May 2011 Newsletter

Welcome to new member Ted Kozenko
of TP Comps, PO Box 1303, Mentor
44061-1303. A business resiliency company.

Groupon

“Groupon” is the fastest growing internet business with 40 million coupon customers. They send coupons to your email address and if you like the product you purchase the coupon for 50% off and then go use it at your local store. The Customer Advantage Program is offering coupons like Groupon with a slight difference. If you sign up to receive coupons through your favorite nonprofit (LCDC) then LCDC will receive a 5% commission for all the coupons you buy. There is no cost to sign up or join, just get the coupons in your email. Sign up here.

Industrial Overview

The U.S. industrial vacancy rate has stabilized at 10.3% and overall absorption reported a positive 13.1 million sf in 2010 compared to a negative 125.2 million sf in 2009.

New construction adding to existing industrial supply remains almost non-existent. Both traffic in the 10 major ports and intermodal activity are up 17% over the previous year. U.S. ports are well positioned for increased container traffic, with most improving their infrastructure in preparation. Increasing transportation costs, tight industrial labor markets, and “green” supply chain practices will drive network strategies going forward. Volatile oil prices, capacity shortages, a looming driver shortage, regulatory uncertainties, and an improving economy have led industry analysts across all modes to one conclusion: shippers will have to shoulder some of the burden associated with escalating transportation costs this year.

Developing economies with a need for equipment in both the construction and agricultural sectors are helping to fuel U.S. manufacturers. The American Trucking Association Truck Tonnage Index has increased 13.8% since the end of the recession, with October 2010 reaching the highest level since August 2008. Major rail companies reported increased profits driven by an up-tick in shipper volume in the fourth quarter of 2010.

Since January 2010, employment in the distribution industries has increased 107,00 jobs- accounting for nearly 10% of all the jobs added since the end of 2009, even though the industry accounts for only 5.9% of all jobs.

The U.S. Manufacturing sector continues to recover strongly. In 2010, U.S. industrial production increased 6.4% and has risen 12% since the recession ended in June 2009. American consumers are starting to spend again with December sales returning to pre-recession levels; retail sales have increased 6 consecutive months and in 13 of the last 15 months. Online retailers continue to grab market share from offline retailers, with online sales growing 14.4% during the fourth quarter of 2010, according to the lastest report from the U.S. Department of Commerce. The U.S. trade deficit narrowed in the 4th quarter as U.S. exports rose 3.2% to the highest level since August 2008.

Cushman & Wakefield 2-11

Employment in Ohio by Sectors,

2008

Manufacturing Production Rates

America’s manufacturing sector remained more productive than any other industrialized country during recession-plagued 2009, according to new data compiled by the U.S. Bureau of Labor Statistics. The US posted a 7.7% gain in manufacturing output per hr in 2009 from 2008, far ahead of the next-best performer, Taiwan, at 4.8%. Japan had the worst productivity, with a decline of 11.4%. Here’s how some countries fared in 2009.

Student Career Awareness &

Capability

Many of today’s high school graduates don’t have the skills to succeed after graduating. The old standard of separating students into college and not college bound roups isn’t providing employable workers with the right skills to contribute productively to the economy.

Some of this lack of skills is a result of unrealistic expectations of the work environment, required skills needed and the potential and future job positions. The solution isn’t just a simple measurable set of required skills. There is a citizenship component that is based on a learned qualitative value system. Decisions aren’t based on the most current ethic but rather on a learned and accepted value system that is constant.

In the past faith based organizations have provided the precepts of the value system. That influence has dissipated considerably over the last several decades. Along with that there has been considerable erosion in the academic standards and a noticeable bracket creep in both grades and degree.

What used to be a “C” grade is now a “B” or better grade and degree requirements for a job have gone from a “B.A.” to a minimum “M.A.”. This doesn’t address the lack of English and Math skills of the majority of recent high school graduates. The American standard of education has dropped to a mediocre level compared with the rest of the industrial world. In spite of spending the second largest dollar amount per student and having the highest paid teachers along with having some of the smallest student teacher ratios.

This has left American business owners and management challenged to find qualified workers. If the education system can’t provide a quality skilled workforce with ethical values, then the economic potential of the country in terms of future growth is severely limited. Education has to be more than just the accumulation of knowledge. The best example is that from a situational ethics point of view cheating isn’t bad unless you get caught. In an ethical value system cheating is bad whether you get caught or not.

The community value system has to be supported by all members of the community. The businessman, parent, peers, and educators are all responsible to maintain the value system.

Ernest Brass III, 4-11