Labor Day isn’t just another day off—it’s a tribute to the sturdy backbone of America, born from the sweat of the Industrial Revolution. This holiday honors not just work, but the workers who battle against stark disparities that fill our history books. As we approach Labor Day, let’s shift our focus from past accolades to the present challenges. In this issue, we engage directly with the small business owners in our community—our unsung heroes and the real muscle behind our economy—to discover how they are coping with today’s economic turbulence.
Oscar Hollaway: Navigating Raising Costs
Meet Oscar Hollaway—perhaps you already have. In Munds Park, he’s not just a name; he’s a staple. Since 2005, Oscar has planted his roots deep into the soil of small businesses with ventures like Dirt Works Excavating and Hollaway Water Works.
Sitting across from him, you can’t help but notice a certain sturdiness about the man—a resilience woven through with adaptability that’s as palpable as the Arizona heat. “So, Oscar, how’s business these days?” I venture, hopeful for words of prosperity.
Leaning back, a cigar in hand, he says, “In all my years working in Munds Park, my phone never stopped ringing—seven days a week, a two-month backlog of work was the norm,” he recalls. But now, the workload has shifted. “Now, I’m looking at a week, maybe a week and a half’s worth of jobs lined up.”
Curiosity piqued, I dig a little deeper. “More competitors on the scene, or are folks just tightening their belts?”
“No,” he says. “There’s always been competition. It’s not the competition throttling my workload but a more discerning and tight-fisted consumer base. ‘The people with money still spend,’ he notes, ‘but everyone else is waiting for steadier days.’”
The financial ground under Oscar’s feet has shifted dramatically. Five years ago, a substantial investment in equipment cost him $250,000—a figure that would now hover between $300,000 and $350,000. The overheads are stark: insurance and property costs have quadrupled, his fuel expenses have soared from $19K - $22K to over $35,000 annually, and the price tags on essentials like tractor tracks have more than doubled. “Even the truck I bought for $90,000 in 2019 just cost me $120,000 for its latest counterpart. That’s a 30% hike right there,” he says, a tinge of disbelief in his tone.
When asked if he was starting out today, would he take the gamble? “Not a chance,” he says, underscoring the unpredictability of our economy nibbling away at his entrepreneurial spirit.
Oscar has two boys, one 22 and the other 28. “Do you feel the American Dream is within their reach?” I asked him. “Both are on different paths, doing well, and own homes,” Oscar replied. “However, homeownership would never have happened without substantial financial support from my wife and me.” He added with quiet conviction, “The dream’s alive, but it’s asking more of us, demanding more sweat, more grit.”
Debi Bright: The Shifting Grounds of Homeownership
In Munds Park, if you’re discussing real estate, Debi Bright is likely part of the conversation. With 30 years of experience and a reputation that precedes her, Debi is an integral part of this community. Naturally, I sought her perspective on the market, the future, and the American dream of homeownership.
Sitting down with Debi in her office, surrounded by stacks of property files, our conversation naturally gravitated toward the transformations she has witnessed as a self-employed realtor.
“I remember the days when buying a home was as simple as signing a single document,” she begins with a hint of nostalgia in her voice. “Now, it’s mountains of paperwork. My files just keep growing, and so does the workload.” Debi explains that this isn’t just about more paper; it’s about the increasing complexities of regulations that have made real estate transactions laborious and expensive. “I’m dealing with a 70-80% heavier workload, mostly due to bureaucracy and red tape. It’s extremely costly, and honestly, it feels like self-employed individuals like us are just getting squashed. The requirements keep escalating.”
It’s not just the regulations—everyday expenses have also skyrocketed, affecting lifestyle and savings. “I love going to the grocery store...how about you?” Debi asks sarcastically. “I check out, and I’m like, ‘What on earth?’ It’s just Dan and me, and I walk out with a few morsels for $100! We recently went through a drive-through for lunch and paid $52.” How can people afford this? The combination of regulations, inflation, high interest rates, and difficulty obtaining loans deeply affect realtors and our buyers.
My father, an architect with many connections in real estate, always said, “Realtors are your canary in the coal mine. Ask how they are doing, and you’ll be the first to know the economy’s direction.” Naturally, I turned to Debi to gauge the market. “The market is holding,” Debi states, “But oddly, homes priced at $800,000 and above sell fairly quickly, while those under $700,000 move sluggishly.” She notes that cash buyers currently dominate, especially in our second-home community. However, those requiring financing are hesitant due to rising interest rates. The trend of more expensive homes selling faster is contrary to the usual market behavior.
I ask, “Do you think the American Dream of owning a home is still reachable for first-time home buyers?” Debi believes it is, but not in Northern Arizona. Buyers with modest incomes will be hard-pressed to find land in desirable areas.
Debi added, “I always think about the kids who were raised in these areas. Most who graduate from high school or college know full well they will never be able to live in their communities unless they get help from their parents or inherit their childhood home. This means families are separated, and kids can’t easily be part of the community where they were raised. The same is true for our workforce; they are pushed out to the outskirts and expected to drive in.”
I mentioned a conversation I had with a firefighter from the Pinewood Fire Department who told me the same thing. He lives in Flagstaff and is disheartened that their kids cannot afford a home in the town where they were raised and where their community is. Debi explained, “It’s going to get worse in our area... there’s only so much land. Even the new builds in Flagstaff start at $800K and up. For a first-time home buyer, that’s just impossible.”
Mike Felton: The Trades Are Shifting
Mike Felton, the hardworking owner of Goodfellas Junk Removal, has been a familiar face in Munds Park since 2019. Everyone knows Mike!
Curious about how he’s managing, I asked Mike about his current situation, considering he has equipment and fuel costs, labor needs, and the same financial pressures we all face. How is he coping?
Mike shares, “I’m hit with the same inflation as everyone else. I travel to the landfill several times a week, spending about $120 per tank on fuel prices. My workers need more money to survive, and insurance costs keep climbing.
As his business expands, Mike is confronted with increasing demands for licensing and insurance, which are essential for operating legally but are burdensome financially and time-consuming. “The soaring costs of insurance are insane, and the licensing process seems more about revenue for the county or state than a genuine evaluation of our capabilities. Despite the supposed credibility these licenses afford us, the tests required are trivial and do not truly reflect our proficiency or dedication to our work. Essentially, licensing has turned into nothing more than a tax on small businesses, a fee that ensures compliance without ensuring quality service to our customers,” Mike states.
When it comes to finding workers, Mike says, “Finding workers isn’t too tough, but it feels like I’m just training them to eventually go out on their own. There’s a noticeable lack of loyalty; the turnover is high. The work isn’t easy either. I do have a reliable group now—about five or six strong guys I regularly call on. These guys are solid workers holding down full-time jobs. They pick up jobs with me to supplement their income, trying to keep up with the rising cost of living. It’s a reflection of how tough our economy is, especially for those in service roles who do so much for public safety yet find it hard to get by.”
Mike concluded with a frank insight into the nature of the job. “Anyone who joins us needs to be tough. It’s physically demanding work, and not everyone’s cut out for it. But it’s honest, and it pays, especially when it’s hard to make ends meet.”
Looking ahead, the future seems uncertain for folks like Mike in the trades. Big investment firms are scooping up single-family homes, monopolizing the housing and rental markets, which means they’re also centralizing services. These companies tend to stick with just one or two contractors for everything—roofing, landscaping, handyman work, junk removal—you name it. It’s just not cost-effective for them to shop around or hire different businesses for different jobs. This trend will squeeze out small tradesmen and gig workers. And for renters? They get no say in who fixes their homes. These big investment firms will turn to the ‘Walmart’ of home maintenance, where local flavor is in short supply.
Mike says, “The future is scary. Even if you follow the perfect plan, the government can jump in with regulations or game-changing laws that trash all your best-laid plans.
Andy Keenan: The American Dream—Still Within Reach for Those Ready to Sacrifice
Andy Keenan, owner and operator of Skyline Trash, is a well-known figure in Munds Park. It’s hard to find anyone here who isn’t familiar with Andy and his fiery personality. Over the years, Andy and I have engaged in many spirited discussions about the state of our economy and shared plenty of political banter, often lounging in my office, delighting in being as politically incorrect as possible.
But today, I needed to have a serious conversation with him. I wanted to know, “Andy, how is business going?”
“For us, business is going well, except inflation is giving us a hard time with the skyrocketing fuel costs and the overall rise in expenses on EVERYTHING,” Andy explains. “Part prices have jumped by 20-30%, and labor costs are up too. We’ve had to increase our employees’ pay just so they can manage the high cost of living.”
He continues, “We recently invested about $350K in trucks, which now cost 30-50% more than they would have just 3-4 years ago. The price of a new garbage truck has skyrocketed to about half a million dollars. Fortunately, supply chain issues for used trucks have eased a bit, thanks to California’s strict EPA regulations that ban diesel trucks in favor of natural gas or CNG models. The trucks they ban are in great working condition, and ironically, this has worked to our advantage.”
I asked about staff, “How about staff? Are you able to find good hires for your team?”
Hiring help in Flagstaff isn’t easy. Andy lays it out plainly, “It’s tough all around. When fast food workers are nearly making $20 an hour, skilled workers are demanding even more. It’s driving up our costs dramatically.” He points out that drivers’ pay, in particular, has surged by nearly 70%, a direct result of the increased minimum wage and overall inflation.
Regarding healthcare, Andy’s solution is straightforward: “Most of our crew’s spouses already have coverage, so we’ve managed to sidestep offering it directly. There was a time we provided insurance, but then we figured it’s cheaper to just pay them extra to buy their own through the Marketplace.” He reflects on the changes brought by healthcare reform, “You heard all those warnings about Obamacare pushing small businesses to drop coverage? Well, they weren’t wrong.”
For his own family, healthcare costs remain a burden, “Even with insurance through my wife’s work, we’re shelling out two grand a month. It’s brutal.”
Insurance woes extend beyond healthcare for Andy. “Our equipment insurance rates have jumped 30-40% in the last few years. For Andy, managing these rising costs is a constant challenge, balancing the need to pay competitive wages with maintaining his business’s profitability in a tough economic climate.
I asked Andy about the American Dream. With a blended family of seven adult children and a nephew under their care, Andy has diverse insights into whether young adults today can realistically aspire to own homes or businesses.
“It depends on which kid you talk to,” Andy says. “The kids who really want to succeed will make it, no doubt. I don’t think there’s a problem with the American Dream itself; the problem is with the dreamers. When we were young, we knew what it took to achieve the American Dream. It was about hard work, sacrifice, and commitment—values that seem scarce in today’s culture of instant gratification.”
Andy openly criticizes the unrealistic lifestyle expectations of many young people today: “Some of our kids expect to start life with the same comforts they had at home, not recognizing the sacrifices it took to get there. In that respect, we’ve failed to teach our kids the value of living within their means. They’ve grown up a bit spoiled, expecting to start where we left off without the grit it took us to get here.”
On the topic of living costs, Andy is skeptical that financial barriers alone are to blame for feelings of defeat among the youth. “It’s about choices,” Andy states. “If people choose a lifestyle they can’t afford, they’re going to feel the pressure. When I was starting out, I lived with roommates, drove a beater, and lived off peanut butter sandwiches. We didn’t stretch beyond our means. Today’s generation sees a high cost of living, but wages in places like Flagstaff are also higher. They’re making close to $20 an hour flipping burgers, buying new cars right out of high school, and racking up credit card debt. You can’t live beyond your means and expect not to be hindered financially.”
Reflecting on the past, I suggested that the 1950s and 60s seemed more conducive to the American Dream, where one income could sustain a family with a house, two cars, healthcare, a pension, and a college education for the kids. Andy responded, “Back then, people lived more modestly. They had vegetable gardens, ate out only for special occasions, repaired instead of replaced, and saved more than they spent. Today, the constant spending on non-essentials eats away at savings.”
“The dream is alive, but it demands sweat and sacrifice. It’s tough, no doubt about it—but remember, nobody ever said that achieving the American Dream was supposed to be easy. Life is hard, but that’s no excuse.”
As Labor Day approaches, it’s important to reflect on the hard work and dedication we all bring to our jobs, whether we’re running small businesses, working in trades, or keeping our homes and communities thriving. Despite the challenges of rising costs, government regulations, and economic uncertainty, we keep showing up, pushing forward, and making things happen.
Labor Day isn’t just a day off—it’s a celebration of the strength and resilience that each of us embodies as we navigate these turbulent times. We’re not just workers; we are the backbone of our community, ensuring that the American Dream remains alive, even when the path is tough.
So, as we gather with friends and family this Labor Day, let’s not only celebrate the holiday but also the strength and unity that bind us together. It’s a time to support one another, to lift each other up, and to continue doing what it takes to keep our country strong. Together, through our hard work and commitment, we’re contributing to a better future and ensuring that the American Dream remains within reach for all.
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