Well, does this make you feel a little better?

Heard of the economic woes in Zimbabwe from BBC Radio: 80% unemployment rate and an inflation in the millions.

Not having enough digits in the National Debt Clock doesn't sound so bad, does it?

I don't know about you, but I'm still sick over this.

Read more from Scott Reynolds Nelson, professor of history at the College of William and Mary, on the our current economic crisis in relationship to the economic history of the nation.

Further Proof of an Unhealthy Economy

Un`em*ploy"ment\, noun "the rate of unemployment is an indicator of the health of an economy" according to Reference.com.

According to a September 5th report from U.S. Bureau of Labor Statistics, the unemployment rate rose from 5.7% to 6.1% in August. Of the 2.2 Million job drop in the last 12 months, nearly 27% of those jobs were lost just last month in August.

Employment losses have been felt in: manufacturing and employment services, professional and business services and employment services, wholesale and retail trade, and construction. The only segments of the economy boasting job gains: health care and mining.

Health care employment steadily grows, adding 367,000 jobs in the last year, nearly 10% in August alone.

Job growth in mining, with gains in all component industries, has been especially strong over the last 12 months, in support activities (39,000) and in oil and gas extraction (17,000).

Interesting stats, especially in a volatile election season.

Marketing in a "down" economy

A downturn in the economy turns marketer's knees to rubber. Retail sales? Down. Home sales? Down. "Second Life" sales? Down. Even "Second Life"?

While most businesses, for profit and non profit, as well as governments will tighten belts and slash, slash, slash their budgets. One place they should NOT slash and, if at ALL possible, should be INCREASED is their Marketing Budget.

High profile hstorical studies prove that cutting marketing during recessions and "down" economies will cause problems when the economy bounces back. Those who increased marketing spending during the bad times increase their sales exponentially when the bad times ended.

Think of it in these simple terms: staying "top of mind" is paramount in success. If you stop marketing yourself, you will not be "top of mind". And, "top of mind" means staying in your customers/prospects' frame of reference at all times, so when they're ready to buy/sell/talk, you will be there.

And, everybody's talking now about surviving, excelling and prepping for the upturn. Click on the link above to learn what information the Hampton Roads American Marketing Association is offering for best results.

Lessons learned in Economic development in South Hampton Roads

Inside Business publishes an interesting manifesto entitled “Commercial Real Estate Quarterly”. Their Mon 28 Jul 08 publication featured Q&A-style interviews about the last fiscal year with the directors of the Departments of Economic Development (DED) for Virginia Beach, Norfolk, Chesapeake and Portsmouth.

My recap:

Warren Harris, Virginia Beach’s director, cites the beach’s focused work on targeted industries and diversifying the economy as major accomplishments. VB has targeted their marketing efforts by creating new marketing materials as well as continuing to address workforce development needs.

During FY 07/08, VB created 1,513 new jobs and $240.5M in new capital investment. VB’s DED has been re-accredited through the International Economic Development Council, distinguished as only one of 23 DEDs in North America with this designation: Accredited Economic Development Organization (AEDO). Additionally, Site Selection magazine named VB one of the 10 best ED groups in the U.S.


Rod Woolard, Norfolk’s director, focused on transit-oriented development as that office’s major accomplishment. However, the disappointing lack of long-term state transportation funding was cited as a negative. The hotel and conference center construction delay in Norfolk’s downtown has been a disappointment as well. On a positive note, Norfolk touts many of the same draws as the rest of the region: a large defense-related presence, the booming port, and outstanding quality of life with rich arts and culture offerings, and medical and educational resources.

Norfolk’s biggest challenge lies in the lack of land for new development with 98% already developed. The Norfolk DED’s efforts focus on redevelopment, reuse and pursuing public/private partnerships for funding sources. The availability of new space for offices, modern warehousing, etc. has been limiting, requiring more creative uses of resources. Project financing is a challenge now and in the near future.

Steven Lynch, ED director of Portsmouth, has the APM Terminal’s opening on my birthday (07 Sept) in 2007 as the most significant accomplishment, creating a world-class maritime center. Portsmouth also suffers from lack of land with 90+% already developed. Their work focuses on re-establishing existing properties into stronger revenue generators.

The availability of credit was cited as the most significant challenge going forward.

Chesapeake’s director, Steven Wright, cites the city’s redevelopment strategy in SoNo (South Norfolk, located in Chesapeake, not Norfolk) as that office’s significant accomplishment. Chesapeake gives glowing reviews to Hampton Roads Economic Development Alliance (HREDA), as nearly 50% of international firms in Hampton Roads are located there. The uncertain state of the nation’s economy is acknowledged as now making it difficult to identify high-impact, growth-mode firms to target.

Each director positively identified HREDA as the regional organization helping to make each city more competitive than working as individual entities, leveraging the region’s assets and sharing marketing expenses. HREDA is also distinguished as an AEDO.

Relocation of company headquarters to Hampton Roads, such as Zim Integrated Shipping Services, North American, emphasizes our region as a major gateway today and in the future for U.S. and world markets. The existence of substantial assets in Hampton Roads, such as the high-profile DoD presence, globally-recognized port, and significant higher learning institutions, serves as a strategic leverage against competition from other regions.

Of note are newer, emerging markets competing for new business locations in the southeast in addition to established markets such as Richmond, Charlotte and Atlanta.

Workforce development is of great significance due to Hampton Roads’ large “renewable employment base”, i.e. students graduating from higher learning and exiting military. The biggest challenges? Retaining, recruiting and training.

The biggest lesson learned from these interviews with the area’s DEDs? In order to compete globally, Hampton Roads must cooperate regionally. Look out world, here we come!

High Gas Prices – real or artificial? good or bad?

First, the bad news...


Richest gas company in America? Exxon Mobil reported the biggest profit in U.S. corporate history for the 2nd quarter of 2008, $11.7 billion. Total sales: $138 billion (approx. gross domestic product of Hungary).

Cheapest gas in the world? Venezuela at 12¢/gallon

Costliest gas? Eritrea (Eastern Africa) at $9.58/gallon


The good news...

Here are some things you can like about high gas prices in the U.S. (looming at $4/gallon):

1. The world seems a little bigger, doesn’t it? Travel isn’t as inexpensive or easy to accomplish. Maybe doing business in the U.S. is looking more attractive, too, with the newly risen cost of making and importing products overseas?
   
   
2. The urban center is looking better and better, isn’t it? The suburban sprawl in the middle of the 20th century was a direct (and indirect) result of the Cold War. The theory held that if more of us lived farther from the center of “target” cities, we’d have a better chance of survival and dilute the efforts of our attackers. High gas prices could bring us all living (and working) closer together again and increasing the use of public transit.
   
   
3. Four-day work week anyone? I say, yeah!!! Unforeseen benefits? From those who’ve tried it (Brevard Community College in FL), we find sick leave reduced by 50%, staff turnover dropped 44%. Perhaps workaholic Americans can actually focus their family priorities again.|
   
   
4. Less fuel consumption = less pollution = longer lives/fewer health problems = slowing global warming?
   
   
5. Everyone becomes more frugal. We have to waste less to save $$. SUV sales have dropped dramatically. Vespa scooter sales are on the rise.
   
   
6. If you’re anywhere from the age of 5 to 34, you’re more likely to die in a traffic accident. Fewer cars on the road should reduce traffic deaths.
   
   
7. If you’re now walking to work or using public transit, call your insurance company. Your car is now a “pleasure” vehicle, and this should reduce your rates.
   
   
8. Fewer cars = less wear-and-tear on critical highway infrastructure = less traffic! ‘nuf said!
   
   
9. Want to see better community relations with the police department? Require fuel savings and see the “cop on the beat” again whether walking, cycling or segway-ing, bringing the officers closer to the citizenry.
   
   
10. Less driving = more walking/biking = less obesity!

So, the BENEFITS of higher gas prices are: a cleaner environment, a better economy, tighter, more family-oriented communities, better health, less stress and saving money in other areas. Sounds good to me.

Call me "pollyana" if you will, but infectious optimism isn't all bad.

Source: Time magazine, 14 Jul 08