LP Gas, December 2011
2011 STATE OF THE INDUSTRY Continued from page 19 new home construction on outlying parcels of land a prime market segment for residential propane the latest home building projections provide a further downer as the 2012 forecast fell in just the last six months from a 39 increase in housing starts to only 19 No doubt many of the propane dealers who raised a red flag on this years survey regarding regulation had in mind for one the individual healthcare mandate that could severely affect small retailing operations The Supreme Court will examine the constitutionality of this act next spring And if you think regulation is escalating beyond what may affect your business you arent just imagining it The administration has been adding 10000 regulatory agency jobs per year has imposed 75 new major regulations at a cost of 380 billion over the next 10 years and has another 219 in the pipeline a House Oversight Committee report states Propane retailers defending their turf Competing on price A series of articles in LP Gas Magazine earlier this year discussed propane sales as reported by the American Petroleum Institute as well as results of an ICF International market outlook report for PERC both providing evidence of significant changes in the propane industry including declining annual domestic propane sales in the last decade of more than 25 billion gallons The rising price of propane decreasing electricity costs natural gas pipeline expansion consumer conservation high efficiency appliances and agricultural machinery Washingtons alternative energy incentives as well as fewer homes being built in the recessionary economy have all no doubt contributed to declining propane sales As significant as the issue of competing with other energy sources is for retailers in regard to maintaining or growing Unfashionable common sense tells us government doesnt need more stimulus It needs a tranquilizer renewed focus on limiting government the unwinding of federal involvement a moratorium on regulations The Weekly Standard Overstimulated 9 19 11 20 LPGas December 2011 www LPGasmagazine com
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