Monday Report
Place Branding - International City Rankings March 16th, 2009


SCORECARD

THIS WEEKS LEADS:

Utah Economic Snapshot


 

ECONOMIC NOTES:
  • Global Business Confidence -26%
  • Global business confidence as measured by this survey remains very near the record low that has prevailed since last November. Sentiment is eerily weak across the entire globe and all industries. Oddly, U.S. business confidence is very poor but seems a bit better than anywhere else. Views regarding sales, hiring and investment all remain extraordinarily poor. Indeed, there are very few positive responses to any of the questions across all of the respondents. Most worrisome is the recent collapse in pricing power; a record over one-third of respondents now say they are cutting prices for their goods and services.
  • Manpower Employment Outlook - US, Canada, Western Europe
  • Employment conditions appear set to deteriorate in the second quarter of 2009, in line with forecasts of continued global economic weakness. Employers in most of the 33 economies surveyed in the Manpower Employment Outlook Survey intend to reduce their total headcount, with only employers in 13 economies intending to add to their workforces. This represents a sharp fall in the number of economies where employers are expecting to add staff, with the first quarter's survey showing employers in 25 nations expected to increase their staffing levels. Equally alarming is the general trend of deterioration in employment conditions, with only readings for India, Italy, South Africa and the Czech Republic indicating employment conditions improved when compared with the first quarter's survey.
  • Treasury Budget -$192.8 bil
  • The unified budget deficit for February was $193 billion. Through the first five months of fiscal 2009, the budget deficit was $765 billion, almost three times greater than at the same point in fiscal 2008. The recession and the response to the financial crisis, including purchases of stock as part of the TARP, have greatly added to the deficit this fiscal year.
  • Job Openings and Labor Turnover Survey - 31%
  • The number of available jobs drifted lower in January and was down an extraordinary 31% from a year ago. Hiring was off by 12%, while separations were about even with the year-ago level. Separations have exceeded hires for the past year, although at 3.6% the separation rate still remains relatively low, below its rate during the last recession.
  • Business Inventories (MTIS) -1.1%
  • Total business inventories decreased 1.1% in January, in line with expectations. Retail inventories were the only new data in this report, falling 1.7%. Inventories have been steadily falling for the last several months, finally putting a halt to gains in the I/S ratio, which remained at 1.43.
  • Quarterly Services Survey +2.6%
  • In the fourth quarter of 2008, professional, scientific and technical services revenue increased by 2.6% on a year-ago basis. The hospital and nursing care industry expanded revenue by 4.8%, administrative and support services revenue grew 1.1%, and information revenue decreased by 1.8%.>
  • Mass Layoffs + 158%
  • Wholesale inventories declined by 0.7% in January, following a downwardly revised 1.5% in December. The consensus was looking for a 1% decline. Sales fell by 2.9% in January after falling by a downwardly revised 3.7% in December. The inventory- to-sales ratio rose by three-hundredths of a point from an unrevised 1.27 to 1.3 in January.
  • Jobless Claims +9K
  • Initial jobless claims increased by 9,000 to 654,000 for the week ending March 7, exceeding expectations for a milder gain. Continuing claims increased by 193,000 to 5.317 million for the week ending February 28, setting another new high. Combined, these indicators point to persistent weakening in the labor market that will not soon subside.
  • MBA Mortgage Applications Survey +11.3%
  • In the week ending March 6, the MBA market index increased 11.3% to 723.4. Both parts of the composite also increased. The refinance index, increasing 13.3% this week, finished at 3,470.7, while the purchase index ended at 253.3, up 7.1%. These increases were driven by an 18-basis point decline in contract rates.
  • Retail Sales (MARTS) -0.1%
  • Retail sales fell a slight 0.1% in February but rose 0.7% excluding autos. However, January gains were revised higher. Total sales rose 1.8% (originally up 1%), and sales excluding autos rose 1.6% (originally up 0.9%). Gains in February were widespread, led by gas stations, apparel stores, and general merchandise stores. Auto dealers, grocery stores, building supply stores, and restaurants posted declines. Core sales rose 0.5% and were revised from a gain of 0.8% to a gain of 1.4% for January.
  • Chain Store Sales +0.2%
  • Chain store sales rose 0.2% in the week ending March 7, reversing about a third of the prior week's 0.6% decline. The year-ago decline worsened slightly to 0.9%, the fourth consecutive week it has been just under 1%. The bottom line, however, remains falling sales, a sign of restrained spending.
  • Oil and Gas Inventories +700kb
  • Crude oil inventories rose by 700,000 barrels during the week ending March 6, according to the Energy Information Administration, above expectations of a 250,000 barrel buildup. Gasoline inventories fell by 3 million barrels, exceeding the consensus estimate of a decline of 1 million barrels. Distillate inventories rose by 2.1 million barrels, more than expected. Refinery operating capacity fell to 82.7% from 83.1%. Total domestic petroleum demand fell sharply. This report will cause oil prices to fall
  • Weekly Natural Gas Storage Report - 102bvf
  • Working gas in underground storage decreased by 112 billion cubic feet during the week ending March 6. The consensus estimate was for a decline of 98 billion cubic feet.

Public Policy Initiatives

  • AR - Beebe Announces 'Greening' of Schools. As the state's second public school received official recognition for its innovative, energy-saving design, the rest of Arkansas' public school system stands to reap some of the same benefits through recovery funding. Gov. Mike Beebe has said he intends to use some federal recovery money to make school buildings more energy-efficient. http://climate.weather.com030601.html
  • TN - Bredesen Announces Group to Oversee Recovery Distribution. Gov. Phil Bredesen announced that a new oversight group will be created to determine how the federal stimulus money will be distributed throughout the state. The governor said the panel will be made up of a representative from each state agency. Charles Harrison of the state comptroller's office will be in charge of oversight for these funds and a Web site will also track how the funds are spent. http://www.wsmv.comdetail.html
  • MO - Nixon Works to Expand Health Care Coverage. Gov. Jay Nixon is rolling out a plan that uses increased payments from Missouri hospitals to expand Medicaid eligibility without additional costs to the state. The Medicaid program provides health-care coverage to the poor and disabled. Under Nixon's proposal, an additional 34,800 low-income Missourians would be eligible for coverage. "I commend the leaders of Missouri's hospitals for partnering with me to reach this landmark agreement, and I look forward to working with the legislature to take advantage of this historic opportunity to increase access to health care without raising taxes on Missourians," Nixon said. http://primebuzz.kcstar.com/?q=node/17531
  • WI - Doyle Announces New Funds for Families. Gov. Jim Doyle says Wisconsin will get more than $110 million in recovery funds for its FoodShare program. FoodShare helps families with limited incomes buy food. It serves about 500,000 people who have lost jobs, live on fixed incomes or have low-paying jobs. Doyle says almost all FoodShare participants will get a 13.6 percent increase in their benefits starting April 1. He says the increase will help make sure children aren't going hungry and families can get basic necessities. http://www.chicagotribune.com/1.story
  • CO - Ritter Welcomes Energy Office Funds. It is raining dollars on the Gov. Ritter's Energy Office. The agency, which promotes renewable energy and efficiency and employs 30, expects its budget to skyrocket to $50 million this year, thanks to the economic-recovery bill signed by President Barack Obama last month. Its prior-year budget was roughly $4 million. Energy Office director Tom Plant said the federal dollars should flow into the agency as early as April 1. http://www.denverpost.com882940
  • PA - Rendell Offers Assistance to Struggling Families. Gov. Ed Rendell plans to speak more about his economic relief plan. As Rendell speaks, his top Cabinet officials will fan out to schools across the state to host regional meetings on the plan. The Rendell administration has set up a Web site called 'Here to Help' which explains the plan and how to get assistance. Among other moves, Rendell is ordering the state's 67 CareerLink offices to expand their hours into the evening, and possibly Saturdays. http://www.wpxi.com/detail.html#-
  • NM - Richardson Creates New Office to Oversee Recovery Funds, Promote Transparency. Gov. Bill Richardson announced the creation of the New Mexico Office of Recovery and Reinvestment, this week which will oversee spending of the $1.8 billion in federal recovery money expected to be invested in New Mexico during the next two years. Richardson appointed former Governor Toney Anaya to lead the office, which will work closely with state agencies to facilitate access to funding, assist with compliance, and promote transparency throughout the process. "I have put together a team of experts who I can count on to cut through the bureaucracy and red tape that comes along with the recovery money," said Richardson. "We need to target this money where it is needed most - creating jobs in New Mexico communities. http://www.allamericanpatriots.com/new-mestment-b
  • WI - Op-Ed: Washington Should Look to Wisconsin for Answer to Health Care Reform. In an op-ed published this week, Gov. Jim Doyle writes, "America is home to the best medical technology and best doctors in the world. Unfortunately, their services are a luxury that many Americans cannot afford. Unless we reform this broken system we will continue to saddle our children and grandchildren with increasing debt. While many states are cutting back on health care programs, here in Wisconsin we are moving forward, expanding access to health care at an unprecedented rate. In February 2008, we ensured that every child in our state has access to affordable health insurance. In July, we will provide 98 percent of our residents with health care coverage by expanding BadgerCare Plus to low income individuals that don't have dependent children. When it's complete, we'll have the second largest percentage of residents insured of any state." http://wistechnology.com/articles/5690/

Redwood Road Corridor

Bonneville Research is currently working with West Valley City to develop a comprehensive redevelopment strategy for the future of the important Redwood Road Corridor.

  • For growth and redevelopment of the entire Redwood Road Corridor within West Valley City;
  • To improve the safety and operational efficiency for all modes of travel, while creating a more economically productive area, and
  • To recognize that in the current economic climate that total amount of retail space (including Auto Dealerships) likely will be reduced.
  • Redevelopment is one of the most effective ways to breathe new life into deteriorated areas whose conditions act as a barrier to new investment by private enterprise.
  • Redevelopment enables communities to grow inward, not just outward.
  • Redevelopment enhances and expands local businesses, renovates declining housing stock and improves public infrastructure systems and facilities.
  • Redevelopment helps encourage new housing and businesses to locate within already developed areas.
  • Redevelopment tools: Urban Renewal/Economic Development/Community Development
    • Ability to assemble land for development
    • Ability to utilize tax increment and issue bonds
    • Ability to invest in infrastructure to "lure" private enterprise
    • Ability to create affordable housing opportunities
    • Establish a wide variety of partnerships to ensure "buy-in" and plan implementation.
  • In West Valley City we anticipate using tax increment and developer incentive tools to enhance and redevelop four key retail/economic centers along Redwood Road.

Greetings!

  • Place Branding
    • What is it?
    • How do we rank?
    • Just another name for tourism marketing?
    • A new logo and tag line?
  • Utah Economic Snapshot - First Eight Months FY2009 YTD
  • Public Policy Initiatives
  • Stimulus Spending - How do we rank?
  • Economic Notes
  • Grants
  • This Weeks Leads


  • SCORECARD
  • Place Branding

    Place branding

    is not a logo or tag line, but instead a commitment to a community- wide strategy to define, articulate and communicate what distinguishes one community from another.

    Place branding

    focuses on delivering an exceptional and authentic experience that is memorable and emotional.

    Place branding

    is a decision making tool - a promise of value to consumers-e.g. a guarantee of value, of quality, of performance, of service delivery, or of after-care. to buy a particular product, to access a specific service, or to travel to a city, region or country for a holiday or to attend an event, to invest in a development or to open a factory, built upon

    Place branding

    also reflects the public policy of a community and must effectively communicate and create that unique destination experience to the customer.

    Place branding

    is often confused with "place marketing" which tends to focus on the promotion of current attractions and the place as a destination for tourists. By comparison, creating and managing a place brand strategy involves a rigorous assessment of how a place operates, the assets it has, its offer to consumers, its ability to survive and grow, its ambition and vision for its future and the resources it has at its disposal to realize that vision, and the identification of the "on-brand" actions it needs to take to make a reality of it;

    Place branding

    takes time, and building a brand requires but real changes (in attitude and action) on the ground before ad campaigns and public relations can take effect. Also, too many place branding initiatives are focused on short-term advertisements, painting aspirational views of the place, which have virtually no link to the real experiences of investors, tourists and business people that interact with it. Place branding takes time and must involve a well organized, programmatic approach and long-term buy-in from public and private sector stakeholders and from the community of the place;

    Place branding

    must have a clear differentiation of place: no place can (or should) be everything to everyone, yet many place branding initiatives attempt just this. Developing a clear brand image built on sources of sustainable differentiation and competitive value, and targeted to well-defined audiences, is critical to effective place branding.

    Place branding requires:

    • agreement among key stakeholders on a shared vision of how their place will develop in the future and what it will offer of value to consumers;
    • shared leadership and partnership between these stakeholders to define and realize their brand strategy;
    • a clear understanding of the current de facto brand of the place among the stakeholders and how it was formed (i.e. its current offer);
    • action to connect the key stakeholders and enable them to work effectively in partnership;
    • "on-brand" actions that are taken by the stakeholders to demonstrate the brand and bring it alive, not just communications about it.
    • Understanding and commitment to a long-range strategy.

    Source: Anholt City Brands Index 2007, Bob Springmeyer, Bonneville Research

    Place Branding - International City Rankings 2007

    Rank

    RankCity Overall Score% Change 06- 07
    1Sydney65.60 -0.4%
    2London65.33 -0.2%
    3Paris64.96 -0.1%
    4New York64.211.0%
    5Rome64.11 -0.2%
    6Melbourne 63.420.6%
    7Barcelona 62.64-0.3%
    8Vancouver 62.451.2%
    9Amsterdam 62.36-0.3%
    10Montreal 62.350.3%
    11Toronto 62.310.2%
    12Berlin 62.010.4%
    13Madrid 61.99-0.5%
    14Geneva 61.93-1.2%
    15Milan60.92 -0.7%
    16Copenhagen 60.82-0.6%
    17Stockholm 60.640.2%
    18Brussels 60.42-1.8%
    19Auckland 60.27N/A
    20Tokyo60.23 -0.8%
    21Dublin59.83-0.3%
    22Edinburgh 59.61-0.3%
    23Singapore 59.421.7%
    24Chicago 59.29-1.4%
    25Oslo59.12 -0.8%
    26Hong Kong58.780.8%
    27The Hague58.75N/A
    28Prague 58.71-0.1%
    29Manchester 58.13N/A
    30Helsinki 57.65-1.1%
    31Rio de Janeiro56.450.1%
    32Budapest 56.111.6%
    33Seoul56.05 1.0%
    34Beijing55.62-0.1%
    35Moscow 55.090.0%
    36Reykjavik 54.98-0.7%
    37Warsaw 54.38-0.2%
    38Johannesburg 54.20-0.9%
    39Istanbul 53.37N/A
    40Riga52.74 N/A

    Source: Anholt City Brands Index 2007


    International Stimulus Spending

    RankNation Stimulus spending so far as a % of GDP 2009 GDP Forecast % Change
    1US4.8% -2.1%
    2Germany 3.4%-2.5%
    3Japan 2.2%-3.8%
    4UK1.5% -2.6%
    5France 1.3%-1.4%

    Source: IMF, Financial Times


  • THIS WEEKS LEADS:
    • Bealls Outlets and Burke's Outlet Stores
    • Bealls, Inc. trades as Bealls Outlets and Burke's Outlet Stores at 456 locations throughout AL, AR, AZ, CA, FL, GA, LA, MS, NC, NM, NV, SC, TN and TX.
    • The stores, offering discounted apparel and home goods occupy spaces in strip centers.
    • Growth opportunities are sought throughout the existing markets during the coming 18 months.
    • Preferred sites throughout FL are spaces of 20,000 sq.ft. to 25,000 sq.ft. and preferred sites throughout AR, AZ, CA, GA, LA, MS, NC, NM, NV, SC, TN and TX are in spaces of 18,000 sq.ft. to 25,000 sq.ft.
    • Typical leases run five years with three, five-year options.
    • A vanilla shell is required.
    • Preferred cotenants include Ross Dress for Less, T.J. Maxx and Marshalls.
    • Preferred demographics include a population of 20,000 within three miles.
    • Major competitors include Ross, T.J. Maxx and Marshalls.
    • For more information, contact
      • Lauri Mendoza,
      • Bealls, Inc.,
      • 700 13th Avenue East,
      • Bradenton, FL 34208;
      • Web site: www.beallsinc.com.
    • The Children's Place
    • The Children's Place Retail Stores, Inc. trades as The Children's Place at 921 locations nationwide and throughout Puerto Rico and Canada.
    • The stores offer apparel and footwear for children and infants.
    • The company prefers to locate in spaces of 4,200 sq.ft. to 4,500 sq.ft. in malls, strip and power centers, street fronts and downtown areas and in spaces of 5,500 sq.ft. to 6,500 sq.ft. in outlet centers.
    • Growth opportunities are sought nationwide during the coming 18 months.
    • Typical leases run 10 years.
    • Specific improvements are required.
    • Preferred demographics include a population of 300,000 within 10 miles earning $30,000 as the average household income.
    • Major competitors include Gap Kids, Gymboree and Old Navy.
    • For more information, contact
      • Ahmed Saad,
      • The Children's Place Retail Stores, Inc.,
      • 915 Secaucus Road,
      • Secaucus, NJ 07094;
      • Web site: www.childrensplace.com.
    • Brooks Brothers and Brooks Brothers Factory Stores
    • Retail Brand Alliance, Inc. trades as Brooks Brothers and Brooks Brothers Factory Stores at 200 locations nationwide.
    • The men's apparel stores occupy spaces of 2,500 sq.ft. to 9,000 sq.ft. in lifestyle centers, malls and downtown areas.
    • Growth opportunities are sought nationwide during the coming 18 months.
    • The company prefers to locate in affluent markets.
    • For more information, contact
      • Sue Ayers,
      • Retail Brand Alliance, Inc.,
      • 100 Phoenix Avenue,
      • Enfield, CT 06082
    • The Bad Ass Coffee Co
    • The Bad Ass Coffee Co. Of Hawaii, Inc. trades as The Bad Ass Coffee Co. at 65 locations nationwide and internationally.
    • The coffee shops, serving Kona coffee and branded merchandise, occupy spaces of 1,500 sq.ft. in endcaps as well as urban/downtown locations and freestanding locations.
    • Growth opportunities are sought throughout the existing markets during the coming 18 months.
    • Typical leases run 10 years.
    • The company prefers sites with drive-thru facilities.
    • A vanilla shell and specific improvements are required.
    • Preferred demographics include a population of 50,000 within three miles earning $50,000 as the average household income.
    • Major competitors include Starbucks.
    • The company is franchising. For more information, contact
      • Harold Hill,
      • The Bad Ass Coffee Co.,
      • 155 West Malvern,
      • Salt Lake City, UT 84115;
      • Web site: www.badasscoffee.com

  • Utah Economic Snapshot
  • First Eight Months FY2009 YTD

    Utah State Government

    • Sales and Use Taxes (Gen Gov't, Higher Education) -$119.45 m -9.9%
    • Individual Income Taxes (Public Education) -$150.69 m -9.8%
    • Corporate Franchise Taxes (Gen Gov't) -$23.4 m -12.5%
    • Motor Fuel Taxes (Transportation) -$119.45 m - 7.6%
    • Severance Taxes (Gen Gov't) +$34.87 m +53.8%

      Local Government

    • Sales and Use Taxes (includes food) -6.2%
    • Transient Room Tax -10.2%
    • Tourism, Recreation, Cultural, Convention -1.9%
    • Municipal Telecommunications License +3.5%
    • Emergency Services Phone Charge +4.0%
    • Public Transit -8.7%

    Source: Utah State Tax Commission, TC-23 3/12/09


  • SOLVING PROBLEMS - CREATING OPPORTUNITIES
  • BONNEVILLE RESEARCH

    Bonneville Research is a regional consulting firm focused on consulting services to state and local governments and private companies seeking winning strategies and achieving impressive results.

    Services include economic analysis for real estate development, public-policy analysis, tourism and economic development

    Since its founding in 1976, Bonneville Research has completed assignments throughout the Intermountain West yielding unmatched experience in high quality public policy analysis and economic analysis.

    Helping Clients Succeed

    Our services include:

    • Financial Analysis
    • Business License Studies
    • Impact Fee analysis
    • Urban Renewal & Redevelopment Analysis and Budgets
    • Strategy and Policy Analysis
    • Economic and Fiscal Impact Analysis
    • Statistical and Survey Research
    • Public Sector Mission Effectiveness

    Each of our studies is tailored to address the unique needs of our clients and their communities.

    Successful client work requires a superior team of outstanding people working fluidly together.

    Bonneville Research is the one firm with the experience and expertise to help businesses, governments and nonprofit organizations solve their toughest problems.

    We work to help clients achieve enduring results and improve the communities in which we live.


    If we can help you, please call or email us at:

    • Bob
      • 801-364-5300
      • [email protected]
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