| National City INSIGHTS: Forecasts, Research, Strategy, and Opinions designed to help you and your business succeed. |
|
|
|
 Feature
The Maturation of High Tech -
Does Wall Street
(or Main Street) "get it"?
After more than 20 years of rapid expansion, the technology industry has reached a long-term plateau. Yet too many journalists, investors and economists still don't recognize the transition from growth to maturity. If anything, most of them would likely wince at the idea that technology is not a growth sector any longer.
 Technology: growth or mature market. Find out. |
Business Planning & Strategies
Life on the Island
Say the words, “Puerto Rico,” and many people envision
white sand and clear blue water. To be sure, Puerto Rico's
location in the Caribbean and average temperature--a balmy
82 degrees Fahrenheit--make it an idyllic vacation spot.
But executives at many life sciences companies think of
business, not beaches, when they think of Puerto Rico, which
is Spanish for "rich port." One example: In 2002, Abbott
Laboratories, which has operated on the island since 1969,
invested another $250 million to construct a plant that will
produce a new treatment for rheumatoid arthritis.
Several factors are driving corporate interest in Puerto
Rico, including a variety of tax incentives, a pool of
educated and experienced employees, and an established
infrastructure.
More on why companies are interested in Puerto Rico |
Economics
Corporate America Picks Up the Baton
The Commerce Dept.'s report on second-quarter real gross
domestic product contained one glaring number: Consumer
spending grew at a paltry annual rate of 1%. Not in three
years -- during the last recession -- have households
posted such a weak performance. As a result, worries about
the economy in the second half would seem natural. After
all, consumer spending makes up 70% of GDP, and households
have been the economy's growth leader in recent years.
But this business cycle has reached a milestone that should
ease some concerns about the second half.
Read more |
DeKaser’s Financial Market Outlook
Beep! Beep!
You know that cartoon? The one where Wile E. Coyote runs
off a cliff but doesn’t fall … at least for the few seconds
before realizing there’s nothing holding him up? I think
of that scene when looking at today’s oil prices. At an
average price of $41/barrel during July, West Texas
Intermediate — an important industry benchmark — posted
a record high before advancing to $44/barrel during the
first week of August.
Without a doubt, this is taking a toll on the economy.
Read this month's Financial Market Outlook |
Finance & Treasury
A Simple Concept
But Forecasting Cash Flow Elusive
Fundamentally a simple concept, forecasting cash flow
nonetheless proves elusive in practice.
When managers at Leica Microsystems get a call from their
treasurer, Burkhard Straub, they know it's serious. Ever
since he joined the €540m ($662 million) German high-tech
optical device maker three years ago, business unit heads
have had to submit rolling monthly cash flow forecasts
covering three, six and 12 months — if the treasurer spots
a variation in an actual versus forecast of more than 15%
for the three-month projections, "I have no limitations as
to whom I can speak with to set up a project team to
improve the forecast," notes Straub. "When colleagues see
my name pop up in their email, they know it's important,
and I get a good response."
More on forecasting cash flow in action |
International & Trade
Biting the Bullet
For Antonio Ribeiro de Sousa, who builds Mercedes-Benz
diesel engines at a factory in Stuttgart, the writing is
on the wall. On July 23, DaimlerChrysler's unions agreed
to scrap an expected 2.8% pay raise and extend some
employees' workweeks from 35 to 39 hours. In exchange,
workers won promises that 6,000 jobs covered by the
agreement will remain in Germany for at least eight
years. But, says Ribeiro de Sousa, a 32-year veteran on the
assembly line, ``Next time, they'll say they need a 40-
or 42-hour workweek, or they'll send production to South
Africa.''
De Sousa does a good job describing the dilemma facing
both workers and bosses in this summer of labor tension
on the Continent. The well-paid hands of Western Europe's
biggest manufacturers have no choice but to make concessions
on hours and pay: The competitive lure of low-cost
manufacturing elsewhere is just too strong. And even after
wringing concessions from their workers, companies will
eventually come back and ask for more -- or move production
abroad to stay ahead in a ferociously competitive world.
Read full article |
Human Resources & Benefits
EAPs Can Offer Help in Curbing Comp Costs
Studies show a substance-abusing employee is five times
more likely to file a workers comp claim and 3.5 times more
likely to have an accident at work than a worker who is
not a substance abuser. Similarly, employees who are
overstressed or preoccupied with personal and emotional
problems are more likely to get hurt on the job.
Consequently, employee assistance programs (EAPs) can offer
to employers the hope of finding practical and effective
techniques for reducing job-related injuries. A properly
focused EAP can provide evaluations of claimants, including
their symptoms and histories, with indications of areas
that need change.
More on how companies are reducing worker comp costs |
Legislative & Regulatory
Efforts to Toughen Deferred Comp Plan Laws Creating Compliance Concerns for Employers
Three years after retirement plan shenanigans helped ruin
Enron, the effects are still being felt, and not just in
a federal courtroom.
The Enron debacle prompted a stealth effort in Congress to
revamp the rules of non-qualified deferred compensation
(NQDC) plans. The effort is seen not only as an attempt to
correct the system that allowed Enron executives to make
millions of dollars while rank-and-file employees lost their
accumulated retirement savings, but also as a means to
raise money to offset other business tax breaks.
Find out how to prepare for the new rules |
Sales & Marketing
How to Calculate Word-of-Mouth
Word-of-mouth may be the world's oldest, and perhaps most
effective, form of marketing, but calculated methods of
creating such buzz have remained elusive. Public relations
giant Ketchum, however, believes it has cracked the code.
The agency's new approach operates under the assumption
that fewer than 200 people ultimately shape the buying
habits of the other 290,809,577 Americans, and it has set
about methodically identifying those so-called influentials.
The agency then teaches clients how to neutralize critics
as well as approach ambivalent targets and turn them into
apostles. The program measures interest in a brand, knowledge
of the product as well as media quotes, with the idea that
well-cultivated influencer relationships shape public opinion.
Learn how Ketchum is tracking influencers |
Small Business
Improving Sales Effectiveness
Successful companies must be proficient in several key
functions such as sales, production, and finance. Of all
of these functions, sales head the list. Without sales,
there is nothing to produce and no money to manage. That
is why Sales Revenue is the top line on your income statement.
The more effective your organization's sales process, the
better your chances of financial success. Improving sales
techniques will improve your sales success. Improving your
organization's sales effectiveness also means dealing with
strategic issues such as market segmentation, database
marketing, and competitive profiling.
Find out how |
Women Business Owners
Women Business Owner of the Month
In my first year of business I had a small business
account with a different bank where I was literally treated
like a number. In 2002 I was introduced to Beth Blom, a
small business banking officer at National City.
Since obtaining a small business loan with National City
I have learned what personalized service feels like. My
satisfaction with National City is evidenced by my four
new accounts with the bank since this first loan: a small
business account, SBA loan, personal account, and a
car loan (a reward for all the hard work).
Read More |
Personal Investing
A Hazardous Haven
"Prime rate" funds are a popular refuge from the market
lately. But they are scarcely prime in credit quality.
The investment landscape with stocks and bonds is now
"a vast wasteland." Robert Rodriguez, quoted by the Wall
Street Journal in early July, speaks for the value wing of
the investment business. The manager of the FPA Capital
Fund is seeking refuge in cash. Should you?
Check out the pros and cons |
|
|
| |
 |
| |
|
