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Tuesday, December 23, 2008

Toyota Cuts Outlook

Like so many other businesses, Toyota announced that they will need to cut their groups operating outlook due to their first ever annual operating loss. The loss is a result of the crippling worldwide economic downturn. The cut comes half a dozen weeks after chief rival Honda announced a cut to their outlook as well as again a week or so later when they cut once again. 
"This is very, very, very bad," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. "There's a chance they could fall into the red in the next business year as well. "This is also not just a problem for Toyota. What is good for Toyota is good for the Japanese economy."
Currently automakers across the world are attempting to deal with a number of crisis' stemming from the global recession and are coming out thiner than expected. In addition to Toyota's operating issues we are well aware of Detroit's big-three's woes and the effect they are having on an already down economy. Many of the large car companies are making cuts on a number of levels including executive benefits and perks as well as cutting contributions and sponsorships. 
It will be interesting to see where the auto-makers find themselves in the upcoming quarter as as well as spring 09'. I will also be curious to see where the United States Congress will come in regarding an economic bail-out in the form of a bridge loan. Only time will tell.

Trade Show Booths

Having spoken briefly about a number of businesses that have been reshuffling and making drastic cuts, I wanted to change things up a bit today and talk about tools that many businesses are utilizing in order to accelerate their growth potential during these troubling economic times. Lately a growing number of small and large businesses are utilizing trade shows as a positive avenue for business development and growth. Although there are a wide variety of trade shows for an even wider variety of businesses and fields, there are a few things that remain homogenous and that is the need for those businesses to have trade show booths
You might not realize it, but there is actually quite a bit involved in regards to selecting a trade show booth that will not only showcase your business, but deliver an air of professionalism. I remember visiting a trade show for new media in Boston, MA a few years ago and passing the "booths" by that were merely card tables with a tablecloth and poorly crafter banner. I mean, how can you try to sell someone your service from a "booth" like that? I suppose they may have had their reasons, but it must have been embarrassing watching a steady stream of convention goers walking right passed your booth all weekend long. 
In regards to what makes a positive impression on trade show attendees might vary depending on the venue, but you can rest assured having banner stands and a Pipe and Drape display is probably a good start. Oh and do yourself and your business a favor and don't just run out to the party store to grab a cheap table skirt, take your time and find one that matches and is of good quality. If you are planning on renting out booth space at a trade show or convention, be sure to get together with the venue and learn more about their accommodations. Who knows, if you perform well you might be heading in the opposite direction as everyone else during economic upheaval. 
Monday, December 22, 2008

Fed/Ex Makes News Again

Sometimes I feel like this blog should be called "Fed/Ex Distribution Business News" due to the fact that I am constantly reporting about Fed/Ex and their cutbacks and whatnot. Well, here we are again as the package delivery giant announced a 20% pay cut for CEO Fred Smith in addition to the suspension of their retirement plan contributions company-wide. The news comes in response to the bleak economic climate.
"Our financial performance is increasingly being challenged by some of the worst economic conditions in the company's 35-year operating history," Smith said in a statement. "It's tough, but it's a sign of the times," Al Meyers, portfolio manager of the AHA Diversified Equity Fund, which owns FedEx shares, said of the pay cuts. "The fact that executives including Fred Smith are taking pay cuts sends a message to employees that 'we're all in the same boat,' which is a positive."
Not only has Fed?Ex taken a hit with the financial crisis in full swing. UPS has seen overall volume declines as well as reduced share value on the NYSE index. The current economic slowdown that became a full blown recession is impacting the nation much like that sucking sound you here in the bathtub when you pull the stopper. The only question I have is when is somebody going to put the stopper back in instead of just running more water.

Save Time Document Scanning

Due to the Sarbanes-Oxley mandates it is now more important than ever to maintain accurate and organized records (unless you want to incur heavy fines and possibly lose your business). Having said that, many organizations of all sizes are changing the way that they keep records. Having worked in medical records while living in New Hampshire, I am quite familiar with the process in which records are swapped from cumbersome files into a database via document scanning
There are a number of organizations that specialize in the business or electronic records as well as document scanning, but there is one that stand head and shoulders above the rest; RecordNations. As I mentioned earlier, whether you are a small business or a fortune 500 company, Sarbanes-Oxley as well as general tidiness have undoubtedly forced your hand into moving further into the digital age (at least with records). In addition to transferring records via scanning services, RecordNations also is a provider of storage for records as well as an off site tape storage warehouse. 
If you have been considering moving toward electronic record keeping or are looking for an organized "solution" to your disorganized records, you may want to give these guys a look. I don't think you'll be disappointed with their services and level of commitment. 
Wednesday, December 17, 2008

Fed/Ex Share Drop

The current economic crisis is really beginning to wear on shipping companies nationwide, and the good folks at Fed/Ex are rally beginning to see there share value dropping to the tune of 11% as of the end of last week. In addition to shares dropping 11%, Fed/Ex also just slashed their projected financial outlook for the next calender year. On December 18th Fed/Ex is expected to deliver their actual '09 outlook and it doesn't look too pretty.
"Fedex also sharply lowered its previously announced fiscal 2009 earnings forecast, to a range of $3.50 to $4.75 per share, from $4.75 to $5.25, as "significantly weaker macroeconomic conditions are expected to offset the benefits from lower fuel prices and the announced departure of DHL from the U.S. domestic package market."
In addition to this glum forecast by Fed/Ex, UPS has also had similar issues during this crisis and it will be interesting to see just how far down the rabbit hole we wind up. I suspect that we are only seeing the beginning of this and that things will likely get worse after the holiday season due to the fact that folks wont be sending as much freight and packages via the two carriers. 
Source Article: SupplyChainExec

Weight Loss Tea

There are many industries that are feeling the pinch nowadays due to the economy, but many importers are actually doing quite well. Fortunately, there are many great products coming into the North American markets from the Far East. One of those products is Wu-Yi Tea. This weight loss tea (in addition to being USDA certified) is enhanced with polyphenol, which introduces heart healthy antioxidants into your system as well as helps to increase your metabolism. 
In addition to having a host of great varieties of diet tea and supplements, Wuyi tea also comes in a cleansing tea that is used to drive impurities from your system. If you have been trying a number of different supplements to lose weight or live a healthy organic lifestyle, you may want to take a closer look at Wu-Yi Tea. There are many supplements on the market today that aren't backed by the USDA or provide the same benefits that Wuyi tea does, so why not go with the real thing in place of the fly-by-nighters. 

Supply Chain Mystery to CEO's

I just read an article that blew my mind! Would you believe that nearly 47% of global businesses surveyed claimed that they need to pay more attention to their supply chain. Apparently 350 Senior Executives were surveyed and the results of these surveys are truly perplexing. In addition to the aforementioned numbers, 16% said that they paid an adequate amount of attention to their supply chain while a whopping 10% said they don't pay any attention at all!
In addition to those numbers, this is a snippet of the rest of the article;
"While 38 percent of companies did rate their supply chain as resilient, a more worrying 42 percent stated that their ability to manage risk had been outpaced by the expansion of their global supply chains.
According to the survey, while many companies knew the risks of supply chain, and the benefits to making sure their chain is resilient and well-managed, many glossed over this in their day-to-day operations. Nearly half of the companies only measured risk assessment annually.
“Businesses appear to be increasingly vulnerable to supply-chain disruptions that can have a catastrophic impact on business performance,” said Dan Brutto, president of UPS International."
Having worked in various shipping warehouses and other aspects within the supply chain, I have found that oftentimes the left hand has no idea what the right hand is doing. It is interesting to see that due to the growth of these businesses on a global scale that they are unable to manage their newer/larger supply chain with a hands on approach. 
Source Article: SupplyChainExec

Tactical Gear

I've been reading a lot of articles in the paper and online regarding different techniques people are using in order to protect their valuables during this uncertain economic time. I was fascinated to find that not only safe's are being purchased in record numbers, but also police gear and weapons etc. In addition to all the tactical gear people are scooping up, home alarm systems and the like are being purchased nationwide. I'm not too sure what people are thinking is going to happen out "there", but it might not be too bad to be prepared for anything that might happen.
After looking at a couple of websites, I found that the LA Police Gear website had some pretty interesting items for individuals and businesses alike. Personally, I like the selection of boots and outerwear. After doing a lot of hiking last year and wearing my soles thin, it might be nice to have something a little more solid and reliable. If you find yourself in the market for anything a previously mentioned, I think you might want to check out the tactical gear at LA Police Gear.

CP Rail Hit by Recession

Canadian Pacific Rail has announced that they will be forced to cut 600 union jobs in order to better weather the current economic recession. The Calgary, AB company currently has a workforce of 16,000, but of course, due to the cuts payroll will be lighter in the upcoming quarter. In addition to trimming nearly a thousand jobs, corporate executives will also be restricting air travel on corporate jets as well as doing away with different corporate benefits.
In the message to staff, Chief Executive Fred Green said the "coming months will not be easy ones." He said his goal is to get the "franchise back on track" by focusing on "containing costs on all fronts, in tough ways," the newspaper reported, noting Green held a town hall meeting with staff on Tuesday.
Up until this point, rail appeared to be "weathering" the financial storm quite well in comparison to other industries. It will be interesting to see where things go from here for unions in general as well as alternative freight options.
Source: SupplyExec

All Inclusive Vacations Booming

There are many industries that have been effected by the current recession, but the all inclusive vacation business has not been one of them. Whether or not people are trying to just get away from it all and enjoy life, or they are choosing to spend their hard earned money wisely, they are visiting SuperClubs establishments all across the Caribbean. One of the most popular destinations appears to be the Jamaica all inclusive resort in Montego Bay. Whether or not this is due to the miles of beautiful sandy beaches or the lush foliage and countless restaurants and nightclubs is up for debate (well, not really). 
In addition to the wonderful amenities of these resorts, many people have come to experience a variety of all inclusive romantic vacations as well as Caribbean weddings. The wedding packages are truly remarkable. Imagine being able to focus solely on that beautiful day while a team of planers see to it that everything flows perfectly and seamlessly. In addition, each resort offers a variety of different settings and styles in order to capture the picturesque day in the manner you always dreamt it would be. 
With so many wonderful and enchanting vacation options, it would be hard to imagine a better place to spend a week or two with your hard earned cash during this economic downturn. Surely a visit to one of these fine resorts would be a welcome "pick-me-up" to a year of financial turmoil, and I suppose that is why business is better than ever for SuperClubs.
Monday, December 15, 2008

Recent Freight and Logistics Updates

Labour dispute threatens BC ports
Financial Post - Toronto,Ontario,Canada
A five-week strike beginning in June, 2005 strike by 1200 Lower Mainland port truckers cost the country an estimated $85-million a day. ...
See all stories on this topic

JC Penney Drops Oak Harbor Freight Lines as Shipper
MarketWatch - USA
Teamster members employed by Oak Harbor Freight have been on strike since Sept. 22 because of violations of federal labor laws that protect workers' rights, ...
See all stories on this topic

Truckers urge Govt to slash diesel prices, abolish taxes
Hindu - Chennai,India
The truckers have threatened an indefinite strike from December 20 if their demands were not met. The All India Motor Transport Congress (AIMTC) said the Rs ...
See all stories on this topic

Monday, December 08, 2008

UAL Corp to Cut 1,200

The dismal economy has hit many industries very hard over the last year or so and folks in the airline industry are on the front lines once again. After so many years of restructuring and insolvency, UAL (the parent company o United Airlines) has announced that they will be eliminating 1,200 workers in an attempt to cut nearly 7,000 jobs through 2009. When the cuts were first announced late in November, UAL employed well over 55,000. After the projected cuts, UAL is expected to be able to run partial staff in order to meet current economic conditions head on.
Apparently after being battered by high fuel costs and persistent maintenance issues, the airline industry decided to downsize in order to stave off insolvency. It is unclear whether or not the current economic crisis will require UAL to make deeper cuts, but at the moment fuel prices (which are at their 1998 levels) can't be labeled the culprit, at least not yet. 
It will be interesting to see how the holiday travel season plays out for this industry. It is clear that a lot of people aren't traveling this year due to economic concerns as well as ticket prices. I suspect that more cuts will be on the way for the 09-10 calender year. 
Funny how much can change in a week...
Source: SupplyExec

Coffee Will Never Be The Same

There are many "truths" in the marketplace as well as "myths". One ultimate truth to the marketplace is that if you want to be the best, you have to have an almost fanatical commitment to your product or service as well as a deep knowledge of all aspects related to said business or product. Well, the folks at Intelligentsia Coffee are about as fanatical as it comes! Imagine spending years overseas and around the world gathering information and knowledge in order to create some unbelievable coffee.
In addition to traveling the world in pursuit of knowledge and old-world techniques and traditions, Intelligentsia is able to get the best deals available on cheap bulk coffee beans then apply their vintage German roasting techniques to create excellent quality coffees. If creating cheap bulk coffee, Intelligentsia enlists the aid of some of the worlds most renowned importers to ensure they only buy bulk coffee from socially and environmentally responsible organizations. 
If the aforementioned information about Intelligentsia hasn't got you craving a cup of German roasted coffee, maybe the fact that they have won numerous awards  and accolades over the last four years by a number of industry leaders and aficionados will change your mind. So if it is quality coffee at a quality price you are looking for, then Intelligentsia should be your brand of choice.

Big Three Bailout Cont.

Today the United States Congress send a draft to the White house regarding a roughly 15$ billion dollar bailout for the automakers. It is unclear what will happen at this point with the draft, but I expect (with proper oversight) that a deal will be in place in the coming weeks to stave of more job looses as well as a further plummeting of the nations fragile "fiscal morale".
In regards to congress, Sen. Harry Reid (D-NV) went on the record to say that he was not pleased with loaning taxpayer money to these companies, but followed by saying that it must be done. 
There have been numerous polls conducted and America, it would seem, would prefer the big 3 to file bankruptcy. I'm not too sure that would be a bad thing. Granted, if you are working for the big 3 that might not be so great, but there are a lot of industries in trouble and I'd hate to see them all start flooding to DC for a handout. 
This is a slippery slope and will lead us to ruin if we let it get out of control. As this story is developing, there will likely be new news in the coming days, so we'll see where we end up on Tuesday.
Source: YahooNews

TFS Hosting

Many small and large business owners have been utilizing a number of hosting plans through various sources while utilizing the SAAS (Software as a service) availability offered by Phase2.com. Imagine the benefits of utilizing SAAS hosting plans for your small business. Not only would you have 24/7 tech support available if you need it, but you wont have to worry about expensive tech and support technicians on your payroll or nipping up your bottom lie whenever you encounter a technical issue. 
In addition to offering a variety of great services and plans, Phase2.com (Backed by Microsoft), offers tfs hosting. For those of you unfamiliar with working with a hosted team foundation server, Phase2.com has a wealth of information available as well as a guarantee that you will be running at a higher level in 30 days or less! 
Offering the lowest cost in the industry for hosted tfs, you will not only receive great service, but also absolutely NO setup fees and the aforementioned 24/7 support for any issue that could possibly arise. There are a lot of great tools associated with the service as well such as source control, permission management and MS project integration. With all this great backup and tools, there really isn't any reason not to explore how a team foundation server can put your business on the fiscal fast-track.
Thursday, December 04, 2008

Auto-Bailout Pleas

The big-three American automakers will be back in front of congress today to deliver their plea (plan) for a bridge loan to keep their businesses afloat until the next quarter. The three have put up a lot of window-dressing to try and sway public opinion, but it is unclear as to whether or not $1 dollar salaries and selling private jets are likely to sway the United States Congress. Regardless, the automakers are going to deliver their proposal this afternoon.
In addition to offering up that proposal, the big three have upped the ante to 34 billion dollars from the "meager" 25 billion they requested about a month ago. Whether this congress accepts the proposal and opens up the checkbook, undoubtedly the automakers will return to the table after Jan. 2oth when the new president and congress are sworn in. Besides, third times a charm.
It will be interesting to see how well they are received when they arrive on capitol hill. This time instead of flying in on private jets they will be arriving via motorcade of hybrid vehicles. Honestly, I think everyone is tired of all this window-dressing. We've been through all this and just want a game plan for viability.

Weight Loss Tea; A Miracle In Itself

We've been discussing the faltering economy as well as the auto-bailout at some length lately, and today I wanted to touch on an interesting and natural way to help control your health and overall well-being during the stressful holiday season. Believe it or not, there are a wide variety of certified organic teas on the market that are not only tasty, but can actually help control your weight. Granted, if you eat a ton of sweets and other goodies this holiday season, not even Wu-Yi Tea is going to be able to help keep off the excess "baggage". 
The aforementioned Wuyi tea is actually one of many organic supplements offered by Wu-Yi. In addition to their Diet tea, they also offer cleansing tea, tea slim caps as well as other organic weight loss supplements. Despite all of the easy ways to take your diet off the beaten path this holiday season, Wu-Yi will be there to lead you back to healthful-sanity. In fact, not only is this tea the most potent weight control and Weight loss tea on the market, but it is also certified organic by the USDA.
If you are a fan of tea such as I am, and are looking for a tasty, healthy alternative to the other healthy concoctions that leave you nervous as to what you just ingested, give Wu-Yi Tea a try, I don't think you'll be disappointed. 
Tuesday, December 02, 2008

CEO of Ford to Earn $1 Salary

For those of us who can't get enough of the ongoing auto-industry bailout drama, today the CEO of Ford promised to lower his annual salary to $1 in order to secure a 25 Billion dollar bridge loan to secure the business. The announcement comes mere weeks after the big three automakers CEO's arrived in Washington, DC for a hearing via individual private jets that cost an estimated 50K apiece. Apparently arriving hat in hand looking for a handout via private jet is the type of behavior that will get one laughed at even in that town.
In addition to the Ford CEO's salary pledge, he continues to claim that the company will sell its five private jets and attempt to cut United Auto Workers Union labor costs as well as other belt tightening activities. Honestly, it is about time that Ford decided to develop a comprehensive plan to submit to congress. Personally, I think that the union has had Ford and Michigan legislators over the barrel for years and is finally about to reap what they have sewn. I come from a union family and I have to say that the UAW has been raping and pillaging the auto industry forever. I mean, 60K a year to work the assembly line, that is ridiculous! 
Class warrior aside, it will be interesting to follow this story as things develop in the coming days. I don't expect to see any handouts the rest of the year. I believe it will be up to the 11th congress and President-Elect Obama.

Changing Industries

Due to the current financial crisis, many people are losing their jobs and many industries are distressed. Fortunately there are still a lot of options for job seekers and those who are looking to move into other industries. More often than not, it is essential to have a degree in most entry level positions as well as some form of experience in order to attain a position. Luckily, there are a lot of affordable and comprehensive training schools and institutions all around the country for those interested in moving into the culinary and hospitality services fields.
Believe it or not, many people have been moving into the airline industry despite its recent tumultuous nature. Flight attendant school as well as other hospitality institutions have been seeing record enrollment. In addition to the record enrollment, there has been an increasing amount of graduates moving into the industry all across the nation despite the economic slump. 
I have to admit that I really enjoy flying and I couldn't think of a more geographically interesting industry to be in. Honestly, I don't know how well I would do away from my family, but nevertheless it looks like a pretty cool career path. If you've been thinking about shifting gears into a new career and enjoy the business, then maybe you ought to check out a career in the airline industry.