June 1999 Edition
BIG-BOX STORES
Over the last decade, big-box developers such as Home Depot, Chapters and Business Depot have opened up all over the Greater Toronto area. Shoppers can now choose from about 320 big-box retailers and amble through aisles among more than 13 million square feet of floor space. Only 96 stores existed before 1990 and most new ones arrived since 1994. 27 stores have closed since 1990. The number of traditional stores on retail strips actually grew by 11 per cent between 1994 and 1997, the period of the biggest big-box development.
REMANUFACTURING
Mexico is fast becoming a new base of operations for North American companies that want to rebuild or refurbish parts and products. Everything from boom boxes to disk drives are being sent to factories just over the border to be rebuilt or remodelled by Mexico's low-cost labour force. This phenomena is relatively new and so far Mexico has less than 5 per cent of a North American "remanufacturing" industry worth about $50 billion (U.S) a year. But there are 300 companies engaged in this type of business in Mexico, many of them newly established.
WORLD GROWTH
World export growth slowed sharply in 1998 according to the World Trade Organization. The volume of world merchandise exports rose by only 3.5 per cent, down from growth of over 10 per cent in 1997. The WTO expects growth of only 3.5 per cent again this year. In dollar terms, world exports fell last year by 2 per cent, their biggest decline since 1982. America's exports fell for the first time since 1985, by 1 per cent to $683 billion. The value of Japanese exports fell by 8 per cent and the value of the European Union exports was up by 3 per cent.
RESEARCH
Ten of the world's leading drug companies are jointly creating a new research consortium to study how variations in human DNA affect disease development. This will help drugmakers to tailor their products to individual patients.
WEATHER
The Kestral 2000 is one of several electronic devices that are evolving into hand-held, personal weather stations for the general public. It measures or calculates the temperature, the wind, relative humidity, dew point and heat index. A competing device, the Wind Watch, has a barometer and altimeter.
MOVIES
As of December 30, 1997, Disney held eight of the top ten spots on the All Time Movie Video Sales Chart. The Lion King(1), Aladdin(2), Cinderella(3), Beauty and The Beast(4), Snow White and the Seven Dwarfs(5), Toy Story(7), 101 Dalmatians(8), Pocahontas(10). The two non-Disney films to make the list are - Forrest Gump(6) and Jurassic Park (9).
BRITAIN
Supermarkets in the UK are being investigated amid allegations that some chains are ripping off consumers. The Monopolies Commission is being asked to investigate whether the big supermarkets have a monopoly that operates against the public interest. British shoppers may be paying up to 40 per cent more for everyday products in comparison with their European and American counterparts. A selection of basic items such as butter, milk and cheese costs 36 per cent more in Britain than in France and 45 per cent more than in the U.S.
TASTING
Researchers at the University of Texas have developed an electronic tongue. By pouring liquid over the chip, its 100 little holes, each containing a tiny sponge-like synthetic taste bud, change color depending on a liquid's chemical composition. Then a digital camera displays the results on screen. The food and beverage industry is closely monitoring the development to automate what thousands of human tasters do daily. The researchers say telling the difference between Coke and Pepsi in a taste test would be easy for the e-tongue.
LOANS
A $21 million federal investment aimed at aboriginal entrepreneurs will create an estimated 900 businesses and more than 2,000 jobs over the next five years. The fund is designed to make access to capital and debt financing easier, create a service network and improve existing support programs. Over the past 14 years, Canada's Aboriginal Corporations have made about 12,000 loans totalling $428 million. The average business loan is about $40,000.
ADVERTISING
Network and network promotional spots on TV are increasing. In November 1998, an average hour of U.S. prime time contained 15 minutes and 44 seconds of advertising, up 25 seconds from a year earlier, and the most since advertising groups began keeping count in 1989.
SHOES
In the future, shoes may have a microchip in the heel. A smart shoe prototype has been developed by MIT that automatically senses the wearer's cushioning needs by adjusting fluid in five bladders in the sole. A microchip in the heel monitors pressure on the bladders, adjusting pressure on the fly -- more cushioning for running, less for walking.
WINE
U.S. wine exports, 90 percent from California, jumped 26 percent over the previous year to $537 million in 1998, a 448 percent increase from export sales of $98 million a decade ago. Over 125 California wineries export to 165 markets worldwide, with the U.S. ranking as the fourth leading wine producer in the world and the ninth by volume as a wine exporter. However, there is still room to grow as the U.S. only holds a three percent share of the world export market by gallonage. The U.K. was the largest U.S. wine export market with $143 million in sales last year, a 32 percent jump over 1997. Exports to Japan surged 134 percent to $93 million, making it the second largest wine export market for U.S. wine. Canada was third with $91 million in sales, a 15 percent increase from 1997
VITAMINS
More Canadians took a vitamin or mineral supplement in 1997 than in 1986 according to surveys by the Non-Prescription Drug Manufacturers Association though there was a puzzling drop in the percentage taking vitamins in the early nineties. The 1986 survey asked if people had taken vitamins or minerals in the past six months and 39 per cent said yes. In 1991, when the same question was put, only 28 per cent answered in the affirmative. In the 1997 survey, overall, 42 per cent said yes, with 50 per cent of women and 31 per cent of men taking supplements.
POLAND
Poland's economy and society have been transformed by reforms implemented after the communist regime, which have created a division between the "haves" and the "have nots." The former praise the changes and the latter have turned against the government. Public school teachers earn on a monthly basis what equates to $155, which is less than the average monthly pay of $360. By comparison, private-sector workers earn two to three times the monthly average. But Poland's economy has managed to become the strongest among former Soviet satellites. Investors last year poured $10 billion into the former-communist economy that also grew by 4 percent.
AUSTRALIA
Australia is both the sixth largest country in the world and the world's smallest continent. The country has the eleventh largest economy in the OECD and the third largest in the Asian region, after Japan and China. It is a member of APEC and has one of the most highly developed economies in the Southern Hemisphere. Next year it will be staging the Olympics in Sydney.
SMART CARDS
British banks are beginning to roll out 100 million smart cards and terminal upgrades, retiring the usual magnetic stripe cards. Even though each smart card will cost the banks about a dollar and a half more than a regular credit card, they expect the changeover to save money through improved fraud prevention, and make money with new services, such as loyalty programs
WORK
An Ohio State University study indicates that nearly 59% of U.S. home-based workers are male. The average is 44 years old, married, has some education beyond high school and has been involved in work at home for nearly a decade.
WASHBOARDS
Costing between $7 and $20, they are now used mainly by musicians and some poor people, particularly those in high-rise apartments. The Amish use them as do others who shun modern ways. The last U.S. manufacturer of washboards was producing 110,000 units as late as 1987. Last year, with sales sinking, the company was about to close down but has been bought out by a group which feels that washboards can be a growth industry once again. There has been a flurry of orders recently from people who fear their washing machines will not work because of Year 2000 problems.
GREYING
The first trickle of post-World War II baby boomers began to hit the half-century mark in the latter part of 1996. A larger wave is coming however. From 1996 to 2006, the number of Americans in their fifties will increase by 50 per cent, or twelve million people. That will be more than half the total U.S. population increase during that decade.
TRAFFIC
The Geneva-based Airport Council International has designated Atlanta's International Airport as the busiest in the world handling 73.5 million passengers last year. The next four busiest are: Chicago O'Hare (72.4 million), Los Angeles International (61.2 million), London Heathrow (60.7 million) and Dallas Fort Worth (60.5 million).
SHEET MUSIC
Both the photocopier and now the Internet are a huge threat to the sales of sheet music in Canada. However, people still seek whole songbooks and photocopying can be cumbersome and not always cost effective. The big music publishers are hunting down outlaw web sites. Sales of printed music continue to grow. Sales were approximately $17 million in 1998, compared to $14 million in 1997 and $12 million in 1996.
INVENTIONS
A smart bandage has been awarded a U.S. patent. Developed by a molecular biologist and an ophthalmologist, the device has a micro-controller that monitors the status of a wound or incision, stores the data and downloads it to a computer.
DEBT
Canada's net debt owed to foreigners edged down to $324 billion last year, the third drop in four years. Statscan reports that net foreign liability dropped to 36 per cent of gross domestic product from 44 per cent in 1994. There were external liabilities of $971 billion and external assets of $647 billion. Americans were Canada's largest net creditors at the end of 1998 with holdings of $218 billion. Japan was the next largest creditor followed closely by Britain.
MISSING?
Last year, a pilot making an aerial survey of a national park in Pembrokeshire, Wales, discovered a secret "eco-village." He spotted the solar panels of Brithdir Mawr, a self-sufficient community founded by an architectural historian. The village had survived for five years without any interference from the outside world. Park planners originally demanded that the place be demolished but have relented. The commune can remain provided it backdates its planning applications.
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
Over the last decade, big-box developers such as Home Depot, Chapters and Business Depot have opened up all over the Greater Toronto area. Shoppers can now choose from about 320 big-box retailers and amble through aisles among more than 13 million square feet of floor space. Only 96 stores existed before 1990 and most new ones arrived since 1994. 27 stores have closed since 1990. The number of traditional stores on retail strips actually grew by 11 per cent between 1994 and 1997, the period of the biggest big-box development.
REMANUFACTURING
Mexico is fast becoming a new base of operations for North American companies that want to rebuild or refurbish parts and products. Everything from boom boxes to disk drives are being sent to factories just over the border to be rebuilt or remodelled by Mexico's low-cost labour force. This phenomena is relatively new and so far Mexico has less than 5 per cent of a North American "remanufacturing" industry worth about $50 billion (U.S) a year. But there are 300 companies engaged in this type of business in Mexico, many of them newly established.
WORLD GROWTH
World export growth slowed sharply in 1998 according to the World Trade Organization. The volume of world merchandise exports rose by only 3.5 per cent, down from growth of over 10 per cent in 1997. The WTO expects growth of only 3.5 per cent again this year. In dollar terms, world exports fell last year by 2 per cent, their biggest decline since 1982. America's exports fell for the first time since 1985, by 1 per cent to $683 billion. The value of Japanese exports fell by 8 per cent and the value of the European Union exports was up by 3 per cent.
RESEARCH
Ten of the world's leading drug companies are jointly creating a new research consortium to study how variations in human DNA affect disease development. This will help drugmakers to tailor their products to individual patients.
WEATHER
The Kestral 2000 is one of several electronic devices that are evolving into hand-held, personal weather stations for the general public. It measures or calculates the temperature, the wind, relative humidity, dew point and heat index. A competing device, the Wind Watch, has a barometer and altimeter.
MOVIES
As of December 30, 1997, Disney held eight of the top ten spots on the All Time Movie Video Sales Chart. The Lion King(1), Aladdin(2), Cinderella(3), Beauty and The Beast(4), Snow White and the Seven Dwarfs(5), Toy Story(7), 101 Dalmatians(8), Pocahontas(10). The two non-Disney films to make the list are - Forrest Gump(6) and Jurassic Park (9).
BRITAIN
Supermarkets in the UK are being investigated amid allegations that some chains are ripping off consumers. The Monopolies Commission is being asked to investigate whether the big supermarkets have a monopoly that operates against the public interest. British shoppers may be paying up to 40 per cent more for everyday products in comparison with their European and American counterparts. A selection of basic items such as butter, milk and cheese costs 36 per cent more in Britain than in France and 45 per cent more than in the U.S.
TASTING
Researchers at the University of Texas have developed an electronic tongue. By pouring liquid over the chip, its 100 little holes, each containing a tiny sponge-like synthetic taste bud, change color depending on a liquid's chemical composition. Then a digital camera displays the results on screen. The food and beverage industry is closely monitoring the development to automate what thousands of human tasters do daily. The researchers say telling the difference between Coke and Pepsi in a taste test would be easy for the e-tongue.
LOANS
A $21 million federal investment aimed at aboriginal entrepreneurs will create an estimated 900 businesses and more than 2,000 jobs over the next five years. The fund is designed to make access to capital and debt financing easier, create a service network and improve existing support programs. Over the past 14 years, Canada's Aboriginal Corporations have made about 12,000 loans totalling $428 million. The average business loan is about $40,000.
ADVERTISING
Network and network promotional spots on TV are increasing. In November 1998, an average hour of U.S. prime time contained 15 minutes and 44 seconds of advertising, up 25 seconds from a year earlier, and the most since advertising groups began keeping count in 1989.
SHOES
In the future, shoes may have a microchip in the heel. A smart shoe prototype has been developed by MIT that automatically senses the wearer's cushioning needs by adjusting fluid in five bladders in the sole. A microchip in the heel monitors pressure on the bladders, adjusting pressure on the fly -- more cushioning for running, less for walking.
WINE
U.S. wine exports, 90 percent from California, jumped 26 percent over the previous year to $537 million in 1998, a 448 percent increase from export sales of $98 million a decade ago. Over 125 California wineries export to 165 markets worldwide, with the U.S. ranking as the fourth leading wine producer in the world and the ninth by volume as a wine exporter. However, there is still room to grow as the U.S. only holds a three percent share of the world export market by gallonage. The U.K. was the largest U.S. wine export market with $143 million in sales last year, a 32 percent jump over 1997. Exports to Japan surged 134 percent to $93 million, making it the second largest wine export market for U.S. wine. Canada was third with $91 million in sales, a 15 percent increase from 1997
VITAMINS
More Canadians took a vitamin or mineral supplement in 1997 than in 1986 according to surveys by the Non-Prescription Drug Manufacturers Association though there was a puzzling drop in the percentage taking vitamins in the early nineties. The 1986 survey asked if people had taken vitamins or minerals in the past six months and 39 per cent said yes. In 1991, when the same question was put, only 28 per cent answered in the affirmative. In the 1997 survey, overall, 42 per cent said yes, with 50 per cent of women and 31 per cent of men taking supplements.
POLAND
Poland's economy and society have been transformed by reforms implemented after the communist regime, which have created a division between the "haves" and the "have nots." The former praise the changes and the latter have turned against the government. Public school teachers earn on a monthly basis what equates to $155, which is less than the average monthly pay of $360. By comparison, private-sector workers earn two to three times the monthly average. But Poland's economy has managed to become the strongest among former Soviet satellites. Investors last year poured $10 billion into the former-communist economy that also grew by 4 percent.
AUSTRALIA
Australia is both the sixth largest country in the world and the world's smallest continent. The country has the eleventh largest economy in the OECD and the third largest in the Asian region, after Japan and China. It is a member of APEC and has one of the most highly developed economies in the Southern Hemisphere. Next year it will be staging the Olympics in Sydney.
SMART CARDS
British banks are beginning to roll out 100 million smart cards and terminal upgrades, retiring the usual magnetic stripe cards. Even though each smart card will cost the banks about a dollar and a half more than a regular credit card, they expect the changeover to save money through improved fraud prevention, and make money with new services, such as loyalty programs
WORK
An Ohio State University study indicates that nearly 59% of U.S. home-based workers are male. The average is 44 years old, married, has some education beyond high school and has been involved in work at home for nearly a decade.
WASHBOARDS
Costing between $7 and $20, they are now used mainly by musicians and some poor people, particularly those in high-rise apartments. The Amish use them as do others who shun modern ways. The last U.S. manufacturer of washboards was producing 110,000 units as late as 1987. Last year, with sales sinking, the company was about to close down but has been bought out by a group which feels that washboards can be a growth industry once again. There has been a flurry of orders recently from people who fear their washing machines will not work because of Year 2000 problems.
GREYING
The first trickle of post-World War II baby boomers began to hit the half-century mark in the latter part of 1996. A larger wave is coming however. From 1996 to 2006, the number of Americans in their fifties will increase by 50 per cent, or twelve million people. That will be more than half the total U.S. population increase during that decade.
TRAFFIC
The Geneva-based Airport Council International has designated Atlanta's International Airport as the busiest in the world handling 73.5 million passengers last year. The next four busiest are: Chicago O'Hare (72.4 million), Los Angeles International (61.2 million), London Heathrow (60.7 million) and Dallas Fort Worth (60.5 million).
SHEET MUSIC
Both the photocopier and now the Internet are a huge threat to the sales of sheet music in Canada. However, people still seek whole songbooks and photocopying can be cumbersome and not always cost effective. The big music publishers are hunting down outlaw web sites. Sales of printed music continue to grow. Sales were approximately $17 million in 1998, compared to $14 million in 1997 and $12 million in 1996.
INVENTIONS
A smart bandage has been awarded a U.S. patent. Developed by a molecular biologist and an ophthalmologist, the device has a micro-controller that monitors the status of a wound or incision, stores the data and downloads it to a computer.
DEBT
Canada's net debt owed to foreigners edged down to $324 billion last year, the third drop in four years. Statscan reports that net foreign liability dropped to 36 per cent of gross domestic product from 44 per cent in 1994. There were external liabilities of $971 billion and external assets of $647 billion. Americans were Canada's largest net creditors at the end of 1998 with holdings of $218 billion. Japan was the next largest creditor followed closely by Britain.
MISSING?
Last year, a pilot making an aerial survey of a national park in Pembrokeshire, Wales, discovered a secret "eco-village." He spotted the solar panels of Brithdir Mawr, a self-sufficient community founded by an architectural historian. The village had survived for five years without any interference from the outside world. Park planners originally demanded that the place be demolished but have relented. The commune can remain provided it backdates its planning applications.
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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