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Ryder System CEO Gregory Swienton on businesses’ concerns about the economic uncertainty due to potential further regulation and taxes.
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In -- call.
Well our next guest is a CEO of a fortune 500 transportation.
Companies as a sector hit very hard by multitude.
A both federal and state regulations.
So what kind of regulatory cost will come out of a second term of the Obama presidency and is it gonna affect their business bottom line let's ask.
Ryder System chairman and CEO Gregory -- in -- first on fox interview.
Gregory wonderful to see you again thanks for coming in first -- just.
For the viewers who don't know what are we talk about a fiscal -- there's also -- regulatory -- that is facing a lot of businesses particularly in your sector.
Regulations amount to one point seven trillion dollars is a one point seven trillion dollar tax on American businesses.
-- heck has you've dealt with the present a lot because your with a business roundtable has she he he shown.
Any kind of flexibility at all on regulation.
Well not yet and of that's one of the things will be waiting to see on a lot of meetings and a lot of policy.
You know budget businesses just like markets the one thing that we really have the the most dislike or distaste for is uncertainty.
You raised one of them tax policy.
The fiscal cliff sequestration.
Is another that's going to affect potentially a lot of jobs.
And the third is the one you just mentioned I think when you talked about the one point seven trillion dollar impact to American business in the last four years.
That's like 121000 pages of regulation.
If if you combine that with the fact that this has been the weakest post recession recovery in history we have paltry.
GDP.
We have high unemployment no matter how you measure it.
And we've had -- -- like wasteful spending by the federal government you can see why business is very concerned.
And why it's necessary for the leaders that we've elected from the president and the congress.
It's time to get working together and come to some agreement and compromise the clock is running.
This level of uncertainty is great big the potential for tax increases at the start of the year for businesses and and individuals could be in effect the largest tax increase in American history we can't afford that at this time.
Right and butt sticking our regulations for a second here Ed is some people say well Democrats -- never be possible while under the Carter administration.
There was significant deregulation of the trucking industry I've talked to Fred Smith.
He says federal express could not have started up and become as successful as it has had it not been for the during a democratic presidential administration so it is possible.
To get significant deregulation.
With a democratic president what would it take.
I think it takes the will and I think it takes leadership again.
We in business are watching and waiting now the election's over I I wouldn't say anything today -- November 7 I wouldn't have set on November 5.
The issues of uncertainty are still there now the only first glimmer of hope is what you heard in the acceptance speeches.
If in fact the president and the congress are willing to work together and reach some common ground.
Then we have a possibility but if they're gonna be deadlocked then we have great danger for the economy in 2013.
I would be willing to bet at this point.
With the uncertainty many businesses.
Probably are preparing contingency plans for significant downturn next year it doesn't have to happen.
If you've got the people in the in the government the administration the White House the congress.
They can solve this but they better get to work and there's something else -- you -- really quantify particularly about regulations how many businesses would have started up but didn't because of regulations we -- surveys about this from -- existing businesses saying you know with the regulatory -- now would you start a lot of people say no.
Have you heard about this about.
Companies just tally -- I never -- -- started up in this environment.
Absolutely in the last 102030 plus years the survey numbers that we've heard is that.
55%.
Of current businesses said if I had to do today what.
What back then when I have to do today.
I wouldn't be in business think about all of the on -- ignores the jobs that creativity the economic impact if that -- the case that is a huge drag on business growth and stability week we need the growth we need the jobs.
There Gregory finally we got to wrap it up but pick your third quarter earnings kind of seem to forecast.
A slow fourth quarter do you expect one.
Well actually third quarter was quite strong and we raised our forecast after the third quarter.
Our expectation is we're going to continue to have.
Revenue growth and double digit EPS growth -- so and so we -- we were not forecasting anything bad yet.
But that's based on good contractual selling the fact that our value proposition is is really resonating well with customers.
And we are still investing this year we will spend about 2.2 billion dollars in capital because our customers are still.
Making making a commitment to long term leases and and as long as that goes on that's a good sign but you don't want any hindrance is you don't -- -- and a suppression from the economy about that about that confidence Greg Swinton who is chairman of Ryder System and we should also say GAAP.
A member of the business roundtable which is doing some really good work with the administration taking action for -- a group.
Within the business roundtable it's really.
Trying to push these changes along Gregory great to see you again thanks for coming in appreciate it good to be back -- to be with.
