May 14th Monday Report
May 14th, 2007

Economic Notes:

This Weeks Leads:




Money Magazine Best Places to Live - Utah 2006

Top 100 finalists

City Rank Population

  1. Sandy 23 89,700
  2. Orem 38 89,700
  3. Layton 41 61,800

Other cities

  • Ogden 79,891
  • Provo 115,141
  • Salt Lake City 180,377
  • St. George 59,938
  • Taylorsville 59,010
  • West Jordan 73,286
  • West Valley City 116,900

National Income per Capita

RankCountry Income per Capita (USD)
3United States$34,681
5Great Britain$28,030

Percentage of Voting Age Voting

RankCountry Share of individuals that cast a ballot during an election, in % of the voting-age population
10New Zealand77%
28United States55%

Prison Population (rate per 100,000 pop)

RankCountry Prison population rate (per 100 000 pop.)
1United States738
4New Zealand189
5Czech Rep189
6Slovak Rep169
10Great Britain143

Suicides per 100 000 persons, all ages

RankCountry Suicide rate (per 100 000 pop.)
4Great Britain6.3
7Slovak Rep.8.7
9United States10.2

Life Expectancy - Women

RankCountry Women's Life Expectancy - Years
23United States80.1

Life Expectancy - Men

RankCountry Men's Life Expectancy - Years
9New Zealand77.0
22United States74.8

Source: OECD, 2007


The Role of Networks in Organizational Change

  • When companies experience organizational pain, their first response is often a structural fix, such as decentralizing, breaking down silos, or shifting to a matrix organization.
  • Many such efforts have only limited success because formal organizational charts mask the invisible networks that employees use to get things done.
  • Investing time and energy to understand networks can help companies measure the effectiveness of major initiatives and make organizational changes stick.
  • In many cases, a key to success is focusing on "brokers," who serve as bridges across a number of subgroups in a network and are easy to overlook because they occupy the "white space" of organizations.
  • The number of relationships brokers have may be small compared with those of influential connectors.
  • focusing on eliminating bottlenecks and improving connections among key employees, one company increased the ratio of employee ties that were external to their functions by 13 percentage points.
  • Analysis can help employees understand how they compare with peers on dimensions such as information sharing, mentoring, and social interaction.

Source: McKinsey & Company

Source: An excerpt from Thinking for a Living: How to Get Better Performance and Results from Knowledge Workers, by Thomas H. Davenport

Public Private Partnerships

What is the role of business in advancing economic development and social progress?

The challenges in our world cannot be met by governments, business or civil society alone. The UN's Millennium Development Goals of 2015 will be a challenge to meet, but business partnerships hold significant potential for accelerating progress.

The Centre for Public-Private Partnership combines the thought leadership of research institutes with the practical perspectives of executives from business, government and civil society institutions.

Harnessing Private Sector Capabilities to Meet Public Needs: The Potential of Partnerships to Advance Progress on Hunger, Malaria and Basic Education

This report shows that there is significant potential for the private sector to help meet the Millennium Development Goals on hunger, malaria and basic education. It identifies priority actions for companies to take and presents over 45 examples of ongoing corporate efforts on these three issues.

In what ways can the private sector contribute?

The private sector develops new technologies, provides essential goods and services, and manages large-scale operations efficiently. Business competencies can improve the effectiveness of development programmes.

Multinationals have a particularly important role to play in upholding and advancing principles on human rights, labour, environmental and anti-corruption practices in countries with weak regulatory capacity.

Public-private partnerships between businesses and other stakeholders, such as NGOs or governments, can apply the resources and competencies of business for social gain.

Corporate philanthropy is growing, but only a small portion of this is directed towards developing countries. Corporate foundations can target more funds towards MDG-oriented programmes and also help to fill the financing gaps that often constrain public-private partnerships.

Business can help to improve governance for the MDGs. Involving business in policy dialogues also enables stakeholders to work together more effectively on implementation. And businesses can also help build public awareness and support for the MDGs, through media outreach and consumer education.

Companies and organizations wishing to work with the Centre for Public-Private Partnership should contact Richard Samans, Managing Director, or Associate Directors Lisa Dreier and Pratik Bhatnagar.

Telephone +41 (0)22 869 1212

Fax +41 (0)22 786 2744

e-mail: publicprivatepartnership@weforum.org

website: www.weforum.org/initiatives


  • Best Places to Live in Utah
  • National Rankings - Income, Voting, Prison, Suicides, Life Expectancy
  • The Role of Networks in Organizational Change
  • Public/Private Partnerships

  • Economic Notes:
    • Oil and Gas Inventories
    • Crude oil inventories soared by 5.6 million barrels for the week ending May 4, according to the Energy Information Administration, well ahead of the 400,000 barrel build expected. Gasoline stocks rose by 0.4 million barrels, in line with expectations. Refinery activity improved modestly to 89%. Soaring imports helped crude and gasoline stocks rise. Distillate inventories rose 1.7 million barrels. This release will likely help extend the bearish pressure seen in oil prices in the past two days, although gasoline prices will remain under bullish pressure.
    • MBA Mortgage Applications Survey
    • Mortgage demand increased 3.6% in the week ending May 4. Purchase applications increased 2.6% and refinance applications increased 4.9%. The numbers reflect both a concerted effort from many homeowners to refinance out of adjustable rate mortgages and that this is a time in the spring housing market where potential buyers are finding the homes they would like to bid on.
    • Chain Store Sales Snapshot
    • Chain store sales fell 0.6% in the week ending May 5. Year-over-year growth slipped to 1.7%, the weakest in nine weeks. High gasoline prices were mentioned as drags on sales.
    • ABC News/Washington Post Consumer Comfort Index
    • After being on a downward trend since early March, consumer confidence is showing signs of stabilizing. The ABC News/Washington Post consumer comfort index rose two points to -3 in the week ending May 6. The details were decent with a four-point improvement in the personal finances component leading the overall charge higher.
    • Employment Situation
    • April nonfarm payrolls rose by 88,000, in line with our forecast. Job growth was held back by the two inventory corrections the U.S. economy is working through now, namely the housing inventory overhang and the manufacturing inventory overhang, as well as rising energy prices lately and the intensifying negative housing wealth effects. Construction, retail and manufacturing payrolls all fell significantly and payrolls for prior months were revised down, the first downward revision in years.
    • Weekly Natural Gas Storage Report
    • Underground storage of natural gas increased by 96 billion cubic feet during the week ending May 4. This was just slightly above expectations for an injection of about 90 Bcf. Inventories are now 20.5% above the five-year average. This report is likely to have a slightly bearish impact on prices.
    • Productivity and Costs
    • Nonfarm business productivity growth in the first quarter of 2007 came in at 1.7% annualized growth, far above consensus, but below the 2.1% rate in the fourth quarter. Unit labor cost growth was a weak 0.6%, down from 6.2% from the fourth quarter. Given the weak GDP numbers, the productivity number was a pleasant surprise, and the unit labor costs number was good news on the inflation front.
    • GDP
    • Real GDP growth slowed to a 1.3% annualized pace in the first quarter of 2007, down from 2.5% in the fourth quarter of last year. This is well below the 1.9% consensus expectation for the first quarter. Real GDP has increased 2.1% over the past year, far less than the economy's potential of about 3%. The weakening in growth was due to a worsening in trade and reduced federal government spending. Housing remains a severe weight on growth.

    Source: Economy.com

  • This Weeks Leads:
    • Food Lion
    • Delhaize America, Inc. trades as Food Lion at 1,200 locations in DE, FL, GA, KY, MD, NC, PA, SC, TN, VA and WV.
    • The supermarkets occupy spaces of 28,000 sq.ft. to 38,000 sq.ft. in freestanding locations in addition to strips and power centers.
    • Plans call for 50 openings in the existing markets during the coming 18 months.
    • Preferred cotenants include home improvement stores.
    • A vanilla shell is required.
    • A land area of 3.5 to 4.5 acres is required for freestanding locations.
    • Rack Room Shoes
    • Rack Room Shoes operates in excess of 400 stores in 22 states throughout the Midwest, Mid-Atlantic, South and West regions of the U.S.
    • The stores occupy spaces of 5,500 sq.ft. to 7,000 sq.ft. in lifestyle, outlet, power and strip centers.
    • Preferred cotenants include Target, T.J. Maxx, Marshalls, Old Navy and regional department stores.
    • Typical leases run five years with options.
    • A vanilla shell plus a tenant improvement allowance are required.
    • Preferred demographics include a population of 100,000 in a seven-mile radius earning an average household income of $55,000.
    • Competition includes Famous Footwear, Shoe Carnival and DSW.
    • For more information, contact Kent Gonnerman, Rack Room Shoes, 8310 Technology Drive, Charlotte, NC 28262; Email: kgonnerman@rackroom.com; 704-547-9200, Fax 704-547-8158; Web site www.rackroomshoes.com.
    • Gander Mountain
    • Gander Mountain operates in 106 locations throughout AR, CO, IA, IL, IN, KS, KY, MD, MI, MN, NC, ND, NY, OH, PA, TX, VA and WI.
    • The sporting goods stores occupy spaces of 30,000 sq.ft. to 35,000 sq.ft. in freestanding locations.
    • Plans call for 12 openings in the eastern, southern, and midstate regions of the U.S.
    • The company will occupy existing space providing that outdoor selling space is available.
    • For more information, contact Tom Brisinski, Gander Mountain, 180 East Fifth Street, Suite 1300, St. Paul, MN 55101, Fax 651-325-2001; Web site:www.gandermountain.com.
    • The Limited Too
    • Tween Brands trades as The Limited Too and Justice at 727 locations nationwide.
    • The stores, specializing in apparel, swimwear, sleepwear, sportswear and footwear for young girls, occupy spaces of 4,100 sq.ft. in malls and outlet centers.
    • Growth opportunities are sought nationwide during the coming 18 months.
    • For more information, contact Alan Hochman, Tween Brands, 8323 Walton Parkway, New Albany, OH 43054; 614-775-3500, Fax 614-775-3942; Web site: www.tweenbrands.com.

  • Bonneville Research is a Utah-based consulting firm providing economic, financial, market and policy research to public and private sector clients throughout the intermountain west.

    Our services include:

    • Urban Renewal/Redevelopment Analysis and Budgets
      • Urban Renewal "Blight" Studies
      • Economic Development "Benefit Analysis"
      • Financial Potential Analysis
      • Project Area Budgets
    • Strategy and Policy Analysis
    • Economic and Fiscal Impact Analysis
    • Statistical and Survey Research
    • Business License Fee Analysis Work Flow Improvement and Cost Analysis

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    Bonneville Research relies by the quality and relevance of our client work.

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    Bob back from Japan

    Still suffering from "Jet-Lag"! For some reason it is a lot harder to fly east!

    Gwen and I had a wonderful time visiting with our children and our long time Matsumoto friends.

    Matsumoto is in the Japanese Alps - close to the sites of many of the 1998 Winter Olympics.

    Thanks to Jon for doing a grea job covering all the issues and client questions that came up.

  • Japan Alps
  • The "Japan Alps" contain the highest peaks in Japan after Fujiyama, and are very similar to the Alps of Central Europe both in character of the landscape and in the abundance of snow in winter.

    The Alps attract large numbers of walkers and climbers in summer and skiers in winter.

    Matsumoto is at the "gateway" of the Japan Alps.

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