However, lower prices carry hidden costs that often get overlooked.  It is increasingly becoming apparent that we cannot have our cake and eat it too.  When I hear people complain about the lack of manufacturing jobs in this country, I often cite the opening statement of this piece as the epicenter of the issue, WE ARE A NATION OF BARGAIN SHOPPERS (I included as my Nissan was manufactured in Mexico).  As the saying goes, there is no such thing as a free lunch (or in this case, one that is partially paid for).  Most people don’t bother to look into the lure of lower prices or the streamlined logistical channels which keep them there.  They just want that LCD TV for the lowest price possible, and who am I to blame them?  People forget that THEIR shopping habits influence those low prices and the complex logistical systems supporting them.   Small businesses have no chance when a larger retailer carries the same product offering(s) for less.  And most people don’t want to spend more money than they have to, rendering smaller businesses inept.  In essence, we are unknowingly trading jobs for low-priced goods.  How you say?

Well think about it, most of the things we buy are manufactured in developing nations.  In order to cater to our bargain basement orientations, US businesses have had to look beyond our shores to lower their production costs.  Laws are lax and people in developing nations toil for hours at a rate the most Americans would balk at.  We can’t possibly complain about the lack of manufacturing jobs, when we continue to flock to discount retailers that import goods.  It’s just not viable for manufacturing plants to flourish here as they once did here.  The economic effect minimum wage has on our economy along with other regulatory laws inhibits it.  If companies want to grab your attention, they must be able to produce their products at the lowest cost possible.  Herein lies the low price paradox, companies are lured abroad by low-cost labor the very same way we are lured to discount retailers by low prices.  Wow, talk about a backfire right?  It’s a connection that would otherwise not be overlooked if the implications of our seemingly harmless spending habits were more apparent.  Making this connection is critical in understanding what steps we can take if we want to bring manufacturing jobs back to our shores.  I’m sure there are other elements that need consideration, but I doubt that none are as influential as our demand for bargain prices.  So what can we do as consumers?

I’ll be the first to admit that it is nearly impossible to find manufactured goods in the USA (ahh the monster we’ve created).  However we could look to American car manufacturers as a starting point.  When it comes to these organizations, my closest friends will tell you that I’ve historically been a huge critic.  I’ve always regarded their products as inefficient, oversized and overpriced.  In some respects, I still cling stubbornly to my perceptions (for reasons unknown even to myself) despite the fact that I am acquainted with many owners who would no doubt challenge my perceptions and suggest otherwise.

Recently I saw a campaign for Small Business Saturday, which was a call to action by urging consumers to support small businesses within their communities.  This idea has promise provided we can overcome some of the price sensitivity that dictates and dominates our everyday purchase decisions.  Getting consumers to see the benefits in spending slightly more in exchange for a bit of national prosperity is a hard sell when it directly affects their spending power.  However, incremental steps like “Small Business Saturday” may help consumers see the benefits of shopping with small businesses.  The environment is no doubt more intimate and the customer/business relationship is brought down to a level where meaningful connections are inherently fostered.  Often times there is no bureaucratic red tape to deal with if issues arise and no vast ocean separating you from a customer service representative.  Perhaps turning “Small Business Saturday” into a ”Small Business Weekend” and so forth might be the best way to realize the return of some manufacturing jobs.  Small business owners can also empower themselves through clever marketing and internet use.  If utilized effectively, their marketing efforts can be just as impactful as those of larger organizations.  Globalization has spawned fierce international competition and has altered the business landscape drastically. With that said, it is difficult to imagine America returning fully to its glorious days of robust manufacturing when global and domestic economic forces inhibit it.  Still increasing our manufacturing presence injects some much-needed balance to properly power our economy.  And that in itself is cause for its justification.

While America was the first to pioneer many of the technological advances that are commonplace today, we have not yet progressed onward. Our infrastructure is aging and the nations that were categorically labeled as “developing” posses facilities that are far superior to ours. For instance, Japan owns and operates the most technologically advanced trains on the planet. Yet no more than 65 years ago, the nation laid in absolute ruin after the Hiroshima/Nagasaki bombings. With an embattled and destitute military, the country found another way to engage in the global marketplace. Desperation does indeed breed innovation, and Japan is the physical embodiment of that philosophy. So in some aspects, the U.S. has actually fallen behind. The commodities market and its manufacturers are slowly becoming the new emerging superpower nations of the world. The lax labor laws and inexpensive human capital of countries like China, Thailand, India and Taiwan have all attracted U.S. based businesses offshore. Its no secret that they can manufacture a product at a fraction of the cost when compared to that of an American manufacturer. To compound the issue, the standard of living in these countries is typically lower, which translates into nominal wages. In contrast, the US maintains stringent labor laws such as a national minimum wage and in some cases, employee advocacy organizations like the various unions operating within the automotive field contribute to inflated costs. In addition, the United States maintains a significantly higher standard of living (when compared to the rest of the world) and most employers incur additional costs related to employee wellness such as health-care. All these factors inflate operating costs and reduce the profit margins of American businesses, putting them at a significant disadvantage to compete with foreign-based business.

The inability of American politicians to address and balance globalized business with politics will continue to degrade what took this nation hundreds of years to build. Directly attempting to compete with these nations has not been beneficial and it carries the adverse affect of driving American based businesses offshore. So the answer is simply to significantly scale down competition in the global commodities markets. Education, specifically in the field of math and science is what will propel America forward and spur a new innovative revolution. The creation and implementation of assembly lines in American manufacturing clearly demonstrates our mastery of innovation. Our efforts would prove futile at best if this strategy is pursued since our laws prevent the engagement of global competition at the price floor (which could be significantly lower). Yet, we still feel the need to compete, even though it is costing us more than profits. Instead of direct competition, why not innovate through research and development. There are global challenges that have yet to be solved. Where will our next commercial fuel source come from? Why not concentrate our efforts instead on finding new creative solutions to problems that plague us as a nation such upgrading our decrepit infrastructure? If desperation breeds innovation, now is our time to innovate the same way Japan did after the war. Let the world’s emerging nations manufacture commodities. America is at the point of desperation and education is one path toward innovation that is reminiscent of the industrial period. It would be unwise to completely abandon our roots and rely only on service-based business modeling. Just as diversification minimizes excessive risk in an investment portfolio, the United States should wisely employ the same strategies when engaging in global trade. Reallocating some of our resources away from saturated, low-priced commodity markets and redirecting them to cutting edge research and development will restore America’s competitive edge. The strength and future of America is not based on manufacturing, but on our ability to innovate, just as we did during the industrial period. Let’s concentrate our efforts toward innovation, and usher the globe into a new era.

-Lifo9

However, astute and forward thinking business people know that future success cannot always be had by outdated strategy. For instance, Blockbuster was among the first to offer movie rentals to the masses, bringing the experience of going to the movies, to the comforts of home. For years, Blockbuster mostly thrived in the marketplace unchallenged. With the advent of widespread internet access, competitors such as Netflix and Redbox entered the market, offering the same product utilizing slightly different logistical methods at a cheaper price point. Even as Blockbuster’s competitive landscape began to change, the company clung to its outdated brick-and-mortar business model. As a result, store closings and revenue declines plagued Blockbuster as they scrambled to react to their changing business landscape. Capitalism has been a tried-and-true model for the United States economy, but the global landscape is changing. In conjunction with a conservative checks and balances approach to capitalism, the United States should also alter its strategy to reflect the changes.

So how does this relate to BP? While capitalism has proven to be the best fuel for national economic activity, it can be detrimental. In an environment where individuals can theoretically earn an uncapped amount of income, it can draw some unintended consequences. One of the most treacherous side-effects of capitalism is blinding greed. Every year, companies are looking for ways to boost their bottom lines, whether it is saving money or bringing in new business. Both would be ideal, but in the process of determining the best method of achieving such a feat, companies can veer off track at the detriment of the community in which it operates. In BP’s case, the damage has become extensive and unlike any other documented disaster.

So how has blind greed contributed to BP’s woes? During congressional hearings, a BP official was asked about the type of containment methods the company had in place to deal specifically with these circumstances. Oddly enough, BP nor has any other oil company (at least as of this writing) developed any sort emergency containment methods for spills at such deep depths. BP is essentially utilizing containment methods for oil spills of lesser severity. In addition (and by BP’s own admission), it appears that deployment technology has advanced faster than containment and clean-up technology. It does nothing for BP’s balance sheet to spend more on containment technologies than it does to develop a method to get to the oil faster and at greater depths. Logically speaking, it would then make sense to have an emergency response in place to handle a worse-case scenario at deeper depths as well. In other words, both deployment and containment/clean-up technologies should be given equal merit. However, capitalism and more often than not shareholders frown on social responsibility because it is perceived as an added expenditure. Unless there is a mandate or if doing otherwise negatively impacts brand imagery, social responsibility almost always takes a backseat to increasing profit margins.

The issue is not the oil spill, rather it is the political, economical and lax regulatory parameters that BP operates within. Capitalism rewards only those participants who engage directly in “for-profit” activity. Activity outside of those limits come solely at the expense of the company or individual. As a result, BP as well as most other organizations are influenced to concentrate on earning more with as little monetary effort as possible. Shareholders no doubt played a role in restricting budget dollars toward containment and clean-up measures in an effort to save money. But after all is said and done, it may end up costing them more than money.

-Lifo9

Another way to utilize your lemonade stand it to exploit an interest.  If you’ve had a hobby that you’ve pursued in your spare time, think about turning it into a full time gig.  The chances of your business succeeding is increased just by virtue of your affinity for it.  For instance, if you’ve had an interest in photography, but never had the time to put any serious effort behind it, now maybe the best time to act.  Even if you decide to pursue it part-time while still searching for full-time work, successfully running a small business is a momentous resume booster.  It demonstrates a set of unique skills that only running a business can bring.  This includes coordinating any marketing, finance, public relations and sales efforts in a way that is conducive to keeping a business afloat.  One person doing the job of many produces a high-level of multi-tasking experience that is invaluable in any industry.

Lastly, put downtime to good use.  Being unemployed means you have the time to brainstorm and creatively think of ways to re-invent yourself.  This might include going back to school, learning a new language or maybe doing some volunteer work if you’re looking to go into a field in which you have no experience.  These are all good ways to bolster your resume while keeping you occupied during your search.  That way, when you’re asked what you’ve been doing since your last position, you can avoid the “looking for a job” one-liner that will most certainly propel you further into the abyss of joblessness.  So the next time you experience the misfortune of sinking your teeth into a bitter metaphorical lemon, breakout the sugar and sweeten the ordeal.

-Lifo9

Immortal jellyfish

So what is the commonality of vampires and jellyfish?  Why pair the unlikeliest of two creations in the same phrase of cognition?  The reason is intriguing and most assuredly nothing short of miraculous.  The properties of this jellyfish dubbed Turritopsis nutricula or more commonly known as the “immortal jellyfish” can theoretically live as long as vampires.  Apparently, this creature has obtained what has eluded the infamous dictators and tyrannical leaders of great ancient and modern civilizations.  Who knew jellyfish would outsmart the human race?   The immortal jellyfish is capable of age regression if it suffers an injury serious enough to warrant the transformation.  Basically, this organism transforms various cells into a younger state and essentially starts life anew.  So there you have it, the shared commonality of vampires and jellyfish is immortality.

While I was awed by the fact that an immortal lived among us, I wondered how this concept would manifest if applied to humans.  What if humans were immortal?  I began to think about the possible effects immortality would pose on society as we know it.  If our life cycles mimicked that of the immortal jellyfish, it would be prudent to make arrangements ahead of time with someone much younger (most likely your offspring) to ensure you are cared for in your infant years.  While this is not all that uncommon with the advent of long-term elderly care, it would make for a very different set of circumstances in a world where normal life cycles are regressive.  Corporations specializing in the arrangement of long-term infant care services would spring up and DYFS would be overrun.  Imagine the awkward circumstance of having to care for an infant mother or father?

In a world full of immortals, a shortage of day care services would be the least of our worries.   In the absence of death, our planet would be rife with overpopulation and chaos would reign.  Our consumption of the earth’s resources would continuously increase, forcing us to seek out alternative habitation on alien worlds.  And since vampires are partly the topic of discussion, I would be doing a disservice if I failed to mention how human immortality would benefit them.  Their food supply would be endless and regenerative as well!  Think of it as a human buffet (insert evil laugh here).  Wars would rage over a thousand lifetimes and the horrendous leaders of yesteryear would converge in the present and continue unabated in their senseless pursuit of world domination.

On the flip side, you may have the good fortune of  meeting a favorite actor, singer, actress, humanitarian or politician long deceased.  Elvis impersonators would be jobless (if non-existent) and serve as mere stunt doubles for the king himself.  By the way, “favorite” and “politician” have no business being in the same sentence, my apologies.  We could find out how the ancient Egyptians really built the pyramids instead of relying on speculation, and question their judgment about burying perfectly good valuables with the dead.  We would all have an unlimited number of chances to re-live prom night or witness the Detroit Lions win a Superbowl (I’m not a Lions fan by the way).  Better yet, witness the lifting of the Billy Goat curse cast upon the Chicago Cubs (not a Cubs fan either)!

The culprit of the Chicago Cubs curse (Billy The Goat)

The effects of an immortal society are infinite and too complex to outline here.  It would truly be a  horrible detriment to our planet and everyone in it if our hearts could beat eternally.  Since this particular species of jellyfish is considered invasive, perhaps we are getting a glimpse of what would occur in the event of humans achieving immortality.  Death regulates the population and continues to be the only definite mechanism that limits our collective consumptive and destructive habits.  Without it, earth’s resources would be depleted exponentially.  For the immortal jellyfish, the only thing preventing an ocean-wide invasion is their inability to harness such a trait.  Scientists believe this transformation is instinctive and rarely happens.  Still, if immortals like vampires did exist, these jellyfish would be ideal pets.

Lifo9

While there is absolutely nothing you can do to stop the axe from falling, you can at least pillage a few villages before your head rolls.  Okay, so maybe that analogy was a little harsh, but I mean this simply, take advantage of every possible benefit your employer has to offer.  Yes, salary is a huge part of compensation, but why not enhance your compensation package by taking  little extra.  How you say?  I thought you’d never ask.    Some employers offer tuition assistance programs to their employees since they are finding education to be an integral part of building a successful organization.  If you are fortunate enough to be employed by such an organization, and you are degree-less, take advantage of the benefit.  It is an absolute no-brainer, but it surprises me to know that so few actually do.  I always tell people that it is tax free money (up to $5250.00) left on the table.  Not only that, but education is mobile and it goes where you go, even if its a rival organization (insert evil laugh here).  Can you say the same about the company car or the laptop you were excited to get when you got the job?  Imagine that, your employer is GIVING you something that cannot be taken back after you are terminated.

Flexible spending accounts are also popular with employers, and like tuition assistance, its overlooked because people are either unaware or fail to explore their options.  The maximum allotment amount toward a flexible spending account is up to $5,000.00 depending on your benefits package and employer.  The money is pulled from your pay in the form of pre-tax dollars (translation: money normally reserved for Uncle Sam).  Now that I think about it, opening a flexible spending account also carries the added benefit of sticking it to Uncle Sam since that money is being funneled to you, though indirectly (but iDigress, get it? “i” Digress? iPhone humor? Okay fine, bad joke).  In any case, there are generally two types of spending accounts, medical and dependent.  Medical covers most types of over-the-counter pain medication, diaper ointment, eye care, elective surgery etc.  Dependent care covers pre-school tuition, au pair services/expenses and some related travel expenses just to name a few.  The same mantra applies here, make the most of your benefits.

Vacation time is perhaps the most underutilized benefit by most employees (click here for proof).  It is there for the taking, but few capitalize on it.  And while companies don’t mind capitalizing on every statement in that little employee handbook that is distributed during orientation, we as employees are reluctant to reciprocate the favor.  The responsibility of keeping tabs on your psychological stability and anything that threatens it, lies not with your employer.  Besides, going through the motions will eventually manifest in your work and jeopardize your employment.  Managers can be short-sighted, and often forgot about the extra responsibilities you took on that probably triggered your psychological meltdown .  So what is the moral of the story?  Take those sanity days.

There are other benefits that employers offer such as stock options and 401k plans that many people under utilize.  But I say it is time to stop going through the motions, and letting the current carry you aimlessly.  Don’t blend into the sea of corporate habitual-ism without at least exacting some quiet revenge by taking a little extra.  Utilize and maximize those benefits because it goes without saying, that your employer will undoubtedly attempt to push you beyond your limits in the name of increasing productivity.  I realize, these benefits provide little consolation when unemployment is looming and incomes are interrupted, but at least you walk away with more than you came with.

Lifo9

There is no doubt in my mind, that there are countless blogs, reports and articles that herald the marketing prowess of Steve Jobs.  No amount of education can teach his ability to accurately keep his pulse on the market and effectively stay ahead of the curve.  In fact, any good company knows the best way to stay relevant and out of the reach of competitors is to make your own products obsolete.   As of late, the products Apple have been churning out have become benchmark items in the consumer electronics industry.  But I have my doubts about the iPad, particularly the audience Apple is attempting to reach.

The giant mistake of marketeers in the past has been marketing products that are not necessarily a reflection of consumer demand.  An element of successful marketing takes into consideration the demand of consumers, then creates and sells a product or service to fill that need.   While this is not rocket-science, it is overlooked time and time again by major organizations.  Coca-Cola did it when they changed the recipe of their flagship product Coca-Cola by introducing Coca-Cola 2.  Needless to say, there was severe backlash from consumers and the product was pulled.

Apple maybe heading down the same road with the iPad because there does not seem to be a clear target audience.  Apple is positioning the iPad as a go between laptop and smartphone.  That sounds logical, but the size of the iPad may be a deal breaker for some.  It has a 9.7 inch screen that is far larger than most screens found on smartphones and only slightly smaller than a netbook display.  Then of course there is the Safari browser where you can access the internet utilizing a WiFi connection, email, tv/video, email support etc.  All these features can be found on the latest smartphones and laptops.  Since a smartphone is smaller and offers the same features more or less, depending on the model, you have a device that maintains its relevance when positioned against the iPad.  While I cannot speak for the masses, I would say that most consumers might default to using a laptop at home since typing on a keyboard is far more convenient  Granted the iPad has a built-in touchscreen keyboard, but it will be anything short of comfortable if users decided to work at length on it.

If there is any product line threatened by the iPad, it will be the e-book reader market.  And even then, the iPad will have to win over consumers who already own a similar product such as Amazon’s Kindle.  The overwhelming consensus among tech savvy consumers is that we would like to have one product to do the job of many.  In my view, Apple has done the opposite, and added yet another device consumers will have to tote around.   Since Apple has an unwavering base of early adopters, there is no doubt in my mind their loyalty will remain intact and be among the first owners of this highly anticipated product.  But the question is, will it resonate with the masses?  Only time will tell.  But iPass.

Lifo9

This could potentially be great news for small businesses and consumers looking for cost cutting alternatives during these recessionary times.  On the flip side, wireless carriers will surely hemorrhage at the notion of such an option.  Somewhere in a corner office in this great nation sits a telecommunications executive in the process of formulating a strategy that will (at the very least) neutralize the dire implications of such a service.  If this is the case, chances are it is much too late for combative strategy.  Executives are well-paid to be forward thinking leaders, which means the pay-for-minutes business model should have manifested on their commodity radars long ago.

One of my graduate school professors wisely told me to always look to the outer-fringes of society for changes with regard to technology.  Open-source software such as Google’s Android and Linux have long been familiar to technophiles.  Only until recently, has there been a push to promote open-source technology.  If successful, proprietary technologies will become irrelevant, along with those companies that cling stubbornly to them.  For wireless carriers, it must be horrifying to think that billions of network investment and marketing campaign dollars could potentially be wasted because of one individual with ideas, a laptop and programming knowledge.  Imagine the entire wireless industry brought to its knees if end-users have the option to completely bypass wireless carriers and purchase directly from manufacturers. 

It is not far from reality, especially since a plethora of “me-too” applications will undoubtedly follow.  If wireless carriers are to remain relevant their walls should be receptive to the pulse of its customers and emerging technologies.  Otherwise bankruptcy and liquidation will be the alternate end result.  Open-source programmers like those at Toktumi are the true 800 pound gorillas in the room, and they will find themselves at the helm of this inevitable monumental power shift.

Lifo9

Then it hit me and I figured out how I could make a blog work for me.  Think about it, what better way to showcase self-expression to potential employers than blogging?  This rationale opened up a foray of benefits.  Sure a well-written resume could show off your sales and communication skills, but your scope is limited.  I say limited because it should only speak to a particular topic (and that topic is usually the job you are going for).  But more and more employers are seeking individuals who can relate and speak on a wide-range of topics.  Not only that, but have the capability to string seemingly disjointed and separate topics/data together to create a cohesive picture.  I believe they call it cross-functional analysis and businesses are finding value in having the capability to bring several functions together to work as a unit.

So how is blogging going to benefit me?  I am considering this my attempt to sharpen my communication and analysis skills.  This will be the first blog entry of many, and my intent is to speak on a diverse set of topics.   Some of the jobs I have posted for request writing samples.  What better way to provide a writing sample than to direct traffic to my blog.  Now having said, that, I understand that there will have to be an element of formality to my entries (this not being one of them), especially since I am using this as an extension of my professional profile.  I am well aware of the fact that things don’t always work out as planned.  And it may very well be that blogging will serve merely as a passionate hobby.  But it doesn’t hurt to believe my credibility gets a boost by doing so.  Till next time……

Lifo9