Super Wealthy Infographic
An interesting infographic on the Super Wealthy.
No Time To Whine for Wineries in Economic Downturn
It is common knowledge that in an economic downturn, alcohol and cigarettes are perceived to be virtually recession proof. And as wine making in America has significantly increased from 440 local wineries and vineyards in 1970 to a current 7,000 across the nation, one would expect that the business of wine making and selling is indeed resistant to the outcomes of a recession or drop in the United States economy. However, while the business of a vineyard may seem impervious and ever-growing, let’s take a hard look at what a recession would mean for the American wine industry.
Positive Facts
The American wine industry is the fourth largest producer of wine in the world and 34% of US citizen alcohol expenditures are defined as wine sales. Every state in the nation has at least one winery producing quality American wines but the Southern California Wine Country with regions of Napa and Temecula share over 90% of the U.S wine producing markets. With California’s widely known financial situation, housing over 90% of the vineyard market would imply that local wineries are indeed recession proof, but while these positive facts may be inspiring for local winery owners but they do not mean that the industry as a whole is unfazed by America’s most recent economic struggles.
A Change in Purchasing Habits
When we have economic struggles, we often see a change in purchasing habits. Retail stores see fewer customers during conventionally busy seasons and American residents cut back on the items they feel they don’t need to survive.
California resident and wine expert, Dr. James Lapsley of the University of California said it best in an interview where he discussed the changes in purchasing habits of wine drinkers, “What happened during 2008 to 2011 was that people who were fairly rich and who had seen their portfolios decline suddenly tightened their belts and said, ‘I’m no longer buying $60 Cabernets, I’m buying $30 Cabernets.’ And people who were buying $15 wines said, ‘I’m now buying $7 wines. If you were a winery producing inexpensive wine – which meant you were a very large winery because this is where you really need to have economies of scale both in production and distribution – you did really well.”
Large vs Small Wineries
The wineries in Temecula, CA are considered larger wineries not unlike those mentioned by Lapsley in his interview. However, the recession and a possible downturn today would not bode well for small wineries who may have been counting on selling their bottles at $60 to stay in business. This can mean distressed sales in locally produced wine but with a simple adjustment to pricing, our small local vineyards can last through a downturn to see the light at the end of the tunnel when the economy begins to move back into the black.
Affect on Local Wineries
While the business of a vineyard may seem impervious and ever-growing, it is obvious that just like millions of other small businesses across the nation; small local vineyards may have difficulty remaining in business. However with an adjustment to pricing and production, we can expect to see the business of a local winery make it though a down economy or recession.
Guest Author Bio
Stacey Waldron is the Internet Marketing Director for Bel Vino Winery located in Temecula California. She enjoys gardening and playing with her two dogs, Banjo and Karly on hot summer days and always makes time for a good bottle of red wine shared amongst friends.
Will the Startup Act 3.0 Lead to Greater Job Creation in America?
The current economy in the United States resides in a struggle beyond the words full comprehension. With each passing year come families in struggle, looking for a way to skate by, for some form of economic growth. A recent discussion amongst Senators on Capitol Hill has led to an idea that offers a resolution with the potential to directly resolve this problem. This was the beginning of an idea being put into motion called the Startup Act 3.0.
Startup 3.0 is a bill that will grant “Alien” entrepreneurs a working visa to work within the United States, as long as they meet certain criteria. They must employ 2 non-family members full-time and invest/raise capital of at least $100,000 in the time-span of one year. This is an agreement that solves the immigration problem that the United States finds itself in constant quarrel about, and also gives a promising future to their current economic status.
In a country that has had a loss of businesses worldwide, it is a chance for entrepreneurs everywhere to step up and make a name for themselves. The bill would offer 75,000 work visas and have no country cap, allowing the recruiting of top-standard qualified individuals without any “red tape”, so to speak.
With this bill being put into heavy consideration, the United States labels the job growth potential over the next 10 years to be anywhere between 500,000 and 1.6 million jobs. It is labeled to have a 1.6 percent effect on GDP which in American dollars comes out to be $224 billion dollars in economic activity. In a world that claims to live and work off openness to diversity, the amount of good that can be offered from the passing of a bill couldn’t be much higher than this one.
Currently the United States continues to sink into a vast depression of unemployment rates that don’t seem entirely accurate, and a strong recognition of struggle as opposed to getting by. Entrepreneurs such as Bill Gates led a revolution in the very making of the American economy, so knowing the impact one strong company can make, why not take it a step further and allow it to truly flourish by allowing what is currently holding it back. With global recruitment it leads to alternatives that we may not even fully be aware of, and sometimes a surprise is good enough to completely rewrite a bad chapter in history. This could be that time again.
With this Act put into place it would open an endless amount of possibilities. It would bring in additional options to current businesses, as well as create a sprouting growth to new ideas, new efficient processes of manufacturing and distribution. The list of possible gains could go on and on. Startup companies as of right now open up 3 million jobs a year, and when you take this option and put it into a global revelation, the outcome proceeding would leak of optimism and positive growth.
Back on point, will the Startup Act 3.0 lead to a greater job growth in America? Absolutely. It isn’t a matter of whether it should be passed, it is a matter that it needs to be passed. With an economy struggling and an idea that several countries already actively participate in, it’s a matter of pure observation. Taking in the fact that other countries have done it and it is leading to successful businesses and job growth, it’s time for the United States to step up and fix what everyone is pleading for them to resolve. This Act could be the answer to a decade-long struggle.
Richard McMunn is a writer for How2become; a leading career and recruitment specialist for public sector careers. For the last 8 years How2become has helped numerous people prepare for and pass tough recruitment processes and assessment centres in order to secure their dream job. You can also connect with How2become on Google Plus
What are the Benefits to Buying Local?
Ever wonder what the benefits were to buying products locally?
This infographic details some of those benefits.
UC Riverside and Brand New Ion Battery
The CEO of Winston Global Energy, Winston Chung, has donated nearly 10 million dollars to the University of California, Riverside and provided a brand new ion battery.
UC Riverside is going to display the projects that were constructed utilizing the money. The University was able to create an electric vehicle that runs solely on battery and has the exterior of a London cab. Also, the University utilized nearly $2.5 million dollars of batteries that will provide power to one of the buildings in the region.
The certain type of ion battery that was donated by Winston Chung is said to help with the reduction of an electricity bill for a big building by nearly $22,000 dollars for each individual year.
Winston Chung also has six other projects in which he is funding for the college of engineering in UC Riverside. The majority of the projects will focus on energy and the development of the ion battery. The results of the projects should be substantial as advancements in batteries for laptops, cell phones and hybrid vehicles should be achieved. The funding is also renewable and should be set at a value of 1.8 million dollars after a period of two years.
The son of Winston Chung will also be present to represent the company when the brand new vehicles and batteries are unveiled at UC Riverside. A ceremony will also be held in which a building is going to be named after Winston Chung. The ion battery will actually power the brand new building which is named after its inventor.
A type of solar farm will also be installed near the Winston Chung building so that power can be generated for the University and the batteries for the brand new building itself.
Overall, the sustainable mindset of UC Riverside should be a shining example for the surrounding region.
Kohl’s to Build Distribution Center in De Soto, Texas
The famous retailer Kohl’s has announced that they chose to build an e-commerce facility in DeSoto of Dallas County, TX. It will be Kohl’s 4th e-commerce building with 3 others in California, Ohio and Maryland.
The distribution center is estimated to be approximately 1 million square feet and will be located in the trade center of Hillwood. Kohl plans to have the facility project start immediately and completed by the month of July in 2012. Currently, the stream partners of Kohl are looking for other locations but DeSoto looks like the best possible option.
The construction of the e-commerce building will also benefit the surrounding area. It is estimated that the tax base for the Dallas County will increase by $60 million dollars as a greater flow of money will be generated. It is also estimated that nearly 200 new permanent jobs will be offered to skilled workers in the e-commerce facility. 200 other seasonal jobs will also be offered for part time workers in the Dallas County.
The court of the commissioner estimates that the investment and creation of jobs will be one of the most significant projects in the Dallas County. The Dallas County is also going to assist Kohl’s by providing a 75% type of abatement for the land and property. Nearly $110,000 dollars in revenue will be obtained from various taxes.
There will also be city incentives that will occur for the company if they decide to build the facility in the Dallas County area. There are substantial benefits for the company of Kohl’s and the surrounding community.
The e-commerce sector of Kohl’s is growing at a substantial rate as online sales increase by nearly 50%. To keep up with the growth, Kohl has to expand the base as sales reached a mark of nearly 1 billion dollars. Kohl’s expects that sales and growth will continue as the business is expanded.
The e-commerce facility will provide an increased labor pool for the struggling county.
Carpenter Technology Corporation Selects Limestone County, AL
The Carpenter Technology Corporation has announced the site of a steel-alloy manufacturing building in Alabama.
There is an extreme demand for products of alloy in the energy and aerospace sectors. The facility is estimated to produce about 27,000 tons of the alloy products for various companies and businesses. Carpenter Corporation planned to build the facility after analyzing factors such as incentives, costs and resources.
The corporation chose Limestone County, Alabama because of the variety of tax initiatives, grants and very diverse training programs. Carpenter Corporation plans on training new skilled workers who will be able to effectively keep the facility running in a smooth manner. By constructing the facility in the Limestone County, many more jobs will be offered and the economy around the area will benefit immensely.
The sole purpose of constructing the facility according to Carpenter Corporation is to increase the core business which will lead to long term business relationships. Also, many of the new technologies within the energy and aerospace industry will require steel and alloy which Carpenter Corporation can supply in large amounts.
Carpenter Corporation plans to use the facility for production purposes so that other companies can purchase the parts for an affordable rate.
The construction of the Carpenter facility is estimated to be completed in approximately 30 months and will take about $500 million dollars to complete the project in Limestone County.
The selection of the site will not only benefit the company as they produce high demand parts but will assist the community as they can attain new jobs and skills. An increase in business for the Limestone County will boost the economy of the surrounding area in a positive manner.
The site selection of Athens, Alabama was the best location for Carpenter based on particular cost and production factors.
New York’s Bid for Applied Sciences Based Economic Development
Economic development planners in New York, NY seem to have stumbled onto just the right solution to kick-start the Big Apple economy – a huge public-private project that creates massive infrastructure and jobs and makes NYC more competitive globally.
NYC is converting a hospital slated for closure on Roosevelt Island into a state-of-the-art engineering and applied sciences campus. Mayor Bloomberg and the New York City Economic Development Corp. (NYCEDC) are supporting the project to the tune of $100 million.
NY State Gov. Andrew Cuomo’s newly constituted economic development council has also listed this as a ‘priority project’ that will be given extensive state support and expedited approvals. The Roosevelt Island site will be made available to the winner of a competitive process that involves Stanford, Cornell and 25 other reputed colleges and universities.
The campus, along with other sites across NYC, will collectively be known as Applied Sciences NYC, and will open in phases starting in 2015. Its economic impact is slated to be huge:-
- $1 billion in private capital investment on the site,
- $6 billion in economic activity spread across the five boroughs,
- 400 new companies created as a spinoff from the school,
- $1.2 billion in direct and indirect taxes for the City, and
- 7,700 construction jobs and 22,000 permanent jobs for New Yorkers.
All this growth is not just an offshoot of a plan to improve education. The RFP specifically asked for proposals that would focus on fields in the applied sciences that can be commercialized and would create jobs.
The research to be done, says the RFP, should “lead to the formation and expansion of companies in and attraction of companies to New York City in industries that demonstrate the most potential for growth.”
Mayor Bloomberg and the NYCEDC have attracted praise for this plan from the likes of Google which recently spent $1.9 billion to buy the building housing its NYC operations and 2,000 employees, and from President Clinton who until recently had his office in Harlem.
“Engineering and the Applied Science are our past, our present, and increasingly our future,” said Google vice president of engineering Alfred Spector. “Google is in New York City because of the draw of the city and the talent, and we support the City’s initiative to make New York an even more vibrant center of engineering and the applied sciences.”
Speaking at an event to promote his new book Back to Work, President Clinton said that it was “a heck of an idea, it’s the way the world should work, I think it’s wonderful.” He said he hoped that a New York based educational institution would win the bid.
The winner will be announced next month, but regardless of whether NYU, Cornell, Stanford, Columbia or Carnegie Mellon ends up with the winning proposal for Applied Sciences NYC, a couple of winners have already been declared – NYCEDC and the NYC economy.
Back To Work, By Bill Clinton
On Nov 8, 2011, former President Bill Clinton’s new book about putting America “Back to Work” hit the stands. The book, titled “Back to Work: Why We Need Smart Government for a Strong Economy” reflects on the economic crisis, specific policy recommendations for creating jobs, and a strong defense of government spending for economic development.
The part dealing with job creation is actually an expansion on an article penned in Newsweek earlier this year in June by the President. The article included 14 ways to “put America back to work,” including speedy approvals for projects, and tax credits for startups which could be converted into its cash equivalent for every employee hired.
Other suggestions given by President Clinton included more federal support retrofitting to improve energy efficiency, green roofs, loan guarantees, cutting corporate taxes and enforcing trade laws, and more spending on student loans, high-speed rail, broadband, and on the job training for workers.
The President says in the book that, “Our ability to compete in the twenty-first century is dependent on our willingness to invest in infrastructure: we need faster broadband, a state-of-the-art national electrical grid, modernized water and sewer systems, and the best airports, trains, roads, and bridges.”
All told, the book has 46 policy proposals, including raising the social security retirement age and making it easier for skilled workers to immigrate into America.
No doubt a whole lot of people are going to protest against one or the other specific policy recommendations. But the overarching message the President is trying to convey is that the prevailing antigovernment sentiment is a mistake.
He says that “America is “in a mess now” and that “there is simply no evidence that we can succeed in the twenty-first century with an antigovernment strategy.”
Economic Boom in Boston Seaport & Kendall Square
While the economy seems extremely pessimistic and gloomy, the region of the Boston Seaport and the Kendall Square in Cambridge, Massachusetts is thriving as various investments are pouring in to fund various projects within the region.
The amount of money that is pouring into the region of Boston sums up to nearly 1 billion dollars. The majority of the money is being allocated to the fields of biotechnology, technology and various alternative types of energy. Many companies are constructing office towers and creating research labs around the region of Seaport and Kendall Square.
Many real estate individuals and investors are taking advantage of the thriving economy around the region by purchasing homes around the Seaport and Kendall Square area and reselling them as they make a profit. The region of Seaport and Kendall Square is said to have achieved a strong sense of economic growth and development due to a concept called critical mass.
The combination of highly trained workers and creative companies is creating a high demand from other firms and companies to move to the area.
An example of a company transferring because of critical mass was Skanska Commercial Development. The development company is constructing a brand new laboratory facility for nearly $70 million dollars.
The main reason for the development of the Skanska laboratory facility was due to the access of the transit, the surrounding universities and other research buildings and the large quantity of biomedical companies. Ultimately, the surrounding developing region is extremely attractive to various small and big businesses.
The Boston Seaport is also the location of a private funded project which is estimated at nearly $800 million dollars for the construction of an office for Vertex Pharmaceuticals.
The influx of various big name companies in the region of the Boston Seaport and Kendall Square is creating an economic boom that is currently rare.
