TOMAHAWK CORP. CHARTS:
Here we have a good perspective to see how much we have strengthened our balance sheet, through the creation of a new city (2027) and the building of (too) many apartments. That caused our ROA to drop substantially (not to worry at all!) as our income cannot keep pace with the increase in the value of our assets.
- 2030 ChatTOM1.gif (143.23 KiB) Viewed 7493 times
- 2030 ChartTOM2.gif (217.86 KiB) Viewed 7493 times
BETTER BRAND APPROACH
We have changed the scope of the brands of some of our new subsidiaries:
After reviewing the current brand cost/profit of some, we decided to RESET 4 brands and choose better sized ones.
The amount has been almost 400 mm$ misspent. The good part is that our newspaper has probably gotten the lion's share of that money.
So our furniture, health, electronics and leather subsidiaries have now corporate brands. (updated the "new ventures" picture).
LAND & R.E.
We have been buying most of the land lots that have been left vacated (unused) downtown where no new firms can be placed, but we will sell these if we can encourage the placement of extra new stores, if the existing ones close down. We believe it´s always better that stores are placed side by side because there is a small increase in the customer traffic there, but the AI seems unaware of that peculiarity...
We have also been buying extra land areas in the outskirts, just to help the city budgets.
We built 74 new apartments and 26 office buildings since 2025.
It´s all good if you want to inflate the balance sheet, but we mentioned in another post that we are far more interested in increasing our income moving forward.
Vacant buildings have fixed costs too, so we want to keep a good demand/supply ratio: good supply so as to discourage other firms to compete with us but not so much as to have buildings incurring loses. About the demand side, we spent some time looking at population growth to evaluate past and future policy:
Population growth probably is something most people don´t pay much attention to, but it´s very important. More citizens means a bigger market to sell to, both in R.E. and consumer products.
If population diminishes or their income suffers then the GDP will eventually fall (consumption being the BIG GDP component) and the country will experience a recession.
And we don´t want that now.
You probably remember we cut unemployment subsidies a few years back (2020-2022) and we could feel the effects almost immediately as (just a few!) people migrated.
Also, new people are one of the sources of liquidity in the game and we surely don´t want to undergo dry periods, esp. if leveraged.
So! we created new charts. Let´s see.
- 2030 ChartPOP.gif (162.14 KiB) Viewed 7493 times
1- We see that the population is still growing (blue line). "Natural" (national) growth is minuscule, but we have an "open city borders" approach, so the vast majority of the new population comes from the countryside or abroad (we are guessing here where from).
2- As city border controls allow just a fixed number of people, as population overall increases in net terms, growth decreases in percentage terms as time goes by. Hence the problem!
3- We have also put together pop. growth and GDP growth to see the strong correlation. Will these small numbers force a recession in the future? We are probably starting to walk the plank...
Another chart here gives us perspective to see the level of past and present "spending power" of households (orange line).
- 2030 ChartHOUSE.gif (80.53 KiB) Viewed 7493 times
If households will spend even more with every passing year the problem of the smaller-population-growth-in-percentage-terms could be avoided. Unfortunately, we see that since 2020 it´s flatlined at about 49k$. We´ll see.
We will use the opportunity this chart gives us to very briefly comment the government section, but before let us throw in some numbers about the current supply of apartments:
1- One of our apartment buildings can home about 15k people.
2- The average inflow of new residents is about 144k/year. That means a demand of about 10 new apartment buidings per year to house them.
3- We have a population of 7,3 million and 526 apartment buildings. That means we have a surplus of about 40 apartment buildings.
4- The supply of apartments is greater in some cities, so it will take longer that 4 years to "fill" the current stock.
5- Bottom line: to improve our profits we have to let existing buildings increase their current occupation.
GOVERNMENT & NATION:
We see the yellow line has remained about the 8k$ mark since 2010, meaning the city spends 8k$ per household of 4 in public services every year. Good news indeed! we have been increasing the quality of life without extra spending for 20 years. To achieve that we have just built education and (some) sports & recreation facilities (we are very interested in increasing the appeal of our residential blocks). That also means we have an extra tool to prevent a recession: increase govt. spending. To that end we would have to raise taxation, but we believe people will be able to accommodate to the extra burden if the situation so demands (we have good income&jobs ratings).
We will increase taxes a bit anyway just now as from Tomahawk Corp. we are a bit fed up with our policy of having to buy land as a loan to the people of Sylvania, in detriment to our shareholders.
- 2030 ChartQoL.gif (129.88 KiB) Viewed 7493 times
We also provide the GDP chart group that we monitor.
- 2030 ChartGDP.gif (408.06 KiB) Viewed 7493 times
Notice that after we reverted our policy of no subsidies (the debacle), sales of goods&services went from almost 0,5% to a decent 2,5% increase YoY.
Also, our policy of investing in research of the weakest global sectors has succeeded in boosting exports since the last reporting period (2025, blue line). Nevertheless, we put together the 2025 and 2030 ratios of global competitiveness, and surprisingly, in just 5 years the rest of the world is showing a very strong increase in the appeal of most of their product categories. We haven´t calculated the increase but you´ll agree it´s been quite remarkable.
- 2030 ChartComp.png (25.29 KiB) Viewed 7493 times
To end this section, just mention that both Funk and Glen Fork had to issue loans for 250mm$ each. Lambs Grove and Lynden have no outstanding debts.
PLANNING AHEAD:
We will play till 2040 this time.
Our main immediate focus will be the recapitalization of our new ventures and the creation of a new textile subsidiary with Hans Tanaka as CEO. We will provide them the cash as has been planned, in small installments, for the first 4-5 years. In the meantime we´ll let our apartments increase their level of occupancy.
We´ll open up a new residential area downtown in FUNK where we see too many factories too close to public facilities, and build our future apartments there. New Funk has been a success.
We´ll increase the size of the industrial parks as some are almost filled up (FUNK). If the cities need short term "loans" Tomahawk will buy parts of these expansions and resell them "as needed" to any manufacturer that demands it. We´ll create agricultural areas in Lambs Grove and Glen Fork to encourage farming. Not in Funk (overflow issues).
We´ll take the reins of our automotive subsidiary (Griffon Ltd.) to see how bad prospects the business has, that the CEO just sits in the HQ. We´ll link our manufacturing units with Buzzard Automotive´s production plants as they have good quality components. We´ll start purchasing shares in Buzzard if we can successfully sell enough Griffon cars.
If we have cash to spare we´ll purchase Saratoga Mills (FOOD) shares until we make them our subsidiary again.
We´ll increase income taxes and sell first our land in the periphery, then downtown, as the city budgets improve.
We´ll use our cash rich subsidiaries to buy the stock of their competitors if we judge there´s a good risk of these going bankrupt. No more chaos mergers!
And, hopefully, no new ventures: we have a lot of these already.
See you soon!
