<NEW RELEASE> August 13, 2008
Up to date report on business activity since January 2008:
This year certainly has broken many old concepts about the economy, new ideas and theories are emerging about the future and its prospects. I will focus in this article on the last month to try to establish a short term trend where we might be in the near future.
Forbes.com reported in their article that “The inventories-to-sales ratio, which measures the number of months it would take to deplete existing inventories at current sales rates, is expected to hover near the lowest level on record.” The ratio of inventory of sales was 1.26 in May, not bad you might say.
While there are many variations on business tactics and profits from state to state. One state in particular shines more then others. That state is Texas, in San Antonio Business Journal an articles on July 28th claims that the top US executives agree with respect to Texas as the best state for business. “With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” DCI President Andrew T. Levine says. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.” Would you Agree?
In the end it is hard to draw any conclusions I simply point out the idea that short term trends in these days have to be industry specific and no one single term applies. While certainly that was true in the old days. Today we are in a Global Economy, in the past industries moved with each other, today they are separate, this is why you might see a boom in one sector while another one suffers.
I came across an interesting book it claims that the most significant factors contributing to a company’s success are its startup capital and the owner’s educational level and business experience. If so, how would you explain Bill Gates and so many others. The book is called “Race and Entrepreneurial Success: Black-, Asian- and White-Owned Businesses in the United States” and it makes some points. This book claims that African-American-owned businesses tend to sell less, have fewer employees, earn smaller profits and fail more. What do you think?
By Palonek