June 2001 Edition
GREENHOUSES
The Canadian greenhouse industry showed continued growth as 255 more acres were added to production in 2000. Total greenhouse area has now reached 3,886 acres. Most of greenhouse production is under plastic rather than glass due to the relative lower cost of production. Area under plastic was 2,653 acres, and area under glass was 1,232 acres. Sales from greenhouse products, (flowers, plants and vegetables) were $1.7 billion in 2000, up 18 per cent over 1999.
RESPONSE
A new U.S report says that while 53 percent of retail companies respond to e-mail customer inquiries within six hours, most businesses in other industries are failing to meet consumer expectations. The research reveals that although more than half of consumers expect to resolve their customer service inquiry within six hours, only 38 percent of companies are meeting this expectation and 33 percent are taking three days or longer to do so or are not responding at all. According to the survey, 19 percent of companies did not respond to inquiries, but the most recent survey finds that this number has increased to 24 percent.
SPACE
Commercial hogs, kept eight or more to a pen, grow at an average rate of 1.6 pounds a week. However, if only two or three pigs are kept in a pen, there's less crowding and aggression from dominant hogs and the pigs grow at a rate of 2.3 pounds a day.
HEALTH
Compared with Canadian men, women take better care of themselves, and live longer. However, a higher percentage of women have chronic illnesses, and women use health care services more often, according to a special report. Some findings are paradoxical. For example, women experience more illness, more years of disability and more stress than men do. But they also live longer. Even after being diagnosed with a fatal disease, women survive longer than men.
DESERT
Deserts already smother 27 per cent of China's landmass and are expanding by more than 2,460 square kilometres every year. The danger of desertification is greatest in the northern part of the country and has prompted concerns that China's capital must retreat from Beijing to a safer location.
MEAT
American consumer misconceptions about Bovine Spongiform Encephalopathy (BSE), or mad cow disease, and foot-and-mouth disease (FMD) are beginning to impact purchase of beef and other animal products, according to a survey by Porter Novelli. 14 per cent of those surveyed said they already changed their food purchase or eating habits based on reports they had recently seen or heard regarding BSE and FMD. The survey underscores the need for more public education to help consumers understand distinctions between the two conditions.
ADVENTURE
The Canadian adventure travel industry boomed during the 1990s, as adventure-seekers signed up to do everything from whale-watching to hot-air ballooning, rafting and sea kayaking. Between 1993, when the Survey of Adventure Travel Operators was last conducted by Statistics Canada, and 1999, the number of adventure travel operations doubled from 669 to 1,336, and their sales more than doubled. Revenues in 1999 reached an estimated $362 million, up 119 per cent over 1993.
DUMPING
The worldwide steel and metals industry was the subject of the biggest number of anti-dumping investigations initiated by members of the World Trade Organization last year. There were 95 cases involving steel and metals--more than a third of the year's total. Of these, 32 were started by the U.S. in an attempt to protect its ailing steel industry from foreign competition. Steel accounted for 80 per cent of U.S. anti-dumping investigations in 2000. The paper and wood industries showed the biggest drop in dumping investigations, followed by textiles and related products.
SHIPPING
The World Shipping Council has issued a paper refuting the conclusions of a controversial World Bank report which claims that shipping conferences result in excess costs to U.S. shippers amounting to US$2 billion. The authors claim that repealing anti-trust immunity could save shippers some 25 per cent on freight rates.
PROPS
The economic slowdown is affecting the many companies that provide costumes and props to TV networks and movie studios. The companies, many of which are located in the San Fernando Valley, rent items such as spacesuits, vintage ballgowns, art deco lamps and disco balls. Because of rising rents, energy and runaway productions, owners are finding it difficult to stay in business. In the last eight months the merchandise of six Hollywood rental services has been liquidated.
NOSTALGIA
Dunlop of Britain has created a customized line of grubby tennis shoes, Dirty Flash, that cost around $100--about twice the cost of a regular, clean pair. The shoes, stained with tea, coffee and oil, have been designed for people in their late twenties and thirties who are nostalgic about school physical education.
CHINA
Private home ownership is finally taking off in China, with far-reaching implications for the economy and society. For decades, urban Chinese depended on their employers to provide cramped, no-frills, state-owned housing and couples often had to wait years for an apartment. Now, however, the market is seeing the effect of incentives introduced over the past two years such as easy mortgage terms, generous tax credits and employer subsidies which pushed private home purchases up 52 per cent in 2000 to US$34.6 billion.
TOURISM
A recent report by the World Travel & Tourism Council concludes that the Canadian tourism industry is the eighth-biggest tourism sector in the world valued at about US$36- billion. This is less than one-tenth the size of the U.S. tourism sector but much bigger than ninth-ranked China (US$32.8 billion) and 10th ranked Brazil (US$21.2 billion). The WTTC studied 160 countries as part of its 2001 forecast. A total of US$2.1-trillion will be spent on travel and tourism this year, including US$454 billion on business travel.
WEIGHT
"Smart Bath" is a Japanese electronic device that attaches to the wall of your bathroom and features a nozzle that dips into the bath water. As you lower yourself into the water, it calculates the water displacement and compares it with data already entered about you. Your body-fat level then appears on a screen. The device will sell for US$3,800.
WEATHER
According to NASA, The United States has the world's most violent weather. In a typical year, the U.S. can expect some 10,000 violent thunderstorms, 5,000 floods, 1,000 tornadoes, and several hurricanes.
HOOKAHS
These waterpipes for those who like water cooled smoking are now finding their way into the US at the rate of around 5,000 a month from Egypt. Besides the standard smoking gear--hollow glass bases, stainless steel "hearts", hoses and clay pipes, the importer also sells over a tonne of sticky hookah tobacco each month in flavours ranging from strawberry to mango. One Egyptian wholesaler estimates the country is exporting 200,000 hookahs a year.
LEATHER
Leather furniture is one of the fastest growing categories in the industry, accounting for about 25 per cent of the U.S. upholstery business: 20 years ago it was only about 4 per cent of the market. However, the industry is watching nervously as foot and mouth disease is severely affecting the global supply and price of animal hides.
LUXURY
In high-end motor-homes, which can cost up to US$1-million, it is standard to find granite floor inlaid with mother-of-pearl. The gold standard for luxury in these vehicles is $400 gold-plated toilet paper holders and $700 towel rings.
CARS
Luxembourg wins the race for the numbers of cars owned per head of population. Its ownership rate is 576 cars per 1,000 people. European countries dominate the rankings with Italy second and Iceland third, followed by Germany. The U.S. comes seventh with 486 cars per 1,000 people. That ranking is expected to fall in the next two years as U.S. car sales are forecast to drop by as much as 20 per cent. Japan is seventeenth with only 394 cars per 1,000 population. In Canada, there are 460 cars per 1,000 of population.
TAXES
While laws in 45 U.S. states say Internet taxes are owed, they rarely are collected. Congress must soon decide whether to keep the Internet a largely tax-free shopping zone or pave the way for states to collect taxes on online purchases. The General Accounting Office estimates the uncollected sales taxes on Internet purchases could cost the States $12.5 billion in 2003.
MINING
An industry report claims that B.C.'s mining industry posted losses of $8 million last year after losses of $133 million in 1999. The industry claims that if a new B.C. government acts to encourage exploration, it could lead to $4.2 billion in direct investment in B.C.. Compared to the rest of Canada, B.C.has lost about three-quarters of a billion dollars in mineral exploration spending since 1992.
ORGANIC
Scientists planted three new apple orchards in the Yakima Valley region of Washington. One was farmed conventionally, using the normal range of chemical pesticides and fertilizers; one was grown organically using naturally occurring sprays; and one used an integrated method combining organic and conventional methods. After five years, the orchards showed no significant difference in fruit yield or tree growth. However, there was evidence that organic farming is kinder to the environment than conventional farming. It also produced sweeter fruit that is more profitable for the farmers.
MAQUILADORAS
The President of Mexico has defended the use of maquiladoras saying that the average worker in these export-processing factories earns almost four times Mexico's minimum wage. Maquiladoras are bonded factories along Mexico's U.S. border that can export goods duty-free. They have been a target of anti-free-trade groups who say the U.S. and Canadian firms operating the factories exploit workers and flout environmental and labour laws.
PARLIAMENT
Sweden retains its position as the country with the biggest proportion of women in parliament, with 43 per cent. In Denmark, the Netherlands and Germany, more than 30 per cent of parliamentarians are women. The figure for Canada is 20 per cent and 14 per cent in the U.S. and 11 per cent in France and Germany. In Japan the figure is 7 per cent.
COWS
The Austrian province of Vorarlberg is banning the practice of blowing up dead cows with explosives on its picture-postcard meadows. The province lives off tourism and authorities are worried tourists may be put off by exploding cadavers. The remains of about 20 head of cattle die annually and have to be destroyed. They are either struck by lightening or fall down precipices.
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
The Canadian greenhouse industry showed continued growth as 255 more acres were added to production in 2000. Total greenhouse area has now reached 3,886 acres. Most of greenhouse production is under plastic rather than glass due to the relative lower cost of production. Area under plastic was 2,653 acres, and area under glass was 1,232 acres. Sales from greenhouse products, (flowers, plants and vegetables) were $1.7 billion in 2000, up 18 per cent over 1999.
RESPONSE
A new U.S report says that while 53 percent of retail companies respond to e-mail customer inquiries within six hours, most businesses in other industries are failing to meet consumer expectations. The research reveals that although more than half of consumers expect to resolve their customer service inquiry within six hours, only 38 percent of companies are meeting this expectation and 33 percent are taking three days or longer to do so or are not responding at all. According to the survey, 19 percent of companies did not respond to inquiries, but the most recent survey finds that this number has increased to 24 percent.
SPACE
Commercial hogs, kept eight or more to a pen, grow at an average rate of 1.6 pounds a week. However, if only two or three pigs are kept in a pen, there's less crowding and aggression from dominant hogs and the pigs grow at a rate of 2.3 pounds a day.
HEALTH
Compared with Canadian men, women take better care of themselves, and live longer. However, a higher percentage of women have chronic illnesses, and women use health care services more often, according to a special report. Some findings are paradoxical. For example, women experience more illness, more years of disability and more stress than men do. But they also live longer. Even after being diagnosed with a fatal disease, women survive longer than men.
DESERT
Deserts already smother 27 per cent of China's landmass and are expanding by more than 2,460 square kilometres every year. The danger of desertification is greatest in the northern part of the country and has prompted concerns that China's capital must retreat from Beijing to a safer location.
MEAT
American consumer misconceptions about Bovine Spongiform Encephalopathy (BSE), or mad cow disease, and foot-and-mouth disease (FMD) are beginning to impact purchase of beef and other animal products, according to a survey by Porter Novelli. 14 per cent of those surveyed said they already changed their food purchase or eating habits based on reports they had recently seen or heard regarding BSE and FMD. The survey underscores the need for more public education to help consumers understand distinctions between the two conditions.
ADVENTURE
The Canadian adventure travel industry boomed during the 1990s, as adventure-seekers signed up to do everything from whale-watching to hot-air ballooning, rafting and sea kayaking. Between 1993, when the Survey of Adventure Travel Operators was last conducted by Statistics Canada, and 1999, the number of adventure travel operations doubled from 669 to 1,336, and their sales more than doubled. Revenues in 1999 reached an estimated $362 million, up 119 per cent over 1993.
DUMPING
The worldwide steel and metals industry was the subject of the biggest number of anti-dumping investigations initiated by members of the World Trade Organization last year. There were 95 cases involving steel and metals--more than a third of the year's total. Of these, 32 were started by the U.S. in an attempt to protect its ailing steel industry from foreign competition. Steel accounted for 80 per cent of U.S. anti-dumping investigations in 2000. The paper and wood industries showed the biggest drop in dumping investigations, followed by textiles and related products.
SHIPPING
The World Shipping Council has issued a paper refuting the conclusions of a controversial World Bank report which claims that shipping conferences result in excess costs to U.S. shippers amounting to US$2 billion. The authors claim that repealing anti-trust immunity could save shippers some 25 per cent on freight rates.
PROPS
The economic slowdown is affecting the many companies that provide costumes and props to TV networks and movie studios. The companies, many of which are located in the San Fernando Valley, rent items such as spacesuits, vintage ballgowns, art deco lamps and disco balls. Because of rising rents, energy and runaway productions, owners are finding it difficult to stay in business. In the last eight months the merchandise of six Hollywood rental services has been liquidated.
NOSTALGIA
Dunlop of Britain has created a customized line of grubby tennis shoes, Dirty Flash, that cost around $100--about twice the cost of a regular, clean pair. The shoes, stained with tea, coffee and oil, have been designed for people in their late twenties and thirties who are nostalgic about school physical education.
CHINA
Private home ownership is finally taking off in China, with far-reaching implications for the economy and society. For decades, urban Chinese depended on their employers to provide cramped, no-frills, state-owned housing and couples often had to wait years for an apartment. Now, however, the market is seeing the effect of incentives introduced over the past two years such as easy mortgage terms, generous tax credits and employer subsidies which pushed private home purchases up 52 per cent in 2000 to US$34.6 billion.
TOURISM
A recent report by the World Travel & Tourism Council concludes that the Canadian tourism industry is the eighth-biggest tourism sector in the world valued at about US$36- billion. This is less than one-tenth the size of the U.S. tourism sector but much bigger than ninth-ranked China (US$32.8 billion) and 10th ranked Brazil (US$21.2 billion). The WTTC studied 160 countries as part of its 2001 forecast. A total of US$2.1-trillion will be spent on travel and tourism this year, including US$454 billion on business travel.
WEIGHT
"Smart Bath" is a Japanese electronic device that attaches to the wall of your bathroom and features a nozzle that dips into the bath water. As you lower yourself into the water, it calculates the water displacement and compares it with data already entered about you. Your body-fat level then appears on a screen. The device will sell for US$3,800.
WEATHER
According to NASA, The United States has the world's most violent weather. In a typical year, the U.S. can expect some 10,000 violent thunderstorms, 5,000 floods, 1,000 tornadoes, and several hurricanes.
HOOKAHS
These waterpipes for those who like water cooled smoking are now finding their way into the US at the rate of around 5,000 a month from Egypt. Besides the standard smoking gear--hollow glass bases, stainless steel "hearts", hoses and clay pipes, the importer also sells over a tonne of sticky hookah tobacco each month in flavours ranging from strawberry to mango. One Egyptian wholesaler estimates the country is exporting 200,000 hookahs a year.
LEATHER
Leather furniture is one of the fastest growing categories in the industry, accounting for about 25 per cent of the U.S. upholstery business: 20 years ago it was only about 4 per cent of the market. However, the industry is watching nervously as foot and mouth disease is severely affecting the global supply and price of animal hides.
LUXURY
In high-end motor-homes, which can cost up to US$1-million, it is standard to find granite floor inlaid with mother-of-pearl. The gold standard for luxury in these vehicles is $400 gold-plated toilet paper holders and $700 towel rings.
CARS
Luxembourg wins the race for the numbers of cars owned per head of population. Its ownership rate is 576 cars per 1,000 people. European countries dominate the rankings with Italy second and Iceland third, followed by Germany. The U.S. comes seventh with 486 cars per 1,000 people. That ranking is expected to fall in the next two years as U.S. car sales are forecast to drop by as much as 20 per cent. Japan is seventeenth with only 394 cars per 1,000 population. In Canada, there are 460 cars per 1,000 of population.
TAXES
While laws in 45 U.S. states say Internet taxes are owed, they rarely are collected. Congress must soon decide whether to keep the Internet a largely tax-free shopping zone or pave the way for states to collect taxes on online purchases. The General Accounting Office estimates the uncollected sales taxes on Internet purchases could cost the States $12.5 billion in 2003.
MINING
An industry report claims that B.C.'s mining industry posted losses of $8 million last year after losses of $133 million in 1999. The industry claims that if a new B.C. government acts to encourage exploration, it could lead to $4.2 billion in direct investment in B.C.. Compared to the rest of Canada, B.C.has lost about three-quarters of a billion dollars in mineral exploration spending since 1992.
ORGANIC
Scientists planted three new apple orchards in the Yakima Valley region of Washington. One was farmed conventionally, using the normal range of chemical pesticides and fertilizers; one was grown organically using naturally occurring sprays; and one used an integrated method combining organic and conventional methods. After five years, the orchards showed no significant difference in fruit yield or tree growth. However, there was evidence that organic farming is kinder to the environment than conventional farming. It also produced sweeter fruit that is more profitable for the farmers.
MAQUILADORAS
The President of Mexico has defended the use of maquiladoras saying that the average worker in these export-processing factories earns almost four times Mexico's minimum wage. Maquiladoras are bonded factories along Mexico's U.S. border that can export goods duty-free. They have been a target of anti-free-trade groups who say the U.S. and Canadian firms operating the factories exploit workers and flout environmental and labour laws.
PARLIAMENT
Sweden retains its position as the country with the biggest proportion of women in parliament, with 43 per cent. In Denmark, the Netherlands and Germany, more than 30 per cent of parliamentarians are women. The figure for Canada is 20 per cent and 14 per cent in the U.S. and 11 per cent in France and Germany. In Japan the figure is 7 per cent.
COWS
The Austrian province of Vorarlberg is banning the practice of blowing up dead cows with explosives on its picture-postcard meadows. The province lives off tourism and authorities are worried tourists may be put off by exploding cadavers. The remains of about 20 head of cattle die annually and have to be destroyed. They are either struck by lightening or fall down precipices.
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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