Terry Haddock speaks about cost concerns

[Cliff]

HADDOCK: COST CONCERNS OVERRIDE SUPPLY-CHAIN ISSUES | Competition Plus

While COVID restrictions in China [where key automotive resources and materials originate] are just now starting to ease slightly, Russia’s military assault on Ukraine has kept the global supply-chain situation unstable. Inflation hovers at undesirable levels, and it’s most noticeable in America...

www.competitionplus.com

 

[Butch]

Good read, I didn't know how Terry made his $$ until I read this article.

 

[Prestaged]

His last comment (the last line in that article) is priceless.

 

[CrewMan]

100% agree Roger! That's bumper sticker material right there!

 

[sammi]

Add the fact NASCAR is really on a roll right now and vacuuming up all the motorsports sponsorship money floating around, and you now find drag racing heading back to the pre-Winston days. We might see TF or FC's with two or three family names on the sides and running out of a two car garage.

 

[Custom Body Fan]

What kind of restaurants does Haddock take his crew to where prices have doubled??? Same with groceries. Prices are up maybe 10% - that is plenty, but it sure isn't double!

 

[Pete]

Yes, I thought that was a very good, in-depth article. With the Biden-induced major recession on the way, how many teams will be able to survive until the end of the season, let alone have enough $$ to run the tour next year? Enjoy our drag racing while we can.

Haddock must have some other source of income besides repairing aluminum blocks, I would think. How many blocks are damaged so much during every NHRA National event that they need to be sent to him to be repaired? Two or three maybe? And who might do those repairs in-house vs sending their block to him? I can't imagine he makes enough $$ doing that to support his Nitro operation, even on a shoestring budget like he has.

I like him more after reading that last comment in the article, as others have mentioned.

Terry also owns Circle Wheels....also they don't just repair NHRA blocks...LoneStar repairs any type of aluminum block

Circle Racing Wheels

www.circleracing.com

 

[J. S.]

Terry also owns Circle Wheels....also they don't just repair NHRA blocks...LoneStar repairs any type of aluminum block

Circle Racing Wheels

www.circleracing.com

I forgot about the "Circle Wheels" business.

I realize he can repair any aluminum block, but what other forms of racing are there that put a window into a block like they do on the NHRA tour? Tractor pulling? Alcohol dragsters and funny cars? I wouldn't think so.

 

[Ponyhntr]

I forgot about the "Circle Wheels" business.

I realize he can repair any aluminum block, but what other forms of racing are there that put a window into a block like they do on the NHRA tour? Tractor pulling? Alcohol dragsters and funny cars? I wouldn't think so.

It's not all drag racing, let alone NHRA. Think big. NHRA is probably just a small portion of his business. Nostalgia, all the different Pro Mod series out there, radial racing, No Prep, etc, etc. It's not all windows either, torching a head gasket often damages the deck surface of the block too.

 

[Funnycarfanatic]

I love that he comes out so often we need to keep supporting the little guy

 

[Joe]

His last comment (the last line in that article) is priceless.

You said it!

 

[Joe]

His last comment (the last line in that article) is priceless.

He is correct!

 

[5150 mechanic]

Back to basics, What's the reason for oil anyways? I think it was put here for us to use. If it builds up too much I think there'll be problems. We're just a scratch on this worlds timeline anyways. The dinosaurs didn't drag race and look what happened to them!

 

[Nunz]

NHRA Top Fuel Contender Mike Salinas Says Recession 'Is Going to Hurt People'

Salinas having a dream season on the track, dealing with painful economic challenges off it.

www.autoweek.com

 

[glofria]

To put it as simply as possible; when you're energy independant, you don't need to pay what is on the global market. And the conflated price to deliver it by sea.

Well, yes and no. Exxon, Mobil and everyone else can sell to who they want to (ie Who pays the highest price) no matter where the oil is sourced. So if Europe will pay more for US oil than we will and pay for the shipping, the oil will go from the US to wherever the buyer is. If we want more oil, we will have to pay more than Europe. So we are not detached from the global market - we would just save shipping costs.

I understand what you are saying and won't argue your premise. However, I'm sure you know not all oil producing areas are equally the same. It's my understanding that much of the crude harvested here in California is not suitable for making into gasoline (or the costs are too high as it has a high sulfur content) and is better suited for lubricants and other uses. Therefore, we have import much of what is used.

Costs are what it takes to harvest the raw material, deliver it to a refinery, refine it and deliver it to the market. The government has a big say (as we all have scene in the last year and a half) on the first two steps of the process. If no new exploration is being done, then the expenditures will not used and the companies will earn (save) money. When the government limits the harvesting or forces the use of a less efficient method of delivery, the costs will go up. Investors in the now shutdown pipeline projects are forced to recoup their investments in other ways too. And we the consumers are paying the price.

It's been about 15 years since my college days, but I'd like to think I remember some of it.

 

[mick]

another way of looking at it is the 20+ year dow jones chart......it took an enormous dip as the pandemic swept in, followed by an enormous, almost unprecedented surge.
the market had to level off, and arguably pull back, hopefully not prolonged.
i don't agree with mike salinas that we are already in a recession; if calmer heads prevail, i think supplies will correct themselves, and somewhat of a normal can return, albeit with
high energy prices. raise the interest rate so money is not too cheap, and hopefully the cost of goods will inch backwards as demand lessens.
november mid-terms IMO will be the deal breaker for our 2023 and 2024 economy.

 

[Luke Nieuwhof]

I stand corrected. I read it on the Internet SO it had to be true! Maybe not >

That could go for most of the hot takes in this thread.

 

[Jim]

The major problem is no new refinery has been built in the US in the last 50 years. No oil company is going to spend 3-4 billion on a new refinery that will take 3 years to build and hope they will be able to make a profit when it's done.

Not only have no new refineries been built, but the oil companies have also shut down refineries in the US during the same period of time. In addition, during the pandemic, they cut refinery production to match lower demand and have yet to increase production back to pre-pandemic levels. The oil companies are making record profits now on lower production, so why would they change?

 

[Dennis]

To put it as simply as possible; when you're energy independant, you don't need to pay what is on the global market. And the conflated price to deliver it by sea.

Think about your statement for a second. We are a capitalistic economy. Your premise is that these benevolent oil companies are going to sell oil to the US for $80 a barrel when they can get $120 overseas? Do you think shareholders would approve of that? Is that the best use of invested funds? If I'm a stockholder I'm asking why are we not maximizing profits.

What's the alternative? Government run/controlled oil companies to keep prices down? Tax breaks and incentives subsidized by us, the taxpayers, to keep prices down? Logically, the answer is no. No matter what your answer is, the global price of oil is going to drive the price of oil at home.

This isn't directed towards you because I think you're very rational. It's just a generalization - I hate that politics is so toxic these days people can't even have rational dialogue simply because of what the "other side" thinks/says/does. Why is it always an "us" vs. "them" proposition? When did internet memes substitute for actual dialogue?

 

[glofria]

Thanks Dennis, no offense taken. I like anyone else, can only offer an oppinion. It's not my intention to come across as a know it all or an authority on any given subject. I don't watch much TV anymore, but if there is one source I go to for national news and feel I get a straight answer, its Bill O'Reilly on thefirstTV.com. Love reading his "Killing" Series of books too.

Its suffice to say that the global demand is greater than the current supply due to various reasons. I read some compelling articles last night (away from the political realm), but feel that there could be more done to increase the supply side if allowed to.

As for me, I'm cutting expenditures and socking as much of my money away for what looks to be coming down the line.