Another Thousand Jobs Gone at Citigroup

Citigroup announced it was making "limited staff reductions" in its corporate and investment banking division. An estimated 1,000 jobs are expected to be cut worldwide, according to people familiar with the decision.

The division currently has about 48,000 workers. Citigroup employs some 285,000 people worldwide. The bank said it was merging its two main bank holding units into the parent company, consolidating capital markets operations and making other moves that appear aimed at simplifying its structure and increasing accountability.

It takes a lot of work to create 1,000 jobs. Just ask any economic developer these days.

More here.

Best Jobs?

What are the best jobs to pursue for the next five years? Fast Company Magazine draws on the work of the Bureau of Labor Statistics, Salary.com, and an innovation expert to tap the top jobs. Here is the list:

Personal finance adviser
Medical scientist
Computer software engineer
Chiropractor
Environmental engineer
Biochemist and biophysicist
Sales manager
Epidemiologist
Computer system analyst
Athlete
Agent and business manager for artists, performers, and athletes
Marketing manager
Producer and director
Actor
Lawyer
Advertising and promotions manager
Management analyst
Postsecondary education administrator
Financial manager
Actuary
Airline pilot, copilot, and flight engineer
Geoscientist
Market research analyst
Securities sales agent
Medical and health services manager

Corporate Profits and Workers' Income

"Capitalists are grabbing a rising share of national income at the expense of workers." That is the headline of a recent Economist article.

The article goes on to say "However, there is another factor that might have raised the return on capital relative to labour in a lasting way, namely the integration of China and India into the world economy, along with their vast supply of cheap labour. To the extent that this increases the global ratio of labour to capital, it will lift the relative return to capital. Outsourcing may not have destroyed many jobs in developed economies, but the threat that firms could produce offshore helps to keep a lid on wages. As a result, the share of profits in national income could stay relatively high for a period."

So, what is your take? Here for more.

Carly Fiorina is Out and It's Too Bad for Women Execs

Everybody had high hopes for Carly Fiorina at HP. Things did not work out as many folks had hoped.

From one standpoint, it is a setback for women in management. But I think women moved ahead under her leadership.

HP is a tough assignment, no matter who is at the helm. Truthfully, the company may not make it as world competition heats up in the computer business. I guess that is Darwin's survival of the fittest law in business. It's also called globalization and major shifts in competition.

Stay tuned. Carly Fiorina isn't done. Here for more.

Minnesota Biotech

Minnesota Gov. Pawlenty and other state economic development officials have said for the last two years that Minnesota is well-positioned to become a leading center of biotechnology. A panel of business, academic and political leaders looked at that question. Instead of the enthusiasm often heard at such events, they said Minnesota faces challenges that are keeping the state from becoming a biotech leader. More here.

My view: Biotech will be a hard struggle for most states that currently are not the top leaders. But, you can buy your way into the market. Just ask Florida and the folks at Scripps. Not a cheap shot, rather a statement about what it will take for all those places that "wannabe" biotech and life science meccas. Personally, I believe Minnesota has some distinct opportunities in biotech, despite what the nay sayers may contend.

What Baltimoreans Want

More jobs, but better paying jobs is high on the list. The question is how do you get them. Click here to read more.

Three Cheers for the ARC

After trying unsuccessfully last year to slash the Appalachian Regional Commission's (ARC) appropriation in half, the Bush administration left it untouched this time. President Bush's 2006 budget would grant the commission 65.5 million dollars for economic development aid. That's about the same as this year. More here.

Georgia Seeks to Create Small Business Tax Advantages

Georgia Governor Sonny Perdue announced recently that legislation included in his Entrepreneur and Small Business Growth Initiative has been introduced in the state House of Representatives. House Bill 282 will provide tax relief to small businesses seeking to invest, grow and create jobs for Georgians. More here.

ED Changes in Indiana

Indiana Governor Mitch Daniels signed one of his first bills into law today in Indianapolis. Officials say the law eliminates the Department of Commerce and hands economic-development decisions to the 12-member Indiana Economic Development Corporation. More here.

Blogger-preneurs

"To blog or not to blog? That's the question Brad Feld, a managing director at Mobius Venture Capital, asked himself last year before launching his personal Web diary, dubbed Feld Thoughts. He wondered if anyone would be interested in his musings about bear watching in Alaska, the latest movies he's seen, and, of course, what it means to be a venture capitalist." Read the rest of the story here.

If you're wondering whether blogging has helped my business, the answer is yes. But most importantly, ED Futures has raised my consciousness about economic development globally. That has had a benefit that far exceeds the immediate return to my consulting business.

Did You Know?

Georgia ranked 7th in the nation for amount of venture capital raised in 2004, the state’s best showing ever. The Advanced Technology Development Center's (ATDC) members and graduate companies contributed 18 percent of the total $585 million raised statewide. More here.

Israeli Life Science Connection

If I were looking for a good connection to young life science companies in Israel, I would give these folks a call. Here to learn more.

One You Should Know About

"In the Ina Mae Rude Entrepreneur Center, I wanted to explore the relationship between artist creativity and entrepreneur innovation. The goal was for artists to inspire entrepreneurs to innovate and create more by providing creative space, and have entrepreneurs inspire artists to be more vital in the marketplace. This space is about the creative class of people, the people who live vividly." Bruce Gjovig, Director & Entrepreneur Coach at the UND Center for Innovation

Locating in Small Towns for Cost Advantages

"As long as you can find enough workers, locating your business in a small town can dramatically lower your operating costs." That is what Bill King, Chief Editor of Expansion Management Magazine had to say in the most recent issue of the magazine.

Generally, I think Bill has a point--at least from a general operating cost standpoint. Although, it will be interesting to see what happens in the next couple of years, as cost competition from offshore locations continue to pummel the U.S. business location marketplace. Click here to read more.

South Dakota's 2010 Initiative

South Dakota has embarked on a long term economic strategy that has some appeal to me. I like the performance-orientation of the initiative, coupled with the way South Dakotans are keeping track of their progress. Click here to learn more.

Enterprise Florida's Global Efforts

I have studied what various states are doing to promote and assist alignment with the global economy. Enterprise Florida is doing a very effective job in this area. Click here to learn more about the organization's strategy. The organization has what I consider to be a "serious" commitment to global strategy. The vast majority of states just give lipservice to the issue.

Oregon Committed to Sustainable Economic Development

Sustainability should receive greater attention in economic development. Some states, like Oregon, are not afraid to address the issues head-on. Click here to see what Oregon is doing to promote sustainable approaches to development statewide.

Georgia Plan to Create New Tourism Foundation

The New Georgia Tourism Foundation will pool the state’s tourism marketing resources and leverage the private sector to support the growth of the tourism industry statewide.

The non-profit organization will be charged with developing public-private advertising campaigns; soliciting private donations for tourism; offering strategic planning and support for Georgia’s state facilities through tourism product development; aligning the state’s five halls of fame for promotion and better coordination of marketing, advertising, customer service and telling the story of Georgia’s tourism heritage.

The concept of the New Georgia Tourism Foundation was endorsed by the Governor’s Commission for a New Georgia.

Read more here.

Colorado's Bioscience Plan

Bioscience is on everybody's mind. Colorado has some growing opportunities in this area. Click here to see what the state's bioscience action plan has to say.

Arizona's Film Industry

Arizona just completed a study of the economic impact of its film industry. Here is a quick summary.

In 2003, , the film industry generated over $201 million in direct and indirect economic activity and supported approximately 1,704 total direct and indirect jobs in Arizona. These jobs are increasingly technology-related as the film industry takes advantage of technological advances and moves to more digital filmmaking. The digital medium requires a new type of workforce that consists of individuals with more technical backgrounds.

What to learn more? Click here.

Downtowns as Identity Boosters

Here is an interesting article on how Front Range Colorado communities are trying to enhance their identity through strengthening their downtowns.

I really like downtowns and would like to see them flourish nationwide, but over the past 25 years and even longer, they (downtowns) have been at odds with the major market forces (retail, housing, and yes even entertainment and recreation) that downtowns must harness to be successful.

My advice to any community seeking to rebuild its downtown is to understand the market forces giving direction to suburbanization, and to identify clear strategies that will change the momentum of market growth of housing, entertainment, and retail opportunities over time within a regon. Anything effort short of that is a sheer waste of public resources.

Back and Forth

That is what my "motion detector" has to say about intraregional movements of businesses. Click here to read an article that describes the move of a Royal Appliance plant in NE Ohio.

Don't get me wrong...I am happy for Euclid and feel sorry for Mentor, if the deal goes the way it appears to be headed. NE Ohio needs fresh blood. This region needs some new branches on the trees. Better yet, we need some new trees.

Education is Economic Development

That is the headline of a recent Des Moines Best Record article. This is not literally true, but I understand what the news folks are trying to say. Also, I applaud the effort to forge closer links between economic development and education. It is true that education is a (the) major deciding factor in lifetime earnings. It also has everything to do with whether local economies can migrate to a "high skills/high wage" economy. In any case, go here to read more.