HomeMy WebLinkAboutTimes-Advocate, 1988-02-24, Page 5n
the
Street
By Jim Beckett
Last week's thankyou ad in the T -A from the Grand Bend Winter
Carnival reads like the Grand Bcnd and area telephone book.
When scanning the names of businesses and individuals you get the
impression almost everyone in town contributed to the success of the
event in one way or another.
Chairman Dave Sheppard sounded extremely proud of the sup-
port his organization received. I talked with him on Monday, Febru-
ary 15 and you could tell he was still on a high from the success of
the previous two weekends.
Sheppard said every hotel in town was filled and many businesses
described the Carnival as another May 24 weekend. One of the ulti-
mate compliments of several received by the Carnival chairman came
from a waitress who called him Sunday morning. "I want you to
know I made S103.00 in tips last night, " she beamed into the phone,.
When you multiply this by hundreds of similar stories you are con-
vinced Grand Bend will be building on the success of its WinterCar-
nivals for many years to come.
Because so many people in the small community get involved you
also know the Grand Bend Winter Carnival goes far beyond the two
weekends of bringing extra dollars into the community.
The Winter Carnival is genuinely a fun experience for families.
This includes the many local families who host all the festivities and
the hundreds of parents and children who have found another reason to
enjoy coming to Grand Bend.
* * * *
One of the most successful reader participation promotions in recent
months was the 'Pucker -Up" contest where photos of lips had to
be matched with photos of the staff at MacLeans.
Gary MacLean said the purpose of the contest was to create a
little fun and apparently it did that. Ivan Hern of R.R. 1, Granton
was the best judge of lips and will be receiving a gift certificate cour-
tesy of MacLeans.
* * * *
•
Jack Lavender, of Jack's Small Engine Repair Service in Hen-
sall sent a clipping last week which he believes accurately defines the
definition of the word "Entrepreneur."
It was gleaned from the premier issue of the Servicing Dealer and
reads as follows: "Men who found businesses are the Green Berets in
our army of economic men. They fight. their battles over all kinds of
terrain - in basement foxholes, out of the garage or the back of a
truck."
"Entrepreneurs swim in white water rapids, with the full knowledge
that there's nobody around who's going to throw them line or scraps
of wood; or even a few words of encouragement. What comments
they do get tend to come from critics, hecklers and unbelievers."
Sound familiar?
* * * *
If you like stimulating conversation and a friendly, relaxed atmos-
phere just drop into the Huron Restaurant anytime Monday to
Friday for the morning coffee break. -
Just one of the arguments going on last Tucsday was between Der-
ry Boyle and Danny Heywood as to why the Montreal Canadi-
ens and Toronto Maple Leafs have been faltering lately.
Heywood maintained you can't win hockey games without defense
and Boyle stressed the importance of having good scorers.
The 'debate continued with neither party giving an inch but Derry
Boyle came up with a statement I thought was interesting.
It's doubtful if anybody has watched more local hockey games than
the former mayor and his audience reacted with surprise when he said
he enjoys watching the novices and atoms play more than any other
category.
"I've been following hockey since the days teams had seven players
on the ice at once and these kids today can skate and shoot better than
anybody," Boyle addcd. When questioned as to why he thought hock-
ey was improved today Boyle attributed it to two factors... "artificial
ice and better coaching."
* * * *
Every once in a while you'll notice a fad, or a strange trend that de-
fies logical explanation.
in the late 60's auto• makers persuaded us that a car .was basically
ugly unless covered with an attractive vinyl roof at a cost of just over
$200.
During the next years that fad was pushed to the limit when we
were persuaded a full vinyl roof really wasn't in.
We were told a half vinyl roof (your choice of front or rear) was the
•ultimate in dressing up' your car. Now, get this. The half vinyl roof
could be purchased for only slightly more than thc full version which
was rapidly losing favor.
They sold it and we bought it.
That's why I find it impossible to jump all over my kids as they
have joined the Exeter fad of wearing running shots in the winter.
Have you ever watched all our young, future leac(ers as they march
off to school during some of the coldest days of the year? Instead of
seeing a vast array of the warmest boots made... boots designed for
survival and comfort in sub -Arctic temperature... we're forced' to look
at the same running shoes we thought were put away in November..
Adidas, Nike, Puma, Reebock, etc. arc names that are rapidly re-
placing Grcb, Kodiak, Sorel and others that have been keeping our
toes warm for decades.
Visit the arena and look at the feet of everyone under 18 and you'll
think we're living in Florida instead of the middle of the snow belt.
An you sec are running shoes.
My boys are no different than most others.. Both arc firmly con-
vinced they're automatically included with the smart people when they
wear running shoes in the winter.
The most disappointing thought about the whole thing is I don't
have the nerve to correct them. You see, I'm one of thousands who
paid considerably extra for the half -vinyl roof. '
* * * *
Larry Taylor of Exeter has stopped smoking thanks to the efforts
of his'son Trevor.
Trevor, 11, a second year member of the Exeter Broncos atom hock-
ey team has been bugging his father about smoking for years and Lar-
ry's response was, "I'll quit when you get your first hat trick."
It took Trevor a while but he finally did it on the weekend in a tour-
nament at Wasaga Beach.
Peter's Point
Continued from [-mc 4
beef casserole appeared, ready to
be heated in 3 minutes. Corned
beef casserole is one of our
favourite dishes. Everybody loves
it.
"What on earth did you have for
lunch?" Elizabeth asked. "Oh, i
had tuna salad sandwiches, and the
kids had milk," 1 said. "You really
must get your hearing checked,"
Elizabeth advised. iVow why docs
she say that when she knows
perfectly well that there is
nothing wrong with my hearing?
It
would have taken her ten
seconds to open the door of the
microwave oven and show me
the casserole.
"And another thing —"
Elizabeth pointed at the pantry,
"you didn't mark the tuna cans off
,the list" Some people never learn
that it's praise I want, not
criticism.
m Peter Hesse!, 1988
What? You haven't sent in your
entry for the PETER'S POINT
CONTEST (PPC) yet? Don't you
realize that the deadline is
February 29th? So get off: your
butt and drive, walk. ski or skate
over, Eo your newspaper office
NO ,
Times -Advocate, February 24, 1988
Sales u15-43 percent
Market upturn spurs production
An upturn in the farm implement_ Program in the late 1970s, was left
market has prompted Kongskilde in with an overcapacity that required
cutbacks in both the work force and 4
the management of their only
North -American plant.
"Since 1982, we've had to go
through very much a consolidation
program,' said Poole, who pointed_
out that at the beginning of the dec-
ade there were 9,200 farm equip-
ment dealers in the U.S.; now there
are approximately 5,000 remaining.
"Forty-three percent of our busi-
ness goes into the U.S. market,"
said Poole.
Last August, Kongskilde entered
the materials -handling industry with
the development of pneumatic con-
veying systems. Essentially, the
system uses airflow to move small
items via pipe networks throughout
factories. The conveyors can move.
everything from peanuts to bottle
caps.
"From a strategic point of view,
we're trying to diversify more," said
Poole. His com.an wishes to be
Exeter to expand its operations. No
physical changes will be made to
the factory, but a larger work force
has been hired to make better use of
the plant's capacity.
George Poole, president of
Kongskilde, attributed his compa=
ny's improved standing in the mar-
ketplace to an increase in farm in-
come and to changes in farming
practices in.Canada and the United
States.
Trends towards reduced tillage for
fields have allowed Kongskilde to
increase sales of their vibrating cul-
tivator, the Conser-Tine.
Sales for this cultivator have in-
creased roughly 43 percent over
1986 levels and Poole anticipates
that some models will push sales
further still.
That is good news for an industry -
which was dealt a severe blow in
the early 1980s. Kongskilde, itself,
after going through an expansion
less dependent on the farm imple- ,
merit market and have more inter- 1
ests in the industrial sector.
Kongskilde is also putting its
plant capacity to greater use by ac-
cepting contracts for "outside"
work. Not only are other industries
making_uK of Kongskilde's mesal -
working abilities, but their electro-
static painting system has advantag-
es over the usual paint -dipping prac-
tices.
Lt's a bit state-of-the-art," Poole.
"Many companies our size just
don't have equipment like that."
Poole attributes Kongskilde's
ability to weather the harder years in
the market to the strength of thc
Danish holding Company which
provides financial support for all its
subsidiaries. With interests not
only in farm equipment, but tobac-
co, furniture, and wholesale distri-
bution of consumer products, the,
company has sales of around S1 bit;
lion annually, allowing it to not
only protect its financial interests,
Page 5
increase
but to also share its technology._ • _ __
"We are totally self-sufficient,"
Poole said of his Canadian division,
but the support of a multinational
lends a security few other Ontario
small industries enjoy.
"Maybe the toughest thing about
ihis industry is -the cycles involved.--
Everone asks 'what happens next
year'?" Poole is confident Kongs-
kilde will continue to succeed be-
cause of the experience of its staff,
both on the management and techni-
cal sides of the work force. Kongs-
kilde's staff has swelled in ranks to
52 people from 32 only a few
months ago and the company has
additional staff in Ohio to handle
the U.S. distribution of its prod-
ucts.
"Small industry Ontario has a.trc-
mendous opportunity to expand and
grow," Poole notes. He cites the
area's firm customer base and its.ac-
cessibility to American markets as a
good foundation on which to build.
his and other industries.
it's
Your Business
ELECTROSTATIC PAINTING - George Keller of Kongskifde examines
farm machinery as it enters the electrostatic painting system. The system
is expensive and is not commonly found in a business of Kongskilde's
size.
What will your RRSP really
mean to you?
You've read about it time and time again - how regular RRSP contri-
butions can grow to phenomenal sums over a 20 or 30 or 40 year peri-
od. But what do these fantastic numbers really mean to you?
If you are like most Canadians, you contribute regularly to your
RRSP for just pne reason: to eventually generate retirement income.
So the real question is what kind of retirement income will your RRSP'
produce, not how many zeros you can put after the dollar sign?
To answer the question meaningfully, four significant factors must be
considered. You are probably aware of the first three, but unfortunately,
the fourth is ignored by too many people.
How much you contribute to your RRSP (1), how many years you
make those contributions (2), and the rate of return on your contribu-
tions (3) determine how much you will eventually accumulate. Say, for
example, that you put $2,000 into your RRSP at the beginning of eve-
ry year for 30 years and, on average, you cam 9 percent compounded an-
nually. At the end of 30 years, you will have about $300,000 in your
RRSP.
That's an impressive sum, but only by today's standards. Think back
20 or 30 years. The $100,000 home you are living in now could have
been purchased for between $10,000 and $20,000 back then. The comic
book your son or daughter just bought for a dollar used to cost a dime.
In other words, $300,000 in the twenty-first century - tomorrow's
dollars - will not have the same value as today. The culprit is inflation,
the fourth and most important factor in our equation.
Let's assume that inflation averagcs.a bit over 4 percent for the 30
years during which you make your RRSP contributions. That may be.
optimistic considering that the inflation rate has averaged over 7 percent
for the past decade, but it is roughly in step with our relatively conser-
vative assumption that the RRSP will grow -at 9 percent annually.
In 30 years, your RRSP will•bc worth less than $100,000 or today's
dollars. this will buy a lifetime monthly retirement income of about
$1,000, also expressed in terms of today's dollars. If you want your re-
tirement income to be indexed, that is, more or less keep up with infla-'
don for the rest of your life, the first monthly payment may be only
$600 or $700.
Receiving $700 of fully taxable income each month and eventually
having .$300 000 on deposit in your RRSP appear to be as. different as
hot dogs and caviar. Yet once you step back a pace from your RRSP,
you see that they are, in fact, the same thing, but expressed in two dif-
ferent ways.
If you were to ask today's elderly about retirement income, they
would all agree on one thing = you can never have too much. Close to
half of elderly Canadians are living near or below the poverty line.
You will eventually receive benefits from the Canada Pension -Plan
and Old -Age Security.. But will $700 a month .from your RRSP be
enough insurance to guarantee your financial comfort: After all, many
Canadians who contribute to RRSPs make at least $700 each week, be -
tone taxes.
RRSPs are the best way you have pfroviding additional retirement
income: But they require a concerted eff�ott on your part. Happily. there
is tic) secret to how you do this. Simply contribute as much as you
possibly can to your RRSP each .and every year, and make sure your
RRSP has the highest earnings rate possible. Your RRSP will dO the
M_QL . .
WELDING - Derek Regier puts together a new cultivator with the aid of an
automatic welding machine at Kongkilde's Exeter factory.
ICall one of our brokers or stop into our office
for your
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186 Main Street, Exeter
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INDUSTRIAL GROWTH:
THE LONG AND SHORT
01 IT.
3 YR.
5 YR
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16.9%
20 YR.
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The industrial Group of Funds
Looking birth trays. "lir nu)nnicer iRRS1' itetter.
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•
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186 Main St., South Exeter, Ont. NOM 1S0
Telephone 235-2231 or 1-800-265-3478
1