Other Louisville companies see trouble ahead unless the financial system receives help - WDRB 41 Louisville News

Other Louisville companies see trouble ahead unless the financial system receives help

In Louisville, some companies see immediate trouble ahead unless the country's financial system quickly gets back on more solid ground.

UPS is already dealing with fuel prices that have doubled.  Now it worries about its customers' financial problems.

Michael Francesconi of UPS explains, "As businesses find it more difficult to get money, if they slow down, our business slows down."  Francesconi says if quick action isn't taken to address the business world's routine borrowing needs, UPS will feel the effect immediately:  "The way that funds flow in the American business system, everybody's usually a little bit behind so they go to the banks and they need money.  The federal government is wrestling with that right now."

National City Bank, Kentucky's largest banking operation, is also feeling an immediate pinch.  The Cleveland-based institution is often mentioned as the next large bank likely to fail.  Monday, it lost 60% of its stock value although it wasa rebounding a bit Tuesday.

National City management has tried to fight what it calls "unfounded rumors," insisting it can weather this financial storm, federal assistance or not.  But rumors continue.  In Louisville, some were saying National City branches would not open Tuesday.  But they did, and it was business as usual.

Despite all the turmoil and uncertainly, members of the World Affairs Council of Kentucky, which met Tuesday morning, are certain of a rebound and looking to the future.

Mark Peachey, Kentucky International Trade Director, explains, "It's an important draw for the Chinese or foreign companies that are looking to invest into the U.S."

The topic there Tuesday was China.  It is facing economic problems too -- rising labor costs and higher taxes.  Because the U.S. dollar is lower in value, Kentucky exports are up and it is easier for manufacturers to compete with China and other countries.

Tim Savage of the Kentucky Association of Manufacturers says, "Everything that was sexy, from investment banking, to IT, to online, has kind of lost all of its traction and, right now, it makes a lot of sense to make something, sell it, and make a profit."

Powered by Frankly
All content © Copyright 2000 - 2017 WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.