Posts Tagged ‘Latin America’

A Rebound in Offshore Activity Signals India’s Recovery

Monday, November 16th, 2009

call-centers-india_26A report by India’s Economic Times indicates that up to 11 multinational firms including Wells Fargo, Standard Chartered and Ingersoll Rand set up back office facilities in India during the 3rd quarter of 2009.

A research firm, Everest Group, says this bodes well for the overall business momentum in India picking up in 2010.  Two of the reasons cited for India’s resurgence are the depreciation of the Indian currency and the reduction in operating costs which have enticed outsourcing operations back.

Although there was movement of outsourcing projects to facilities in Latin America and Southeast Asia, India continues to dominate the scene in the third quarter.

The new numbers signal a shift away from the doldrums of the first part of 2009.  Many U.S. firms like GE and CitiGroup put expansion plans and capital projects on hold due to the deteriorating financial ratios.

Jacob Cherian is AlterNow’s India Contributor. He is a business writer for Offshore Advisor.

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Posted in Economics | No Comments »

The Rich Still Are Different

Thursday, September 3rd, 2009

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The wealth of the world’s high-net-worth individuals (HNWIs) declined by nearly one fifth last year to $33 trillion, according to the 2009 World Wealth Report from Merrill Lynch and Capgemini.  A HNWI has at least $1 million of assets besides a primary residence, its contents and collectible items.  In 2008, the number of HNWIs fell to 8.6 million, or slightly more than 0.1 percent of the world’s population.

Their wealth declined by more than 20 percent in North America, Europe and Asia, and by a bit less in Africa and the Middle East.  Latin America’s rich were the least affected: they lost just six percent of their wealth, and the number of HNWIs there fell by less than one percent.  In North America, which had a large proportion of people just above the $1 million threshold, the ranks slimmed by 19 percent.

An interesting aside:  That $33 trillion is almost half of the $70 trillion that constitutes the subset of global savings known as fixed-income securities - or, all the money in the world.

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Posted in Economics, General | No Comments »

Larry Armstrong: Architecture During a Recession

Monday, June 29th, 2009

The best way to survive a recession is to have a strategic plan firmly in place when the inevitable downturn happens.  That’s the opinion of Larry Armstrong, President of Ware Malcomb, an Irvine, CA-based international architectural firm with ongoing projects in the United States, Latin America, Asia and Europe.

architect_istock5775134In a recent interview for the Alter NOW Podcasts, Armstrong says “There is no question that we learned everything about saving a business and building a business during the 1990s downturn.”  In fact, Armstrong’s firm wrote a recession plan several years ago and determined exactly how they would react.  “You have to look at what revenue can support what level of staff and all the additional expenses and costs which, over time, become discretionary.  You have to look at those and decide what is necessary and what isn’t,” according to Armstrong.

The current environment does not support ego-driven, icon architecture.  Rather, there is a move towards thrift, because corporate users want to be seen as economical and functional — not as extravagant.  The recession also has impacted Corporate America’s attitude towards green design and LEED-certified buildings.  According to Armstrong, “We’re seeing a bit of a retreat - not major - and a vast majority of our projects are still LEED certified”.  Still, if the project is industrial, Armstrong is not hearing a desire for LEED certification anymore.

To listen to Larry Armstrong’s full interview on architecture during a recession, click here for the podcast.

 
icon for podpress  Larry Armstrong on Architecture in a Recession: Play Now | Play in Popup | Download

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No Port in the Global Fiscal Storm

Wednesday, April 22nd, 2009

Shipping activity has plunged as much as one-third at U.S. ports most heavily invested in the once red-hot but now declining Asia trade. 

Freight rates from South China to Europe have slid as much as 42 percent from some ports since November, leading shipping industry authority Drewry Container Freight Rate Insight Report to speculate that this once-robust market is in freefall.titanic-sinking-7790481

As freight rates fall to record lows shipping companies are playing hardball to remain competitive, even though relatively little product is being shipped these days.  According to Drewry, container lines could see a $68 billion plunge in global revenues this year, compared with 2008 revenues of $220 billion.  Drewry notes that global all-in freight rates fell to $1,681 per 40-foot box, down from $2,098 in November.  That’s a steep $400 drop per feu (forty-foot equivalent unit) or 20 percent in just two months.

The ports of Los Angeles and Long Beach are slashing cargo rates to retain old customers and attract whatever new business they can.  Spanning 10,000 acres, these vast ports typically handle $357 billion in goods every year.  The ripple effect of this year’s overall 18.1 percent downturn is evident in California’s vital Inland Empire logistics market, where higher vacancy rates - now approaching nine percent — are translating to cheaper rents.

Conditions are slightly better at the East Coast ports of New York and New Jersey, because their diverse mix of trading partners include Asia, Europe, Latin America and South America.

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Posted in Economics, Industrial | No Comments »