So often in economic development I get asked what exactly do you do. Which begs a second question, why do you do what you do?
In a nutshell, we diversify the economy, cause capital investment to happen, and create jobs.
Why is this important? Further down in this post is a link to a BI article on states losing population. Note a running challenge noted for each state - jobs. If you do not have jobs, then you cannot grow. It is almost as simple as that. No growth, no additional funds for city and county amenities. And that is only the beginning.
Economies either grow or decline.
And in order to continue to grow an economy, it takes consistent work and thought. How do you support your local industry base? How do you help ensure the workforce is available for today and tomorrow? Both of these questions can be subdivided into many more.
But it comes down to jobs and capital investment.
https://www.businessinsider.com/the-top-10-states-people-are-moving-out-of-us-2019-5
Tuesday, May 28, 2019
Wednesday, November 21, 2018
Andy Grove Was Right
Andy Grove once said, "Success breeds complacency. Complacency breeds failure. Only the paranoid survive."
The link to the article below is about the U.S. policy that rescinded the International Entrepreneur Rule. Under this rule, qualified foreign entrepreneurs are granted temporary parole to the U.S. in order to build and scale their businesses. It was a popular rule and promoted by technology intensive firms.
The U.S. was the number one choice for these individuals. Why not, the U.S. is well known for welcoming entrepreneurs and innovation. We admire and respect these individuals.
However, the rule was rescinded. The result is now these individuals seek other countries. And these countries are sure courting these entrepreneurs. Note in the article what is offered to individuals who meet certain thresholds.
I started with with a quote by Andy Grove, formerly the CEO of Intel. The U.S. is successful in promoting and developing entrepreneurs. However, I do think that success can and often leads to complacency. This policy appears to me to be based on the success of entrepreneurs in the U.S. So why let non-citizens in? That is a mistake. Like capital, innovation and entrepreneurship are mobile.
We should welcome these individuals to the U.S. for what they can contribute and not exclude them because they are not U.S. citizens. Public policy staff should consider this before taking any drastic actions.
Link to the article:
https://www.bloomberg.com/news/articles/2018-10-01/trump-booted-foreign-startup-founders-other-countries-embraced-them
The link to the article below is about the U.S. policy that rescinded the International Entrepreneur Rule. Under this rule, qualified foreign entrepreneurs are granted temporary parole to the U.S. in order to build and scale their businesses. It was a popular rule and promoted by technology intensive firms.
The U.S. was the number one choice for these individuals. Why not, the U.S. is well known for welcoming entrepreneurs and innovation. We admire and respect these individuals.
However, the rule was rescinded. The result is now these individuals seek other countries. And these countries are sure courting these entrepreneurs. Note in the article what is offered to individuals who meet certain thresholds.
I started with with a quote by Andy Grove, formerly the CEO of Intel. The U.S. is successful in promoting and developing entrepreneurs. However, I do think that success can and often leads to complacency. This policy appears to me to be based on the success of entrepreneurs in the U.S. So why let non-citizens in? That is a mistake. Like capital, innovation and entrepreneurship are mobile.
We should welcome these individuals to the U.S. for what they can contribute and not exclude them because they are not U.S. citizens. Public policy staff should consider this before taking any drastic actions.
Link to the article:
https://www.bloomberg.com/news/articles/2018-10-01/trump-booted-foreign-startup-founders-other-countries-embraced-them
Monday, November 19, 2018
The Future is Now...
This is a line from an excellent business movie by the Cohen brothers, The Hudsucker Proxy. If you have not seen the movie, I suggest that you do.
This post is not about the movie, but I do love that line. And this post certainly can apply to "The Future is Now..."
Elsewhere in this post you will find a link to a CNBC article titled "The World's First Humanless Warehouse is Run by Robots and is a Model for the Future. Mujin is a Japanese firm that started at Tokyo University. Mujin developed sophisticated controllers that can automate a warehouse and/or fulfillment center operation.
The system is in its infancy. The prototype was introduced at a recent Japanese technology show. The product builds controllers and cameras that integrates with existing robotics. It is a very impressive system.
The Mujin system already has its first customer, JD.com. JD.com is the largest retailer and the biggest internet company by revenue in China. That is a very impressive first customer.
Now do think I am naive. Automation in some form or fashion has been around for centuries. And so have various economic "revolutions." But this maybe the first one where the number of jobs eliminated could be greater than the jobs created. Think about it. Every economic revolution I can think of (agriculture as it pertains to cotton, industrial, and information) all created more jobs than were eliminated. Countries, states and localities adjusted as the best they could.
No matter what you may think, the future is now. If you have toured a warehouse operation or a fulfillment center, you see employees scattered around perhaps busily packing and/or unpacking boxes received or prepping for shipment. They likely utilize forklifts and other equipment.
Now, consider the Mujin system. No employees, just the hum of of robotics and conveyors.
So what happens to the employees? High paying jobs with benefits are fewer and far between. Usually, they require considerable training.
Over the past couple of years, I read that the trucking industry could soon be driver less, meaning up to 2.6 million drivers could be impacted. In addition, 3.4 million laborers and material movers who work in warehouses and fulfillment centers could also be impacted.
For economic development professionals, a couple of questions:
- Can we do anything?
- If so, what do we need to do today and tomorrow to offset significant job losses in these industries?
I realize to some this may come off as simplistic. And they may have a point. However, I think this economic revolution might be different. It maybe the first of many challenges economic development professionals may face when previous job growth industries start a substantial decline due to automation. In other words, "the future is now."
Link to article:
https://www.cnbc.com/2018/10/30/the-worlds-first-humanless-warehouse-is-run-only-by-robots.html?__source=msn%7Cmoney%7Cheadline%7Cstory%7C&par=msn
Friday, November 16, 2018
Everything Old is New Again
This is a two part post. Part one, the challenge. Part two, the solution.
Part One
If you watch TV, you may have seen the commercial asking you to take action due to all the plastic straws in the oceans. The number of straws in the oceans is in the millions and these straws never deteriorate. This has been an item of discussion on TV and in various magazines. News show panels discuss it. Groups protest the use of plastic straws. It is harmful to the environment. Of course the missing piece is what do we replace it with?
Part Two
The link to the Bloomberg BusinessWeek article below is about a company that offers a replacement. The company is Aardvark and the product is paper straws. I remember paper straws and why restaurants migrated to plastic. In a nutshell, paper straws did not hold its shape long and it was hard to push it through the hole on the lid. Hence, the birth of plastic straws. And when they were introduced, you could bend it and it would not lose its shape or stop the follow of the liquid (see pic). That made them fun. As a kid, you could shoot spitballs with far greater accuracy (and that is important).
You may think I am for plastic straws. I am not. I can always get another straw, but I cannot always get another planet.
As you read the article, you will see several firms went to Aardvark to purchase the paper straws. But Aardvark took great strides to ensure the quality of the product and eventually sought out a partner. Note when Aardvark restarted manufacturing paper straws. You will find several other sections of the article interesting.
However, in the end, everything old is new again.
Link:
https://www.bloomberg.com/news/articles/2018-10-05/inside-the-only-company-that-makes-paper-straws-in-america?srnd=businessweek-v2
Part One
If you watch TV, you may have seen the commercial asking you to take action due to all the plastic straws in the oceans. The number of straws in the oceans is in the millions and these straws never deteriorate. This has been an item of discussion on TV and in various magazines. News show panels discuss it. Groups protest the use of plastic straws. It is harmful to the environment. Of course the missing piece is what do we replace it with?
Part Two
The link to the Bloomberg BusinessWeek article below is about a company that offers a replacement. The company is Aardvark and the product is paper straws. I remember paper straws and why restaurants migrated to plastic. In a nutshell, paper straws did not hold its shape long and it was hard to push it through the hole on the lid. Hence, the birth of plastic straws. And when they were introduced, you could bend it and it would not lose its shape or stop the follow of the liquid (see pic). That made them fun. As a kid, you could shoot spitballs with far greater accuracy (and that is important).
You may think I am for plastic straws. I am not. I can always get another straw, but I cannot always get another planet.
As you read the article, you will see several firms went to Aardvark to purchase the paper straws. But Aardvark took great strides to ensure the quality of the product and eventually sought out a partner. Note when Aardvark restarted manufacturing paper straws. You will find several other sections of the article interesting.
However, in the end, everything old is new again.
Link:
https://www.bloomberg.com/news/articles/2018-10-05/inside-the-only-company-that-makes-paper-straws-in-america?srnd=businessweek-v2
Tuesday, October 2, 2018
If I Keep (and Occasionally Use) Obsolete Items, Does That Make Me Obsolete too?
My answer is below.
This was a fun article I read on MSN a couple of days ago. I used 30 of the 32 products in this list or 93.8 percent. In fact, I still know how to use every one of the 30 products.
It is a fascinating list. So many of the items were cutting edge to me when I first used one. Examples are the fax machine, pager, answering machine, calculator watch, and GPS devices.
It was 1986 when my office got its first fax machine. I worked for the Fort Worth Chamber of Commerce and the address was 700 Throckmorton. What an amazing machine. You could send a document any where in the world that had a fax machine to receive it. You could tell how good the other location's fax and phone line was by the speed your fax moved paper through the feeder.
My calculator watch was a gift from my dad. It was silver, thick, and heavy. It also had a game, something like space invaders.
The answering machine and pager meant you did not have to stay in an office or at home to get a call. If you did you could call the person back.
Finally, the GPS device. I used my first on in 2003 on a business call trip in New York City and New Jersey. It cost and extra $25 per day and were only available on a Jaguar and Volvo sedan. But it was vital to me. Trying to follow a map and drive in that part of the U.S. and an unfamiliar area to me, was impossible. The GPS was like having my wife next to me and giving me directions. The GPS had one advantage, it did not raise its voice when I made the wrong turn. It simply said "recalculating".
Some of the obsolete items were immensely unique. One I miss, the old yellow pages. What a great way to find a product or service.
It was a thrill to use most of these on the list. For example, I love the sound of a typewriter when in use. And note the difference between a manual (what I learned to type on) and an electric typewriter.
The old rotary phones had a very unique sound as you dialed a number. In fact, who remembers who you gave your phone number to some one else. It was letters of the alphabet for the first two and numbers for the rest. As in my phone number was "Mutual 45007." This translates into 684-5507.
Now, I wonder what is next.
Our homes and businesses are full of obsolete items. This will be a growing list. It is fun to look at what is considered obsolete and what has replaced it. I think the smart phone in some form or fashion replaced 26 of the items on the list.
Link to the website:
https://www.msn.com/en-us/news/finance-companies/32-products-you-never-thought-would-be-obsolete/ss-BBMR0F8
My answer:
No. In fact, consider me a historian. I know how to use an item you may find in an antique store (assuming these stores still exist). Many of the people I know much younger than me will not even know what any of those items are called.
This was a fun article I read on MSN a couple of days ago. I used 30 of the 32 products in this list or 93.8 percent. In fact, I still know how to use every one of the 30 products.
It is a fascinating list. So many of the items were cutting edge to me when I first used one. Examples are the fax machine, pager, answering machine, calculator watch, and GPS devices.
It was 1986 when my office got its first fax machine. I worked for the Fort Worth Chamber of Commerce and the address was 700 Throckmorton. What an amazing machine. You could send a document any where in the world that had a fax machine to receive it. You could tell how good the other location's fax and phone line was by the speed your fax moved paper through the feeder.
My calculator watch was a gift from my dad. It was silver, thick, and heavy. It also had a game, something like space invaders.
The answering machine and pager meant you did not have to stay in an office or at home to get a call. If you did you could call the person back.
Finally, the GPS device. I used my first on in 2003 on a business call trip in New York City and New Jersey. It cost and extra $25 per day and were only available on a Jaguar and Volvo sedan. But it was vital to me. Trying to follow a map and drive in that part of the U.S. and an unfamiliar area to me, was impossible. The GPS was like having my wife next to me and giving me directions. The GPS had one advantage, it did not raise its voice when I made the wrong turn. It simply said "recalculating".
Some of the obsolete items were immensely unique. One I miss, the old yellow pages. What a great way to find a product or service.
It was a thrill to use most of these on the list. For example, I love the sound of a typewriter when in use. And note the difference between a manual (what I learned to type on) and an electric typewriter.
The old rotary phones had a very unique sound as you dialed a number. In fact, who remembers who you gave your phone number to some one else. It was letters of the alphabet for the first two and numbers for the rest. As in my phone number was "Mutual 45007." This translates into 684-5507.
Now, I wonder what is next.
Our homes and businesses are full of obsolete items. This will be a growing list. It is fun to look at what is considered obsolete and what has replaced it. I think the smart phone in some form or fashion replaced 26 of the items on the list.
Link to the website:
https://www.msn.com/en-us/news/finance-companies/32-products-you-never-thought-would-be-obsolete/ss-BBMR0F8
My answer:
No. In fact, consider me a historian. I know how to use an item you may find in an antique store (assuming these stores still exist). Many of the people I know much younger than me will not even know what any of those items are called.
Monday, October 1, 2018
A Riddle: What Creates and Destroys at the Same Time?
If you are a Star Trek movie fan (the James. T. Kirk era) the answer is Genesis. At least that is what Dr. McCoy said in Star Trek: The Wrath of Khan. However, for this post the answer is change.
This article (link is below) caught my attention. It is an article about 49 companies Amazon may drive out of business. My thanks to Kiplinger for this insightful analysis. I went through the list and thought about how I knew and 26 of the firms on the following list. That represents 53.1 percent of the companies.
That is mind boggling to me. So in my life, 53 percent of services I used or stores I patronized could cease to exist. It is so hard to believe.
I think it is yet another example (or 49 to be exact) of the pace of change and that it is constant. It makes no difference if you like it or not, it will happen. If you accept that change is inevitable (and I do), then you should also consider not all change is good. How many times have you seen people change something about themselves? I leave this to your imagination.
Perhaps equally important, change creates and destroys. By this I mean change brings about innovation and progress, and leaves behind destruction and legacies.
In economic development the change that so many store front businesses may close or cease operations, we must ask what is next. Some localities are innovative with excess space, some developers buy an abandoned mall and convert it to new use or uses, and some dynamic regions fill the space quickly with new tenants. And finally, some space just stays vacant and eventually decays.
Along the same vein, thousands of jobs will be eliminated, but not the people. How can we better find gainful employment for these individuals? Are our training programs aligned with the current economy?
As you can see, I do not have any answers. I do this, we must accept change. Indeed we must embrace it. But we must also look for creative ways to manage change and the destruction that is often left in its wake.
The list of companies:
https://www.kiplinger.com/slideshow/investing/T052-S001-49-companies-amazon-could-destroy-1-already-has/index.html
This article (link is below) caught my attention. It is an article about 49 companies Amazon may drive out of business. My thanks to Kiplinger for this insightful analysis. I went through the list and thought about how I knew and 26 of the firms on the following list. That represents 53.1 percent of the companies.
That is mind boggling to me. So in my life, 53 percent of services I used or stores I patronized could cease to exist. It is so hard to believe.
I think it is yet another example (or 49 to be exact) of the pace of change and that it is constant. It makes no difference if you like it or not, it will happen. If you accept that change is inevitable (and I do), then you should also consider not all change is good. How many times have you seen people change something about themselves? I leave this to your imagination.
Perhaps equally important, change creates and destroys. By this I mean change brings about innovation and progress, and leaves behind destruction and legacies.
In economic development the change that so many store front businesses may close or cease operations, we must ask what is next. Some localities are innovative with excess space, some developers buy an abandoned mall and convert it to new use or uses, and some dynamic regions fill the space quickly with new tenants. And finally, some space just stays vacant and eventually decays.
Along the same vein, thousands of jobs will be eliminated, but not the people. How can we better find gainful employment for these individuals? Are our training programs aligned with the current economy?
As you can see, I do not have any answers. I do this, we must accept change. Indeed we must embrace it. But we must also look for creative ways to manage change and the destruction that is often left in its wake.
The list of companies:
https://www.kiplinger.com/slideshow/investing/T052-S001-49-companies-amazon-could-destroy-1-already-has/index.html
Friday, August 10, 2018
What Drives an Individual to be the Best?
What Drives an Individual to be the Best? I ask that question frequently. It is the difference between a job and a profession. I think I can sum it up in one word and one example.
The word is passion.
The example is on Sunday night are you dreading Monday or looking forward to Monday?
Today I read an excellent article in Bloomberg BusinessWeek by Ted Genoways. It is titled "Patrón Made Tequila Top-Shelf. Will Bacardi Dilute It?"
It is about Master distiller Francisco Alcaraz. This is a long article and the pics are great. I draw your attention to one paragraph in the article about Mr. Alcaraz:
"After two years, Núñez got him a job as production manager at El Viejito. Alcaraz set up a cot in the still room and slept there so he could learn the sounds of the copper pots and coils through every stage of distillation. "
Think about that for a moment. Do you know anyone who would do that? I know very few people who would.
But I do know people who work longer hours. More importantly these individuals undertake activities off hours that demonstrate I am in a profession as opposed to a job. For example, I read several business magazines each week. And I watch business shows. It is part of my study and continued education in my career. I am sure those of you who are in a profession (as opposed to a job) take similar actions. In other words, we are professionals rather than employees.
The article is a very good read. If you like Tequila, then it is a double winner.
https://www.bloomberg.com/news/features/2018-07-31/patr-n-made-tequila-top-shelf-will-bacardi-dilute-it
The word is passion.
The example is on Sunday night are you dreading Monday or looking forward to Monday?
Today I read an excellent article in Bloomberg BusinessWeek by Ted Genoways. It is titled "Patrón Made Tequila Top-Shelf. Will Bacardi Dilute It?"
It is about Master distiller Francisco Alcaraz. This is a long article and the pics are great. I draw your attention to one paragraph in the article about Mr. Alcaraz:
"After two years, Núñez got him a job as production manager at El Viejito. Alcaraz set up a cot in the still room and slept there so he could learn the sounds of the copper pots and coils through every stage of distillation. "
Think about that for a moment. Do you know anyone who would do that? I know very few people who would.
But I do know people who work longer hours. More importantly these individuals undertake activities off hours that demonstrate I am in a profession as opposed to a job. For example, I read several business magazines each week. And I watch business shows. It is part of my study and continued education in my career. I am sure those of you who are in a profession (as opposed to a job) take similar actions. In other words, we are professionals rather than employees.
The article is a very good read. If you like Tequila, then it is a double winner.
https://www.bloomberg.com/news/features/2018-07-31/patr-n-made-tequila-top-shelf-will-bacardi-dilute-it
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