistent comment, "My best job was as Deputy Sheriff". Well -- last time I checked, that was a back of the check job, just as governor is.
We own a small business. Most people would choke over the taxes we have to pay......I choke. It is sinful how much we pay between state and federal. Then, we are subject to audits by MDES, IRS, and everyone in between - which takes an INORDINATE amount hours, personnel and money to prepare for, and we always come out with NO ISSUES but spend weeks, as Mr. Peavey states, to comply with this government intrusion. We use accountants, lawyers, etc., and pay them to ensure we are in line with all requirements. That's not cheap!
At the end of the day -- I'm laying off people based on the GREAT RECOVERY we are currently in......it's a sad day in America. We hired a man to be President of our country, that I wouldn't hire for an entry level position in my company and I have watched him wreck the economy over the past 6 years he's been in office.
More importantly, no one in the state government has a clue how business ACTUALLY runs. This is not a joke....I had a 25 year old show up from MS Development Corporation, and he was going to tell me how to do international business...not sure what he could have provided at 25 years of age. This was his first job. Our company does international business so I'm not sure what wisdom he could have imparted since he was fresh out of college, with no experience. Your tax payer dollars at work.
Has anyone at the state level EVER thought about hiring someone who truly HAS run a business??? If people at the state level understood, they wouldn't make stupid remarks like Phil did, with regard to Mr. Peavey and until they sign the front of the check, and worry about feeding people's families (not off my tax dollars but off money they earn as a business owner), I really have little respect for any of them. BTW -- I'm still working at 11:00 p.m. to ensure we make payroll this week.
Like Gandhi said " Love Your Christ But I worry about The Christians ". Hmmmmmmmmm
Hey 4:28,
I guess I will see your gimp ass and HP at the Sec of State's office filing to run for gov then since you two are so damn smart. Just what I thought. Hot air from a fat ass couch rider. Get off your ass and do something about it besides blogging..... and bitching. That goes for HP. Thanks for the ride but what have you done lately??? Cry me a river.
LOSER
@ 9 pm Just what would I be in denial about?
If Phil Bryant knew a damn thing about business he would understand what Peavey is talking about. Bryant does not understand one iota about business or what goes into doing business. He has never held a "real job" and thinks being Deputy Sheriff is the "end all, be all". He should have been left there all those years ago when he was elected to the House of Representatives from Rankin County. Instead, he has now risen to his level of incompetence as governor of our state - God help us! Every time he opens his mouth he leaves no doubt as to how little he really knows about anything! How much longer will we have to abide this dumb ass in the highest office in our state???
Would have much more respect for Bryant if he had spent some time selling high school yearbooks.
As a small businessman in the state of Ms.I agree with Mr.Peavey on almost everything he said. The biggest problem in government today is the wrong people who have no idea how to run anything are being elected.They get in office and surround themselves with high paid consultants who are only out to benefit themselves. These people, in most part, worked the campaigns of the elected officials they now consult with/for and continue to tell the politician what to say and do.They bring in their friends,the lobbyists, who have an agenda they are trying trying to promote and who are paying the same consultants to help them do so. These actions then give the taxpayers costly things like the Ms. Power Kemper project.This system is being worked at all levels and by all who need some type of action by those in power to accomplish their goals which usually cost the taxpayers or business interests in our state.I personally think Phil Bryant should stop listening to his consultants and get a reality check that he can only receive from someone like Mr. Peavey. Of course, that would be uncomfortable for any politician, listening to facts instead of the yes men surrounding him or her.
We had a shot at electing an actual businessman with Dave Dennis. Instead all of Jeppie Barbour's predictions of a doofus at the helm have come to pass. And the best part is that Feel will be reelected by a landslide. He might not even have a serious challenger.
Well, when your chief economic advisers are David Landrum and Barskdale, both of whom like to use the government to stay in business, what do you expect?
This is what we get when our executive offices are inhabited by those with zero business experience:
"If you’ve got a business — you didn’t build that. Somebody else made that happen." -- Community Organizer/ Senator/President Barack Obama
"I would hope that business people in Mississippi would be somewhat positive, particularly those that have been successful with business in Mississippi. They work hard but there are also a lot of people who helped build Peavey Electronics." -- Deputy Sheriff/Auditor/Governor Phil Bryant
These are two who see government as the source of everything, the solution to everything and the only hope of everything. If people like Mr. Peavey did not relentlessly pursue their vision, take great personal risks and persist despite myriad obstacles arrayed against them, there are many, many more people who would be without jobs and on the government's tab.
On this point, Barack = Phil
"We had a shot at electing an actual businessman with Dave Dennis."
Much of the blame can be assigned to poor campaigning. When I finally heard about this guy I was very impressed with him and thought about voting for him, but the word only got around central Mississippi about two days before the election. If I didn't go to the coast regularly I probably wouldn't have known anything about his accomplishments and plan for the future.
Speaking of our government at work, what is the story on MDOT laying off over 50 state employees and hiring a contractor to perform the work? Supposedly this was a surprise to the employees thursday as they were called to a special meeting then escorted out of the building. My understanding is that they have to schedule an after hours appointment to come back and clean out their desks.
10/16 8:42 & 8:54 --
beet? brake? spaces and commas...
You'd do better to stay in the house and just go out and get yo check(s) out of the mailbox a couple of times a month.
Great post about a real business success from our state. All business owners are under constant pressure to make it all work while at the same time the government(s) job seems to be to pile on more regulation and costs. If I were Peavey I would go hire one of the Gov's conSULTANS, like Frontier,to be able to get in touch with Phil. If Josh will call you back just explain this hostile business environment we have here in Mississippi. If he won't call you back drag some hundred dollar bills behind your Mercedes down Avignon Drive over in Ridgeland to get his attention. Once you do he can get that appointment for you. Might be the only thing that will works. This seems to be the way it works in our modern world in which we live in. Dave Dennis just had the wrong people running his campaign but if elected I feel certain things would be different.
Dave Dennis was, by far, the best candidate to run for Governor in Mississippi in many years. He was intelligent, articulate, a proven business owner and could speak the King's English. Maybe he did not have the needed exposure to get his name out in front of the people. I also am of the opinion that another reason was he would not play "dirty politics" like the candidate that was elected. Whatever the reason, it was Mississippi's loss. We are not likely to see another candidate of his caliber in the near future.
Imagine a plant in Plano, TX with skilled workers and no state income tax. Enough said.
Dave Dennis is water under the bridge. Move along.
Peavey can be an butthole. Spend a few minutes with he and his wife in a business setting. They'll take and take until you quit giving... then move on and blame you for not giving them everything.
My favorite mississippi selling point:
" if YA don't like it, we got interstates for you to high tail it outta here! Do NOT undermine our redneck pecking order power structure or YA will be dealt with!"
------------------------------------------------------------------------
Oh yeah, it's also ranked the 4th 'most socialist state' in the union.
8:56 PM Obviously you are one of Bryant's fellow red-neck handlers who can make him dance at your command. You would not have been able to manipulate Dave Dennis, therefore you did not want him in office. For that reason and so many similar ones, Mississippi is unable to move forward.
Dennis ran a crappy campaign. Cherry picker? Really? Didn't introduce himself to the voters, didn't spend the money, and didn't throw many punches and when he did, it was too late.
That he ran a crappy campaign does not mean he wouldn't have been superior at executing the duties of the office.
2:07 I agree completely! Running a political campaign is one thing; executing the duties of the Office of Governor is entirely another. It's almost like the majority of voters in the State of Mississippi are afraid this office will be run to its potential and the laws of the State Constitution will be followed. Heaven forbid, why would you want that? They are afraid you would not be able to make back-room deals and continue the "good-ole boy society". Consequently, we are a joke and will remain a joke as long as candidates of Bryant's caliber are elected to the office of governor.
As long as candidates like Haley Barbour are elected too because many of his back-room Economic Development deals have turned to complete shit.
If you are not a politician, attorney, health insurance or in the health care business you will never survive in the state of Mississippi....oh and don't let me forget about realtors and contractors that have to build and sell these folks big houses. Next time you run into a realtor or contractor or attorney for healthcare provider, ask them where they moved from. I am sick and tired of these out of state folks coming into our state and taken advantage of Mississippians and then moving on to the next state to feed their greed. Many of the healthcare providers are working for our government institutions are being paid more than our governor. Are our govt officials feeding their third-party out of state contractor friends in these government institutions? You cannot compete with "buddyism". Are our government officials pushing out Mississippi business and many are too ignorant or too greedy to realize it and not one state entity will listen or do anything about it wonder why? . Folks you better think about Mississippi future and your grandchildren! They are like churches, one on every corner and they all come to where they think the money is. --from a 36 yr Mississippi small business owner that just got pushed out by government regs by dec 2014 and I had no grants or handouts to help me survive. It is not a crime until it happens to you. so sad for Mississippi! Transparency? ha! do the research yourself and demand transparency on all state agencies and agencies under the government of Mississippi not just a chosen few. Start asking who wins bids and why on all services from legal services to contractors.....from government official heads selection for our healthcare agencies to consultants to landscaping services. Are people from Mississippi too stupid to be a dept head of a department or agency in Mississippi? ...and why so many consultants? Are our current employees too incompetent to do the job themselves or are we just reciprocating a political favor? Don't rely on me for the answers start researching this yourself. Even your business may suffer one day.
As of June 2014 Mississippi is still number one in corruption. But who in the hell does anything about it? who ya gonna' call?....the wolves that guard the henhouse?
Travel expenses is one of the largest expenses in Mississippi behind contractors, consultants, and landscaping. Why in the hell do we spend so much on travel when we have computers for webinars and video conferencing? Webinars are far less expensive than travel..maybe because some of those trips are to Las Vegas, Florida, DC, etc. and maybe we drag our families along, and maybe we turn in those expense reports, and maybe we get reimbursed for those vacations uh I mean business travel? It would be very interesting to see the travel in the healthcare government entities that has been charged to state accounts as well as charged to grant accounts- and yes, grants come out of the taxpayers pockets too. It will not stop until the taxpayers start raising hell.
10:59 Sounds like you need an emergency contract.
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