Vintage Filings Business Blog

With the first day of summer fast approaching, more than half of U.S. workers polled will find themselves with the summer off, due to unemployment. Fifty-five percent of the U.S. workforce will have flexible hours this summer as a result of job loss, according to a nationwide poll conducted by Monster.com.

“With many companies offering flexible working hours as an alternative to lay-offs, it’s not surprising that nearly one-quarter of the respondents (20 percent) report flexible working hours during the summer are a perk where they work,” said Norma Gaffin, director of career content, Monster.com. “In fact, Inc.com reports on a recent study suggesting one way companies are looking to keep employees engaged amidst news of lay-offs is to grant flextime,” Gaffin added.

Only five percent of poll participants indicate their flexible summer schedules are a direct result of cost-cutting initiatives within their companies. The remaining 20 percent of Monster Meter poll respondents say flexible working hours at their companies are not an option during summer months.

Will you have flexible working hours this summer?

• Yes, it’s a perk where I work: 20%
• Yes, as part of a cost-cutting measure: 5%
• No, it’s not an option at my company: 20%
• My hours are already flexible as I am out of work: 55%

A recent Monster Career Advice article – How to Get a Flexible Schedule – provides strategy tips on how to make a persuasive case to the boss. Suggestions include writing a formal business plan explaining how job tasks will be accomplished and outlining why a flexible schedule will not make work life more difficult for bosses or colleagues.

Forbes Insights and Google have released the results of a new study, “The Rise of the Digital C-Suite: How Executives Locate and Filter Business Information.” The complete study is available at: www.forbes.com/forbesinsights.

The findings clearly show that the Internet has become the chief source of business information, and that how the Internet is used frequently depends on the age and work experience of the executive. The study is based on a survey of 354 C-level and top executives at large U.S. companies (annual sales of greater than $1 billion).

“The common perception is that top executives at the largest companies do not use the Internet, but the reality is just the opposite,” said Stuart Feil, editorial director of Forbes Insights. “These findings show that C-level executives are more involved online than their counterparts, and younger generations of executives – those whose work careers have coincided with the growth of the PC and the Internet – are bringing profound organizational change to these companies.”

Highlights of the study:

• The Internet is the most valuable resource for executives for gathering business information, outstripping at-work contacts, personal networks, trade publications, etc. In fact, 74% of respondents rated the Internet as very valuable (5 on a 5-point scale).
• During work hours, 70% of executives prefer to read “traditional print media” online rather than in print (30%), and 69% prefer to access “traditional broadcast media” online rather than over the air.
• Over half of the C-suite respondents (53%) said they prefer to locate information for decision-making themselves, rather than start the process and forward it to others to complete (26%) or assign others to gather it (21%). Among non-C-level executives, 40% said they prefer to do it themselves.
• Search engines are the most valuable source for locating business information; 63% of executives rated them as “very valuable.” More interesting is the number of searches executives conduct daily. Overall, 60% of executives conduct 6 or more work-related searches each day, and 19% conduct 20 or more. Among executives under age 40, 74% conduct six or more searches, and 39% conduct 20 or more work-related searches each day.
• A big generational split occurs when it comes to what executives will click on. Those under age 50 are much more likely to click on online advertising such as paid listings in search engines, banner ads, pop-up ads, etc.
• Video is growing in importance – 24% of C-suite (compared to 16% non-C-suite) executives prefer reviewing business information via video. There’s a generational split here, too. Among executives under age 50, 33% view work-related video daily, and 26% view work-related video several times per week. For the 50-plus age group, 11% view work-related video daily, and 18% view it several times per week.
• Executives under age 40 (which the report calls “Generation Netscape”) are by far the most likely to engage with emerging Internet technologies:
  • 65% of under-40 executives maintain a work-related blog weekly or more frequently. That figure is 41% for 40 to 49-year-olds (“Generation PC”) and 10% for those above 50 years (“Generation Wang”)
  • 65% of the under-40 executives contribute to or read Twitter at least weekly. That drops to 44% for 40 to 49-year-olds and just 7% for those who are over 50 years old.

The world will not emerge from the current recession without a reliance on global trade, the chairman and CEO of UPS said this past week.  Addressing an audience of government and business leaders at the Detroit Economic Club’s National Summit, UPS CEO Scott Davis described global trade as a “positive force” at a time when “we are operating without a map and without precedent.”

“As many as 57 million Americans are working for companies engaged in global trade,” Davis added. “One in every five manufacturing jobs is linked to exports of goods and services.”

But if global trade is to help vanquish the global recession and become an even bigger force for the economic growth of smaller nations, the world must address three imperatives, the CEO continued. They include the creation of a system of trade that not only is fair and rational but compassionate; deploying technology to reduce the friction that today slows down the flow of commerce, and moving immediately to rebuild transportation infrastructures.

“Trade is a major force for good, for growth and for jobs,” Davis said. “The threats are from both economic turmoil and the protectionist impulses it drives. We must argue that protectionism is the worst response at the worst time. We can’t let political expediency cloud global reality.”

It also is clear, however, that all countries must do a better job of helping those workers who are displaced by global trade.

“We are going to have to pay more attention to those displaced,” Davis said. “I see a very encouraging step in that direction with the return of the expired Trade Adjustment Assistance Act as part of the stimulus package. With this we can reposition the American workforce and give our workers the skills to stay in the global game.”

The second imperative of using technology to lubricate the flow of commerce will be critical to businesses if they want to flourish in a global marketplace, Davis continued. Companies should not accept the delays, for example, that come with a reliance on paper customs forms to move items across a border.

“Global competitive advantage means the right product at the right place, at the right time and at the right cost,” he said, noting that will require the deployment of new technologies to better “see” and control goods moving around the world.

Finally, the “infrastructure of trading partners must be up to the demands that a new era of country cooperation and company connectivity will place on it,” Davis said. “The U.S. is falling behind, and we’re already paying a price. Our ports aren’t deep enough; our inland waterway locks are functionally obsolete; our highways are jammed, and declining rail capacity is causing choke points across the country.”

The effort to solve these problems, he noted, will “be measured in years and billions of dollars.”

“The power of global trade is undeniable,” Davis concluded. “It changes lives, reduces conflict and gives us the motivation and the means to address shared issues. We have to do it all and we have to do it right. The future of the global economy depends on it.”

The risks to an individual struggling with obesity are well-known: heart and endocrine issues, joint problems, psychological well-being, and more. A new study from Advanced Plan for Health shows that obesity is also risky to an employer’s bottom line, costing more than double to provide employee health insurance to those considered obese.

The study looked at a population of 128,000 employees and, of those, found that 2,000 were given a diagnosis of “obesity, unspecified,” as defined by the International Statistical Classification of Diseases and Related Health Problems (ICD codes), which can include individuals with a body mass index greater than 30.

Obese employees cost companies a staggering 135 percent more to insure than other, non-obese employees. Per-member-per-month spending for a non-obese employee ranged from $176.71 to $226.92, while the same range for the obese group was $414.86 to $536.53.

Even more alarming is that while only three percent of the non-obese population was identified as “high risk employees” for medical issues, 12 percent of those in the obese group was considered at high risk for significant medical issues. Additionally, those in the obese population were 25 percent more likely to have more than 15 different providers in the span of 12 months, meaning much more frequent medical visits.

“At a time when every business is looking at how to reduce health care costs – and some even eliminating insurance for employees, this kind of information is insightful,” said Rich Williams, principal of Advanced Plan for Health. “This reinforces the fact that employers need to be smarter about how they utilize their claims information. With proper case management, bringing down the obesity rate is something that will have significant impact on both employees’ lives and a company’s bottom line.”

The first quarter of 2009 fulfilled an expected trend that will last throughout the calendar year. The worldwide mobile phone market shipped 35 million fewer units than it did during the same period one year ago, and all indications point to that trend continuing through Q4 2009.

The mobile phone industry has long been characterized by its seasonal trends, where the first quarter always delivers a sequential decline after a busy holiday season. However, the drop in this first quarter was especially sharp, according to ABI Research practice director Kevin Burden. “The 255.6 million handsets shipped represented a 20% decline from Q4 2008, which was already a down quarter, and a nearly 12% decline from Q1 2008.”

Shipment reductions are a new reality for the mobile phone market. “The industry and consumers have gone into protection mode,” says Burden. “Protecting profitability has led handset manufacturers to produce less and to operators and retail outlets holding smaller inventories. Consumers are also realizing that many of the features they desire are already in the handset they currently use, and are willing to forego an upgrade until they have more confidence in their own futures.”

The Asia/Pacific region, with handset volumes triple that of the next largest region, had been widely expected to feel more than a fair share of pain due its very troubled economic conditions. However it posted only an 8% YoY decline, which was a spot of encouragement. The Latin American market, however, tempered any encouraging news with a reminder of how deeply the recession can cut. The region had a nearly 28% decline in shipments, the largest decline of any region, due in large part to the devaluation of its currencies leading to higher prices of imported mobile phones.

HedgeFund.net (HFN) has released early estimates for May hedge fund performance. After posting the highest return in more than five years in April, hedge funds again took advantage of rising global asset prices. With 1863 hedge fund products reporting May performance, the HFN Hedge Fund Aggregate Average shows +5.39% for the month and +9.22% for 2009 compared to +2.96% for the S&P 500 Total Return Index. The HFN Fund of Funds Aggregate Average is +3.52% for May and +4.38% for 2009. This was the first strong recovery month for funds of funds in 2009. Performance of funds of funds significantly lagged the hedge fund performance recovery in April.

For the third month in a row, performance in May was primarily driven by surging global equity markets. Long/short equity funds were +5.85%, putting them +10.45% in 2009. Emerging markets also soared during the month aided in part by the sharp rise in commodity prices. The HFN Emerging Markets Average was +12.46% for the month.

The broad rally in commodity prices, along with several strong currency moves against the dollar and rising U.S. interest rates all helped CTA/managed futures investment products. The group was the standout of 2008, but started the year with four straight negative months. A return of +3.45% in May pushed the HFN CTA/Managed Futures Average to +0.65% in 2009.

The Ethical Corporation Institute (ECI) has found the current economic climate is having little effect on consumer desires to be ethical. Demand for produce certified by organisations like the Rainforest Alliance and Fairtrade is soaring in 2009. We can expect further growth in the market for industry standards and certification.

Rob Cameron, head of the Fairtrade Labelling Organisation, told the Annual Responsible Business Summit in London last month that consumption of products under the Fairtrade label is continuing to rise. Retail sales volume is expected to increase from €2.4 billion in 2007 to €3 billion when the 2008 figures are released. This rise will have been aided by partnerships with the likes of Starbucks and Cadburys.

Last month the Rainforest Alliance reported that the amount of forest and farmland certified by Rainforest Alliance will continue to soar along with demand for products that meet standards for social and environmental sustainability.

“The drive is coming from all along the value chain and especially companies. We’ve never seen more interest from companies, from consumers and from producers,” said Chris Wille, Rainforest Alliance chief of Sustainable Agriculture.

It’s clear retailers seeking to cut costs in the economic downturn, need to continue investing in environmental sustainability to retain customers.

Sharon Greene, Managing Director of RISK International told ECI that their recent studies show 72% of European consumers prefer ethical brands.

‘In order to keep customers and other stakeholders engaged with their brand, companies need to stay abreast of the recent developments in this sector’ says Pam Muckosy, Head of Research at the ECI.’

ECI’s new report Guide to Voluntary Sector Initiatives in CSR shows companies exactly what initiatives are doing and which one they should join.

More than two out of every five Americans (42%) have considered starting a business since the economic downturn. Among those Americans, roughly a quarter (24%) have actually acted on the idea. Additionally, three out of four Americans believe new entrepreneurs will do the most to revive the economy and four of five say that at some point they have considered starting their own business.¹ These findings, among others, were revealed today in a national survey from Alibaba.com.

Also according to the 2009 Alibaba.com Newpreneur Survey, more than four in ten (44 percent) of Americans who considered starting a business said not knowing “how to handle the logistics, such as where to make or get my products” was one of the top two reasons why they didn’t start their business. That’s greater than those who say that they were afraid of failure (37 percent). The survey also includes specific data points for Los Angeles, Dallas, Miami, Chicago, San Francisco, New York City and Seattle.

“The renewed confidence in entrepreneurs is evident across the country and proves that the American dream is still alive and well,” said David Wei, chief executive officer, Alibaba.com. “As the data shows, Americans strongly believe the down economy provides an opportunity for a new class of what we call ‘Newpreneurs’ – people who are using the recession as a catalyst to start a business or develop an idea. Alibaba.com can help Americans turn their dream into a reality by connecting them with business partners and helping them succeed in global trade.”

To help support Newpreneurs, Alibaba.com today launched its national “Newpreneur of the Year” contest, which will award a total of $100,000 to small business owners who see the recession as an opportunity to start a new venture. The contest, presented in partnership with Inc., is hosted at www.inc.com/alibaba where entries can be submitted until August 14, 2009.

A select panel of judges will review the online submissions and invite 30 semi-finalists to present their idea at regional events in October that will be held in six cities; New York City, Miami, Dallas, Chicago, Seattle and Los Angeles. After the regional judging, 12 finalists will be profiled on www.inc.com/alibaba for public voting. Then the top five finalists will be invited to the finale event in San Francisco on November 18, 2009, where the grand prize winner will be revealed. The grand prize winner of the Newpreneur of the Year contest will receive $50,000 to invest in their business, with the four remaining finalists taking home awards totaling an additional $50,000.

“For three decades, Inc. has celebrated entrepreneurs as the most vibrant business segment of the economy. Their ability to find opportunities to start and grow companies, even in challenging economic times, is truly unique,” said John M. Teabeau, publisher, Inc. magazine. “Partnering with Alibaba.com for the Newpreneur of the Year contest is another example of our support for this important community. We’re aiming to inspire and educate business leaders while helping to get a few companies to the next level.”

Green building has become a global phenomenon, driving innovation in the products that are used and the buildings in which we live and work. What started with a handful of government buildings utilizing first-generation sustainable building products is now a worldwide movement, with commercial construction and residential building moving to the fore in sustainability. Voluntary standards and government mandates are driving growth in green building, as awareness of environmental issues has increased in developed and developing countries.

The global green building materials market continues to grow, despite the global economic downturn. The worldwide green building materials market was valued at $455.3 billion in 2008, and NextGen Research, in its new report “Green Building Materials: Making Cement, Insulation and Wood Products Increasingly Environmentally Friendly” forecasts the market will grow at a CAGR of nearly 5% to reach $571 billion by 2013.

Says Larry Fisher, research director of NextGen Research, “The construction industry has an immense impact on the environment, so green building products are a key market within the global environmental movement. After all, buildings are one of the heaviest consumers of natural resources and account for a significant portion of the greenhouse gas emissions that affect climate change.”

Mr. Fisher explains, “In the US, buildings account for 38% of all CO₂ emissions, use 13.6% of all potable water, and consume 72% of all electrical power generation. Commercial and residential developers need to assess the total life cycle of all the building products and materials they utilize, as they can have a substantial, lasting effect on the environment.”

Commercial office buildings will be the largest non-residential target sector for green building products over the forecast period, according to the study, which also found that both the new residential building and home improvement sectors present significant opportunities for green building products manufacturers.

Consumer confidence in the overall economy moved up sharply in May, according to figures released today by the Consumer Electronics Association (CEA). The CEA-CNET Indexes also show that consumers continue to feel more confident about future spending on technology and consumer electronics (CE).

The CEA-CNET Index of Consumer Expectations (ICE) climbed in May, reaching 174.6, up nearly six points from last month. The ICE, which measures consumers’ confidence in the overall economy, is at its highest level since February 2008 and up over eleven points year-over-year.

“We see significant indications that consumers believe an economic recovery is underway,” said Shawn DuBravac, CEA’s director of research and economist. “Consumers are showing increasing signs of optimism as both their outlook for the economy and their personal financial health improve.”

Confidence in technology and consumer electronics also reached its highest level of the year. The CEA-CNET Index of Consumer Technology Expectations (ICTE) climbed to 81.1, an increase of nearly four points from last month. The ICTE, which measures consumer confidence in technology and consumer electronics, is nearly eight percent higher than the same period last year.

“Consumer spending on technology appears to have bottomed,” said DuBravac. “While the economy continues to deteriorate, albeit at a slower rate, consumer spending generally and specifically consumer spending on technology are likely beginning to rebound, which is inline with the timing of consumer spending in past recessions.”