Archive for April, 2008

Time Travel

Wednesday, April 30th, 2008

By Dean Whittaker

Have you ever wondered what time travel would be like? Well, maybe you already know. According to Eckart Tolle, in his book, The Power of Now, we all experience time travel on a regular basis. Most of us spend much of our life worrying about the future (especially those in economic development) or lamenting the past (baby-boomers who didn’t save enough for retirement), when, in fact, the only place we can have an impact is in this very moment. The future is not yet here, and the past is, well, the past.  We can only impact the future by the choices we make in the moment.

The present moment sometimes becomes the most elusive of places.  We can so easily drift off into our dreams of the future, often feeling the concern about where we may be headed.  Not that we shouldn’t make provision for what is to come, but we should do so with present-moment awareness.  The Presence Process by Michael Brown describes a process for which to live in the present moment, fully conscious of our connectedness to nature and to those around us. We are all connected – even without our social networking software.

The other day, I watched a young family arrive for breakfast at a local restaurant.  I was struck by how “not in the moment” they all were. While they waited for their food, the two middle school-age kids played with their game boy and iPod while the father read his sports magazine in-between calls on his iPhone. This scene made me wonder, where are we? What are we doing?

The primary message from both Tolle and Brown is to live our lives consciously and fully in the moment because the moment is the only place in which we can have an impact.  The moment often gets covered up by the shadow of the past or the veil of the future, and we lose the opportunity to be where we are.  Try leaving your cell phone home and your computer turned off for a day and see what happens.

Education Equals Economic Prosperity

Wednesday, April 30th, 2008

By Todd Smithee

Educational issues frequently dominate the headlines of major news outlets.  On the national scene, we constantly hear about “No Child Left Behind.”  In our own states, we hear about how our schools stack up against each other based on statewide standardized testing.  In Michigan, a new bill calls for new, burdensome screening of Kindergartners as well as 1st through 3rd grade students three times per school year to evaluate their reading skills.   While I believe supporters of these testing initiatives truly want to improve our educational system, they are placing increasingly time-consuming requirements on our teachers, reducing the time they have available to actually teach our children.

We need to take a fresh look at how our children are educated.  The 1950’s model of preparing our children for factory work, complete with ringing bells designed to get children ready to punch a time clock, is no longer effective in the information age.  Furthermore, training a child how to pass a standardized test reduces the time our teachers have available for teaching important skills such as critical thinking, communication, scientific inquiry, and team-building.  In short, we need to move away from training our children and get back to actually educating them.

So please get involved.  Attend your local school board meetings.  Ask teachers about the amount of time they spend preparing their students for tests instead of teaching the important skills that will prepare our children for the new economy.  Call your politicians and ask about their stance on these issues.  Our economy is dependent on educated children who can think outside the box.  Let’s all do whatever we can to reduce standardized tests that lock our children in the proverbial box instead.

Latest in Corporate Location Strategy

Wednesday, April 30th, 2008

By Joel Burgess

Corenet Michigan Chapter invited Dennis Donovan, principle of Wadley-Donovan-Gutshaw Consulting, to Livonia, MI to present on the Latest in Corporate Location Strategy. With Dennis’ permission to report, below are a few of my “take-aways” from his course:

Current Relocation & Expansion Activity:

  1. Levels: Down 10-15% in 2008, expected to rebound in 2009
  2. Most Active Industries: Bio/Pharma, Medical, Scientific Instruments, Food Processing, Distribution, Back Office, Call Centers, Shared Services, and Data Centers
  3. Most Activity by Region: Concentrated in the Atlantic Sunbelt (Virginia to Florida), Texas, and Inter-Mountain (Idaho to Arizona) regions because of infrastructure improvements, human capital, and business climate

Global Strategies: 18% of expansion/relocation activity in the US is foreign investment

Factors Influencing Relocation & Expansion Decisions (in priority order):

  1. Labor Market – present and future – supply cost, and quality
    1. Most locations are branch location
    2. 60% of the jobs required are entry level
    3. 20% of the jobs required are skilled
    4. Favorable labor ratios
      1. 3:1 for employment surplus
      2. 200:1 for particular occupation
      3. 200:1 for total population
  2. Logistics/Transportation
    1. 10% of projects require rail transportation
    2. Backhauling presents the biggest opportunities
  3. Electric Power – capacity, generation, and reliability
  4. Available Buildings
    1. 70% of clients seeking existing building
    2. For call centers: 3% employment in market is saturated
  5. Risk of Natural Disasters
  6. Incentives
    1. Tax Credits preferred

Attracting Talent in High-Tech Firms (in priority order):

  1. Compensation
  2. Benefits
  3. HR Practices
  4. Career Advancement
  5. Training
  6. Achievement Recognition
  7. Company Reputation
  8. Internal Work Environment
  9. Onsite Amenities
  10. Challenge of Job


Strategies for Offshoring (in priority order):

  1. Risk – socio, political, and financial
  2. Cost of Benefits
    1. US roughly 25%, other countries greater than 50% of compensation
  3. Cost of Extraction (layoffs, closures)
  4. Infrastructure
  5. Safety

For more information regarding Dennis’ presentation, you can visit the CoreNet website (www.corenetglobal.org) and click on the Michigan Chapter.

Connecting the Dots

Wednesday, April 30th, 2008

Let me start with a question: if today were the last day of your life, would you still want to do what you are about to do today?

I recently had the privilege of viewing an exceptional commencement address delivered by Steve Jobs, the co-founder and CEO of Apple, and founder of Pixar Animation Studios. Jobs’s speech was first given at the Stanford University commencement in 2005, but via YouTube, I was quickly transported all the way to California and seated in the front row for his phenomenal presentation.

In a series of three stories, Jobs presents some deep questions, imparting pointed encouragement and knowledgeable advice. He claims that his best motivation for living life, and his most humbling conviction, is to remember that he will be dead soon. Each morning when he wakes up, Jobs looks in the mirror and asks himself if he’d still do what he is about to do that day, even if he knew it was his last. If the answer is “no” too many days in a row, he knows that something needs to be changed.

The reality that life eventually ends in death shouldn’t be depressing; it should rather motivate you to remember you have nothing to lose by pursuing what you love to do. Our time on earth is limited; don’t waste it by living someone else’s life. What good are you to the world in a job for which you don’t have passion, one that you don’t enjoy? Take risks. Have the courage to follow your heart and intuition.

To be successful in your pursuit, you need to have faith that life will work out. At the age of thirty, Steve Jobs was fired from Apple, the company that he founded. He claims it’s the best thing that ever happened to him; it placed him back into a spot of insecurity and made him dig down deeper into his storeroom of creativity. Out of it, he designed Next and Pixar. In a crazy turn of events, Apple bought Next and Jobs was placed right back to where he started: at the head of Apple. Looking back, each dot connected. However, Jobs was only successful, very successful, because he had the tenacity to keep looking for his adventure.

So, look at yourself in the mirror. Stop. Think. Decide. Do you love what you are doing? Enough to do it on your last day of life?

If the answer is yes, great! Keep doing it. If the answer is no, find a new path. Jobs offered the following advice: you must start by doing what you believe is great work. Find what you love.  Keep looking. Don’t settle. “As with all matters of the heart,” says Jobs, “you’ll know when you find it.”

Feel free to watch the speech. It is about 15 minutes: http://www.youtube.com/watch?v=D1R-jKKp3NA

Quadrant II-Not Urgent, but Important

Wednesday, April 30th, 2008

By Jim Bruckbauer

Organization gurus like to divide activities into four categories or quadrants.  You’ve probably heard how they’re defined: Quadrant I activities are urgent and important; Quadrant II activities are not urgent, but important; Quadrant III activities are urgent but unimportant; and Quadrant IV activities are neither urgent nor important (a.k.a. seductive time-wasters).

We could go into great detail about all four Quadrants and how they affect our lives and productivity, but for now, let’s just look at Quadrant II a little more closely.

Since many important activities don’t give us the added impetus of urgency, they tend to get pushed to the back burner.  But Quadrant II activities are essential to eliminating the unimportant activities that seem to take up most of our time.  Examples of Quadrant II activities include planning, relationship building, preventative measures, and regular exercise. These are the proactive things we can do to keep pressing problems from arising in our lives.

One of the most important Quadrant II activities we can do is to practice self-renewal.

Stephen Covey calls these exercises “sharpening the saw” and says that if you work on these dimensions of your life for one hour a day, “no other single hour of your day will return as much as you invest in sharpening the saw.”*

Self-renewal exercises work to renew the four dimensions of the human personality: physical, mental, emotional, and spiritual.

Physical – Participate in some kind of balanced, moderate, regular program of aerobic exercise. Stretching for flexibility and doing resistance exercises for strength are also very helpful.

Mental – Exercise your mind through reading, creative problem-solving and writing.

Social/Emotional – Practice empathetic communication and cooperation, seeking to serve others.

Spiritual – Spend time on the things that deeply inspire and uplift you. For some it’s religion and prayerful meditation. For others, it’s great literature or music.

If all these dimensions work congruently with each other, tremendous energy and effectiveness can result.

My challenge to you is to try to spend an hour a day on self-renewal and see if you feel a difference and if others see a difference.  Some of the activities can be done naturally throughout the day, while others will need scheduled time. It’s time well-invested, however. It will improve your self-esteem and positively impact your relationships with others.

*Covey, Stephen R., The 7 Habits of Highly Effective People

Essar Steel, an Indian Steel Company, Invests over $3 Billion in the United States Since April 2007

Wednesday, April 30th, 2008

By Vidhan Rana

How can foreign investment make a difference in your community? Take Nashwauk, a small town in northeast Minnesota as an example. Essar Steel, a wholly owned subsidiary of Essar Global – a $50 billion Indian-owned global conglomerate – struck a deal with Minnesota Steel to build a $1.65 billion steel plant near Nashwauk. The plant will be the first of its kind in North America, and when fully operational, will produce up to 2.5 million tons of steel products per annum (MTPA) and employ up to 700 people. Construction on the plant will begin in June and is expected to be completed by 2010.

Minnesota Steel is not Essar’s only venture in North America. In June 2007, the shareholders of Canada’s Algoma Steel approved a $1.63 billion acquisition by Essar Steel. With the help of Essar, Algoma is planning to increase its output from 2.4 MTPA to 4 MTPA within the next two years. This week, Essar announced that Esmark, Inc., a Wheeling, West Virginia-based company, accepted its $1.1 billion buy-out offer. Essar is paying Esmark $669 million in cash and assuming its $430 million debt. Essar America’s President, Madhu S. Vuppuluri, said, “The Company plans to invest in Wheeling-Pitt, which has operations in Ohio, Pennsylvania and West Virginia, to make it a low-cost, technologically advanced steel producer.”

One of the reasons foreign steel companies like Essar are trying to buy up capacity and invest in plant expansion in North America is to gain market proximity. The United States alone consumed about 144.2 million tons of steel in 2006, about 10.6 percent of the steel produced in the world. As the U. S. dollar falls against other world currencies, it is becoming increasing difficult for foreign steel companies to stay competitive by producing overseas and exporting their steel to North America. Increasing fuel costs, which add to their transportation cost, is not helping, either. As a result, these steel makers are choosing to buy up capacity in North America to increase their global presence. This phenomenon is bringing foreign capital and technology into the U. S. steel industry, which it lacked in the past.

As economic development professionals, we need to keep these investments on track and do our best to attract them to our communities. Essar is not the only company making such investments; many other companies from emerging economies like India, China and Brazil are taking their business global, and North America is usually their first target. Though they are coming here for the market, their investment creates jobs, raises tax revenues of local governments, and improves the profile of the community internationally.

Essar Steel currently produces about 8 million tons of steel per year, but with its expansion in India, Southeast Asia and North America, the company expects its capacity to rise to 20 to 25 million by 2012. Currently, Essar Steel operates plants in India, Vietnam, Indonesia, Trinidad, Canada and the United States.