September 1998 Edition
QUALITY
A study by the Toronto-based National Quality Institute claims that small and medium-sized businesses are spending most of their quality resources in fixing problems instead of preventing them. Companies could increase their productivity and competitiveness by focusing on cost-effective activities and practices that prevent poor quality from occurring. Only about 25 per cent of quality budgets go into prevention.
ALCOHOL
Canadian wines captured a greater share of the domestic wine market in 1996/97, whereas domestic beers and spirits lost ground to imported products. Total wine sales increased 4.8% to 253 million litres, the largest annual increase in 15 years. Canadian wines increased their domestic market share to 46.5%, the first gain in five years. The biggest factor was a 27.8% increase in sales of domestic red wine, which have grown at an annual average rate of 13.9% over the last four years. Overall beer sales declined 1.5% to about 2 billion litres while sales of spirits increased 1.4% to 130 million litres. In total, 2.4 billion litres of alcoholic beverages were sold in Canada in 1996/97. Imported products accounted for 11.2% of this total, compared with 9.9% the year before.
ABORIGINAL BUSINESSES
Aboriginal business owners in Canada believe they must improve management skills and improve productivity to make their businesses successful, according to new research. A survey of 723 Aboriginal business owners showed that 83% identified improving management skills and 73% identified improving productivity as priorities for achieving business success. Sixty-seven percent cited financing as a priority, followed closely by innovation, at 64%. Thirty-one percent of successful business owners have taken advanced business training, compared with 24% of Aboriginal businesses overall. Only one-third of Aboriginal businesses had a computer. Forty-six percent of Aboriginal businesses had at least one full-time employee in addition to the owner. Only 1.1% of businesses employed 20 or more full-time employees.
CHINA
The Chinese Ministry of Foreign Trade and Economic Cooperation is relying on the World Wide Web to attract interest and generate sales. A China Market site may be found at www.chinamarket.com.cn. Potential buyers type in keywords for products or browse though categories such as foodstuffs, textiles, chemicals or industrial products. The opening of this site follows the opening of the ministry's own site at www.moftec.gov.cn which has attracted two million visits since March, the majority from Canada, the U.S. and Japan, and boasts the biggest online database about Chinese export products.
RECOVERY
A June survey of 65 multinationals working in Asia conducted by Renaissance Technomic, showed that most thought a devaluation of China's currency was unlikely. Stability in East Asia would return only after 2000; recovery would come first to Thailand and Singapore, and last to Indonesia.
GENETICS
France has announced it will approve two genetically modified corn varieties, alleviating tensions--for the time being at least--between the U.S. and France over access to the EU market for U.S. corn. France also announced a two-year moratorium during which no non-corn genetically modified products will be approved. France and the U.S. have been embroiled in a trade dispute over market access for genetically modified organisms (GMOs). Opposition to GMOs had essentially blocked all corn imports from the U.S. this year. U.S. corn exports to the EU are worth about US$300 million annually.
REACHING OUT
A recent survey found that about half of all computer users are more likely to send an e-mail to someone who lives out of town than they are to make an old-fashioned phone call. And a third of the respondents were more likely to use e-mail than to place a local phone call.
DATES
Besides the Year 2000, financial institutions have been alerted to another potentially troublesome date for some computers: April 9, 1999. This is the 99th day of the year and translates into an internal message of "9999" in some programs. However, 9999 means "end of file" in many programming languages and may signal a computer to close its files on that day.
PUBLISHING
Canadian-controlled book publishers and agents accounted for almost two-thirds of total publishing revenues in 1996/97 but they were less profitable than their foreign-controlled competitors. 562 book publishers and agents in Canada reported revenues of just under $2.0 billion in 1996/97, and profits of $75 million. Revenues for Canadian-controlled publishers and agents was just under $1.3 billion, while those of foreign-controlled firms was $690 million. However, profits represented 3.0% of revenues for Canadian firms, compared with 5.4% for foreign firms. The publishing industry in Ontario led all regions of the country with total revenues of $1.4 billion, or 71% of the total.
RISK
While the risk of doing business in Asia has increased dramatically, the U.S. market is a higher-risk market for the majority of smaller Canadian exporters. For all export business in which Canada's Export Development Corp. was involved in last year, it paid out less than 1,200 claims. Of that number, just over 1,000, or 83 per cent, were claims based on exports to the U.S. They accounted for 73 per cent in dollars of the total claims paid out.
CASH
If you are just out to make some cash, these are the top dozen part-time jobs according to the summer issue of P.O.V. magazine: bartender; mobile disc jockey; private eye; graphic designer; database designer; career counsellor; personal trainer copywriter, waiter; Web-site programmer; debt collector and relocation consultant.
TRADE
The U.S. enjoyed a $6.83 billion trade surplus with Latin America for the first half of the year, compared to $3.14 billion surplus in the same period in 1997. This helped offset a worsening of the total U.S. trade due to economic problems throughout Asia. Mexico nearly passed Japan as the second-largest U.S. trading partner, falling short by about $300 million, or just over two per cent. Two-way trade with Mexico totalled $14.4 billion in June and $85 billion for the first half of 1998.
TRUTH
It was only when a hypnotist put a focus group of men into a trance that a New Jersey clothing retailer discovered how they really felt about their clothing. The men reported they often hated the way their clothing fit, but didn't know how to complain. Also, they felt ganged up on by their wives and sales clerks.
EXPORTS
Canadian exports to Japan in the first half of 1998 were 26.8% lower than in the same period last year. The decline affected all commodity groups - with softwood lumber and coal being the hardest hit. Although exports to the U.S. continued to fall, they remained 8.6% above last year's level. Much of the decrease resulted from plant closures and transportation problems in the automotive sector. By contrast, Canadian exports to Europe showed strong growth, chiefly due to higher exports of gold and communications equipment. Exports of industrial goods rose substantially in June, setting a new record high.
APPLIED SCIENCE
A Cambridge, Mass. company has introduced a lamp switch that recognizes the commands "lights on," "lights off" and "lights dim." The target market for Lamp Commander is old and disabled people.
Employees of a research laboratory in Britain have a coffee maker that can read their ID badges as they approach and, if they have clicked a button on the badge, prepare a coffee for them the way they like it.
COFFEE
Consumption of espresso-based coffees at Second Cup, which now has 360 outlets in Canada, rose from 3 per cent of sales in 1991 to 27 per cent today. The growth in gourmet coffee outlets is hot: from 984 in Canada in 1993 to 2,248 last year. But regular coffee is still No 1 by an immense margin. Last year, regular coffee was ordered with 22 per cent of restaurant meals while specialty coffees figured in only 1.3 per cent of meals and decaffeinated coffee showed up in 1.6 per cent.
GROWTH
The Internet is growing faster than all other technologies that have preceded it. Radio existed for 38 years before it had 50 million listeners, and TV took 13 years to reach that mark. The Internet exceeded 50 million users in just four years. In 1994, a mere three million people worldwide were connected to the Internet. By the end of last year, more than 100 million were using it. Some experts predict that Net commerce may exceed $300 billion (U.S.) by 2002 (from $8 billion in 1997)--a sum greater than the revenues of Canada's top 25 corporations.
GARAGE SALES
According to The Garage Sale Handbook, some items are perennially bestsellers at garage sales. They include: broken appliances; functional kitchen appliances; old radios and cameras; old diaries and pictures; old books, craft items such as knitting needles; dishes, new and antique; children's toys; buttons, plant pots; picture frames; old records and well-priced furniture.
SCARY!
It is reported that in April, when Massachusetts tested the reading and writing ability of its new teachers, 59 per cent flunked the exam. The state board of education has now lowered the passing grade to 66 per cent from 77 per cent, meaning that only 44 per cent failed.
ORIGIN
Trade officials in Geneva from 132 nations have set November 1999 as the new deadline for reaching an accord to harmonize global rules of origin. The accord will affect thousands of products traded globally, from chemicals to textiles. Initially, July 1998 had been set as the deadline for the accord but it was delayed because only 1,300 items had been agreed out of 5,000.
ETHICS
Be ethical if you want to foster loyalty among your employees. A 1997 survey of 1,694 employees, 86 per cent of those who had a favourable view of their companies' ethics were "strongly committed" to the organization. Only 14 per cent of people with an unfavourable opinion expressed such loyalty. In addition, 42 per cent said a company's ethical record would influence their choice of employer.
FRAUD
Companies around the world are struggling to recover hundreds of millions of dollars lost to employee fraud. Three-quarters of the 1,200 firms who took part in an Ernst & Young survey said they had been a victim of fraud between 1993 and 1997, with losses amounting to more than $628 million (U.S.) in the last year alone. Of that, only 13 per cent, or $85 million, has been recovered. Part of the reason is that 80 per cent of respondents have no fidelity insurance which protects against internal fraud losses. The participating companies were from 32 countries.
LOW-TECH
The British edition of GQ magazine reports that Mynah birds can change the TV channel by mimicking the ultrasonic signal from a remote control. They are so smart they can be trained to make touch-tone calls or to mimic the alarm and scare off burglars.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
A study by the Toronto-based National Quality Institute claims that small and medium-sized businesses are spending most of their quality resources in fixing problems instead of preventing them. Companies could increase their productivity and competitiveness by focusing on cost-effective activities and practices that prevent poor quality from occurring. Only about 25 per cent of quality budgets go into prevention.
ALCOHOL
Canadian wines captured a greater share of the domestic wine market in 1996/97, whereas domestic beers and spirits lost ground to imported products. Total wine sales increased 4.8% to 253 million litres, the largest annual increase in 15 years. Canadian wines increased their domestic market share to 46.5%, the first gain in five years. The biggest factor was a 27.8% increase in sales of domestic red wine, which have grown at an annual average rate of 13.9% over the last four years. Overall beer sales declined 1.5% to about 2 billion litres while sales of spirits increased 1.4% to 130 million litres. In total, 2.4 billion litres of alcoholic beverages were sold in Canada in 1996/97. Imported products accounted for 11.2% of this total, compared with 9.9% the year before.
ABORIGINAL BUSINESSES
Aboriginal business owners in Canada believe they must improve management skills and improve productivity to make their businesses successful, according to new research. A survey of 723 Aboriginal business owners showed that 83% identified improving management skills and 73% identified improving productivity as priorities for achieving business success. Sixty-seven percent cited financing as a priority, followed closely by innovation, at 64%. Thirty-one percent of successful business owners have taken advanced business training, compared with 24% of Aboriginal businesses overall. Only one-third of Aboriginal businesses had a computer. Forty-six percent of Aboriginal businesses had at least one full-time employee in addition to the owner. Only 1.1% of businesses employed 20 or more full-time employees.
CHINA
The Chinese Ministry of Foreign Trade and Economic Cooperation is relying on the World Wide Web to attract interest and generate sales. A China Market site may be found at www.chinamarket.com.cn. Potential buyers type in keywords for products or browse though categories such as foodstuffs, textiles, chemicals or industrial products. The opening of this site follows the opening of the ministry's own site at www.moftec.gov.cn which has attracted two million visits since March, the majority from Canada, the U.S. and Japan, and boasts the biggest online database about Chinese export products.
RECOVERY
A June survey of 65 multinationals working in Asia conducted by Renaissance Technomic, showed that most thought a devaluation of China's currency was unlikely. Stability in East Asia would return only after 2000; recovery would come first to Thailand and Singapore, and last to Indonesia.
GENETICS
France has announced it will approve two genetically modified corn varieties, alleviating tensions--for the time being at least--between the U.S. and France over access to the EU market for U.S. corn. France also announced a two-year moratorium during which no non-corn genetically modified products will be approved. France and the U.S. have been embroiled in a trade dispute over market access for genetically modified organisms (GMOs). Opposition to GMOs had essentially blocked all corn imports from the U.S. this year. U.S. corn exports to the EU are worth about US$300 million annually.
REACHING OUT
A recent survey found that about half of all computer users are more likely to send an e-mail to someone who lives out of town than they are to make an old-fashioned phone call. And a third of the respondents were more likely to use e-mail than to place a local phone call.
DATES
Besides the Year 2000, financial institutions have been alerted to another potentially troublesome date for some computers: April 9, 1999. This is the 99th day of the year and translates into an internal message of "9999" in some programs. However, 9999 means "end of file" in many programming languages and may signal a computer to close its files on that day.
PUBLISHING
Canadian-controlled book publishers and agents accounted for almost two-thirds of total publishing revenues in 1996/97 but they were less profitable than their foreign-controlled competitors. 562 book publishers and agents in Canada reported revenues of just under $2.0 billion in 1996/97, and profits of $75 million. Revenues for Canadian-controlled publishers and agents was just under $1.3 billion, while those of foreign-controlled firms was $690 million. However, profits represented 3.0% of revenues for Canadian firms, compared with 5.4% for foreign firms. The publishing industry in Ontario led all regions of the country with total revenues of $1.4 billion, or 71% of the total.
RISK
While the risk of doing business in Asia has increased dramatically, the U.S. market is a higher-risk market for the majority of smaller Canadian exporters. For all export business in which Canada's Export Development Corp. was involved in last year, it paid out less than 1,200 claims. Of that number, just over 1,000, or 83 per cent, were claims based on exports to the U.S. They accounted for 73 per cent in dollars of the total claims paid out.
CASH
If you are just out to make some cash, these are the top dozen part-time jobs according to the summer issue of P.O.V. magazine: bartender; mobile disc jockey; private eye; graphic designer; database designer; career counsellor; personal trainer copywriter, waiter; Web-site programmer; debt collector and relocation consultant.
TRADE
The U.S. enjoyed a $6.83 billion trade surplus with Latin America for the first half of the year, compared to $3.14 billion surplus in the same period in 1997. This helped offset a worsening of the total U.S. trade due to economic problems throughout Asia. Mexico nearly passed Japan as the second-largest U.S. trading partner, falling short by about $300 million, or just over two per cent. Two-way trade with Mexico totalled $14.4 billion in June and $85 billion for the first half of 1998.
TRUTH
It was only when a hypnotist put a focus group of men into a trance that a New Jersey clothing retailer discovered how they really felt about their clothing. The men reported they often hated the way their clothing fit, but didn't know how to complain. Also, they felt ganged up on by their wives and sales clerks.
EXPORTS
Canadian exports to Japan in the first half of 1998 were 26.8% lower than in the same period last year. The decline affected all commodity groups - with softwood lumber and coal being the hardest hit. Although exports to the U.S. continued to fall, they remained 8.6% above last year's level. Much of the decrease resulted from plant closures and transportation problems in the automotive sector. By contrast, Canadian exports to Europe showed strong growth, chiefly due to higher exports of gold and communications equipment. Exports of industrial goods rose substantially in June, setting a new record high.
APPLIED SCIENCE
A Cambridge, Mass. company has introduced a lamp switch that recognizes the commands "lights on," "lights off" and "lights dim." The target market for Lamp Commander is old and disabled people.
Employees of a research laboratory in Britain have a coffee maker that can read their ID badges as they approach and, if they have clicked a button on the badge, prepare a coffee for them the way they like it.
COFFEE
Consumption of espresso-based coffees at Second Cup, which now has 360 outlets in Canada, rose from 3 per cent of sales in 1991 to 27 per cent today. The growth in gourmet coffee outlets is hot: from 984 in Canada in 1993 to 2,248 last year. But regular coffee is still No 1 by an immense margin. Last year, regular coffee was ordered with 22 per cent of restaurant meals while specialty coffees figured in only 1.3 per cent of meals and decaffeinated coffee showed up in 1.6 per cent.
GROWTH
The Internet is growing faster than all other technologies that have preceded it. Radio existed for 38 years before it had 50 million listeners, and TV took 13 years to reach that mark. The Internet exceeded 50 million users in just four years. In 1994, a mere three million people worldwide were connected to the Internet. By the end of last year, more than 100 million were using it. Some experts predict that Net commerce may exceed $300 billion (U.S.) by 2002 (from $8 billion in 1997)--a sum greater than the revenues of Canada's top 25 corporations.
GARAGE SALES
According to The Garage Sale Handbook, some items are perennially bestsellers at garage sales. They include: broken appliances; functional kitchen appliances; old radios and cameras; old diaries and pictures; old books, craft items such as knitting needles; dishes, new and antique; children's toys; buttons, plant pots; picture frames; old records and well-priced furniture.
SCARY!
It is reported that in April, when Massachusetts tested the reading and writing ability of its new teachers, 59 per cent flunked the exam. The state board of education has now lowered the passing grade to 66 per cent from 77 per cent, meaning that only 44 per cent failed.
ORIGIN
Trade officials in Geneva from 132 nations have set November 1999 as the new deadline for reaching an accord to harmonize global rules of origin. The accord will affect thousands of products traded globally, from chemicals to textiles. Initially, July 1998 had been set as the deadline for the accord but it was delayed because only 1,300 items had been agreed out of 5,000.
ETHICS
Be ethical if you want to foster loyalty among your employees. A 1997 survey of 1,694 employees, 86 per cent of those who had a favourable view of their companies' ethics were "strongly committed" to the organization. Only 14 per cent of people with an unfavourable opinion expressed such loyalty. In addition, 42 per cent said a company's ethical record would influence their choice of employer.
FRAUD
Companies around the world are struggling to recover hundreds of millions of dollars lost to employee fraud. Three-quarters of the 1,200 firms who took part in an Ernst & Young survey said they had been a victim of fraud between 1993 and 1997, with losses amounting to more than $628 million (U.S.) in the last year alone. Of that, only 13 per cent, or $85 million, has been recovered. Part of the reason is that 80 per cent of respondents have no fidelity insurance which protects against internal fraud losses. The participating companies were from 32 countries.
LOW-TECH
The British edition of GQ magazine reports that Mynah birds can change the TV channel by mimicking the ultrasonic signal from a remote control. They are so smart they can be trained to make touch-tone calls or to mimic the alarm and scare off burglars.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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