National
Federal Chaos: Congress nearly derailed the economy – not once but several times. Lawmakers allowed a Social Security tax cut to lapse after Jan. 1, which shrank Americans’ paychecks. Then they let deep federal spending cuts take effect in March because they couldn’t agree on a budget.
The dysfunction peaked in October: Unable to pass a 2014 budget, Congress shut down part of the government for 16 days. National parks were closed. Federal employees stayed home on furlough. The government even risked a default on its debt until, with just hours to spare, Congress reopened the government and by December forged a two-year budget deal.
Tech companies and NSA: Big Brother has logged on. The U.S. government gathered data on online messages through a program that’s intended to stop terrorism but that touches the communications of ordinary Americans. Internet companies already track users and then sell customized digital advertising. But they reacted indignantly after documents leaked by a former NSA contractor said the agency had backdoors at Google, Yahoo, Facebook, Apple and Microsoft. The companies said they provided data only as required by federal courts.
They tried to mend any public fallout by pressing the Obama administration to curb electronic snooping and to let the companies disclose more information about government requests for their users’ online activities.
Health care law: The medicine didn’t go down smoothly when the new health care law launched in November. It was almost impossible for uninsured individuals and small businesses to sign up on the glitch-ridden federal website. The Obama administration swung into emergency mode to fix the site. But businesses would need to enroll with paper applications until November 2014.
The insurance plans offered online also drew sour reviews. Premiums rose for some businesses. Others were unhappy with limited plans and doctor networks.
But some businesses were spared the mess. Before the launch, the government delayed until 2015 the mandate that companies with more than 50 employees provide health coverage or pay penalties.
Central banks go low: The Fed and other central banks supported growth by keeping rates ultra-low. Investors, home buyers and corporations benefited. But many who depend on income from savings accounts suffered. Federal Reserve Chairman Ben Bernanke kept the Fed’s key short-term rate near zero and abandoned previous guidance about when a rate increase might eventually occur.
The Fed finally decided in December to pare its bond buying program but will do so gradually. The Bank of Japan has held rates near zero and pledged to double that country’s money supply by buying bonds. And the European Central Bank cut its rate twice to 0.25 percent.
Source: Yahoo Finance
Local
– Marion County has among the highest number of commuters coming from another county in the nation, the U.S. Census Bureau reported. Among workers in Marion County, 205,287 live outside the county: 58,895 commute in from Hamilton County; 35,135 from Hendricks County; and 29,670 from Johnson County.
Meanwhile, 66,624 residents of Marion County leave the county for work: 26,160 go to Hamilton County; 12,923 to Hendricks County; and over 9,191 to Johnson County. Furthermore, 83 percent of workers in Marion County drive alone compared with 76 percent nationally; in 2011 2.1 percent of all workers in Marion County used public transportation; and in 2011 the average one-way commute to work for people living in Marion County was 22.6 minutes.
– In 2013, the Indianapolis Neighborhood Housing Partnership celebrated 25 years of helping residents fulfill the American dream. In the late 1980s, Indianapolis was similar to other older, industrial cities in that residents were having difficulties accessing quality, affordable housing.
Simultaneously, lots of families were living below the poverty line, even more homes were available and companies were looking to relocate. INHP was formed as a result and was set on institutionalizing a long-term plan and development and revitalization of neighborhoods.
INHP has a three-pronged approach: create a model nonprofit; have the authority to borrow money for affordable home mortgages; and homeownership and financial counseling.
– When Tekisha Collins, a wife and mother of two and an Indianapolis resident, was laid off from her corporate job in 2009, she never imagined that a 100-year-old family recipe, known today as Smoogy, would land her a winning spot on cable TV’s Lifetime hit show, “Supermarket Superstar.”
She decided to step out on faith, driving to Chicago to audition for the then-upcoming reality competition cooking series. Early on, the judges (Chris Cornyn, branding expert; Michael Chiarello, celebrity chef; and Debbi Fields of Mrs. Fields cookies) fell in love with Collins and Smoogy, a frozen cookie sandwich with a cheesecake filling.
The prize included $10,000 in cash, $100,000 worth of product development, and the chance to have their products launched and marketed through A&P Supermarkets. After months of competing with other culinary hopefuls, Collins was crowned the winner of “Supermarket Superstar” on the season finale.
n Newegg Inc., an electronics-focused e-retailer plans to locate a new warehouse facility in Indianapolis, creating up to 150 new jobs by 2015. The California-headquartered company will invest $20 million to lease, renovate and equip a nearly 500,000 square-foot order fulfillment facility in the Circle City. The expansion, which is expected to be completed by late 2014, will allow Newegg to better serve customers in the Midwest. Those hired will include order fulfillment center managers and supervisors; forklift and reach truck operators; receiving, order picking and packing; shipping; clerical related operations.
5 key business predictions for 2014
Access to capital: Small and regional bank capital requirements will be loosened to push cash out of the banks while big banks will continue to be subject to greater regulation and scrutiny as to their business lending practices; interest rates will remain low through the 2014 elections but will rise after.
Technology: Customers, not businesses, will lead the next phase of the transformation in technology with mobile apps at the forefront; online customer relationship management and customer care will allow companies to re-personalize the customer experience.
New business models: With the rising demand for U.S.-made products, and labor rates and total costs for goods manufactured in China expected to equal U.S. labor rates within two years, companies will look to move manufacturing to the U.S.; many companies will be open to reconfiguring their activities, replacing a full-time sales force with contract resources and “virtual sales models.”
Opportunities/threats: There may be high unemployment among the young, lower for older workers; growing demand and shrinking supply of housing will increase homeowners’ household wealth and consumer confidence, propelling the economy to new heights.
Low energy costs: Continuing concern about global warning will boost renewable energy and other low-carbon technologies; an abundance of U.S. natural gas and significant cost advantage over oil will turn the U.S. into an exporter of oil, resulting in continued low energy costs for industry.
Source: Forbes.com
