John Sikaitis, SVP of Research, Jones Lang Lasalle
Recent economic and real estate factors indicate that most of the Sunbelt geographies have already hit their cyclical lows and during the next six to 12 months are likely to surpass national growth rates, according to a special office report issued by Jones Lang LaSalle.
Many of these areas are also hotspots for the digital economy, particularly San Diego, LA, and South Florida. This is also more evidence for something we have pointed out repeatedly at the TechJournal – the resilient U.S. economy is climbing out of its recessionary doldrums.
Although nearly all areas of the U.S. were negatively impacted by the recession, some of the hardest hit were the Sunbelt markets of Fort Lauderdale, Jacksonville, Las Vegas, Los Angeles, Miami, Orange County, Orlando, Phoenix, San Diego, Tampa and West Palm Beach.
“The Sunbelt markets witnessed substantial drops in their overall economies in 2007-2009 with relatively no recovery in 2010-2011. However, despite ongoing negative perceptions, most of these markets are undergoing a resurgence and poised for dramatic changes in 2012 and beyond,” said John Sikaitis, Senior Vice President of Research at Jones Lang LaSalle.
“These economic upswings bring much optimism for future office and employment levels, as well as investor interest for the capital markets.”
Sunbelt office recovery indicates future gains to surpass national levels Currently nearly all Sunbelt markets posted substantial upticks in occupancy, experienced declines in vacancy and moved closer to seeing office rents and concession levels hit bottom.
In 2011, occupancy gains in these beaten-down housing economies totaled nearly 6.0 million square feet and provided evidence that, as we move forward in 2012, most of these geographies will start to outpace the national recovery.
This resurgence is due to strengthening employment, migration and housing market shifts with absorption rates in the 1.5 percent to 2.0 percent range across most the Sunbelt geographies.
Sunbelt-wide employment gains outperforming national averages of late and picking up speed month by month Markets such as Jacksonville, Miami, Orange County, San Diego, Tampa and West Palm Beach have surpassed the national average in total non-farm, private and professional and business services (PBS) job growth.
Floridian markets have dominated the jobs recovery of late: Jacksonville’s 5.9 percent annual increase in PBS jobs is among the largest in the nation, whileTampa’s 2.5+ percent annual growth in all measures shows signs of revival and diversification. Miami also surpasses both national expectations, increasing at around 1.9 percent overall annually.
Sunbelt migration trends starting to turn positive In terms of domestic migration, the majority of Sunbelt cities display a common pattern: a net loss of residents in 2007, shifting to an inflow of residents in 2008 or 2009 and then stable, yet increasing, population growth in 2010 and through 2011.
Nearly 75 percent of the Sunbelt markets are now, once again, showing significant positive migration with Florida reporting the largest increase of at least 20 percent. As the hub to Latin America, Miami and Fort Lauderdale are leading the charge due to strong immigration trends from Latin America that drive population, business and economic growth.
Sunbelt’s housing crunch on the verge of stabilizing Since their pre-recession peaks, housing markets within the Sunbelt have experienced drastic reductions in price and sale volume, far greater than any other region of the United States. In most cases, these housing markets have yet to begin recovery.
However, as a result of positive office demand growth, employment and migration indicators, there is a strong chance that most of these geographies are hitting their market low and will soon begin to recover, if this has not begun already.
Since employment and other indicators point to recovery while housing prices are only beginning to stabilize or in some cases are still decreasing, continued economic, employment and office sector growth will lead to gradual, but steady, gains in the housing sector moving forward.
2007 levels far off but future gains are on the horizon Vital to the continued improvement of most Sunbelt geographies in 2012 will be consistent gains in employment across multiple sectors with emphasis on diversifying economies.
Since job performance has remained either constant or accelerating in these metropolitan areas not only among themselves, but also outpacing national results, it is probable that most Sunbelt markets will recover faster than the U.S. as a whole in 2012 and 2013. They will see rebounds in their housing markets as well, driving even further office demand from the housing-sectors (i.e. homebuilding, mortgage companies, etc.)
Sikaitis added, “Whereas migratory patterns drove the Sunbelt to unprecedented growth in the pre-recession years, those patterns will now be reflective of recent strong office recovery in these markets, being more economically sustainable and diverse than before with the potential to surpass the rest of the country.
“Even with these positive shifts, most of these geographies are two to three years away from returning to pre-2007 levels; so, while we are upbeat about the recovery for these markets, we remain realistic and guarded in the fact that we are not yet back to 2006 territory and likely will not be until the 2014-2015 timeframe.”
Hiring optimism among U.S. employers is gaining momentum as positive outlooks are reported broadly across all industries and geographies, according to the latest Manpower Employment Outlook Survey released today by ManpowerGroup.
While current gains are incremental and the economy’s growth may be slowed by rising gas prices, we’re still seeing numerous reports of increased hiring, corporate spending, and consumer optimism. We saw a recent news story that said even economists are seeing signs the U.S. economy is poised to accelerate.
This Manpower report suggests we’re not imagining things.
According to the seasonally adjusted survey results, the Net Employment Outlook for Quarter 2 2012 is +10%, up from +8% during the same period last year and from the +9% Outlook during Quarter 1 2012.
ManpowerGroup’s research concludes:
Growing Optimism Adds Up: Quarter 2 2012 marks the first double-digit Outlook since Quarter 4 2008, when the Outlook was also +10%, and is 12 percentage points higher than the recessionary low of -2% in 2009. This demonstrates a considerable improvement in employer confidence that is not easily seen quarter over quarter, with the last eight quarters showing only relatively stable or slight improvements in hiring conditions.
Workforces Expected to Grow Across All Industries: For Quarter 2 2012, employers in all industries across all regions surveyed indicate a positive Net Employment Outlook.
Nine Out of 10 Companies Steady or Growing: According to seasonally adjusted data, nine in 10 U.S. employers surveyed have conveyed that they plan to increase or make no changes to their hiring in Quarter 2 2012. The rise in confidence marks 10 straight quarters of positive overall survey results, which were preceded by three quarters of pessimistic employment plans.
All States Positive: Hiring intentions improved significantly among the states, with employers in all 50 states, Puerto Ricoand the District of Columbia reporting positive hiring plans. North Dakota remains a leader among the states with a significant increase in job prospects as the Outlook rises from +14% in Quarter 1 2012 to +26% in Quarter 2 2012. Other states with strong hiring forecasts include Alaska, Vermont, Delaware and Oklahoma, which all report a Net Employment Outlook above 20%.
Positive hiring intentions widespread
“Our survey data for Quarter 2 2012 is particularly encouraging because the positive hiring intentions are widespread across states, regions and markets,” said Jonas Prising, ManpowerGroup president of the Americas.
“Positive hiring intentions tell us that employers are seeing increased demand for their products and services, and that is good news for the labor market. Although we are not out of the woods yet, our data shows that this hiring progression is increasingly solid.”
Of the more than 18,000 employers surveyed, 18 percent anticipate an increase in staff levels in their Quarter 2 2012 hiring plans, while 6 percent expect a decrease in payrolls, resulting in a Net Employment Outlook of +12%. When seasonally adjusted, the Net Employment Outlook becomes +10%. Seventy-two percent of employers expect no change in their hiring plans. The final 4 percent of employers are undecided about their hiring intentions.
Healing process further along than realized
“It is well documented that this recovery is atypically slow. However, if we were able to see a time- lapse video of the recovery, we would see there is a noticeable positive trend,” said Prising. “Compared to three years ago at this time, the seasonally adjusted Net Employment Outlook increased from -2% to +10%, which is considerable. The data tells us that the healing process is further along than most realize.”
Consumer confidence in the overall economy and in technology both dropped in February, according to the latest CEA Index by the Consumer Electronics Association (CEA).
However, confidence in both is higher than for the same period last year.“With that said, indexes are higher than this time last year, which indicates we are moving further along in the path to economic recovery. Despite slight drops in both indexes this month, the trend remains intact – consumer sentiment continues to improve as the underlying economy strengthens.”
The CEA Index of Consumer Expectations (ICE), which measures consumer expectations about the broader economy, dropped 2.6 points from its all-time high in January to 174.7. This is nearly three points higher than this time last year, when the ICE measured 172.0.
Consumer confidence in technology spending also fell this month, with the CEA Index of Consumer Technology Expectations (ICTE) dipping to 85.6, down 2.4 points. The ICTE, which measures consumer expectations about technology spending, is up nearly 10 points from this time last year.
“February’s results suggest that some uncertainty remains for consumers regarding near-term economic prospects,” said Shawn DuBravac, CEA’s chief economist and director of research. “With that said, indexes are higher than this time last year, which indicates we are moving further along in the path to economic recovery. Despite slight drops in both indexes this month, the trend remains intact – consumer sentiment continues to improve as the underlying economy strengthens.”
The CEA Indexes are comprised of the ICE and ICTE, both of which are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA has been tracking index data since January 2007. To find current and past indexes, charts, methodology and future release dates, log on to CEAindexes.org.
Jim Jaffe, president, CEO, NASVF, is participating in the Southeast Venture Conference this week in Tysons Corner, VA.
While state and private incubators and accelerators help, funding for startups is still really tight in the so-called “Valley of Death,” says Jim Jaffe, president and CEO of the National Association of Seed and Venture Funds.
Jaffe, who is participating at this weeks Southeast Venture Conference in Tysons Corner, VA, where 60 innovative startup firms will present their business plans to venture and seed investors representing billions in capital, says those firms are lucky to have such a well-heeled audience.
Jaffe notes that “Even getting in front of funders is enormously difficult. They’re inundated by people with interesting ideas and its not unusual for them to have hundreds of contacts a week.”
The most important issue
“That’s the most important issue, what can people do in this environment to get money in that space between $100,000 and $1.5 million, Jaffe says.
There are a couple of places where the money is, however. “Many states realized they need to help. So you’ll find many organizations (many of them members of NASVW) funded by state and regional economic development organizations such as TEDCO in Maryland and the Ben Franklin program in Pennsylvania.
“They frequently work with entrepreneurs providing soup to nuts services, mentoring and $25,000 to $100,000 in funding. Their chances of getting money after working with these organizations is better.”
Trying to raise money on their own, on the other hand, “Can be enormously difficult,” says Jaffe. Often, he adds, “New entrepreneurs think it (their firm) is about the technology, not about money, cash flow and scalability in two years.”
Instead, he says, they often think their technology is so great the world will beat a path to their door. It doesn’t work that way.
Compelling business plan necessary
“Among other things, they need a compelling business plan that solves a problem and fits a need. It’s not about having great tech. It’s about who’s pain you can do something about and how the tech eases that pain, compelling customers to buy something. It’s a focus many who develop technology do not understand.”
That is a sentiment echoed by Sean Glass, partner at Novak Biddle Venture Partners. Glass, who will be on a panel about entrepreneurship at the SEVC this week, told us in an interview today that “A lot of nice small businesses making $10 million to $15 million with good margins can be built on tech. But they will never hit a scale that would impact a venture firm’s portfolio. Being a tech business doen’t automatically make it a venture capital business.”
Those, Glass explains, “Need a large amount of capital to produce a lot of profit quickly.”
Jaffe suggests that tech startup founders should “Get yourself a business partner.” By that, he means one who understands running a business. “If you’re reluctant to find one on your own, hook up with one of the state-sponsored incubators.” He notes that many colleges and universities offer entrepreneurship courses. “They’re really valuable. The reality is that you won’t get to first base without someone who has business expertise.”
Jaffe himself was president/CEO of six different public and private companies. He has managed a private equity fund and spent nine years in Eastern Europe and Asiainvesting in small businesses in emerging economies.
The GSMA today announced new research findings that demonstrate the positive, long-term economic impact of the global mobile industry.
The research, developed byA.T. Kearney, GSMA Wireless Intelligence and Machina Research, indicates that global mobile industry revenues will grow fromUS$1.5 trillion dollars in 2011 to US$1.9 trillion in 2015.
The data also predicts significant growth in mobile industry employment; today, more than 8 million people around the world are employed by companies in the mobile ecosystem, and by the end of 2015, mobile industry jobs will grow to approximately 10 million.
Creating a “connected economy”
“The mobile communications industry is creating a “Connected Economy” across the globe, through network investment, job creation and contributions to public funding,” said Anne Bouverot, Director General, GSMA.
“Clearly, as the economic indicators show, the mobile industry is success story, particularly in light of the lingering worldwide economic crisis. Perhaps even more powerful, though, is how mobile is transforming adjacent industries, such as education, healthcare, payments and transactions, transportation and utilities. Mobile is connecting the world as no other technology has before.”
Mobile Industry Snapshot: 2011-2015
2011
2015
Mobile Connections
6.6 billion
9.1 billion
Mobile Subscribers
3.6 billion
4.6 billion
Mobile Broadband Connections
1.3 billion
3.2 billion
LTE Connections
10 million
353 million
Mobile Industry Revenues
$1.5 trillion
$1.9 trillion
Mobile Operator Revenues
$984 billion
$1.1 trillion
Mobile Industry Capex
$189 billion
$204 billion
Mobile Operator Capex
$158 billion
$173 billion
Contribution to Public Funding
$617 billion
$718 billion
Total Mobile Industry Jobs (worldwide)
8 million
10 million
Revenues and capex in US Dollars
Over the next four years, 2012 through 2015, the mobile industry will invest US$793 billion in capital and contribute US$2.7 trillion to public funding(1) across the globe.
Beyond the global economic impact, mobile is a significant factor in the growth of local economies. According to the World Bank, a 10 per cent increase in mobile penetration drives a 0.6 per cent increase in a developed country’s GDP and a 0.81 per cent increase a developing country’s GDP. In low-to-middle income countries, a 10 per cent increase in Mobile Broadband penetration yields a 1.4 per cent increase in GDP.
Initiatives for Growth
Mobile operators are focusing on several key areas that will contribute to further industry growth.
These include making continued significant investments in Mobile Broadband and LTE technologies to connect the world’s population to the Internet; accelerating the adoption of embedded mobile technology to create the ‘Connected Life’; and driving the adoption of SIM-based mobile NFC handsets and services to grow mCommerce.
Through these and many other initiatives, and through organic growth, the mobile industry will experience significant improvement across all key economic metrics.
“As an industry, we will build the Connected Economy while ensuring interoperability of services across operators, networks and countries,” continued Bouverot.
“We will provide a single point of trusted customer care to users to address any issues related to their devices or services. We will ensure the security of our customers’ services and data. And we will respect and protect our customers’ privacy. That has always been, and will continue to be, mobile operators’ core promise.”
The annual survey released today compiles responses from 300 family firm executives from a wide range of industry sectors. 54% of respondents indicated that they intend to hire more workers in the next twelve months, while only 8% said they would be reducing their workforce.
This is the latest of several reports suggesting the economy is looking better to businesses large and small. Many seem to feel the recovery may still be fragile, but without shocks, it is likely to accelerate this year.
Longevity and stable leadership
Longevity and stable leadership are among other attributes of family-owned businesses. 33% of respondents represent companies that have been in business between 30 and 60 years, while 44% have been in business for over 60 years. Among these well-established firms, more than one-third of the respondents have had the same executive running the company for over 20 years.
Although 50% of the respondents indicated flat or lower revenue as a result of the recession, only 34% have reduced their workforce. In fact, many older firms demonstrated core strength in the face of a tough recession – one-third of businesses with between 60 and 100 years of operation actually increased their workforce over the last couple of years.
“This year’s survey reaffirms the bedrock principles of family-owned businesses based on what we know from academic research,” said FEUSA President Ann Kinkade.
“Because of their focus on long-term, sustainable growth, family owned businesses are committed to their employees and communities over time. Family firms have leadership tenure four to five times longer than shareholder-controlled businesses. They also have greater workforce stability and are more likely to hire and retain employees in the face of a tough economy.”
Not looking for tax breaks
The FEUSA survey also found that family businesses are not interested in special tax breaks and short-term stimulus. In fact, 53% of respondents favored long-term predictability when it comes to the tax code, over more favorable short-term tax provisions.
Uncertainty in the tax code and in government regulations is the biggest impediment to job growth, according to 44% of those surveyed. Support for long-term predictability versus short-term benefit ran greatest among businesses that have more than 30 years in operation.
Issue priorities for family firms centered mostly on tax and regulatory issues with estate tax being the number one issue at 65%. Tax reform that eliminates loopholes and reduces rates ranked second and general regulatory reduction ranking a close third.
The new health care law is also of concern to family firms, with 61% saying they believe that the new law will result in higher premiums making it harder to pay for employee health care. More intensity on the impact of the health care law was found among family businesses of 100 employers or more.
The 2012 Annual Family Enterprise USA survey received 300 responses from executive-level officials from family firms between November 2011-January 2012. 48% of respondents hold the title of CEO or President, 26% are owners of the company, and the balance hold senior leadership positions.
Responses were received from businesses in 33 of the 50 states and represent over a dozen different industry sectors, including manufacturing, finance, construction, retail and wholesale trade, restaurants, and agriculture.
As the economy has slowly started to recover, the hardest hit area has remained small business lending. A new survey from Omega Performance, however, indicates that tide is now shifting as well.
Seventy-four percent of the bankers surveyed globally responded that their banks were likely to increase their small business lending.
In the U.S., the number was slightly higher at 77 percent. Small business also dominated the areas banks were planning to actively pursue, coming in at 76 percent globally, and 78 percent in the U.S.
This news follows on reports we’ve run that say companies large and small plan hiring this year, CEO optimism is up, and the stock markets are having their best run since before the recession. All point to a gently improving economy, which, if it isn’t derailed by rising gas prices or political shenanigans, is poised to accelerate.
The shift is evidence of an improved outlook on the economy in general in banking–69 percent of global bankers said the economy will improve over the course of 2012. Bankers also listed credit training as being high on their list of priorities for 2012, with 92 percent of bankers citing its importance this year.
For the last month or so we have been reporting multiple signs of an improving economy that bolster our feeling it’s about to accelerate, and we’re not alone. U.S. business journalists – who report daily on the economy in their communities – say they expect their local economic conditions, including the number of jobs available, to improve in the next six months, according to a new survey commissioned by the Donald W. Reynolds National Center for Business Journalism.
The Reynolds Center survey is an effort to see if business journalists, who track local economic developments, might be prescient about the direction of the U.S. economy, said Executive Director Linda Austin.
“Business journalists expressed optimism in the last survey, conducted in July, about what would happen in their local economies, and several national economic indicators have recently shown improvement,” she said. “In the January survey, they are even more bullish.”
Findings of the most recent phone survey, conducted Jan. 18-24, of 300 randomly selected business journalists, include:
Almost half say they think general business conditions in their area will be better in six months. That was up from about a third who said that last July.
About eight out of 10 say local jobs are in short supply. But about four out of 10 expect more jobs to be available locally in six months.
Four out of 10 say their local housing market will improve in the next six months.
The firm that conducted the survey also asks the general public about the economy. Its president, Jim Haynes, says business journalists’ greater optimism than the general public may reflect their closer reading of economic data.
The U.S. economy is beginning to flex its muscle; with the addition of jobs, and the aid of zero interest rates, unprecedented monetary creation and a $1.2 trillion annual budget, according to the Outlook for Financial Markets March 2012 edition.
The report confirms what we’ve have been seeing in other news – companies large and small plan hiring in 2012 and optimism in the business community is definitely on the upswing. Barring unexpected shocks or news that adversely affects it, the U.S. economy seems poised for an accelerating economy. And it’s about time, too.
Equity markets kicked off 2012 with one of their best Januarys in 18 years as the U.S. economy expanded and fourth quarter earnings reports encourages investors.
The MSCI All-Country World Index surged 5.8%, according to Bloomberg. January’s gain represents the best start of the year since 1994′s 6.5% gain. The S&P 500 was up 4.4%, the best January since 1997. Over the last 102 years, the median annual Dow return was 20% in years when it gained 4-6%.
“If investors just focused on the fundamentals and discounted the daunting headlines, stock market values would be substantially higher,” advised Jack Ablin, Chief Investment Officer, Harris Private Bank, and the author of the monthly report.
Other promising signs are appearing. Zero percent overnight rates have gone a long way toward boosting demand, reducing private debt and improving asset values. Consumers have paid down their household debt to 2000 levels when gauged against GDP. Housing is stabilizing and we suspect a “normal” spring selling season will bloom in 2013.
Additional key factors discussed in the March 2012 Outlook for Financial Markets include:
While European leaders will eventually navigate their way toward fiscal balance, many of their countries are simply not flexible enough to compete globally.
Investors clutching bonds for a certainty of return are overlooking the risk that their income will not keep pace with future spending needs.
Over the last 102 years, the median annual Dow return was 20% in years when it gained 4-6% in January.
The implications of two Americas are profound. Education is currency in a knowledge economy. The divergence in educational backgrounds has shunted social mobility.
Remarkably, bonds have outpaced cumulative stock market returns over the last 30 years. The notion that bonds can outperform stocks for such an extended period runs counter to preconceived notions and is a slap in the face to equity investors who have had to endure such financial uncertainty over the last decade.
The monthly report, which can be downloaded by clicking on the following url: http://bit.ly/xqCEdj is created by Jack Ablin, Chief Investment Officer for Harris Private Bank. Ablin is responsible for establishing investment policy and strategy within the Personal Investment Management Group of HPB. He also chairs the HPB Asset Allocation Committee, which determines the strategy for investment portfolios for Harris Private Bank.
“Startups and small businesses are the backbone of the American economy. They are responsible for the vast majority of all new jobs created in the United States; they are the nation’s greatest source of innovation; and they are critical to helping restore U.S. competitiveness,” CPPI President and CEO Chris Long said. “This report addresses real policy and regulatory solutions that can help spur U.S. job growth and innovation in the coming years.”
“Job creation has rightfully dominated most conversations of late. This report sheds light on the precursor to job creation and what I find to be top of mind for the CEOs I meet with – access to capital, global markets and modern technology. Focusing on those three elements can help small businesses thrive in a way that will reinvigorate the U.S. economy,” added Steve Felice, president and chief commercial officer of Dell, who moderated CPPI’s December panel discussion.
Key findings from CPPI’s special report include:
Access to a Variety of Capital. Many investors aren’t aware of startups in their region. Bringing visibility to these new firms will help attract investment from local resources. Also, making the capital gains tax exemption permanent for investors in qualified small businesses (QSB) would provide a corporate tax credit of up to $5 million for these QSBs in the first taxable year of profit, followed by a 50 percent corporate income tax exclusion in the two succeeding taxable years to help finance growth.
Access to Modern Technology. Cloud computing and mobile technologies have lowered the cost of entry for smaller firms, allowing them to invest more in their innovative ideas. Moreover, global supply chains used to be controlled by larger firms; however, smaller firms now have the ability to build virtual supply chains to expand their presence around the globe.
Access to Global Markets. President Obama is committed to opening up foreign markets to American businesses, as evidenced by his pledge to double the amount of exports over the next five years. He also reiterated this commitment in his State of the Union Address last week stating “I will go anywhere in the world to open new markets for American products.” A number of government agencies, including the Small Business Administration, have already been providing small businesses with information and assistance to help them bring their products to overseas markets. Making these programs easier to find would help smaller firms take advantage of these valuable resources.
Distinguishing Startups from Small Businesses. Failure is a natural and important part of successful firm development. Startup owners learn valuable lessons when their firms fail, and they often develop an expanded professional network that will benefit them over the long term.
CPPI’s latest report on restoring U.S. competitiveness can be downloaded from the organization’s web site atwww.cppionline.org.
Nearly half (41 percent) of companies plan to deploy cash reserves in the new year, according to a recent Deloitte poll of business professionals from a cross section of industries.
Respondents also suggest that their companies are likely to execute acquisitions (28.2 percent), increase capital budgets (20.6 percent), repurchase shares (11.8 percent) or issue one-time dividends or increase dividends (6.1 percent) in 2012.
“The good news is that cash balances have risen to historic levels, balance sheets are strong and companies have options,” says Justin Silber, principal, Deloitte Financial Advisory Services.
“The bad news is that literally trillions of dollars in corporate cash reserves aren’t earning much – if any – return as interest rates remain at historic lows. In the meantime, investors want immediate cash return while looking for boards to defend against market volatility.”
Still, the growing cash coffers firms are holding onto have diminishing returns sitting under-used. If firms are ready to start putting all that money to work, it could give the U.S. economy a real boost.
Silber continues, “The C-suite thinks growth through acquisition is ideal but division heads believe R&D investments are key. Each internal corporate group can add value, but first shared criteria should be reached so that strategies to retain, return or deploy cash are more likely to succeed.”
Poll participants cite lack of attractive alternatives for deploying cash (34.3 percent), no common framework, tools and metrics to evaluate alternatives (13.6 percent), and siloed decision making (12.1 percent) as the biggest challenges in executing cash deployment strategies at their organizations.
“We keep hearing from companies that they’re struggling to develop a shared framework and level playing field through which multiple teams can work together to determine the best use for cash reserves in the new year,” says Silber.
“Getting your strategic house in order for cash reserve deployment should be the top resolution for corporate leadership teams in 2012.”
Confidence in Congress continues to plummet and fears of Congressional gridlock make businesses pessimistic.
Based on the McDonald Hopkins 2012 Business Outlook Survey, 64 percent of business owners and executives are pessimistic about whether Congress will pass legislation to improve business conditions.
Last year, 25 percent were pessimistic. According to the more than 500 respondents, 66 percent expect U.S. business conditions to improve modestly, although last year, 77 percent expected modest improvements.
What about their own companies? Here again, optimism has declined. Fifty-five percent expect business conditions in their own organizations to improve modestly compared to 61 percent in 2011. There were many comments like this one: “The biggest negative factor is the uncertainty caused by gridlock in Congress.”
After the 2010 election, an associate of ours said he favored “gridlock,” but the results of that were apparent in the way the impasse over extending the debt ceiling negatively affected the markets and the world economy.
Carl J. Grassi, president of McDonald Hopkins, noted that “a significant number of respondents took the time to write comments, many of which reflect their angst about the future while providing insightful ideas about how to solve the country’s economic problems.”
The 10-question survey was sent via email to clients and friends of the law firm during the first three weeks in January. Most of the survey participants are located in the states of Ohio, Illinois, Michigan, and Florida—the states where McDonald Hopkins has offices.
The three greatest challenges facing the business community are increasing health care costs (43%), retaining profit margins (40%) and federal state and local regulations (39%).
A new study provides concrete evidence that each shift in wireless network speed boosts job creation – proof that innovation is the job creation engine.
The adoption and use of successive generations of cell phones supported by the transition from 2G to 3G wireless networks led to the creation of 1,585,000 new jobs in the U.S. between April 2007 and June 2011, according to a new economic study released today by NDN.
Now that makes me feel better every time I use my smartphone.
The study also estimates that a rapid transition from 3G to 4G mobile broadband networks could create more than 231,000 additional jobs within a year.
The study, “The Employment Effects of Advances in Internet and Wireless Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to 4G,” was co-authored by economists Robert J. Shapiro, chairman of the Globalization Initiative at NDN and former U.S. Under Secretary of Commerce for Economic Affairs, and Kevin A. Hassett, senior fellow and director of economic policy studies at the American Enterprise Institute.
In the paper, the authors quantify the large economic benefits – from employment to innovation – associated with the deployment of and investment in more advanced wireless infrastructure and associated mobile devices, tracking the impact of the transitions from 2G to 3G and from 3G to 4G network technologies.
Technical advances led to job creation
“The technical advances from 2G to 3G wireless broadband and the spread of these more advanced technologies led directly to the creation of more than 1.5 million new jobs over four years, during a period when overall private-sector employment declined by 5.3 million jobs,” said Shapiro.
“The private investments that spurred the build-out of 3G broadband networks, with all of their innovations, happened in a highly-competitive wireless market in the United States. The same competitive forces are now driving the additional investments and innovations in the current transition from 3G to 4G wireless networks.”
Wireless sector creating job opportunities
Using a unique database drawn from the Nielsen Mobile Insights survey (Q4’06-Q2’11) on the ownership of mobile devices operating on successive generations of wireless infrastructure, combined with state-by-state employment data, the research by Shapiro and Hassett found that every 10 percentage point increase in the penetration of a new generation of wireless phones and networks leads to a 0.07 percentage point increase in jobs in the next quarter, with continuing gains in subsequent quarters.
“The authors effectively show that the U.S. wireless sector is creating real job opportunities for Americans across the country, especially during a time of economic duress,” said Simon Rosenberg, president and founder of NDN.
“The authors make a strong case for the inclusion of measures to accelerate the deployment of 4G infrastructure in any national job creation strategy to help jumpstart America’s economy. As policymakers look to 2012, they should be sure to encourage a regulatory environment that promotes continued high levels of private-sector investment in today’s competitive wireless market.”
Shift to 4G will bring new apps, products, services
“Past experience suggests that the shift to 4G wireless infrastructure will also open the door to a wide range of new applications, products, services, and even industries that no one can anticipate in advance,” said Hassett.
“These developments almost certainly will produce economic gains at least comparable to those generated by the previous build-out and adoption of 3G technologies and related devices in America.“
The study also examines the emergence and spread of new business operations based on the transition from 2G to 3G, including mobile e-commerce, mobile social networking, and location-based services. The authors also analyze the types of economic changes and benefits which may attend the current transition from 3G to 4G, in such areas as health, energy and cloud-based services.
“In the 21st century global economy, advanced wireless networks are a foundation on which much global economic activity takes place,” said Shapiro. “3G and 4G networks and the technologies associated with them provide that foundation, moving entire economies.
For America to stay competitive and prosperous, it is imperative that private-sector investment and upgrades in these technologies continue to advance, so our businesses and workers can meet demand from consumers and firms on a national and global scale.”
While 57 percent see the current U.S. business environment as somewhat or much better than the average advanced economy, respondents are much less optimistic about the trajectory of the U.S. as a competitive location, according to the the results of Harvard Business School’s first Survey on U.S. Competitiveness.
When asked to assess how the trajectory of the U.S. business environment compares with emerging markets, 66 percent see the U.S. falling behind, while just 8 percent see it pulling ahead. Along with HBS Dean Nitin Nohria, Professors Michael E. Porter and Jan W. Rivkin presented the findings at the National Press Club in Washington, D.C.
Father of competitiveness strategy
Porter is a leading authority on economic competition, Porter is generally recognized as the father of the modern strategy field, as has been identified in a variety of rankings and surveys as the world’s most influential thinker on management and competitiveness.
The survey also examines the desirability of the U.S. as a business location and decisions by firms to relocate existing activities or establish new ones. Of 1,767 cases where respondents had been personally involved in U.S.-related location decisions within the past year, 57 percent considered the possibility of moving existing activity out of the U.S., while only 9 percent considered moving existing activities into the United States.
The remaining 34 percent weighed decisions to set up new activities. Of those offshoring decisions that had been resolved by the time of the survey, the U.S. lost the activity 84 percent of the time. While the country fared better in potential onshoring or new activity decisions (75 percent and 51 percent win-rates, respectively), its overall win record totals just 32 percent.
U.S. losing out on business location decisions
“The U.S. is losing out on business location decisions at an alarming rate, and those activities being offshored are more job-rich than those coming in,” said Porter, the Bishop William Lawrence University Professor at Harvard and head of the Institute for Strategy and Competitiveness at HBS.
“However, the U.S. retains its core strengths in a number of important areas such as university education, innovation, and entrepreneurship, which means that we have the resources to reverse this trend. The vast amount of data from this survey highlights the need for business leaders, policymakers, and academics to collaborate on practical ways to make progress.”
The survey is part of the School’s ongoing U.S. Competitiveness Project, which defines competitiveness as “the ability of companies in the U.S. to compete successfully in the global economy while supporting high and rising living standards for Americans.”
“When we were first laying the groundwork for this Project and this survey, we thought long and hard about how competitiveness should be defined, and why it was such an important goal for the nation’s future,” said Dean Nohria.
“We made sure not to focus on job growth or inequality alone, because that ignores the need for healthy wages that will support America’s middle class. Adopting a broader definition was paramount in this effort.”
Other major findings include:
While the negative view of the future of U.S. competitiveness is widely shared among respondents, different perceptions across groups exist. For instance, respondents between the ages of 40 and 60 are most likely to expect a decline (more than 70 percent thought so) and least likely to foresee a gain (less than 15 percent). Similarly, alumni in America are more pessimistic about the country’s future competitiveness than their counterparts outside the U.S.
Of activities reported to have been moved out of the country in the past, 11 percent consisted of 1,000 or more jobs, while only 5 percent of activities considered for movement but retained in the U.S. consisted of 1,000 or more jobs (none moving to the U.S. consisted of 1,000 or more jobs).
Of the 1,005 location decisions about potentially moving out of the U.S., the most common alternatives considered wereChina (42 percent), India (38 percent), Brazil (15 percent), Mexico (15 percent), and Singapore (12 percent).
Greatest impediments to creating jobs
The survey also asked respondents about the greatest impediments their firms faced in investing in and creating jobs in the United States. Policy-related factors like regulation and taxes are cited as major factors, along with talent-related issues like personnel cost and immigration issues.
“One of the most important aspects of this survey was its effort to pinpoint the roots of the country’s competitiveness problem,” said Rivkin, the School’s Bruce V. Rauner Professor of Business Administration.
“The findings allow us to assess whether individual elements of the U.S. business environment, such as the complexity of our tax code or our K-12 education system, each strengthens or weakens U.S. competitiveness. This provides important insight for leaders who are seeking ways to boost America’s long-run prosperity.”
A number of economic indicators suggest the U.S. is finally climbing out of the economic downturn and moving toward a real recovery. Since the U.S. economy is so dependent on consumer spending for its well being, consumer outlook is vitally important to any recovery.
January’s Consumer Reports Index, a measure of overall consumer financial health, showed that the consumer’s outlook is improving.
Sentiment and employment numbers have climbed, stress levels have diminished, financial difficulties have moderated compared to past months, and the strong retail performance of the holiday season is an important marker that Americans may be willing to engage and spend once again.
January’s Consumer Reports Sentiment Index, which measures how consumers are doing financially versus a year ago, was up from last month (45.4) to 48.2. The most optimistic consumers were ages 18 to 34, and households earning $100,000 or more. The most pessimistic consumers were those in households earning less than $50,000 and people ages 65 and older.
The Consumer Reports Employment Index moved back into positive territory, recovering to 50.6 from 49.6 last month, with past 30-day job gains (6.1%) outpacing job losses (4.8%). However, the improvements in employment were not broad-based. Women, those over the age of 34, and lower-income Americans, in households earning less than $50,000, have lost more jobs than they have gained.
The Consumer Reports Trouble Tracker Index addresses both the proportion of consumers that have faced difficulties, as well as the number of hurdles they have encountered. This Index has remained virtually unchanged for the fourth straight month registering at 50.4 compared to 49.9 in December. Despite stability in the index overall, compared to last month, the proportion of Americans reporting that they have been unable to afford medical bills or medications in the past 30 days was up substantially to 15.7% from 12.8% last month.
“Despite a better economic outlook overall, the strong retail activity this holiday season may lead to a January hangover, with planned spending down from last year,” said Ed Farrell, director of the Consumer Reports National Research Center. “Though retail was strong this holiday season, December was a disappointment, with activity lagging last year. The early start of the season by retailers stole December sales and moved them into November.”
The Past 30-Day Retail Index for January, reflecting December activity, was 15.0, up from 13.9 last month and on par with this time a year ago. The Next 30-Day Retail Index, reflecting planned spending for January was down to 7.9 compared to 12.7 last month due to the post-holiday slump. December’s retail growth was led by strong sales in personal electronics at 35.8%, up from 31.4% last month.
The Consumer Reports Index report, available at www.ConsumerReports.org, comprises five key indices: the Sentiment Index, the Trouble Tracker Index, the Stress Index, the Retail Index and the Employment Index. Here are the key findings:
Consumer Reports Sentiment Index: 48.2*
Consumer Reports Sentiment Index for January (48.2) was up from last month (45.4). Though still in negative territory, there is reason to believe with continued improvement in employment that it will break through to positive territory (above 50) within the next couple of months.
Respondents age 18-34 and households with income of $100K or more remained the most optimistic consumers, while the most pessimistic consumers were households with income less than $50,000 and respondents age 65 and older.
Ages 18-34 were up slightly (55.2) from the previous month (54.5).
Households with income of $100,000 or more (57.9) were up for a second straight month from 56.1 in December and 52.8 in November.
Households with income less than $50,000 (42.9) rose from 40.3 the prior month.
Those who are age 65 and older (40.9) were up from 36.3 in December.
* The Consumer ReportsSentiment Index captures respondents’ attitudes regarding their financial situation, asking them if they are feeling better or worse off than a year ago. When the index is greater than 50, more consumers are feeling positive about their situation. When it is below 50, more consumers are feeling worse. The Sentiment Index can vary from a high of 100 to a low of 0.
Productivity growth may be good for businesses, but it’s not so good for job growth. For years, technology has helped firms globally do more with fewer employees. Now that is changing.
If businesses squeeze all the productivity they can from their current employees, they have no choice but to hire if they want to grow the business. So, this could be good news for job prospects:
Productivity growth weakened substantially across the globe in 2011, with the drop-off most dramatic in advanced economies. The 2012 Productivity Brief, based on data from The Conference Board Total Economy Database, shows productivity — typically measured as output per person employed or hour worked — increased at a much slower rate in 2011 than most economists had predicted, with the trend likely to continue into 2012.
Overall, labor productivity worldwide grew 2.5 percent in 2011, down from 3.6 percent in 2010. This decline was based entirely on a slowdown in output growth, which fell from 5 percent in 2010 to 3.9 percent in 2011; average employment growth remained practically unchanged compared to the previous year at 1.4 percent. Almost all advanced economies saw sharp declines from the previous year.
Key driver of growth worldwide
With output contracting 0.5 percent in 2011, productivity growth in Japan stood at 0.2 percent, a huge drop from 5.0 percent in 2010. Likewise, productivity growth fell from 2.7 percent to 0.6 percent in the U.S., and from 0.9 percent to 0.2 percent in the U.K. In the Euro Area, productivity growth weakened from 1.8 percent in 2010 to 1.2 percent in 2011, which was still highest among major advanced regions.
“Productivity remains the key driver of growth worldwide,” said The Conference Board Chief Economist Bart van Ark. “This is especially true during times of austerity. In 2012, all output growth in advanced economies will have to come from increase in labor productivity as there’ll be, on balance, virtually no job creation across the U.S., Japan, and Europe.
Productivity growth also slowed in many emerging and developing economies, but generally by a much smaller margin — on average down from 5.5 percent in 2011 to 4.7 percent in 2010. China’s productivity growth rates, one of the world’s highest, stood at 8.8 percent in 2011, down from 10 percent in 2010. In India, the growth rate fell to 5.2 percent from 6.3 percent.
Productivity growth fell more significantly in Latin America, from 3.5 percent to 1.5 percent. The Middle East, along with Russiaand the other member countries of the Commonwealth of Independent States, were the only regions that saw modest improvements in productivity growth in 2011.
For 2012, The Conference Board anticipates further weakening in labor productivity growth (measured as the change in output per person employed) worldwide, to 2.3 percent. Major advanced regions will be the worst performers — with productivity growth at 1.2 percent on average.
Long term decline
The 2012 Productivity Briefalso notes a long-term decline in the growth of Total Factor Productivity (TFP), a more sophisticated measure relating output to all factors of production, rather than just labor.
At a current trend growth rate of about 0.5 percent worldwide, TFP growth has been trending lower since the early 2000s, turning negative in the U.S. for much of that time, close to zero in the Euro Area, and dropping precipitously in several emerging economies over the last several years.
Likely to continue in 2012, this trend suggests a slowdown in the returns on technological progress and innovation, especially in advanced economies.
“Even today, the U.S. remains by far the most productive large economy in the world, with China’s output per worker almost 85 percent lower,” says van Ark.
“However, given the current divergent trends in productivity growth, advanced economies are steadily losing their edge. The challenge for both advanced and developing economies as we slowly emerge from the global downturn is the same: to break through the usual short-term trade-off between productivity and job growth by focusing on the creation of more productive jobs — not an easy task in an environment of government austerity and budget cuts.”
New York City has more media jobs and is home to more multibillion-dollar media companies than any other city in the world. But what will the City’s media landscape look like in coming years as new technology disrupts business models and emerging markets continue their growth?
An answer can be found in a newly published report detailing the findings of the “Media.NYC.2020” initiative undertaken by the New York City Economic Development Corporation (NYCEDC).
“While the sector will undoubtedly continue to face future challenges, we are committed to creating growth opportunities that build on our strong history of leadership and ensure that we remain the global leader for many decades to come.”
The Media.NYC.2020 Final Report paints a picture of what the media industry will look like in 2020 and recommends ways in which New York City and the private sector can work together to maintain and enhance the City’s position as a global leader in the media industry.
Oliver Wyman served as NYC’s knowledge partner in supporting the Media.NYC.2020 initiative. More information and a link to the report can be found at www.oliverwyman.com/media_nyc_2020.htm.
The Media.NYC.2020 Final Report outlines three possible scenarios for the City’s media evolution – fragmentation, a new equilibrium, and further concentration – and highlights several initiatives, launched by Mayor Bloomberg over the last two years that were initiated through Media.NYC.2020 findings. These initiatives include:
Cultivating collaboration among the City’s start-ups, media companies, and academic institutions through the NYC MediaLab
Fostering innovation through the NYC BigApps Competition, developed in partnership with the Department of Information Technology and Telecommunications to provide software developers with access to City datasets
Spurring entrepreneurship through low-cost, shared workspace for start-ups through incubators
Investing in seed-stage companies through the NYC Entrepreneurial Fund
Mentoring enterprising New Yorkers through NYC Venture Fellows and JumpStart
Martin Kon, the Partner in Oliver Wyman’s Media & Entertainment practice who led support of Media.NYC.2020, comments: “The pace of change in media is such that, at this week’s Consumer Electronics Show in Las Vegas, devices and applications that debuted will likely materially impact the media industry…but the same will be true again next year. Innovation is not waiting for any slower players. The thoughtful process that the NYCEDC followed in its Media.NYC.2020 initiative will greatly help New York City remain a leader in fostering innovation and supporting economic development in the rapidly evolving media space.”
“As we continue to cultivate the 21st century economy here in New York City, the Media.NYC.2020 report will help ensure that the City’s media sector remains the most forward-looking, international, connected, innovative, and adaptive on the planet,” said New York City Economic Development President Seth W. Pinsky.
“While the sector will undoubtedly continue to face future challenges, we are committed to creating growth opportunities that build on our strong history of leadership and ensure that we remain the global leader for many decades to come.”
Respondents to a new PR Boutiques International (PRBI) survey of worldwide boutique public relations agencies predict moderate to high growth for their businesses in 2012, and nearly half see social media as the major trend impacting communications in 2012.
Over the years, as journalists, we have worked with many PR firms, large and small, but we have seen an increase in the number of boutique firms. In our experience, they are as effective as larger firms and sometimes more so for many firms, particularly younger ones. But they would know if we’re headed for growth or more economic downtime, because the first thing to slash when times are tough is often the PR budget.
PRBI, a worldwide collaborative network of firms, includes 32 agencies operating in 13 countries, spanning the globe from Argentina to South Korea. Members of PRBI represent companies ranging from international conglomerates to Fortune 500, trade associations, and fast growing firms in industries such as technology, energy, financial services, government, tourism, education, lifestyle and healthcare.
“The boutique PR firm is more appealing than ever to clients because our structure and expertise yields results,” said PRBI president Bill Cowen, CEO of Metrospective Communications, Philadelphia, PA.
Biggest milestones of 2011
“Today companies need insightful and accurate advice, superb execution, and flexibility to adapt to constantly changing conditions, which is exactly the value proposition that our members provide.”
All member agencies responding to the PRBI survey reported that their confidence level about the business environment was either medium (72 percent) or high (28 percent), while 78 percent predicted moderate growth in 2012.
Perceived value of PR incresased
Two out of three reported that the perceived value of the PR boutique has increased during the economic recession, because companies see that they get more value for their investment (38 percent) and clients value the hands-on-role of senior, experienced practitioners (38 percent).
The power of social media was cited by 44 percent of respondents as the major trend impacting communications in 2012, followed by the economic recession and its impact on spending (33 percent).
The difficulty of telling a company story in a crowed marketplace was voted the biggest communication challenge that clients face in the coming year. Conversely the most significant opportunity facing companies today lies in telling that story through engaging, compelling media and channels, including the strategic use of social media.
Rather than predicting that social media will be the PR “magic bullet” for all clients, PRBI members instead view it as a tool that must be powered by engaging content and strategically integrated into the enterprise’s communication program.
After precipitous declines during the prior two quarters, CEO confidence bounced back at year’s end with the largest quarterly gain since the start of the recovery in 2009, according to the Vistage CEO Confidence Index. This is the latest of a handful of reports from various sources showing a growing, if still wobbly optimism that the U.S. economy may be emerging from the doldrums.
The Vistage CEO Confidence Index was 98.8 in the 4th quarter 2011 survey, up from 83.5 in the 3rd quarter, and reaching the highest level since 105.2 was recorded at the start of 2011. The Q4 2011 Vistage CEO Confidence Index reflects responses from 1,641 U.S. CEOs, surveyed between Dec. 12 and Dec. 22, 2011.
Every component of the confidence index improved. Expected gains prompted CEOs to plan increases in employment and fixed investments, as they anticipate higher revenues and profits during the year ahead.
Persistent economic and political uncertainty remains a top concern, mentioned by nearly half of all CEOs, fueled by the debt crisis in Europe and the failure of Congress to address the national debt, with two-thirds saying that the national debt had negatively affected their business plans.
The recent surge in confidence may have longer-term implications, as 49% of the CEOs surveyed believe that in three years, the U.S. will be the most improved economy in the world with China posting 17% and South America at 14%.
According to Vistage Chairman of the Board and CEO Rafael Pastor, the three-year outlook is very telling and good news for our economy: “This is not the opinion of pundits or economists; these are the CEOs who are leading our economic recovery and will be responsible for improving the business and employment picture in the U.S. over the next three years.
This is a good sign of better days ahead. Basically, these CEOs are saying that, despite the stalemates in Washington, and the volatility around the world, they and their enterprises will innovate, grow, and hire in the ways the rest of the world can’t.”
Here’s a video on the survey findings:
SURVEY HIGHLIGHTS
Economic Growth Rebounds. More than twice as many CEOs thought that the economy had improved in the latest survey compared with one quarter ago. Improved economic conditions were cited by 41% in the 4th quarter, up from just 18% in the 3rd quarter. Just 12% thought the economy had recently worsened. When asked about prospects for the year ahead, additional economic gains were expected by 40%, twice the 20% recorded in the 3rd quarter. While CEOs were still less optimistic than they were in the closing quarter of 2010, the data signal a stronger 4th quarter GDP and modest positive growth in the year ahead.
Majority Plan New Hires. Net increases in employment were planned by 55% of all firms in the 4th quarter of 2011. Although only barely above last year’s 54%, it was the highest percent that planned job additions since 2007.
Just 6% planned net declines in the number of their employees during 2012, scarcely above the all-time low of 5%. CEOs were nearly evenly split on whether the recent sharp decline in unemployment represented the start of a sustained trend or just a temporary blip.
When asked what Congress should do to create more jobs, 33% of the CEOs said “make the current tax cuts permanent,” followed by, “provide employers with hiring incentives,” at 17% and “increase spending on infrastructure” at 14%.
Revenue Prospects Improve. Revenue growth was expected by 73% of all firms in the 4th quarter survey, up from 62% in the prior quarter, and much closer to the year ago level of 77%. Revenue expectations were twice as favorable as at the recession low, when just 36% expected higher revenues in the closing quarter of 2008. This recent improvement came despite the expectation by six-in-ten firms that the prices that they would receive for their goods or services would remain unchanged or fall during the year ahead.
Profit Outlook Edges Higher. Increasing profits were anticipated by 55% of all firms in the 4th quarter of 2011, between last quarter’s 47% and last year’s 63%. While the worst impact of the recession on profits is clearly over (just 9% anticipated declining profits, down from a peak of 36% three years ago), the expectation of higher profits is still well below the peak of 74% in the 4th quarter of 2003.
Investment Strengthens. Planned investments in new plant and equipment were reported by 42% of all firms in the 4th quarter of 2011, the highest level since 48% was recorded at the start of 2011. Just one-in-eight firms reported that they would reduce their fixed investments during 2012. While the number of firms that plan to increase investment spending is well above the low of 18% recorded at the close of 2008, it is still below its peak level of 57% set at the closing quarter of 2005. This commitment of investment funds to secure future revenues underscores these CEOs’ expectations of a modestly stronger recovery in 2012.
Social Media. 60% of Vistage CEOs reported using social media to grow their businesses. When asked on which social media platform they are most personally active, 41% stated LinkedIn and 26% answered Facebook.
Presidential Politics. When asked which Republican candidate for President will emerge as the 2012 party nominee, Mitt Romney led the pack with 49% followed by Newt Gingrich at 29%, and “unsure” at 18%. None of the other candidates registered at higher than 2%.
Artist's rendering of an advanced Toronto subway car.
Just as oft-predicted, Internet access is becoming increasingly pervasive in life.
You can get some work done or entertain yourself on the Internet while you travel on most jets and Amtrak trains these days.
Now, a comprehensive new survey of global subway systems shows that passengers on most of the world’s large underground systems can access the wireless Internet when they travel.
This survey, conducted in October 2011, covers 121 global cities of more than 750,000 people with an underground subway or metro system.
Access to the mobile Internet is an essential component of the smart in ‘smart city’: this is how people connect to one another and to the services they need.
NCF chose to focus on commuting because this is a significant part of most people’s day in big cities but one where there is a clear divide between on and offline.
The study shows the highest availability of mobile data services is in South Korea and China, where users can connect to the Internet in 100 % of major subway systems.
Overall, Asian commuters can go online in 84 % of major subways, compared to 56 % in the EU and 41% in the US and Canada. The lowest rate is in Eastern Europe and Central Asia, at 25%.
According to Mathieu Lefevre, executive director of the NCF, ‘This study helps paint a new map of the world, where technological divides are not where you think. For instance, it says a lot that Asian commuters can check their email and read the news in more than 80 % of the region’s subway systems, compared to just half than in North America.’
Hiring optimism among U.S. employers is gaining momentum as positive outlooks are reported broadly across all industries and geographies, according to the latest 
Consumer confidence in the overall economy and in technology both dropped in February, according to the latest CEA Index by the Consumer Electronics Association (CEA).
The GSMA today announced new research findings that demonstrate the positive, long-term economic impact of the global mobile industry.
Despite the tough economy, family-owned businesses remain optimistic about hiring and retaining employees, according to the 
As the economy has slowly started to recover, the hardest hit area has remained small business lending. A new survey from Omega Performance, however, indicates that tide is now shifting as well.
For the last month or so we have been reporting multiple signs of an improving economy that bolster our feeling it’s about to accelerate, and we’re not alone. U.S. business journalists – who report daily on the economy in their communities – say they expect their local economic conditions, including the number of jobs available, to improve in the next six months, according to a 
The U.S. economy is beginning to flex its muscle; with the addition of jobs, and the aid of zero interest rates, unprecedented monetary creation and a $1.2 trillion annual budget, according to the Outlook for Financial Markets March 2012 edition.
Three elements can restore U.S. competitiveness and create new jobs, says a Center For Public Policy Innovation report, 
Nearly half (41 percent) of companies plan to deploy cash reserves in the new year, according to a recent Deloitte poll of business professionals from a cross section of industries.
Confidence in Congress continues to plummet and fears of Congressional gridlock make businesses pessimistic.
A new study provides concrete evidence that each shift in wireless network speed boosts job creation – proof that innovation is the job creation engine.
Productivity growth may be good for businesses, but it’s not so good for job growth. For years, technology has helped firms globally do more with fewer employees. Now that is changing.
New York City has more media jobs and is home to more multibillion-dollar media companies than any other city in the world. But what will the City’s media landscape look like in coming years as new technology disrupts business models and emerging markets continue their growth?
Respondents to a new 
After precipitous declines during the prior two quarters, CEO confidence bounced back at year’s end with the largest quarterly gain since the start of the recovery in 2009, according to the Vistage CEO Confidence Index. This is the latest of a handful of reports from various sources showing a growing, if still wobbly optimism that the U.S. economy may be emerging from the doldrums.
