New report by Nexus Global Reveals State of Business Confidence in Wales Amid COVID-19

August 4th, 2020 Nexus Global Leave a comment

Businesses in Wales are most assured about launching new products or services, and least confident about hiring new employees.

·Sectors hit hard by COVID-19 are the least confident including leisure and sport and travel

·Law is the most confident sector in the UK

The current pandemic has thrown drastic obstacles in the way for UK businesses. With a total business confidence score of 91.89 out of 190 in Wales, these figures show just how uncertain businesses feel at present – according to a new, Business Confidence Report by Nexus Global.

Nexus Global surveyed senior managers in businesses across the UK to determine how confident they feel at present regarding the current economic climate. According to the findings, businesses are most assured about the overall health of their business, yet least confident about the health of the country’s economy.

To determine the figures, respondents were asked (on a scale of 1-10) how confident they feel at present regarding the following aspects. The results from Wales are as follows:

The South West of England ranks 8th in the UK for overall confidence

From a regional point of view, businesses in Northern Ireland are the most confident about the current climate, scoring 102.3 out of 190, nearly 10 points over the UK average. Whereas businesses in Scotland are the least confident by scoring just 83.8.

In Northern Ireland, businesses felt most confident about the happiness of employees, but least confident about the overall health of the country’s economy, this again is unsurprising given the current circumstances

Commenting on the report findings, John Westwood, Managing Director, says: “It is by no surprise to see business confidence at a low during such an unsettling and turbulent period, during which the UK economy has suffered its worst-ever decline.

Looking forward, business confidence levels will be a key factor to influence the pace of consumer spending once lock-down measures continue to ease. This change in behavior will need to see businesses adapt if they stand a chance of seeing growth.”

For more information follow the link to click through to individual sectors to discover more in-depth information on the current climate and future predictions.

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Nexus Global IFA network was founded in 2011 to bring compliance and regulatory support to financial advisory firms.

Nexus Global is presently the only IFA network to have gained Network Membership status with The Federation of European Independent Financial Advisers (FEIFA). Nexus Global – Registration Number 10465.

The RIA firm, Blacktower Financial Management (US) LLC is registered with the Securities and Exchange Commission (SEC File # 801-111088) in the United States of America.

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MADE IN AMERICA: 20 TOP U.S. CITIES FOR MANUFACTURERS

August 4th, 2020 Anthony Pignataro Leave a comment

More than 11 million Americans worked in the manufacturing sector in 2016, according to the U.S. Department of Commerce. These are good jobs, too: The average payroll by employee in manufacturing is $57,266. But while manufacturing was the heart of the American economy a century ago, today it’s far more select. Here’s a look at the top 20 cities in the U.S. for advanced manufacturing.

Columbus, Indiana

Columbus is one of the nation’s true powerhouses, with 38 percent of employment dedicated to advanced manufacturing and industry. (That’s compared to 9 percent nationwide). According to the Greater Columbus Indiana Economic Development Corp., Columbus manufacturing is specialized in six industries: machinery and engines, transportation, paper products, fabricated metals, plastics, and pharmaceuticals. It’s no wonder the city is home to the North American R&D centers for Cummins, Faurecia, Toyota Material Handling, Dorel, Enkai, and PMG Indiana. The city is currently working to expand that manufacturing base to include aerospace, cybersecurity, defense, and engineering/R&D services.

Bowling Green, Kentucky

That every Chevrolet Corvette made since 1981 came from Bowling Green ought to tell you something about the city’s manufacturing base. In 2017, about 17 percent of the city’s workforce was in manufacturing (up from 14.4 percent just five years previously), according to USA Today, and they’re responsible for $1.1 billion in exports. The manufacturing base in the city is incredibly diverse, with firms located there making automotive airbag inflators (ARC Automotive), new and used pallets (B&D Pallet), laser marking machines (Beamer Laser Marketing Systems), faucets (Delta Faucets) and paint (Sherwin-Williams).

Lake Charles, Louisiana

There are currently $57 billion worth of manufacturing and petro-chemical projects planned for the Lake Charles metro area, according to a September 2019 Nola.com article. This translates into 3,000 new jobs for 2020, and another 3,800 new jobs in 2021. Considered an economic power for some time now, the region boasts that about 9 percent of its workforce is in manufacturing, and they produced a little more than $7 billion worth of exports in 2018, according to AdvisorSmith. In per capita terms, that pencils out to more than $33,000, which AdvisorSmith ranked seventh highest in the nation.

San Jose, California

San Jose supports more than 65,000 manufacturing jobs—more than twice the number found in the rest of the Bay Area combined, according to a 2016 report from SFMade. It’s home to one of the nation’s Manufacturing Innovation Institutes, which specializes in Flexible Hybrid Electronics, and is part of a network of manufacturing innovation centers set up by the Obama Administration in 2013. The manufacturing output of San Jose was a remarkable $76 billion in 2018, ranking it sixth on AdvisorSmith’s Top 50 list of cities with strong manufacturing economies.

Rocky Mount, North Carolina

Once known predominantly for agriculture and textiles, this North Carolina city (population: 54,000) is known as a regional manufacturing center that produced more than $6 billion worth of exports in 2018. The engine manufacturer Cummins has a plant there, as does Corning, which makes glass. The city is also home to metal fabricators, industrial packaging makers, and hardware producers. Manufacturing has grown by nearly 12 percent in recent years, according to AdvisorSmith, which also reported that Rocky Mount’s manufacturing totaled more than $42,000 on a per capita basis, making it one of the most dynamic industrial cities in the nation.

Greeley, Colorado

Vestas Blades makes wind turbines. Burris Co. manufactures rifle scopes. Norfolk Iron & Metal produces carbon steel. IES Combustors makes waste gas combustion equipment. Worthington Industries manufactures a wide range of products, including cab enclosures for tractors, industrial components, propane cylinders, and water systems. What all these companies have in common is their location in Greeley, where nearly 13 percent of the labor force is in manufacturing. In 2017, they were responsible for nearly $800 million in exports. To keep the growth steady, Greeley firms are focusing on finding new talent through better apprenticeship programs, benefits packages, and workforce culture, according to a recent article in the Greeley Tribune.

Jackson, Mississippi

It shouldn’t be surprising that 60 percent of the manufacturing sector in Jackson supplies products and services to the automotive market, according to the Jackson Chamber of Commerce. Companies such as Michigan Automotive Compressor, Lomar Machine & Tool Co. and Tenneco form the heart of Jackson industry. But medical device manufacturing is a growing part of the local economy. A big part of why Jackson is able to sustain such industries is the Academy for Manufacturing Careers (AMC), a Department of Labor-certified training program and trade school established in 2005 by the Jackson Area Manufacturers Association. The AMC offers full training for CNC machinists, tool and die makers, machine builders, industrial electricians, and a host of other specialties.

Greenville, South Carolina

Greenville has been known as a center for advanced manufacturing since at least 2003 when the Harvard Business Review wrote approvingly of the city’s “visionary leaders,” “hospitable business climate,” “customized training” and “collaboration within the business community.” Those factors are still driving economic development there today, with nearly 60,000 workers (14 percent of the labor force) in Greenville producing $5 billion worth of manufacturing exports, according to USA Today. They work for companies such as Michelin North American (radial tires), GE Power (gas turbines), Bosch Rexroth (fluid pumps), and Confluence Outdoor (boats and boating accessories).

Kokomo, Indiana

This central Indiana city, long a center of automobile manufacturing, is best known today as one of the nation’s top suppliers of automotive transmissions. Not bad for a city that was devastated in the 2008 financial crisis (General Motors, Chrysler, and Delphi all had plants there), but the city has recovered since along with the auto industry itself. Today, nearly 30 percent of the labor market in Kokomo works in manufacturing—up from 25 percent in 2012. According to AdvisorSmith, the city’s manufacturing sector produced $3.7 billion in 2018—which penciled out to nearly $45,000 on a per capita basis.

Sheboygan, Wisconsin

This little city located on Lake Michigan at the head of the Sheboygan River is now a preeminent industrial center, specializing in car parts, furniture, and metal products. In fact, the metals fabrication company Kohler is the area’s largest employer, with more than 5,000 workers, according to the Sheboygan County Economic Development Corporation. That industry is so big there that the county has six times the national average worth of metal manufacturing and makes 11 times the national average of fabricated metal products. Sheboygan workers produced $3.1 billion worth of manufacturing exports in 2018, according to AdvisorSmith.

Bellingham, Washington

Bellingham’s manufacturing output grew more than 10 percent between 2014 and 2018, according to AdvisorSmith. And it’s still growing—a Bellingham Herald article reported in January that Tidal Vision, an established Bellingham operation that converts marine byproducts into eco-friendly items like water treatment, would be expanding, and other manufacturers would soon be growing in the greater Whatcom County area. A huge array of manufactured goods comes from the Bellingham area, including saw blades, high-performance brakes, ultrasonic gel, anchor chain, remanufactured engines, precast concrete, natural pet foods, construction-grade lumber and fiberglass boats, according to the Port of Bellingham.

Lima, Ohio

The manufacturing sector in Lima employs nearly 46,000 people and pays an average salary of more than $67,000 a year, according to TownSquare Publications. Though hurt badly in the 2007 recession, Lima recovered, and today is home to Proctor & Gamble, Ford, and General Dynamics. Lima also hosts the Joint Systems Manufacturing Center, the nation’s only factory that still produces tanks for the U.S. military. If anything, the city’s main challenge for the future is attracting a steady stream of new workers. Lima’s manufacturing output per capita was just under $40,000 in 2018, according to AdvisorSmith.

Beaumont, Texas

A century ago, Beaumont translated the riches of the Spindletop oil deposits to become the second-largest refinery in the nation. Today, Beaumont is quickly growing again, but in manufacturing. Employment in machinery manufacturing and electrical equipment manufacturing grew 53 and 45 percent, respectively, between 2010 and 2017, according to a Federal Reserve Bank of Dallas special report. The city’s largest employers include ENGlobal Corp., ExxonMobil, Goodyear Tire & Rubber, Motiva Enterprises and Valero Refining Group. Beaumont’s manufacturing output per capita in 2018 was $36,000, according to AdvisorSmith.

Savannah, Georgia

Manufacturing comprised nearly a quarter of the Savannah area’s economic output in 2017, according to the Savannah Chamber of Commerce. In real terms, that translates to slightly more than 22,000 people working at 346 plants. Growth in manufacturing employment held steady in 2017, 2018, and into 2019. One major employer, Gulfstream Aerospace, employs 11,000 workers for production, maintenance, engineering, research, and development. Another Savannah firm, JCB, has about 600 workers who build light capability, rough terrain forklifts for the Department of Defense. All told, Savannah is responsible for about $2.3 billion in manufacturing exports.

Yuma, Arizona

In 2018, AQST Space Systems Group, which provides strategic planning to space and defense industry in satellites, space systems, artificial intelligence, and robotic, was looking to move its secured manufacturing operation out of Puerto Rico. The company ended up choosing Yuma because of its friendly business environment, infrastructure, turnkey facilities, and support, according to the city of Yuma. This makes sense, given that the city’s manufacturing employment growth rate was second in the nation from 2014 to 2018, according to AdvisorSmith, and 10th in the U.S. in terms of manufacturing output growth.

Palm Bay, Florida

Defense and semiconductors are big business in Palm Bay—so big that the manufacturing industry is growing faster there than in any other Florida city, according to Space Coast Daily. The 2018 AdvisorSmith study reported that manufacturing output per capita in Palm Bay was $7,494, which was about $450 higher than the national average. The Palm Bay Chamber of Commerce says more than 500 manufacturers call Palm Bay and surrounding Brevard County home, including Patriot Fire Defense, Technolink, Inmarsat, and Advanced Magnet Lab. The chamber also boasts that its Made in Brevard program, which highlights the work of local manufacturers, helps encourage further investment.

Bremerton, Washington

Bremerton has been a manufacturing center for more than a century. The workshops, plants, and yards in the city and surrounding Kitsap County build an astonishing variety of products, including office furniture, prosthetic devices, fly fishing rods, LED lighting, unmanned underwater vehicles, patrol boats, schooners, and aircraft carriers, according to the Kitsap Economic Development Alliance. The compound growth rate of manufacturing employment at Bremerton was nearly five percent, according to AdvisorSmith. The Puget Sound Regional Council has also designated Bremerton to be one of eight Manufacturing/Industrial Centers in the region.

Clarksville, Tennessee

Manufacturing labor grew in Clarksville by an incredible 10 percent during 2018, according to a recent study by Kempler Industries. This shouldn’t be surprising, given that in the five years prior to the study, manufacturing employment grew 17 percent, according to USA Today. Data from the Clarksville/Montgomery County Economic Data Center shows the manufacture of automotive parts and industrial machinery have seen especially high rates of growth in recent years—58 percent and 34 percent, respectively. Major employers include Akebono (hubs and rotors), Bridgestone (steel cord), Hendrickson (tractor-trailer air-ride) and Trane (heating and air-conditioning equipment).

Reno, Nevada

The Economic Development Authority of Western Nevada says manufacturing is the fastest growing industry in the greater Reno area. In fact, AdvisorSmith recently ranked Reno seventh on its list of America’s 50 strongest manufacturing economies. Reno offers business-friendly regulations, 80 million square feet of affordable industrial space, some of the lowest electricity costs in the Western U.S., and a hard-working, educated labor force. Some of Reno’s biggest manufacturers are Trex (wood-alternative decking), Tyco (security systems), IGT (slot machines), and James Hardie (building materials).

Ogden, Utah

Manufacturing employment grew in Ogden nearly 18 percent between 2012 and 2017, according to USA Today. That means these days the city’s labor force produces $3.2 billion worth of manufacturing exports. Aerospace is a key part of the industry there, especially since the city is just two miles from Hill Air Force Base. ATK, which builds weapons systems for the U.S. military, has an operation in Ogden, as does Parker Hannifin, which makes aircraft hydraulic and control systems. Other manufacturers include Chromalox (heating elements), JBT Aerotech (commercial aircraft boarding bridges), Levelor (window blinds), and Kimberly-Clark (diapers).

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Job Market Trends and Their Effects on Companies

August 3rd, 2020 Nico Jakobs Leave a comment

The ongoing COVID-19 pandemic has touched just about every part of the economy, and the jobs market as a whole has gone into alarming freefall, despite the government’s job retention measures.

Where are the jobs going?

The sectors which have struggled most are, by and large, the ones you might expect. Aviation, hospitality, and retail have had to contend with unprecedented slumps in demand, and many businesses have responded by slashing their payrolls.

Even household names like HSBC have announced thousands of redundancies, albeit spread across the globe.

What is the economic outlook like?

According to the Guardian’s redundancy counter, more than 150,000 people have been made redundant, and more than nine million remain furloughed as of the 28^th of July. Moreover, the number of employees on company payrolls tumbled during the lockdown period by around 649,000.

Though economic forecasts are not widely lauded for their reliability, the ones that are being focussed on by the mainstream media remain consistently bleak. According to the Office for Budget Responsibility, the body set up to advise the treasury, unemployment levels could skyrocket by the end of the year to levels not seen since the 1980s.

With that said, certain areas of the economy are now enjoying a surge in pent-up demand. Car dealerships are making sales faster than they can restock their forecourts; estate agents find themselves inundated with inquiries. Whether this can be sustained to the end of the year remains

The best-case scenario is a ‘v’-shaped recession – a sharp decline followed by an equally sharp uptick. This is a wildly different recession to the one experienced in 2008. The financial fundamentals which underpin the modern economy remain sound, and thus there’s some reason for cautious optimism – as articulated by the Bank of England’s Andy Haldane in June.

What can be done?

What does all this mean for businesses looking to navigate the post-COVID landscape?

Among the more popular shifts has been toward e-commerce. Retailers have tried to cope with sparse footfall by making the transition to trading online. E-commerce has, in fact, been in rude health through the pandemic, and it’s likely that this shift will outlast the pandemic itself.

Businesses may also wish to anticipate a fall in demand by being more cautious with their investments. Risk assessments and strategizing are set to be more crucial than ever, as is seeking out alternative forms of commercial finance from specialized online lenders.

Archives, Banking, Global Trade Daily

Survey Finds Dramatic Increase in Overdue Payments in North America

August 3rd, 2020 Gordon Cessford Leave a comment

Will North American businesses remain resilient in the face of COVID-19 challenges? That answer is increasingly difficult to answer in the affirmative, as virus containment measures continue to negatively impact trade, consumer spending, industrial production, unemployment, corporate debt and supply chains.

According to the annual Payment Practices Barometer survey of businesses in the U.S., Mexico and Canada by trade credit insurer Atradius, companies are facing widespread cash and liquidity pressures. Survey data was collected this spring, and conditions have likely deteriorated further. News recently broke, for instance, that the coronavirus caused the U.S. economy to contract 32.9% in Q2, the worst contraction in modern history.

Needless to say, the bleak economic outlook puts businesses in an extremely tight spot, and it is likely insolvencies will rise dramatically, further exacerbating liquidity challenges among organizations in the supply chain. Some troubling signs of deteriorating payment practices and B2B customer credit risk captured in the survey include:

-Overdue payments have increased dramatically. Across the region, 43% of the total value of issued invoices remain unpaid by the due date, a sharp increase from the 25% reported last year.

-The value of invoices overdue by 90 days or more has doubled to 13%.

-Businesses write off 4% of the total value of outstanding invoices, up from 3% in 2019.

The increase in payment defaults is particularly alarming in the U.S., which saw a 72% year-over-year uptick compared to 2019, and in Canada, which saw an 86% increase. In Mexico, the amount of trade receivables firms have written off has doubled since last year.

These trends put a troubling burden on businesses, which end up having to spend more time, resources and funds chasing down overdue invoices. It also means working capital is tied up for longer than before, limiting businesses’ abilities to pay their own suppliers and make strategic investments. In short, rampant late payments cause a bad domino effect, spreading liquidity issues all throughout the supply chain.

UMSCA Firms Are Tightening Credit Controls

Faced with heightened B2B customer credit risk, many businesses across North America are tightening their credit control procedures, the Payment Practices Barometer found.

Firms typically rely on a mix of outsourced risk management, such as credit insurance, and internal tactics such as reducing risk concentrations and increasing debt collection resources. Notably, more than half of the region’s survey respondents plan on upping the efficiency of their debt collection processes through tactics such as payment reminders or outsourcing collections to an agency.

The Payment Practices Barometer also found that while credit-based B2B sales are on the rise across the region, the trend is slowing. Self-insurance against the risk of payment defaults also saw an increase – 66% of businesses rely on this tool compared to 22% last year.

The most prevalent methods of credit control vary by country:

-Many Canadian firms are planning on adjusting payment terms to better align with the credit capacity of customers – average payment terms are now 26 days, compared to 27 days in 2019. They also widely employ payment reminders and work to avoid concentrations of credit risk.

-In Mexico, a significant proportion of businesses employ credit insurance. Additional popular credit management tactics include suspending deliveries until outstanding invoices are paid, requesting payment on cash from B2B customers and requesting payment guarantees.

-U.S. firms focus more on credit management than their peers in the region. A large majority of U.S. businesses manage customer credit risk in-house through self-insurance. Requiring payment guarantees prior to sales and offering discounts for early payment are also widely used tactics.

UMSCA Businesses Remain Hopeful?

Despite the bleak economic outlook and all signs pointing to widespread liquidity issues, the majority of businesses surveyed in North America predicted growth in the coming months, their optimism rooted in the belief that banks will continue to provide credit to cushion the effects of poor cash flow.

But again, that was a few months ago, and business conditions are rapidly changing for the worse. Consumer sentiment, for instance, has fallen back almost as low as in the early days of the outbreak – optimism that COVID-19 will go away any time soon is now a distant memory.

The only thing that can be said for sure is that the business environment in North America is rife with uncertainty with no indication of sunnier skies in the near future. More than ever, businesses need to take a strategic approach to credit management that ensures adequate cash flows and a solid liquidity position.

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Gordon Cessford is the president and regional director of North America for Atradius Trade Credit Insurance, Inc

Archives, Global Trade Daily, News

NEW PAPER “EXPOSES” BIG TECH’S PLANS FOR NEW WTO RULES OVER DATA ACCESS AND CONTROL

August 2nd, 2020 GT Staff Leave a comment

A paper released in July by educational publisher Rosa-Luxemburg-Stiftung of Brussels examines how “big tech” corporations work to use “trade” rules to allegedly rig the global digital economy to collect more data, exercise more control over people’s lives and over their workers, and amass ever more profit.

“Digital Trade Rules: A Disastrous New Constitution for the Global Economy, By and for Big Tech” was written by Deborah James of the Center for Economic and Policy Research. She claims companies such as Amazon, Facebook, Google, Apple, and Microsoft work to secure new accords at the World Trade Organization (WTO) that would allow them greater access to, and ownership of, data with minimal restrictions.

“These proposed rules are a grave threat to development, human rights, labor, and shared prosperity around the world,” says James, who is executive director of the Washington, D.C.-based center’s International Programs. “They are the very antithesis of the type of policies we need to rein in the cancerous and untrammeled growth of the power of Big Tech.”

She writes that, “When it was founded in 1995, new agreements within the WTO gave rights to the dominant industries at that time, such as agriculture, finance, services, pharmaceuticals, and manufacturing. The technology industries lack such an agreement in the WTO and are seeking similar rules to these to liberalize the digitalization that is currently transforming the global economy, particularly the governance of today’s most valuable resource, which is data.”

Her report came as a group of 76 countries launched talks aimed at a digital trade agreement at the next WTO ministerial conference. Due to the COVID-19 pandemic, a WTO conference planned for June is Kazakhstan was postponed.

Archives, Executive Education, Global Trade Daily

How Global Leaders Formulate and Execute Corporate Strategies to Meet External Challenges

August 2nd, 2020 Mostafa Sayyadi Leave a comment

Any organizations have plans going well into the future. Strategic goals spanning five to fifteen years while short-term goals are more tactical and are just as important. Two prominent scholars that are well known in the Academy of Management – one of the largest leadership and management organizations in the world, by the names of Charles Hofer and Dan Schendel see strategy as a “fundamental pattern of present and planned resource deployments and environmental interactions that indicates how the organization will achieve its objectives.” Another scholar, Kenneth Andrew, describes strategy as a pattern of decisions and plans which are directed at interacting with the external and internal environment and effectively and efficiently allocating capabilities to achieve organizational objectives.

There are different typologies of strategies and one typology of these existing typologies that can create better results for companies when compared to others. Much of what I share comes from my experience as a senior management consultant in San Diego, California.

In my experience working with more than 30 Fortune 100 companies, executives consider the four dimensions of corporate strategy including analysis, pro-activeness, defensiveness, and futurity. Analysis strategy is defined, by Venkatraman, as “the tendency to search for problems and their root causes and generates better alternatives to solve them.” When executives analyze strategy, they can create more knowledge and find the best solution using a problematic search of various options. This type of strategy also stimulates companies to apply information systems in their decision-making processes in order to investigate various alternatives and options. Also, executives analyze strategic milestones to meet the goals of employee development.

An analysis strategy can develop opportunities for employee development by assessing current situations in detail. This strategy provides new and more innovative solutions for organizational problems as they arise. To develop this strategy, executives can particularly contribute to the development of a workplace in which there is/are:

-Emphasis on effective coordination among different functional areas.

-Extensive use of information systems to support decision making.

-Comprehensive analysis undertaken when confronted with an important decision.

-Use of planning techniques.

-Effective deployment of management information and control systems.

-Use of manpower planning and performance appraisal of senior managers.

Pro-activeness is a strategy element used by executives who take a proactive approach to search for better positions in the business environment. As executives use the pro-activeness strategy which refers to finding new opportunities and proactively responding to current challenges in external environments, they can enhance their span of control. To cultivate a pro-activeness strategy, executives can contribute to the development of a workplace in which there is/are:

-The constant search for new opportunities.

-Attempt to introduce new brands or products in the market.

-The constant search for businesses that can be acquired.

-More effective expansion of capacities when compared to our competitors.

-Strategic elimination of those operations that are no longer profitable in later stages of life cycles.

Defensiveness recommends undertaking defensive behaviors that manifest themselves in enhancing efficiency and in cutting costs while maintaining continuous budget-analysis and break-even points. Executives can take an offensive approach and in this case, they employ a defensive strategy. A defensive strategy utilizes modifications in order to efficiently and effectively use organizational resources, decrease costs, and control operational risk. Some executives feel that a defensive strategy, while necessary, sets a negative connotation on their span of control. A defensiveness strategic approach, in fact, enhances organizational learning through reusing commercial knowledge. To foster this strategy, executives can particularly contribute to the development of a workplace in which there is/are:

-Regular modifications to manufacturing/service technology.

-Use cost control systems for monitoring performance.

-Use of current management techniques to ensure that we move smoothly at the required level.

-Emphasis on product/service quality through the use of work improvement teams.

Futurity is reflected in the degree to which the strategic decision-making process takes a two-way approach—-an emphasis on both long-term effectiveness and shorter-term efficiency concurrently. Executives use a futurity strategy to expand the growth opportunities available to companies to close the gap between success and failure. Futurity strategy implements basic studies to identify and actively respond to the changes that occurred in the external environment and provides better outcomes. To create a futurity strategy, executives can contribute to the development of a workplace in which there is/are:

-Specific criteria used for resource allocation which generally reflect short-term considerations.

-Emphasis on basic research to provide us with a competitive edge for the future.

-Key indicators of operations forecasted.

-Formal tracking of significant and general trends.

-Regular analyses of critical issues.

This article summarizes my experience as a senior management consultant and is about getting the information needed to be successful in the right hands of executives worldwide. The key for executives is that by channeling organizational processes into corporate strategy, and employing a supportive strategy that executives can continue to prosper.

Success is, therefore, dependent upon how executives formulate and execute corporate strategy. Executives can now see how they can cultivate an effective corporate strategy, which can enable superior performance to achieve business objectives and satisfy careers.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

Archives, Commentary, Global Trade Daily

3 Key Steps to Selling a Business in Good Times or Bad

July 28th, 2020 Terry Monroe Leave a comment

The COVID-19 pandemic is putting people out of work, slowing down lots of industries, and causing businesses to close. But at the same time, an uncertain chapter in America’s economic history may provide opportunities for individuals looking for a fresh start – or a soft landing.

Nearly half of small business owners in the U.S. are 65 and older, and a good number are considering selling their business rather than putting their resources and energy into bouncing back from the recession. But isn’t an economic downturn an inopportune time to sell a business?

Not necessarily, says Terry Monroe (www.terrymonroe.com), founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business.

“Some think due to the current difficult times many businesses are having that they wouldn’t be able to get a reasonable sale price,” Monroe says. “And they worry that they’ll have to delay retirement for several years because of COVID-19. But the reality is, there are lots of people, including the unemployed, looking to reinvent themselves and for a chance to run their own business. Investors with plenty of money are always around looking for good opportunities.

“The baby boomers who own many of these businesses are burned out and want to get out. But small business owners in general often don’t realize all that is required to achieve a successful sale. Done the right way, selling can result in owners walking away feeling they got good value for all they put into their business.”

Monroe says owners should think about the following factors when considering putting their business on the block:

Ask yourself why. “Selling a business can initially be an emotional consideration, but one has to drill down to the reality of why they want to sell and why it would make sense,” Monroe says. “Burnout is a common reason. If it’s affecting health or company performance, it’s time to get out. Another common factor is the inability to expand when necessary – the owner doesn’t want to incur the added debt relative to their age.” Other reasons owners decide to get out, he says, include lack of a family succession plan, too much disruption in the particular industry, and hitting a wall in terms of profitability.

Put together a professional team. “The selling process is very stressful,” Monroe says. “You can manage that by putting together a team of professionals who will guide you through it.” The team should include an accountant, a mergers and acquisitions specialist, and an attorney, in that order, he says. “You’ll hear business owners brag about the money they saved in fees because they did the negotiations themselves, when in reality they ended up leaving considerable amounts of money on the table,” Monroe says.

Know if you’re selling too low. How do you know if you are selling too low? Do the research before you decide to sell your business. “Finding out what a business like yours is selling for in the marketplace is not going to be very difficult in the internet age,” Monroe says. “In the end, you should confer with a professional who understands your industry and can provide data to find your business’ worth in the current climate. Don’t over-focus on the price. What you should focus on is how much you would put in your pocket when the sale is complete.”

“Selling a business involves considerable thought and performing lots of work with an unknown timeline,” Monroe says. “But doing it right can lead to the reward one deserves.”

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Terry Monroe (www.terrymonroe.com), is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business. Monroe has been in the business of establishing, operating, and selling businesses for more than 30 years. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. His knowledge and expertise in multi-store operations and sales has led to many multimillion-dollar transactions. As an expert source in the convenience store industry, he writes a routine “Financial Insights” guest column for Convenience Store News and has been featured in numerous publications, including The Wall Street Journal, Entrepreneur magazine, CNN Money, and USA Today.

Archives, Banking, Global Trade Daily

Investing During a Financial Crisis

July 23rd, 2020 Aimee Rogers Leave a comment

COVID-19 has had an impact on everything from our health to the way we shop and even global markets. Few countries have escaped the virus, leading to a huge economic crisis.

While it might not seem like the best time to invest, now is actually a great opportunity for investors. So, what should you know about investing during a financial crisis?

Why could now be a great time to invest?

There are a lot of potential benefits of investing during an economic crisis. As the global markets have been hit, you’ll find stocks and shares are cheaper now than ever before. This gives you the opportunity to invest in stocks that would have otherwise been unaffordable before the crisis.

Most people are getting out of their investments due to fear and panic. This leaves the markets wide open for new investors. It is said that the worst thing you can do during a financial crisis is nothing. So, if you’re willing to take the risk, now could be the perfect time to invest.

High risks, high rewards

While there are benefits of investing during a crisis, the high risks can’t be ignored. Not all markets will recover, meaning there is a big chance you could lose what money you do invest.

Of course, the higher risks mean the rewards are also higher. During a financial crisis, you can expect investments to be riskier but much more lucrative if they pay off.

A great way to minimize the risk is to use the services of financial advisers. They will be able to help you determine which investments pose a lesser risk.

Things to avoid when investing during a crisis

If you do decide to invest, there are a few things you’ll want to avoid. For example, if you don’t have any savings to fall back on, investing is probably a bad idea.

You’ll also want to avoid touching your portfolio for at least seven years. So, if you’re looking to touch your investments soon, you’re not going to find it profitable to invest during a crisis. Also, ensure you’re choosing less risky stocks where you can. Some stocks are definitely considered riskier than others, particularly in sectors that are struggling to survive.

Overall, investing during times of financial crisis can provide great opportunities for businesses. However, it can also be extremely risky. It’s important to understand your options and seek professional advice if you don’t want to lose further money during an economic downturn.

Archives, Global Trade Daily, News, Special Reports

Team Leadership in the COVID-19 World

July 22nd, 2020 Frank Orlowski Leave a comment

In 1933, when FDR delivered his first inaugural address, U.S. unemployment stood at 25%, and 7,000 banks had folded in three years. Even as he cautioned his fellow Americans that “the only thing we have to fear is fear itself,” he also conceded that “only a foolish optimist can deny the dark realities of the moment.” The realities of that moment still appear at this instant to be grimmer than those of the current one. Yet with a staggering 26 Million American filing for unemployment over the last five weeks, it’s challenging to dismiss projections of jobless rates reaching or even eclipsing the Depression-era peak that confronted FDR on that very first day of his presidency.

Today’s Americans may not emerge from the coronavirus siege embracing anything approaching the extreme of those directly impacted by the Great Depression, and no reduction in federal responsibilities in the current situation is likely to take the country back to pre-New Deal mode. However, it would be unwise to assume that the severe jolt to our sense of physical as well as material well-being inflicted by this crisis will leave no mark on our human behaviors going forward.

Obvious ones that may never return include handshaking (a tradition long gone in Japan), full-service toll booths, buffets, and sadly free samples at Costco. However, as we dig deeper into the business world, there are less obvious ones that can transition into new ways of doing business. This article seeks to highlight letting go of the past and what to look for in the new COVID-19 World.

We have often heard two widely accepted quotes that seem to contradict each other. The first describes a stonecutter who strikes the rock 100 times with no result. However, on the 101st blow, he sees the rock split. In short, it was not the 101st blow alone that split the stone, but the 100 that went before reinforcing the message of persistence and “staying the course.”

However, the second quote is that the definition of insanity is continuing to do the same thing again and again and expecting different results. The message here is if what you are doing is not working, change what you are doing.

In this COVID-19 World, the question the entrepreneur faces is when to persist and when to change course. The answer depends on the circumstances. To be successful in business in today’s world or any other endeavor, you must be willing to persist when times are tough.

Like the stonecutter, you must be willing to continue working hard through patches where there are no visible results. At the same time, success also requires that you be ready to change course when the current path is not getting you where you want to go, especially during a pandemic. Pivoting now and reinventing yourself may help you thrive later.

Depending on the type of business, we see shifts and pivots in commercialization strategies to help organizations recapture, maintain, and ultimately grow revenue. Obvious ones include storefronts to Direct to Consumer or “you come to us” vs. “we come to you,” adding guaranteed supply of hard to get essentials into unique offerings. Less visible but impactful pivots for CFOs include choosing profitability overgrowth. Government Subsidies, forgivable loans, and grants are the preferred option during these times vs. dilutive funding, and traditional bank business loans or lines of credit.

Looking inside and redefining, your organization should include using this crisis to define a new mission. Instead of ducking from the crisis, refine your company, and embrace it. Externally getting to know your clients better and looking at your client’s challenges from an outside perspective is essential. From a business development standpoint, look ahead at tomorrow’s needs. Ask the question: “What’s my unique selling proposition, and what should it be?” This will allow your organization to pivot and redefine itself appropriately.

Most importantly, believe in your business! See the light at the end of the tunnel. The changes you make to your business model will eventually add to the bottom line and improve profitability. When you believe your business can make it now, you will be a stronger, more resilient, less vulnerable company for the future.

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By Frank Orlowski, Founder and President Ation Advisory Group| frank@ationadvisory.com | New York, NY USA

Archives, Global Trade Daily, Imports/Exports, International Trade

BLACKLISTING DEPLOYED IN THE BATTLE OVER TECH TRADE

June 20th, 2020 Andrea Durkin Leave a comment

National Security an Overriding Consideration

If there is one defining feature of current U.S. trade policy, it is that national security has become an overriding consideration in how the United States engages China. It is also a focal point of U.S. engagement with its main allied trading partners.

The Trump administration has added many tools to its arsenal in combatting what it refers to as “vectors of economic aggression” by China. Tariffs are only the most visible. The United States – and other countries – are increasingly turning to the practice of “blacklisting” persons and companies that pose a national security risk.

Through controls on exports of particular technologies, governments can either prohibit their sale to foreign entities, governments or individuals, or require the technologies be sold only upon issuance of a government license.

Not New, But Expanded

Controlling the export of commercial technologies that have “dual use” or military applications is a longstanding practice. The General Agreement on Tariffs and Trade 1994 includes a general prohibition on quantitative restrictions on both imports and exports, but contains built-in exceptions that allow for export control regimes.

In the United States, the Export Control Act requires the Secretary of Commerce to establish and maintain a list of controlled items, foreign persons, and end-uses determined to be a threat to U.S. national security and foreign policy for the purpose of regulating the export, reexport and in-country transfer of those technologies and to those entities.

Futureproofing

At today’s blistering pace of tech innovation, the lines between technologies that are used commercially in the products we buy as private sector businesses and consumers are increasingly blurred with their potential applications in a military setting.

Under the 2018 Export Control Reform Act, Congress authorized the Commerce Department to review its list of controlled technologies to consider “emerging and foundational technologies” that should be added to its control list.

The technologies contemplated include a hit parade of Sci-Fi innovations such as neural networks and deep learning, swarming technology, self-assembling robots and smart dust (whatever that is), in addition to more recognizable technologies such as quantum computing, additive manufacturing and propulsion technologies.

Special Designations

In addition to technologies that may be controlled for export, the Commerce Department also maintains a Restricted Entity List. Entities designated are subject to a policy of presumed denial for all products, whether on the controlled technologies list or not. American companies may not export to entities on this list except through waivers and specific licenses.

Huawei Technologies, the Chinese telecommunications giant that is chasing global market share in 5G mobile technology, finds itself on the Restricted Entity List, along with all of its overseas affiliates. Other Chinese companies on the list include FiberHome Technologies Group, another 5G network equipment provider, as well as China’s leading artificial intelligence startups Megvii, SenseTime and Yitu Technologies.

The U.S. government is concerned with entities that could engage in industrial and electronic espionage and infiltrate critical U.S. military systems. But the Commerce Department also took the novel step recently of adding companies to its Restricted Entity List that furnish the Chinese state and its security bureaus with technologies used to surveil and repress civil society.

In October 2019, the United States blacklisted 28 Chinese governmental and commercial organizations, citing human rights violations and abuses in China’s campaign targeting Uighurs and other predominantly Muslim ethnic minorities in the Xinjiang Uighur Autonomous Region. The companies included Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. which are two of the world’s largest producers of surveillance products as well as several of China’s leading companies in facial and voice recognition.

A Chinese Finger Trap

Last month, as U.S.-China relations continued to deteriorate in very public ways, the U.S. government added two dozen more Chinese governmental and commercial organizations to the Restricted Entity List. The Department of Commerce said they have ties to weapons of mass destruction and military activities.

As with a Chinese finger trap, American companies are now ensnared at both ends. They must comply with U.S. export restrictions but doing so may land them on China’s newly created “Unreliable Entity List”. China created the list as a countermeasure and says it will go after American companies for causing “material damage to the legitimate interests of Chinese companies and relevant industrial sectors” and creating a potential threat to China’s national security.

More Can Play at That Game

The global landscape is actively shifting as countries work to shore up and modernize their export control regimes.

In 2009, the European Union (EU) set up a community-wide regime for the control of exports, transfers, brokering and transit of dual-use items to ensure a common EU list of dual-use items, common criteria for assessments and authorizations throughout the EU.

Last year, Japan and Korea got into a major trade spat when the Japanese government removed South Korea from its so-called “white list” of preferred trading partners for strategic technologies, subjecting some Japanese exports to South Korea to new screening.

Japan’s placement of three chemicals used to make computer chips on the control list resulted in delayed shipments that affected the entire global semiconductor industry since South Korean companies account for nearly two-thirds of the world’s memory chips. South Korea retaliated by dropping Japan from its white list.

One Good Turn Deserves Another

For its part, China deemed its own “Unreliable Entity List” to be unreliable. In January this year (on the same date the U.S.-China Phase One deal was signed in Washington) the National People’s Congress in Beijing published a draft of China’s first comprehensive national Export Control Law, providing China with increased leverage to apply and counteract U.S. export control measures. Safe to say we’ll be reading a lot more about blacklisting in the coming years.

An interesting report to dive deeper:

2018 Report on Foreign Policy-Based Export Controls, U.S. Department of Commerce Bureau of Industry and Security

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

This article originally appeared on TradeVistas.org. Republished with permission.