economic recovery

The business Outlook: It’s Starting to Look Better

March 21, 2010 by admin Leave a Comment

Sorry to spoil President Obama’s parade but the most important issue for average Americans is not healthcare. It is very important but it not number one. Number one is the American economy and more importantly job stability. Can you find or keep a job? Some of the economic news is depressing. American’s still aren’t spending much money on durable goods, and soaring credit card debt is the proverbial other shoe to drop on the economy.

It’s not all gloom and doom however. An important but little known index is rising and that it is good news-the index is the Baltic Dry Index. What this index does is measure how much it would cost to ship basic raw materials and the Baltic just hit a two month high according to transportationweekly.com. This is especially good news since it measures what might be in pipeline for the future to affect other indexes like the PMI (Purchasing Managers’ Index) which measures new orders, inventory, supplier deliveries, and production levels amongst other things.

So is it time to go out and invest in growth stocks or buy a new sports car? I wouldn’t go that far, but it might be all right to go ahead and send your kids to camp. Before orders can be produced, and people brought on to work those orders, someone in purchasing has to buy the raw materials to start the process, and nothing is final until the product ships. Well, good news, basic raw materials are shipping and its time to look at some of the other reports with a little more optimism!

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Hewlett-Packard Unveils New Products for SMBs

December 1, 2009 by Sarah Leave a Comment

In an effort to get a bigger share of the IT budgets of the 7.9 million American SMBs, Hewlett-Packard has unveiled a new line of products and services. The new products for small and medium-size businesses include everything from computers to servers. In addition, they’ve introduced new financing options, also aimed at SMBs. They are providing over $1,000 in software and services, and up to $2,000 in rebates for SMBs that make hardware purchases.

As far as computers go, the Pro 3000 series desktop and the ProLiant ML110 and DL120 G6 servers are all new and aimed at SMBs. As is the ProCurve 2520 Switch series which is great for SMBs looking to deploy voice, video, and wireless applications requiring power over ethernet. There’s also a new printer for SMBs, the LaserJetP2055D which costs about $299, along with two low-power monitors, the Compaq LE1911 and the Compaq LE1711.

A number of new storage products including the StorageWorks DAT 320 Tape Drive, the StorageWorks D2D backup system, and the LeftHand P4000 storage area network, were introduced, as were bundles of hardware and software that help SMBs introduce virtualization to their IT departments. They are built on ProLiant, ProCurve and StorageWorks products, as well as Microsoft Windows Server 2008 R2.

In addition to the new products, HP also introduced a number of new online services. They allow users to communicate with employees and contacts and make it easier for IT employees to access, view, and control other computers to help with troubleshooting and fixing problems. HP is also offering Huddlenet which allows for easier collaboration, project management and document sharing. A 30-day trial with 20 GB of storage and that’s big enough for 20 work stations is available.

According to Interactive Data Corp, SMBs will spend more on IT than larger businesses as the economy continues to recover. HP is just one of several companies hoping to tap into that business and they could use it. Their profits fell 19% and revenue 2% in the quarter that ended on July 31st.

Small Businesses Are Borrowing Again

November 23, 2009 by Sarah Leave a Comment

SMB owners are borrowing money again, or so says a study conducted by PayNet Inc for Reuters. The study found that smaller “microcompanies” are gaining confidence in their business and enjoying an overall improved financial health, which is good news for the economy. These businesses are often thought of as the best hope for job creation during economic recovery.

According to the study, which examined loans, leases, and lines of credit activity, businesses with less than $100,000 in outstanding debt are borrowing cautiously to invest money into their own companies. Financing originations are still down but they are no longer failing faster than the originations for larger small businesses (or those who have debt totalling above $100,000). This is an improvement over the last three years.

“This looks like an inflection point,” William Phelan, the president of PayNet, said of the study. “These little businesses are a leading indicator and the signals they’re sending are improving.”

Another encouraging sign is that delinquencies among these companies peaked at some point during the spring of this year, but have since began to improve. Phelan says a correlation can be made between microbusiness borrowing delinquencies and GDP and that makes for another encouraging sign.

Currently, most recovery efforts have come from a government stimulus effort, including the auto industry’s “cash for clunkers” and $8,000 tax credits fro first-time home buyers. But experts say a true recovery must come from private industry and customer demand, particularly small businesses.

And while critics have blasted banks who received government bailout money for not turning around and investing the money into the economy, several big banks have recently announced plans to do more small business lending. These institutions include Citigroup, J.P. Morgan, and Goldman Sachs.

PayNet provides risk management tools to the commercial lending industry. The company collects real-time loan information, including orginations and delinquencies, from over 225 leading U.S. capital equipment lenders and its proprietary database encompasses more than 16 million old and new contracts worth about $700 billion.