Archive for the ‘Economic Development’ Category
Friday, February 10th, 2012
 The U.S. economy is beginning to flex its muscle; with the addition of jobs, and the aid of zero interest rates, unprecedented monetary creation and a $1.2 trillion annual budget, according to the Outlook for Financial Markets March 2012 edition.
The report confirms what we’ve have been seeing in other news – companies large and small plan hiring in 2012 and optimism in the business community is definitely on the upswing. Barring unexpected shocks or news that adversely affects it, the U.S. economy seems poised for an accelerating economy. And it’s about time, too.
(See: CEO confidence soars, hiring expected; and Most Private Companies expect growth, uptick in hiring).
Equity markets kicked off 2012 with one of their best Januarys in 18 years as the U.S. economy expanded and fourth quarter earnings reports encourages investors.
The MSCI All-Country World Index surged 5.8%, according to Bloomberg. January’s gain represents the best start of the year since 1994′s 6.5% gain. The S&P 500 was up 4.4%, the best January since 1997. Over the last 102 years, the median annual Dow return was 20% in years when it gained 4-6%.
“If investors just focused on the fundamentals and discounted the daunting headlines, stock market values would be substantially higher,” advised Jack Ablin, Chief Investment Officer, Harris Private Bank, and the author of the monthly report.
Other promising signs are appearing. Zero percent overnight rates have gone a long way toward boosting demand, reducing private debt and improving asset values. Consumers have paid down their household debt to 2000 levels when gauged against GDP. Housing is stabilizing and we suspect a “normal” spring selling season will bloom in 2013.
Additional key factors discussed in the March 2012 Outlook for Financial Markets include:
- While European leaders will eventually navigate their way toward fiscal balance, many of their countries are simply not flexible enough to compete globally.
- Investors clutching bonds for a certainty of return are overlooking the risk that their income will not keep pace with future spending needs.
- Over the last 102 years, the median annual Dow return was 20% in years when it gained 4-6% in January.
- The implications of two Americas are profound. Education is currency in a knowledge economy. The divergence in educational backgrounds has shunted social mobility.
- Remarkably, bonds have outpaced cumulative stock market returns over the last 30 years. The notion that bonds can outperform stocks for such an extended period runs counter to preconceived notions and is a slap in the face to equity investors who have had to endure such financial uncertainty over the last decade.
The monthly report, which can be downloaded by clicking on the following url: http://bit.ly/xqCEdj is created by Jack Ablin, Chief Investment Officer for Harris Private Bank. Ablin is responsible for establishing investment policy and strategy within the Personal Investment Management Group of HPB. He also chairs the HPB Asset Allocation Committee, which determines the strategy for investment portfolios for Harris Private Bank.
Tags: economy shows muscle, equities markets 2012, Outlook for Financial Markets
Posted in Economic Development, Studies, surveys, reports, TechJobs | No Comments »
Wednesday, February 1st, 2012
 Three elements can restore U.S. competitiveness and create new jobs, says a Center For Public Policy Innovation report, “Restoring U.S. Competitiveness: Creating Jobs and Unleashing the Potential of Small Businesses through Technology and Innovation.
“Startups and small businesses are the backbone of the American economy. They are responsible for the vast majority of all new jobs created in the United States; they are the nation’s greatest source of innovation; and they are critical to helping restore U.S. competitiveness,” CPPI President and CEO Chris Long said. “This report addresses real policy and regulatory solutions that can help spur U.S. job growth and innovation in the coming years.”
“Job creation has rightfully dominated most conversations of late. This report sheds light on the precursor to job creation and what I find to be top of mind for the CEOs I meet with – access to capital, global markets and modern technology. Focusing on those three elements can help small businesses thrive in a way that will reinvigorate the U.S. economy,” added Steve Felice, president and chief commercial officer of Dell, who moderated CPPI’s December panel discussion.
Key findings from CPPI’s special report include:
Access to a Variety of Capital. Many investors aren’t aware of startups in their region. Bringing visibility to these new firms will help attract investment from local resources. Also, making the capital gains tax exemption permanent for investors in qualified small businesses (QSB) would provide a corporate tax credit of up to $5 million for these QSBs in the first taxable year of profit, followed by a 50 percent corporate income tax exclusion in the two succeeding taxable years to help finance growth.
Access to Modern Technology. Cloud computing and mobile technologies have lowered the cost of entry for smaller firms, allowing them to invest more in their innovative ideas. Moreover, global supply chains used to be controlled by larger firms; however, smaller firms now have the ability to build virtual supply chains to expand their presence around the globe.
Access to Global Markets. President Obama is committed to opening up foreign markets to American businesses, as evidenced by his pledge to double the amount of exports over the next five years. He also reiterated this commitment in his State of the Union Address last week stating “I will go anywhere in the world to open new markets for American products.” A number of government agencies, including the Small Business Administration, have already been providing small businesses with information and assistance to help them bring their products to overseas markets. Making these programs easier to find would help smaller firms take advantage of these valuable resources.
Distinguishing Startups from Small Businesses. Failure is a natural and important part of successful firm development. Startup owners learn valuable lessons when their firms fail, and they often develop an expanded professional network that will benefit them over the long term.
CPPI’s latest report on restoring U.S. competitiveness can be downloaded from the organization’s web site atwww.cppionline.org.
Tags: access to capital, CPPI, global markets, new technology, Restoring U.S. Competitiveness, small business job creation, Startups
Posted in best practices, Economic Development, Government/Defense, Internet/New Media, IT, Studies, surveys, reports | No Comments »
Thursday, January 26th, 2012
 Nearly half (41 percent) of companies plan to deploy cash reserves in the new year, according to a recent Deloitte poll of business professionals from a cross section of industries.
Respondents also suggest that their companies are likely to execute acquisitions (28.2 percent), increase capital budgets (20.6 percent), repurchase shares (11.8 percent) or issue one-time dividends or increase dividends (6.1 percent) in 2012.
“The good news is that cash balances have risen to historic levels, balance sheets are strong and companies have options,” says Justin Silber, principal, Deloitte Financial Advisory Services.
“The bad news is that literally trillions of dollars in corporate cash reserves aren’t earning much – if any – return as interest rates remain at historic lows. In the meantime, investors want immediate cash return while looking for boards to defend against market volatility.”
Still, the growing cash coffers firms are holding onto have diminishing returns sitting under-used. If firms are ready to start putting all that money to work, it could give the U.S. economy a real boost.
Silber continues, “The C-suite thinks growth through acquisition is ideal but division heads believe R&D investments are key. Each internal corporate group can add value, but first shared criteria should be reached so that strategies to retain, return or deploy cash are more likely to succeed.”
Poll participants cite lack of attractive alternatives for deploying cash (34.3 percent), no common framework, tools and metrics to evaluate alternatives (13.6 percent), and siloed decision making (12.1 percent) as the biggest challenges in executing cash deployment strategies at their organizations.
“We keep hearing from companies that they’re struggling to develop a shared framework and level playing field through which multiple teams can work together to determine the best use for cash reserves in the new year,” says Silber.
“Getting your strategic house in order for cash reserve deployment should be the top resolution for corporate leadership teams in 2012.”
Tags: company cash reserves, Deloitte
Posted in Economic Development, Money, Studies, surveys, reports | Comments Off
Thursday, January 26th, 2012
 Confidence in Congress continues to plummet and fears of Congressional gridlock make businesses pessimistic.
Based on the McDonald Hopkins 2012 Business Outlook Survey, 64 percent of business owners and executives are pessimistic about whether Congress will pass legislation to improve business conditions.
Last year, 25 percent were pessimistic. According to the more than 500 respondents, 66 percent expect U.S. business conditions to improve modestly, although last year, 77 percent expected modest improvements.
What about their own companies? Here again, optimism has declined. Fifty-five percent expect business conditions in their own organizations to improve modestly compared to 61 percent in 2011. There were many comments like this one: “The biggest negative factor is the uncertainty caused by gridlock in Congress.”
After the 2010 election, an associate of ours said he favored “gridlock,” but the results of that were apparent in the way the impasse over extending the debt ceiling negatively affected the markets and the world economy.
Carl J. Grassi, president of McDonald Hopkins, noted that “a significant number of respondents took the time to write comments, many of which reflect their angst about the future while providing insightful ideas about how to solve the country’s economic problems.”
The 10-question survey was sent via email to clients and friends of the law firm during the first three weeks in January. Most of the survey participants are located in the states of Ohio, Illinois, Michigan, and Florida—the states where McDonald Hopkins has offices.
The three greatest challenges facing the business community are increasing health care costs (43%), retaining profit margins (40%) and federal state and local regulations (39%).
Click below to read more about the results of the 2012 McDonald Hopkins Business Outlook Survey:
http://www.mcdonaldhopkins.com/alerts/alert.aspx?id=9XAzpQmoXkyZjShKalqiTQ
Tags: business attitudes 2012, Congressional gridlock, McDonald Hopkins 2012 Business Outlook Survey
Posted in Economic Development, Studies, surveys, reports | Comments Off
Wednesday, January 18th, 2012
 A new study provides concrete evidence that each shift in wireless network speed boosts job creation – proof that innovation is the job creation engine.
The adoption and use of successive generations of cell phones supported by the transition from 2G to 3G wireless networks led to the creation of 1,585,000 new jobs in the U.S. between April 2007 and June 2011, according to a new economic study released today by NDN.
Now that makes me feel better every time I use my smartphone.
The study also estimates that a rapid transition from 3G to 4G mobile broadband networks could create more than 231,000 additional jobs within a year.
The study, “The Employment Effects of Advances in Internet and Wireless Infrastructure: Evaluating the Transitions from 2G to 3G and from 3G to 4G,” was co-authored by economists Robert J. Shapiro, chairman of the Globalization Initiative at NDN and former U.S. Under Secretary of Commerce for Economic Affairs, and Kevin A. Hassett, senior fellow and director of economic policy studies at the American Enterprise Institute.
In the paper, the authors quantify the large economic benefits – from employment to innovation – associated with the deployment of and investment in more advanced wireless infrastructure and associated mobile devices, tracking the impact of the transitions from 2G to 3G and from 3G to 4G network technologies.
Technical advances led to job creation
“The technical advances from 2G to 3G wireless broadband and the spread of these more advanced technologies led directly to the creation of more than 1.5 million new jobs over four years, during a period when overall private-sector employment declined by 5.3 million jobs,” said Shapiro.
“The private investments that spurred the build-out of 3G broadband networks, with all of their innovations, happened in a highly-competitive wireless market in the United States. The same competitive forces are now driving the additional investments and innovations in the current transition from 3G to 4G wireless networks.”
Wireless sector creating job opportunities
Using a unique database drawn from the Nielsen Mobile Insights survey (Q4’06-Q2’11) on the ownership of mobile devices operating on successive generations of wireless infrastructure, combined with state-by-state employment data, the research by Shapiro and Hassett found that every 10 percentage point increase in the penetration of a new generation of wireless phones and networks leads to a 0.07 percentage point increase in jobs in the next quarter, with continuing gains in subsequent quarters.
“The authors effectively show that the U.S. wireless sector is creating real job opportunities for Americans across the country, especially during a time of economic duress,” said Simon Rosenberg, president and founder of NDN.
“The authors make a strong case for the inclusion of measures to accelerate the deployment of 4G infrastructure in any national job creation strategy to help jumpstart America’s economy. As policymakers look to 2012, they should be sure to encourage a regulatory environment that promotes continued high levels of private-sector investment in today’s competitive wireless market.”
Shift to 4G will bring new apps, products, services
“Past experience suggests that the shift to 4G wireless infrastructure will also open the door to a wide range of new applications, products, services, and even industries that no one can anticipate in advance,” said Hassett.
“These developments almost certainly will produce economic gains at least comparable to those generated by the previous build-out and adoption of 3G technologies and related devices in America.“
The study also examines the emergence and spread of new business operations based on the transition from 2G to 3G, including mobile e-commerce, mobile social networking, and location-based services. The authors also analyze the types of economic changes and benefits which may attend the current transition from 3G to 4G, in such areas as health, energy and cloud-based services.
“In the 21st century global economy, advanced wireless networks are a foundation on which much global economic activity takes place,” said Shapiro. “3G and 4G networks and the technologies associated with them provide that foundation, moving entire economies.
For America to stay competitive and prosperous, it is imperative that private-sector investment and upgrades in these technologies continue to advance, so our businesses and workers can meet demand from consumers and firms on a national and global scale.”
To view the full study, click here.
Tags: 2G, 3G, 4G, American Enterprise Institute, cell phone adoption creating jobs, Kevin A. Hassett, NDN, Robert J. Shapiro, Simon Rosenberg, wireless network transitions lead to jobs
Posted in Economic Development, Hardware, Internet/New Media, IT, Mobile, smartphones, TechJobs, Telecommunications | Comments Off
Wednesday, January 18th, 2012
 Michael Porter While 57 percent see the current U.S. business environment as somewhat or much better than the average advanced economy, respondents are much less optimistic about the trajectory of the U.S. as a competitive location, according to the the results of Harvard Business School’s first Survey on U.S. Competitiveness.
When asked to assess how the trajectory of the U.S. business environment compares with emerging markets, 66 percent see the U.S. falling behind, while just 8 percent see it pulling ahead. Along with HBS Dean Nitin Nohria, Professors Michael E. Porter and Jan W. Rivkin presented the findings at the National Press Club in Washington, D.C.
Father of competitiveness strategy
Porter is a leading authority on economic competition, Porter is generally recognized as the father of the modern strategy field, as has been identified in a variety of rankings and surveys as the world’s most influential thinker on management and competitiveness.
The survey also examines the desirability of the U.S. as a business location and decisions by firms to relocate existing activities or establish new ones. Of 1,767 cases where respondents had been personally involved in U.S.-related location decisions within the past year, 57 percent considered the possibility of moving existing activity out of the U.S., while only 9 percent considered moving existing activities into the United States.
The remaining 34 percent weighed decisions to set up new activities. Of those offshoring decisions that had been resolved by the time of the survey, the U.S. lost the activity 84 percent of the time. While the country fared better in potential onshoring or new activity decisions (75 percent and 51 percent win-rates, respectively), its overall win record totals just 32 percent.
U.S. losing out on business location decisions
“The U.S. is losing out on business location decisions at an alarming rate, and those activities being offshored are more job-rich than those coming in,” said Porter, the Bishop William Lawrence University Professor at Harvard and head of the Institute for Strategy and Competitiveness at HBS.
“However, the U.S. retains its core strengths in a number of important areas such as university education, innovation, and entrepreneurship, which means that we have the resources to reverse this trend. The vast amount of data from this survey highlights the need for business leaders, policymakers, and academics to collaborate on practical ways to make progress.”
The survey is part of the School’s ongoing U.S. Competitiveness Project, which defines competitiveness as “the ability of companies in the U.S. to compete successfully in the global economy while supporting high and rising living standards for Americans.”
“When we were first laying the groundwork for this Project and this survey, we thought long and hard about how competitiveness should be defined, and why it was such an important goal for the nation’s future,” said Dean Nohria.
“We made sure not to focus on job growth or inequality alone, because that ignores the need for healthy wages that will support America’s middle class. Adopting a broader definition was paramount in this effort.”
Other major findings include:
- While the negative view of the future of U.S. competitiveness is widely shared among respondents, different perceptions across groups exist. For instance, respondents between the ages of 40 and 60 are most likely to expect a decline (more than 70 percent thought so) and least likely to foresee a gain (less than 15 percent). Similarly, alumni in America are more pessimistic about the country’s future competitiveness than their counterparts outside the U.S.
- Of activities reported to have been moved out of the country in the past, 11 percent consisted of 1,000 or more jobs, while only 5 percent of activities considered for movement but retained in the U.S. consisted of 1,000 or more jobs (none moving to the U.S. consisted of 1,000 or more jobs).
- Of the 1,005 location decisions about potentially moving out of the U.S., the most common alternatives considered wereChina (42 percent), India (38 percent), Brazil (15 percent), Mexico (15 percent), and Singapore (12 percent).
Greatest impediments to creating jobs
The survey also asked respondents about the greatest impediments their firms faced in investing in and creating jobs in the United States. Policy-related factors like regulation and taxes are cited as major factors, along with talent-related issues like personnel cost and immigration issues.
“One of the most important aspects of this survey was its effort to pinpoint the roots of the country’s competitiveness problem,” said Rivkin, the School’s Bruce V. Rauner Professor of Business Administration.
“The findings allow us to assess whether individual elements of the U.S. business environment, such as the complexity of our tax code or our K-12 education system, each strengthens or weakens U.S. competitiveness. This provides important insight for leaders who are seeking ways to boost America’s long-run prosperity.”
Tags: competitiveness survey, Harvard Business School, Michael Porter
Posted in Economic Development, Government/Defense, University Tech | Comments Off
Tuesday, January 17th, 2012
 An issue of Consumer Reports magazine. A number of economic indicators suggest the U.S. is finally climbing out of the economic downturn and moving toward a real recovery. Since the U.S. economy is so dependent on consumer spending for its well being, consumer outlook is vitally important to any recovery.
January’s Consumer Reports Index, a measure of overall consumer financial health, showed that the consumer’s outlook is improving.
Sentiment and employment numbers have climbed, stress levels have diminished, financial difficulties have moderated compared to past months, and the strong retail performance of the holiday season is an important marker that Americans may be willing to engage and spend once again.
January’s Consumer Reports Sentiment Index, which measures how consumers are doing financially versus a year ago, was up from last month (45.4) to 48.2. The most optimistic consumers were ages 18 to 34, and households earning $100,000 or more. The most pessimistic consumers were those in households earning less than $50,000 and people ages 65 and older.
The Consumer Reports Employment Index moved back into positive territory, recovering to 50.6 from 49.6 last month, with past 30-day job gains (6.1%) outpacing job losses (4.8%). However, the improvements in employment were not broad-based. Women, those over the age of 34, and lower-income Americans, in households earning less than $50,000, have lost more jobs than they have gained.
The Consumer Reports Trouble Tracker Index addresses both the proportion of consumers that have faced difficulties, as well as the number of hurdles they have encountered. This Index has remained virtually unchanged for the fourth straight month registering at 50.4 compared to 49.9 in December. Despite stability in the index overall, compared to last month, the proportion of Americans reporting that they have been unable to afford medical bills or medications in the past 30 days was up substantially to 15.7% from 12.8% last month.
“Despite a better economic outlook overall, the strong retail activity this holiday season may lead to a January hangover, with planned spending down from last year,” said Ed Farrell, director of the Consumer Reports National Research Center. “Though retail was strong this holiday season, December was a disappointment, with activity lagging last year. The early start of the season by retailers stole December sales and moved them into November.”
The Past 30-Day Retail Index for January, reflecting December activity, was 15.0, up from 13.9 last month and on par with this time a year ago. The Next 30-Day Retail Index, reflecting planned spending for January was down to 7.9 compared to 12.7 last month due to the post-holiday slump. December’s retail growth was led by strong sales in personal electronics at 35.8%, up from 31.4% last month.
The Consumer Reports Index report, available at www.ConsumerReports.org, comprises five key indices: the Sentiment Index, the Trouble Tracker Index, the Stress Index, the Retail Index and the Employment Index. Here are the key findings:
Consumer Reports Sentiment Index: 48.2*
- Consumer Reports Sentiment Index for January (48.2) was up from last month (45.4). Though still in negative territory, there is reason to believe with continued improvement in employment that it will break through to positive territory (above 50) within the next couple of months.
- Respondents age 18-34 and households with income of $100K or more remained the most optimistic consumers, while the most pessimistic consumers were households with income less than $50,000 and respondents age 65 and older.
- Ages 18-34 were up slightly (55.2) from the previous month (54.5).
- Households with income of $100,000 or more (57.9) were up for a second straight month from 56.1 in December and 52.8 in November.
- Households with income less than $50,000 (42.9) rose from 40.3 the prior month.
- Those who are age 65 and older (40.9) were up from 36.3 in December.
* The Consumer Reports Sentiment Index captures respondents’ attitudes regarding their financial situation, asking them if they are feeling better or worse off than a year ago. When the index is greater than 50, more consumers are feeling positive about their situation. When it is below 50, more consumers are feeling worse. The Sentiment Index can vary from a high of 100 to a low of 0.
Tags: Consumer Reports, Consumer Sentiment Index, U.S. economy improving
Posted in Economic Development, Studies, surveys, reports | Comments Off
Tuesday, January 17th, 2012
 Productivity growth may be good for businesses, but it’s not so good for job growth. For years, technology has helped firms globally do more with fewer employees. Now that is changing.
If businesses squeeze all the productivity they can from their current employees, they have no choice but to hire if they want to grow the business. So, this could be good news for job prospects:
Productivity growth weakened substantially across the globe in 2011, with the drop-off most dramatic in advanced economies. The 2012 Productivity Brief, based on data from The Conference Board Total Economy Database, shows productivity — typically measured as output per person employed or hour worked — increased at a much slower rate in 2011 than most economists had predicted, with the trend likely to continue into 2012.
Overall, labor productivity worldwide grew 2.5 percent in 2011, down from 3.6 percent in 2010. This decline was based entirely on a slowdown in output growth, which fell from 5 percent in 2010 to 3.9 percent in 2011; average employment growth remained practically unchanged compared to the previous year at 1.4 percent. Almost all advanced economies saw sharp declines from the previous year.
Key driver of growth worldwide
With output contracting 0.5 percent in 2011, productivity growth in Japan stood at 0.2 percent, a huge drop from 5.0 percent in 2010. Likewise, productivity growth fell from 2.7 percent to 0.6 percent in the U.S., and from 0.9 percent to 0.2 percent in the U.K. In the Euro Area, productivity growth weakened from 1.8 percent in 2010 to 1.2 percent in 2011, which was still highest among major advanced regions.
“Productivity remains the key driver of growth worldwide,” said The Conference Board Chief Economist Bart van Ark. “This is especially true during times of austerity. In 2012, all output growth in advanced economies will have to come from increase in labor productivity as there’ll be, on balance, virtually no job creation across the U.S., Japan, and Europe.
Productivity growth also slowed in many emerging and developing economies, but generally by a much smaller margin — on average down from 5.5 percent in 2011 to 4.7 percent in 2010. China’s productivity growth rates, one of the world’s highest, stood at 8.8 percent in 2011, down from 10 percent in 2010. In India, the growth rate fell to 5.2 percent from 6.3 percent.
Productivity growth fell more significantly in Latin America, from 3.5 percent to 1.5 percent. The Middle East, along with Russiaand the other member countries of the Commonwealth of Independent States, were the only regions that saw modest improvements in productivity growth in 2011.
For 2012, The Conference Board anticipates further weakening in labor productivity growth (measured as the change in output per person employed) worldwide, to 2.3 percent. Major advanced regions will be the worst performers — with productivity growth at 1.2 percent on average.
Long term decline
The 2012 Productivity Brief also notes a long-term decline in the growth of Total Factor Productivity (TFP), a more sophisticated measure relating output to all factors of production, rather than just labor.
At a current trend growth rate of about 0.5 percent worldwide, TFP growth has been trending lower since the early 2000s, turning negative in the U.S. for much of that time, close to zero in the Euro Area, and dropping precipitously in several emerging economies over the last several years.
Likely to continue in 2012, this trend suggests a slowdown in the returns on technological progress and innovation, especially in advanced economies.
“Even today, the U.S. remains by far the most productive large economy in the world, with China’s output per worker almost 85 percent lower,” says van Ark.
“However, given the current divergent trends in productivity growth, advanced economies are steadily losing their edge. The challenge for both advanced and developing economies as we slowly emerge from the global downturn is the same: to break through the usual short-term trade-off between productivity and job growth by focusing on the creation of more productive jobs — not an easy task in an environment of government austerity and budget cuts.”
See 2012 Productivity Brief: Key Findings for additional data and detailed analysis at http://www.conference-board.org/pdf_free/economics/TED2.pdf
–Allan Maurer
Tags: Conference Board, job growth, productivity growth slows
Posted in Economic Development, Studies, surveys, reports, TechJobs | Comments Off
Monday, January 16th, 2012
 New York City has more media jobs and is home to more multibillion-dollar media companies than any other city in the world. But what will the City’s media landscape look like in coming years as new technology disrupts business models and emerging markets continue their growth?
An answer can be found in a newly published report detailing the findings of the “Media.NYC.2020” initiative undertaken by the New York City Economic Development Corporation (NYCEDC).
“While the sector will undoubtedly continue to face future challenges, we are committed to creating growth opportunities that build on our strong history of leadership and ensure that we remain the global leader for many decades to come.”
The Media.NYC.2020 Final Report paints a picture of what the media industry will look like in 2020 and recommends ways in which New York City and the private sector can work together to maintain and enhance the City’s position as a global leader in the media industry.
Oliver Wyman served as NYC’s knowledge partner in supporting the Media.NYC.2020 initiative. More information and a link to the report can be found at www.oliverwyman.com/media_nyc_2020.htm.
The Media.NYC.2020 Final Report outlines three possible scenarios for the City’s media evolution – fragmentation, a new equilibrium, and further concentration – and highlights several initiatives, launched by Mayor Bloomberg over the last two years that were initiated through Media.NYC.2020 findings. These initiatives include:
- Cultivating collaboration among the City’s start-ups, media companies, and academic institutions through the NYC MediaLab
- Fostering innovation through the NYC BigApps Competition, developed in partnership with the Department of Information Technology and Telecommunications to provide software developers with access to City datasets
- Spurring entrepreneurship through low-cost, shared workspace for start-ups through incubators
- Investing in seed-stage companies through the NYC Entrepreneurial Fund
- Mentoring enterprising New Yorkers through NYC Venture Fellows and JumpStart
Martin Kon, the Partner in Oliver Wyman’s Media & Entertainment practice who led support of Media.NYC.2020, comments: “The pace of change in media is such that, at this week’s Consumer Electronics Show in Las Vegas, devices and applications that debuted will likely materially impact the media industry…but the same will be true again next year. Innovation is not waiting for any slower players. The thoughtful process that the NYCEDC followed in its Media.NYC.2020 initiative will greatly help New York City remain a leader in fostering innovation and supporting economic development in the rapidly evolving media space.”
“As we continue to cultivate the 21st century economy here in New York City, the Media.NYC.2020 report will help ensure that the City’s media sector remains the most forward-looking, international, connected, innovative, and adaptive on the planet,” said New York City Economic Development President Seth W. Pinsky.
“While the sector will undoubtedly continue to face future challenges, we are committed to creating growth opportunities that build on our strong history of leadership and ensure that we remain the global leader for many decades to come.”
Tags: future of tech in NYC, Media.NYC.2020, NCY Economic Development, New York City, startup accelerators
Posted in Economic Development, entrepreneurship, Events, Internet/New Media, IT | Comments Off
Wednesday, January 11th, 2012
 Respondents to a new PR Boutiques International (PRBI) survey of worldwide boutique public relations agencies predict moderate to high growth for their businesses in 2012, and nearly half see social media as the major trend impacting communications in 2012.
Over the years, as journalists, we have worked with many PR firms, large and small, but we have seen an increase in the number of boutique firms. In our experience, they are as effective as larger firms and sometimes more so for many firms, particularly younger ones. But they would know if we’re headed for growth or more economic downtime, because the first thing to slash when times are tough is often the PR budget.
PRBI, a worldwide collaborative network of firms, includes 32 agencies operating in 13 countries, spanning the globe from Argentina to South Korea. Members of PRBI represent companies ranging from international conglomerates to Fortune 500, trade associations, and fast growing firms in industries such as technology, energy, financial services, government, tourism, education, lifestyle and healthcare.
“The boutique PR firm is more appealing than ever to clients because our structure and expertise yields results,” said PRBI president Bill Cowen, CEO of Metrospective Communications, Philadelphia, PA.
Biggest milestones of 2011
“Today companies need insightful and accurate advice, superb execution, and flexibility to adapt to constantly changing conditions, which is exactly the value proposition that our members provide.”
How social media helped to incite the revolutions in the Middle East was tapped by respondents as the biggest milestone in 2011 that proves the power of PR, followed by the heightened public hype and awareness around the technology world (including the death of Steve Jobs) and the use of social media to help turn Occupy Wall Street into a global phenomenon tied for second.
All member agencies responding to the PRBI survey reported that their confidence level about the business environment was either medium (72 percent) or high (28 percent), while 78 percent predicted moderate growth in 2012.
Perceived value of PR incresased
Two out of three reported that the perceived value of the PR boutique has increased during the economic recession, because companies see that they get more value for their investment (38 percent) and clients value the hands-on-role of senior, experienced practitioners (38 percent).
The power of social media was cited by 44 percent of respondents as the major trend impacting communications in 2012, followed by the economic recession and its impact on spending (33 percent).
The difficulty of telling a company story in a crowed marketplace was voted the biggest communication challenge that clients face in the coming year. Conversely the most significant opportunity facing companies today lies in telling that story through engaging, compelling media and channels, including the strategic use of social media.
Rather than predicting that social media will be the PR “magic bullet” for all clients, PRBI members instead view it as a tool that must be powered by engaging content and strategically integrated into the enterprise’s communication program.
Tags: boutique PR firms optimistic, PRBI, social media biggest PR trend
Posted in Economic Development, Internet/New Media, Marketing, social media, Studies, surveys, reports | Comments Off
|
|
|
