Archive for November, 2003

Leadership and its role in Economic Development

Sunday, November 30th, 2003

By Dean Whittaker

“Leader – one who possess the ability to create and communicate a clear vision that inspires others to follow.  Leadership – communicate people’s worth and potential so clearly that they are inspired to see it in themselves.”

In the past five months I have been engaged in a Leadership Development class. In this class we have been asked to read and discuss several books. Two of the most noteworthy have been From Good to Great by James C. Collins and Jerry I. Porras, and First Break all the Rules by Marcus Buckingham and Curt Coffman.  The first book discusses the need to “get the right people on the bus,” and then describes a process of hiring for talent first and then teaching needed skills and knowledge. A manager should work with “what was left in” rather than trying to put in “what was left out.”  Both are a good read and worthy of reflection (and available as downloadable MP3 files from www.audio.com).

Another recent book that I listened to and then bought the hardcover version of is The Power of Full Engagement.  In their book, Jim Loehr and Tony Schwartz discuss how to manage our energy rather than our time. They discuss the cyclical nature of life and the need for bursts of energy followed by periods of recovery. The authors began their careers consulting with top performing athletes and later began applying their knowledge to other fields.

This past week I attended a satellite broadcast seminar titled “The Power of Executing Greatness” with presentations by Rudy Giuliani, Stephen Covey, Ken Blanchard, Marcus Buckingham, and John Maxwell.  Mayor Giuliani was outstanding as he described the prior planning process that benefited the City of New York on 9/11.  Stephen R. Covey discussed the use of the “talking stick” to heal relationships, in which the stick is passed from person to person so that they feel fully heard and acknowledged. He said that honest communications are essential.  Dr. Covey further said that leadership is a choice that requires compassion and empathy for others, as part of a love for human kind.

Industry Output & Employment Projections

Sunday, November 30th, 2003

By Jeff Vedders

Here’s a link to an interesting article from the November issue of the Monthly Labor Review which is published by the U.S. Bureau of Labor Statistics.  The article is about U.S. industry output and employment projections to 2010.  www.bls.gov/opub/mlr/2001/11/art3exc.htm

The article can be downloaded in pdf format.

The author, Jay M. Berman, looks at industries by two- and three-digit SIC codes and shows the number of jobs in 1990, 2000, and projections to 2010.  It also displays industrial output for 1990, 2000, and projections to 2010.  As you determine which industries and companies to target, this is a useful study.  It gives you an idea of which industries have seen the most job growth and which industries are projected to have the most growth. 

Listed below are the industries expected to have the fastest employment growth and fastest employment declines through 2010.

Fastest growing

SIC code Industry 2000 Jobs* 2010 Jobs* Number Change* Percentage Change
737 Computer and data processing services 2,094.9 3,900 1,805.1 86.2
836 Residential care 805.9 1,318 512.1 63.5
807-809 Health services, nec 1,210.2 1,900 689.8 57
484 Cable and pay television services 215.8 325 109.2 50.6
736 Personnel supply services 3,887 5,800 1,913 49.2
422 Warehousing and storage 206.3 300 93.7 45.4
494-497 Water and sanitation 213.9 310.3 96.4 45.1
732, 733, 738 Miscellaneous business services 2,300.9 3,305 1,004.1 43.6
735 Miscellaneous equipment rental and leasing 279.4 397.5 118.1 42.3
874 Management and public relations 1,089.7 1,550 460.3 42.2
835 Child day care services 711.9 1,010 298.1 41.9
791, 799 Amusement and recreation services, nec 1,313.6 1,850 536.4 40.8
801-804 Offices of health practitioners 3,098.8 4,344 1,245.2 40.2
4 Veterinary services 240 335.9 95.9 40
245 Wood buildings and mobile homes 90.8 127 36.2 39.9
473, 474, 478 Miscellaneous transportation services 252.8 350 97.2 38.4
873 Research and testing services 642.3 886 243.7 37.9
78 Landscape and horticultural services 808 1,093 285 35.3
872, 89 Accounting, auditing, and other services 720 963 243 33.8
81 Legal services 1,009.6 1,350 340.4 33.7

 Fastest declining

SIC Code Industry 2000 Jobs* 2010 Jobs* Number Change* Percentage Change
387 Watches, clocks, and parts 5.3 2.5 -2.8 -52.8
313, 314 Footwear, except rubber and plastic 30.1 14.2 -15.9 -52.8
12 Coal mining 77.2 54 -23.2 -30.1
341 Metal cans and shipping containers 35.9 25.6 -10.3 -28.7
311, 315-317, 319 Luggage, handbags, and leather products, nec 41.4 30 -11.4 -27.5
40 Railroad transportation 235.5 175 -60.5 -25.7
88 Private households 890 664.4 -225.6 -25.3
231-238 Apparel 417.9 314.9 -103 -24.6
291 Petroleum refining 84.6 65 -19.6 -23.2
131, 132 Crude petroleum, natural gas, and gas liquids 129.3 100 -29.3 -22.3
386 Photographic equipment and supplies 70.2 55 -15.2 -21.7
331 Blast furnaces and basic steel products 224.5 176 -48.5 -21.6
Federal electric utilities 27 21.6 -5.4 -20
202 Dairy products 145.5 121.1 -24.4 -16.8
363 Household appliances 116.2 96.9 -19.3 -16.6
46 Pipelines, except natural gas 13.7 11.5 -2.2 -16.1
282 Plastics materials and synthetics 154.3 130 -24.3 -15.7
362 Electrical industrial apparatus 150.4 127 -23.4 -15.6
279 Service industries for the printing trade 47.2 40 -7.2 -15.3
21 Tobacco products 33.9 28.9 -5 -14.7

*Thousands of jobs

Economic Recovery?

Sunday, November 30th, 2003

By Leigh Howe

Are we seeing signs of an economic recovery?  We’ve heard quiet rumblings from the analysts that are becoming stronger.  Here’s a look at the latest economic indicators and some of the analysts’ comments.

Real GDP growth. The economy – the output of goods and services produced by labor and property located in the United States — grew at a 7.2% annual rate in the third quarter this year.  This was after growth of 3.3% in the second quarter this year.   The major contributors to the increase in real GDP in the third quarter were personal consumption expenditures (PCE), equipment and software, residential fixed investment, and exports. 

Business investment. Among the most impressive factors: Business investment grew at an 11.1% rate last quarter.  Automobile production fueled much of the recent gain in factory output, though there is doubt that that it will be sustained from the automobile sector.  Many manufacturers are still facing overcapacity issues.  A study conducted by Fleet Capital Corp shows that 74% of the companies surveyed expect the nation’s economy to expand in 2004 – with most of the growth coming from the service sector. This is the most optimistic response they have gotten in the six-year history of the study.  Manufacturers are even more optimistic than the recent past – the Institute for Supply Management monthly index of manufacturing business conditions rose to an expansionary reading of 57.0 in October, the highest reading since January 2000.

What about jobs? Growth in GDP, reduction in inventories and strong corporate profits could finally spur job growth, but the forecasts for employment and job growth are mixed. The United State Conference of Mayors released a report that supports the recent growth in the U.S. economy but with lower paying jobs. The forecast average wage of new jobs created in 2004 and 2005 is $35,885, while the average wage of jobs lost from 2001 to 2003 was 18% higher at $43,629.  The top sectors of job growth are expected to be administration and support; health care and social assistance; and accommodations and food.

2004.  While the third quarter GDP growth rate probably won’t be maintained in coming months, many economists say it is now clear the recovery is taking hold.  Most analysts are predicting growth to stabilize somewhere around 4% going forward into 2004.  

Sources: Wall Street Journal, American City Business Journals, and the Bureau of Economic Analysis.