Researching Overseas Business Costs

If you have companies in your area that relocating employees abroad or doing business in another country, you will want to take look at the Web site of the U.S. Department of State. The agency publishes quarterly report indexes of living costs abroad that compare expenses in key international cities with Washington, D.C. They publish the data for use by private organizations in establishing compensation systems for their American employees assigned or traveling abroad.

The U.S. Department of State publishes indexes of living expenses abroad for approximately 180 locations. For most countries, they compute indexes for one location, usually the capital city. The indexes are computed for more than one post in those countries where the government pays a post allowance (i.e., cost of living allowance) and where there are significant differences in living costs among cities assigned to U.S. government employees.

Source: Harvard Business Review

Strengthening Your Team

Here is some good practical advice for ED organizations.

Organizations increasingly turn to teams to get work done, but institutional barriers can quickly corral collaboration. Harvard Management Update reports on the merits of presenting your team with an irresistible challenge. Here are five actions you can take to strengthen your team:

1. Share as much information as you can.
2. Provide the right amount of guidance.
3. "Stretch" your people beyond their current skills.
4. Make it fun, actionable, and visible.
5. Help people "feel" the challenge.

Read more here.

LA Regional Industrial Real Estate Market

I knew it was big, but not that big. Download the latest Colliers International market report here.

Hardnosed, But True

Globalization could spur organized labor to rethink its premises, objectives, and strategies. But the prospect for that is not clear, according to respondents to this month’s column.

As Arun Joshi put it, “Now that the world is becoming a global village, it falls to labor’s competency and its ability to move up the value chain that will allow it to share the positive gains. If labor tries the old tactic of strikes, management will just outsource the staff from somewhere else…”

Read more here.

Hint: Target IPOs for Business Attraction

Initial Public Offering (IPO) companies are worth a look for business attraction. Downside with some is they are too small and too young. Advantage is many are growing rapidly and will be needing facilities and workers.

Who are some of the recent leaders growthwise?

Company and (Recent Growth Returns)

Baidu.com, Inc. 152%
FreightCar America, Inc. 120%
VeriFone Holdings, Inc. 119%
Adams Respiratory Therapeutics, Inc. 112%
Warren Resources, Inc. 108%
CBOT Holdings, Inc. 107%
GFI Group Inc. 106%
Hiland Partners, LP 97%
Citi Trends, Inc. 96%
Herbalife Ltd. 95%

Contact us to learn more about what we see. Contact ED Futures at 440.449.0753 or by email at: dtia@don-iannone.com.

What Do the Global Titans Mean to Your Area?

In recent years, globalization has become a reality: the once distinct geographic, economic and cultural lines have not only been blurred, but nearly erased. With this transformation, we have seen the emergence of a new breed of mega-corporations: the global titans.

Learn more about these companies here.

Who are they?

General Electric Co.
Exxon Mobil Corp.
Microsoft Corp.
BP PLC
Citigroup Inc.
Procter & Gamble Co.
Johnson & Johnson
Bank of America Corp.
HSBC Holdings PLC (UK Reg)
Vodafone Group PLC
Pfizer Inc.
GlaxoSmithKline PLC
Altria Group Inc.
American International Group Inc.
Intel Corp.
Total S.A.
Toyota Motor Corp.
Novartis AG
International Business Machines Corp.
Chevron Corp.
JPMorgan Chase & Co.
Royal Dutch Shell PLC (A)
Nestle S.A.
Wal-Mart Stores Inc.
Cisco Systems Inc.
Roche Holding AG Part. Cert.
PepsiCo Inc.
Coca-Cola Co.
Verizon Communications Inc.
Royal Bank of Scotland Group PLC
UBS AG
ConocoPhillips
SBC Communications Inc.
Time Warner Inc.
Telefonica S.A.
Samsung Electronics Co. Ltd.
Nokia Corp.
Astrazeneca PLC
Dell Inc.
ENI S.p.A.
Abbott Laboratories
Barclays PLC
Siemens AG
Merck & Co. Inc.
Wyeth
HBOS PLC
ING Groep N.V.
Morgan Stanley
Walt Disney Co.
BellSouth Corp.

Want to know more about any of these companies? Contact ED Futures at 440.449.0753 or by email at: dtia@don-iannone.com.

Canadian Life Sciences Big

Did you know...

The Toronto Stock Exchange is the second largest life sciences market in the world. TSX is home to more than 70 life sciences companies with a total market capitalization of over $23 billion as of March 2004. TSX life sciences companies raised $1 billion in equity capital in 2003. Over 2 billion life sciences shares, valued at $18.8 billion, traded on TSX in 2003. Tracked by over 90 life sciences equity analysts globally, including 41 within Canada, these businesses are participating in the growth of a TSX sector that has seen a 16% jump in the number of companies listed since 1999.

Read more here.

Developing the Creative Sector?

If your area has a desire to develop its "creative sector," you may want to start by looking at the creative sector serving Hollywood.

Not sure where to start? We suggest your start with the Hollywood Creative Directory, which you can learn more about here.

We have been investigating this sector. Contact us to learn more about what we see. Contact ED Futures at 440.449.0753 or by email at: dtia@don-iannone.com.

Who Are These Companies?

Question: Recognize the names of these companies? Why could they be important to your area?

Answer: They are turnaround artists and business liquidators!

So what, you say. If you hear these "guys" are in town, you may have a major corporation in your area that is in serious trouble.

Want to get the scoop on what and how these companies operate? Contact ED Futures at 440.449.0753 or by email at: dtia@don-iannone.com.

Turnaround Artists and Business Liquidators

Adeste Investments Plc
Alchemy Partners LLP
AlixPartners, LLC
Alvarez & Marsal, LLC
American Express Tax and Business Services Inc.
Apollo Advisors, L.P.
Baker Tilly International Limited
Baxi Partnership Limited
Buxbaum Group
Consolidated Firstfund Capital Corp.
Conway, Del Genio, Gries & Co., LLC
Corbett Keeling Limited
Deloitte Touche Tohmatsu
Electra Partners Limited
Encore Capital Group, Inc.
Glass & Associates Inc.
Gordon Brothers Group, LLC
Grant Thornton International
Grant Thornton LLP
Harrison Hurley and Company
Hilco Trading Co., Inc.
Huron Consulting Group Inc.
Inflexion Managers Limited
JLL Partners Inc.
JZ Equity Partners PLC
Liquidity Services, Inc.
Mahoney Cohen & Company, CPA, PC
Mesirow Financial Holdings, Inc.
PKF (UK) LLP
PRG-Schultz International, Inc.
Questor Management Company LLC
Tenon Group Plc
Texas Pacific Group
Texas Regional Bancshares, Inc.
Vantis plc
WH Ireland Group PLC
XRoads Solutions Group

Super-Regional Banks: What Lies Ahead?

This is an important sector of the financial service industry and your area should be paying attention to expected future trends in the industry.

Does this list of companies look familiar to you? If it does, maybe ED Futures can help you sort out where this sector is headed and what might be in store for your area. Contact ED Futures at 440.449.0753 or by email at: dtia@don-iannone.com.

AmSouth Bancorporation
Associated Banc-Corp
Banco Popular North America
BancWest Corporation
BB&T Corporation
Cincinnati Financial Corporation
Citibank
Citizens Financial Group, Inc.
The Colonial BancGroup, Inc.
Comerica Incorporated
Commerce Bancshares, Inc.
Commercial Federal Corporation
Compass Bancshares, Inc.
Fifth Third Bancorp
First Banks, Inc.
First Citizens BancShares, Inc.
First Horizon National Corporation
First National of Nebraska, Inc.
Golden West Financial Corporation
Harris Bankcorp, Inc.
Hibernia Corporation
HSBC USA Inc.
Huntington Bancshares Incorporated
KeyCorp
M&T Bank Corporation
Marshall & Ilsley Corporation
Mercantile Bankshares Corporation
MetLife, Inc.
National City Corporation
Navy Federal Credit Union
Northern Trust Corporation
Old National Bancorp
The PNC Financial Services Group, Inc.
Regions Financial Corporation
Sky Financial Group, Inc.
Sovereign Bancorp, Inc.
SunTrust Banks, Inc.
Susquehanna Bancshares, Inc.
SVB Financial Group
Synovus Financial Corp.
TCF Financial Corporation
TD Banknorth Inc.
UnionBanCal Corporation
U.S. Bancorp
Wachovia Corporation
Washington Mutual, Inc.
Zions Bancorporation

Company Profile: Honda Motor Company

Honda is very important to Ohio and some other U.S. states. This is a company to watch in the future. ED Futures sees "adjustments" ahead.

Contact Don Iannone for a price quote on ED Futures more in-depth research profile of Honda Motor Company. Tel: 440.449.0753 or by email" dtia@don-iannone.com

Here are a few tidbits on Honda...

Honda is enjoying brisk motorcycle sales, particularly in Asia where motorcycles are a popular mode of transportation. In North America, Europe, and at home in Japan, Honda has introduced new models of sport bikes. Honda has also completed the conversion of its entire motorcycle lineup to cleaner-burning four-stroke engines.

On the automotive side, Honda gained market share in the US through its entry to the light truck segment with the Ridgeline pickup. In Europe Honda is capitalizing on the popularity of diesel models, and in China the company is selling a lot of cars as the Honda brand grows in popularity. Sales have been flat in Japan, but Honda responded by tightening up its domestic sales organization.

Going forward, Honda is planning on modest growth, primarily in the US and China, but believes growth will be tempered by increasing fuel and raw materials costs as well as fluctuations in foreign currency exhange rates.

Logistics for Biophraming: One to Watch

Want to learn about this subject? Consider attending the IBC's 2nd Annual Logistics for Biopharmaceuticals conference will provide you with an opportunity to learn best-practices from experts in technology transfer, supply chain operations, cold chain management, outsourcing, packaging and distribution.

The conference will provide you with an opportunity to learn best-practices from experts in technology transfer, supply chain operations, cold chain management, outsourcing, packaging and distribution. You will learn the latest requirements and guidelines straight from the regulatory agencies and hear first-hand experiences from Amgen, Pfizer, Wyeth Biopharma, Chiron, Genentech, BioReliance, Cytogen, and Immunogen on strategies they developed to minimize risk and maximize the bottom line.

More here.

Look for Offshoring to Rip an Even Larger Hole in Your Local Economy

I hate to say that I told you so, but I did. I've been writing about the negative impact of offshoring on local economic development for the last three years.

Pay attention to this trend, please. Don't believe the distorted picture that "our friends in Washington???" have been telling us.

Your area cannot compete against offshore locations the way the "economic development game" is being played. Click here to learn about a possible alternative. If you follow the path I've outlined in this article, you stand a somewhat greater chance of repositioning your area in the global marketplace.

Now, read this latest outlook on what offshoring will mean to US companies in the next three years...

Executives at U.S. companies with sales over $1 billion annually expect income generated outside the country to grow to 42% of total annual sales over the next three years.

This is the third year of the study sponsored by Accenture, conducted by S. Radoff Associates. The survey includes responses from 160 sales and marketing and supply chain management executives at companies with large revenues. Expectations this year are for offshore revenues to represent 35% of total sales. The figure was 26% three years ago.

Of all global markets, China represents the most important emerging market and 82% of those responding indicated they intend to upgrade operations there. India is the second most important market, garnering 56% of interest from respondents, with Eastern Europe having importance for 38% of those responding indicated they intend to upgrade operations there.

While these statistics seem rosy, things could be better. Some 47% of those surveyed say that poorly designed or executed global operations strategy contributes to a failure to grow market share in these emerging markets. Further, according to the study, 40% of the companies feel they don’t have a global procurement, manufacturing and distribution network that will deliver product on time, on budget.

More here.

ED Futures Newsletter, October 30, 2005 Issue

Dear ED Futures Newsletter Subscriber:

I have become increasing concerned about the "economic well-being" of the citizens we serve in our work. For that reason, we are conducting some special research on how state and local economic development policies and programs contribute to the economic well-being of citizens.

We need your help in completing a short web-based survey, which you can access here: Economic Well-Being Survey Link. Please take a few minutes and share your views with us. We will be sharing our findings with the ED community in the near future.

Here are a few articles posted to the ED Futures website, which you may find to be of interest:

How Does Economic Development Work and Is It Working?
(You will find a serious attempt to answer these two related questions. The survey results will help improve the answers we can offer.)

Target Industry: Agricultural Biotechnology (This is an area you might want to explore, especially if agriculture is a major industry cluster in your area.)

Book Review: Will Your Next Mistake Be Fatal? (Please read this one for your own sake!)

There are many other article posted to the ED Futures website (www.don-iannone.com/edfutures. Don't be shy. Use the Google search engine on the site to keyword search the site to find articles in line with your interest. There are over 4,000 articles on the website.)

Have you signed up for the IEDC Leadership Summit in St. Petersburg, Florida? It will be held in late January 2006. I will be giving the keynote speech on my forthcoming book, Creating Leadership Advantage for Economic Development. (I am hopeful the book will be off the press by then and available at the conference.) I understand that Creative Class Richard Florida will also be speaking at the conference. Get the details at the IEDC website.

In conclusion, if you know someone who would like to sign up for the ED Futures newsletter, just provide them with this link.

Thank you.

Sincerely,

Don Iannone
Publisher
Tel: 440.449.0753
Email: dtia@don-iannone.com

Your Airlines' Financial Health: It Matters to Your Area

Airlines have been in a fragile financial position for a long time. The economic health of your area depends upon the health of the major airlines serving it.

To get a handle on how well your air carriers are doing, click here to download this useful analysis report. (PDF file)

Goods New Story: Akron-Canton Airport

Smaller airports can succeed...with the right strategy...

Akron-Canton Airport, a once marginally consequential airport located about 35 mi. southeast of Cleveland in northeastern Ohio, was dubbed last year by the Boyd Group consultancy as the fastest-growing aerodrome on this part of the planet. In 2003 it handled 1,164,755 passengers, a 30.2% rise over 2002 figures. In 2004, 1,358,079 travelers flowed through the place, another 16.6% increase. This year's projections are that CAK will process 1.5 million folks, a more modest-but still significant-10% gain over 2004.

The driver behind the growth is AirTran Airways (see article, p. 68), which first entered the market in 1996 in its pre-ValuJet-merger incarnation with a single daily 737-200 flight to Orlando. After ValuJet took on the AirTran name, Atlanta came next. Now the carrier lofts nonstops out of CAK to MCO, ATL, New York LaGuardia, Boston, Tampa, Fort Lauderdale and, beginning last month, Las Vegas. It commands 45% of the traffic. No.2 is Delta Connection with 23%. Then there's everybody else.

More here.

Company Update: Boeing

For those of you with a stake in Boeing, you should know this...

Boeing's third-quarter net income surged 122% to $1.01 billion from $456 million a year earlier as special gains and tax benefits more than offset the impact of the month-long strike at its Boeing Commercial Airplanes unit.On a per-share basis, gains from tax settlements represented nearly half of the company's $1.26 EPS fully diluted for the quarter, with the sale of its Rocketdyne unit adding a further 45 cents per share while the strike knocked 25-30 cents off EPS. ATWOnline calculated that on a gross basis, the strike cost Boeing $200-$240 million in profits.

More here.