Category Archives: Economy

Unexpected Slowing of US Economy Worries Wall Street

Economy, , ,

June showed a marked slowdown in business activity in the US private sector, bringing worry to some analysts and investors.

Market research group ISH Markit published a report saying that its flash services purchasing managers’ index (PMI) dropped to 53.0 during June. May’s PMI was 53.6. June’s figure was a three-month low.

Analyst had been expecting a services PMI of 53.7, an indication of a stronger economy.
Since the service sector comprises about 80% of the US economy the services PMI data is a key for understanding economic growth.

The manufacturing PMI, according to Markit, also fell in June, from 52.7 in May to 52.1 this past month. Analysts were also expecting that PMI to be 53.0.

PMI values above 50 represent a growing economy, while figures below 50 indicate a shrinking economy. The overall PMI of services and manufacturing together fell to 53.0 in June from May’s value of 53.6. However, new orders climbed at their fastest rate in five months, leaving room for optimism about the US economy.

Chris Williamson of HIS Markit said that although it is likely that growth will be higher in the second quarter than it was in the first, “the relatively subdued PMI readings suggest there are some downside risks to the extent to which GDP will rebound.”

Eighteen More Oil Rigs Bodes Well for Oil Economy

Economy, , , , , ,
U.S. offshore natural gas production wells in the Gulf of Mexico and Southern California.

With the addition of two new oil rigs operating in the Gulf of Mexico 16 new ones across the US, there are now a total of 653 drilling for oil and gas.

It is good news for the oil industry, but those numbers are far below the number of rigs operating in 2014 and 2015. According to numbers released last week by the Houston-based oilfield-services company Baker-Hughes, this year’s number is lower by 47 since last year, and is still 65 percent lower than the 1,882 which were pumping out oil and gas at the end of 2014.

Of the 653 rigs working today, 129 are looking for natural gas and the remainder, 523, are bringing out oil.

The oil industry has been suffering as an oil glut continues to keep prices of oil low. Caused by a growing trend of drilling in US shale fields, combined with increased oil production by OPEC, the oil glut brought oil prices to half, and lower, than their mid-2014 high of $115 per barrel.

Lower oil prices froze exploration for new sources of oil and natural gas, and many people in the industry were laid off. The fact that the US rig count has been growing and now is higher than its been since January, could be a harbinger of better times for the industry.

Businesses: Reduce Energy Costs

Companies, Economy, ,

How can the hospitality industry in the US reduce energy costs without negatively impacting the service they provide? Is it possible for hotels, motels and others to provide heat, air-conditioning, spa services, WiFi, etc., all while reducing their operating expenses?

Diversegy, a subsidiary of Genie Energy, works with clients of all shapes and sizes in this industry by providing the tools, services and training to its energy professionals to help these businesses reduce energy overhead costs.

Diversegy offers the complete package, given its knowledge of all aspects of the energy supply chain.  In addition to being consultants, they have supply-side procurement, solar and efficiency expertise in-house. For all those in the hospitality industry – from small B&Bs to medium-sized hotels and large establishments – Diversegy can offer the most efficient solutions vis-à-vis the purchase of energy.

With the assistance of the expertise of Diversegy staff, hotel managers can spend more time focusing on how to ensure the best service is provided to their guests.  A huge amount of energy is required in such establishments; Diversegy helps to reduce costs in these areas.  Once costs are reduced, profits increase, monies of which can be put toward capital improvements or investments that will ultimately attract more guests.

Barry Zyskind Explains How AmTrust Sets Itself Apart

Consumerism, Economy, ,

It’s fascinating to look at how a new company grows to make its mark, and establish itself apart from competitors. One great start-up story is specialty property and casualty insurer AmTrust Financial Services, founded during the dot-com boom of the late 1990s. In a recent interview with A.M. Best magazine, President and Chief Executive Officer Barry Zyskind explains how AmTrust has come up the ranks of the insurance industry.

“Early on, we recognized that we could differentiate ourselves through technology,” Zyskind said. “Every application we use, from underwriting to claims management, is built internally to maximize our productivity and data mining capabilities. When we acquire a business, we quickly integrate it on our technology platforms. Our digital strategy has absolutely set us apart in a highly competitive industry.

He continued, “We use our proprietary technology and extensive database of loss history to help appropriately price and structure policies, maintain lower levels of loss, enhance our ability to accurately predict losses and maintain lower claims costs than the industry as a whole.”

One of AmTrust’s areas of focus is warranty insurance, the first product it offered. As Barry Zyskind explained, “Our warranty program is on a rapid growth trajectory. Today, our automotive and powersports vehicle service contract division is a world leader, while our retail and consumer products extended service plan division ranks among the world’s top three.”

Zyskind emphasized that AmTrust will continue investing in technology as part of its growth strategy. “We will continue to invest in our technology platforms and look for new ways to target our most desired classes of business. We are optimistic about the organic growth prospects of our small-commercial business segment, which for the year 2015 produced over $3.3 billion of premiums, as well as the potential for growth in our other segments. We continue to look at acquisitions throughout the world and believe we are well-positioned to address opportunities that arise.”

Quiet Tourist Town Bringing Gun Factory to Boost Economy

Economy, , , , ,
Harley Park – Boonville, MO. Photo by: robertstinnett.

Boonville is a quiet Missouri River community in Missouri filled with Civil War history and the expected delights of a small town. Yet the residents are willing to risk the loss of that special atmosphere, along with the possible loss of some tourist dollars, in order to bring to town a gun-manufacturing plant. The city is trying to turn around the ten-year-old decline in manufacturing jobs in the area.

The town is just off of route 70 in the center of the state and his highly Republican in flavor, which does not flinch at the idea of the production of AK-15 semi-automatic rifles within its borders. Residents who insist that the factory will hurt tourism are a loud, but only barely influential minority. The city is seriously considering bestowing on CMMG a $200,000 forgivable loan to move about 50 jobs from Fayette, about 15 miles northeast.
Director of Boonville Economic Development, Jim Gann said that the town is continuing to support the move of CMMG into town.

“Manufacturing jobs in a rural community are difficult to come by,” Gann said.