The Federal Reserve decided on Wednesday to keep interest rates unchanged, signaling that the fight against inflation is far from over. But despite continued inflation, the overall economy looks pretty strong, with gross domestic product increasing last quarter and consumers continuing to spend.
So what does today's economic climate mean for businesses?
“Marketplace” host Kai Ryssdal spoke with Austin Golding, CEO of Golding Barge Line, a family-owned business in Vicksburg, Mississippi. Below is an edited transcript of their conversation.
Kai Ryssdal: First of all, how is the barge's business situation?
Austin Golding: The volume is also good. I can tell you that our business is definitely better this year than it was when I spoke to you in the past few years. I think the volume and demand are becoming fairly stable. And it's not like we've had to recover from or overcome something like a pandemic. We had low water, but we coped with it. Low water conditions occurred throughout the Lower Mississippi River Basin. But we persevered and this year has been pretty stable, predictable, and profitable.
Ryssdal: The strength you're seeing is a function of the strength of the economy, right? As politicians like to say, the underlying fundamentals are good. So you're looking at it.
Golding: we. But, you know, we're seeing the inflation that we've all experienced still lingering in the new construction and renovation part of our business.
Ryssdal: Oh, say more about that.
Golding: As you know, equipment is more expensive than ever to manufacture, and repairing it is also more expensive than ever. My ability to grow is really hampered by that cost structure.
Ryssdal: Yes, you and I have been talking for a long time, but I never asked you this, and I probably should have. Where does Golding Barge Line fit in the pantheon of Mississippi River barge companies? Are you the giants? Are you medium sized? who are you?
Golding: Well, to put it simply, it's medium-sized. A slightly more in-depth answer, but in the world of tank barges, we have the unique nature of operating nationally, and we probably rank somewhere between 10th and 15th. I think so. There are many regional carriers that are larger than us, but our ability to expand nationwide is what sets us apart.
Ryssdal: How do you get across the country from the Mississippi River? Do you go out to the Gulf Coast and go to other waterways, or do you just take a detour up the Mississippi River?
Golding: Well, I'm glad you brought that up. We are connected, not just to the parts of this country that we all know so well, like the Ohio River and the Illinois River. But we go all the way along the Gulf Coast from Brownsville, Texas to Panama City, Florida. It contains a lot of locks and dams that are really old and that helped connect us to a system that is really aging. It is beginning to reach the end of its useful life.
Ryssdal: Interesting, you mentioned locks and dams and by extension infrastructure. Because we've done a lot of infrastructure work in this program with things like his CHIPS bill and the Infrastructure Act. What you're saying is that marine infrastructure is not getting the attention it needs.
golding: No, it's not. I think we are easily overlooked because there is no lock or dam in our daily lives. We use the same roads, the same railways, and the same airports, but things that are invisible and outside of our consciousness, such as sluices, dams, and dredging, have a major impact on our daily lives. . It's much harder to lobby for something when the average citizen is less aware of it.
Ryssdal: Will lobbying get a good response? And do you think you spend your time on the phone with your relatives, members of Congress, etc.?
Golding: oh yeah. You know, Kai, everyone loves the idea of infrastructure until they have to pay for it. And, you know, the Democratic side, of course, has their own ways of paying higher taxes. And Republicans are usually willing to make sacrifices, even to the point of death. So I found myself in a very purple position and going around asking for these infrastructure projects. Here are some simple dates. In the New Orleans area, he has four locks that actually allow Gulf Coast products to be brought in and out. All these were built between 1923 and 1961. These four locks and dams have all shut down within the past six months. These four locks have caused American consumers to underinvest in their health and end up paying a lot of extra money.
Ryssdal: Well, there's an important point there, right? Those costs have to be passed on. You just have to.
Golding: Well, I can't help it. So in many of these cases, there is no pipeline to build. There are no rail spurs to jump on. And there are certainly no highways to make up for this kind of tonnage. I think these are things that our country can invest in that will be of great benefit to everyone and will allow not only existing projects but also new ones to be launched.
Ryssdal: Do you still have the required captain's license to operate a barge, or whatever it is?
Golding: Actually, that's not the case. Speaking of economics, I joined the workforce here in 2009. I was sent to Houston wearing a brand new suit that my father had bought me to try to find a business to survive on, but unfortunately I didn't get the experience that I had on board. I was hoping.
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