Tuesday, December 24, 2013

4 year end 'must-dos' for business

Pasadena Star News
By: Cynthia Kurtz
Posted: 12/24/2013

Tick-tock, tick-tock - just one more week to the New Year. You may be thinking you can slow down, say a quick thanks for having made it through another year and just set the cruise control until January 2. Not so fast. There are some important end of the year tasks that you’ll be glad you completed when 2014 rolls around. 

Business author Bill McBean lists “Eight End-of-Year Must-Dos” on mfrtech.com. I think eight might be a lot for just one week. So I am going to give you my takes on four “must-dos” from McBean’s list that are doable right now and will start the New Year on the right foot. 

Thank your customers. No business succeeds without loyal satisfied customers. You know who the people are who make your business profitable. A call or a letter lets them know that you don’t take them for granted. It is a good way to show that you appreciate their business and that you look forward to serving them next year. A competitor’s offers won’t look as desirable if your customers have a strong relationship with you. 

Don’t forget your most important asset - your employees. Employees are a critical, perhaps the critical, reason why a business makes a profit and they deserve to be recognized and appreciated. 
Hopefully you have passed on customer compliments and said thank you for work well done throughout the year. But we all get busy and you probably didn’t get around to it as often as you should. The end of the year is a great time for a handshake and word of thanks.  

Meet with your accountant, attorney and other advisors. These meetings aren’t for you to tell them what you need them to do in 2014. These meetings are for you to ask their advice and listen to their ideas. They see your business from very different perspectives than the daily operating world in which you live. They can help you understand the changing market, what processes are working well and how to avoid repeating past mistakes.

Set next year’s goals. With your customers’ needs, your employees’ abilities, and your advisers’ ideas clearly in mind, it is time to set goals that will provide the focus and direction for the next twelve months. I am not talking about making New Year’s resolutions that you forget by February 1. This is the time to reevaluate your business plan and make the changes that will propel you into the future. 

Aim high. Know where you are headed and what steps you need to get there. Success isn’t the result of being lucky. It comes from good leadership and good planning. After you have finished you can slow down, say a quick thanks for having taken the steps you need to start the year out on a good course and cruise control into 2014.

Wednesday, December 11, 2013

SGV has a lot to offer for tourists

Pasadena Star News
By: Cynthia Kurtz
Posted: 12/11/2013  

Los Angeles is the second most popular U.S. destination for overseas visitors. Only New York captures a larger percentage of international travelers. Tourism is on the rise and is expected to be one of the leaders in Southern California's economic recovery.

That is good news for the San Gabriel Valley. The SGV is an important Asian center in the U.S. and that means lots of Asian visitors. In 2012 hotel/motel room occupancy was 68.8 percent, more than four percent higher than 2011. 2013 is expected to close with an even higher 70.8 percent occupancy rate.

Where are all these visitors staying? All around the SGV but one destination does stand out as a favorite for the international traveler - the Pacific Palms Resort and Conference Center in the City of Industry. Close to 500,000 visitors annually enjoy this beautiful facility.

Located at the intersection of Los Angeles County, Orange County and the Inland Empire, the Resort is also a favorite stay-cation destination for Southern Californians.

Nearly 400 golf events are hosted each year at the Resort's two public golf courses both designed by the renowned golf architect William F. Bell - an SGV native. The 7,211 yard Eisenhower Course - better known as The Ike - has hosted many U.S. Open qualifying tournaments and LPGA tour events. Golfers can also enjoy a driving range, putting green and pro shop.

The International Association of Conference Center's certified conference & golf resort - the only one in California - includes 45,000 sq. feet of conference space that offer as many as 32 meeting rooms.

The golf complex and conference center were built in 1980 on a reclaimed landfill. The amazing transformation was awarded the "The Outstanding Civil Engineering Achievement Award" in 1981 from the American Society of Civil Engineers.

The 292 guest room hotel was added in 1983 so conference goers could relax close by. 

On any visit to Pacific Palms Resort you are likely to witness filming. Whether the scene requires a gazebo on top of a hill, golf course, ballroom or busy lobby, Pacific Palms has the perfect spot. The Resort is just inside the "30 mile"  filming zone boundaries used by union film projects to determine per-diem rates for crew members making it not only versatile but also economical for film companies. 

Past shoots include the CBS hit show "The Mentalist", Showtime's sociopath thriller "Dexter",  the critically acclaimed CBS series "Man of a Certain Age", one of my favorites, ABC's "Grey's Anatomy", and the made for TV movie "Craigslist Killer".

Pacific Palms Resort and Conference Center also creates significant economic benefits providing close to 400 jobs. Tourism is a critical part of the SGV economy, employing almost 62,000 people and adding over 3,000 jobs in 2011.

You don't have to be a visitor to enjoy Pacific Palms Resort. If you haven't been there lately you should treat yourself to a day at the spa, a great meal at Cima or Red, or a round of golf. You'll be glad you did.

Wednesday, December 4, 2013

Lots of things to be thankful for

Pasadena Star News
By: Cynthia Kurtz
Posted: 12/04/2013

Thanksgiving is over, Black Friday is history, Small Business Saturday a thing of the past, and Cyber Monday visible only in the rearview mirror. You may wonder how all these commercial mileposts got connected to our national day of thanks. It seems we did it on purpose.


American presidents Washington, Adams, and Madison proclaimed national days of thanks. Finally, in 1863 President Lincoln established the last day in November to be an annual National Thanksgiving Day. 

However, it was President Franklin Roosevelt who made the first connection with the economy. He changed Thanksgiving to the fourth Thursday in November. He said it would help the economy. 

Regardless of how and when it started the day after Thanksgiving is the kickoff of the Christmas season and, therefore, the kickoff of the shopping season. That doesn't make everyone happy.

We need to adjust our thinking. Americans have so much for which to be thankful that one day isn't sufficient. Therefore, I suggest we proclaim Thanksgiving as the kickoff to a season for being thankful. So, even though Thanksgiving is officially over, I am going to share some of my season of Thanksgiving list. I am thankful because:
         
The unemployment rate in California is 1.4 percent lower this year than last year.

There are over 1,300 new businesses in the San Gabriel Valley.

SGV business added over 6,000 jobs last year.

The Foothill Gold Line Light-rail is to Azusa will be completed in 2015.

Alameda Corridor East will receive almost $120 million of Prop 1B funding in 2014 to grade-separate two busy rail crossings.

Our members support the SGV Economic Partnership because they believe in what we do.

I don't have to sit in West LA traffic every day. 

I can enjoy excellent international cuisine from any country in the world without leaving the SGV.

I work for a Board of Directors who are my bosses but more importantly, my friends.

The Partnership staff is smart and dedicated.

My cat stopped using the living room chair as a scratching post... I think.

My husband makes a great martini.

I live in California.

And last but certainly not least - I am thankful for my readers. I hope my columns provide useful information, interesting perspectives, and even make you laugh from time to time. 

And remember you can shop and still be thankful at the same time.

Wednesday, November 20, 2013

JPL a leader in science, technology

Pasadena Star News  
By: Cynthia Kurtz  
Posted 11/20/2013

The Jet Propulsion Laboratory's annual report for 2012 begins with a question. "Can it get any better than this?" It was posed by JPL's Director, Charles Elachi, regarding the defining moment on August 5, 2012 when the mission team, the San Gabriel Valley and the world knew that Curiosity, the Mars Rover, had safely landed on the Red Planet. 

This week they did it again with the flawless launch of MAVEN - a spacecraft that will investigate the atmosphere of Mars when it arrives next September.

This epic began in 1936 when a team of Caltech students and researchers was asked to conduct its experiments "somewhere else” after an unfortunate explosion on campus. They chose an isolated area near the San Gabriel Mountains. It was a humble beginning for what was to become the most prestigious space exploration center in the world.

Today JPL, a NASA laboratory managed by the California Institute of Technology, is well known as a pioneer in space exploration. JPL's impressive resume of technological innovations has transformed not only our region but our world.

Since launching the Explorer 1 satellite in 1958, JPL has reached into the uncharted depths of the universe.  

Voyagers 1 and 2, the only man-made objects to ever leave the solar system, were built and are still operated by JPL. Now in their fourth decade of exploration, the Voyagers have passed the farthest planets in our solar system and continue to send back information about the previously unexplored places in space through the antennas of the global Deep Space Network which is also managed by JPL.

Through its innovative work in robotic space exploration, JPL has become a world leader in science and technology. Tools developed for space explorations provide us the opportunity to learn more about our own planet, its climate, oceans, geology and atmosphere.  

NASA has announced two future Mars missions for JPL - InSight that will study the planet's interior in 2016 and a major new rover in 2020.  

Under the leadership of Charles Elachi the 5,000 geniuses and rocket scientists who work at JPL are sure to excite, surprise and make all of us in the San Gabriel Valley proud as they plan these new missions. 

Wednesday, November 6, 2013

State needs to put out the welcome sign

Pasadena Star News  
By: Cynthia Kurtz  
Posted 11/06/2013

California has more manufacturing jobs than any other state in the country. While many jobs have disappeared - victims of off-shore relocations, wooed by other states or forced to close during the recession - the state still has significant manufacturing strength. Nearly one in every 10 California jobs is in manufacturing. 

The San Gabriel Valley continues to be a center for manufacturing with 54,500 manufacturing jobs. While far less than the 96,000 positions in 2000, this is still a major part of our economy. The importance of manufacturing jobs cannot be overstated. The positions pay above average wages, offer opportunities to employees without college degrees and create wealth for the region.

Recently, there have been a lot of conversations about manufacturing jobs coming back to California and many believe that the best prospects are in high-tech manufacturing - technology driven industries such as communications, electronics, defense and aerospace. But California isn’t the only state that is looking to attract and retain high-tech manufacturing jobs. If we are going to be successful, we need to work together and there needs to be a plan.

That is where California Forward and the California Stewardship Network come in. They have been holding regional Summits for business and civic leaders to talk about middle-class job growth and regional economics. Through these discussions advanced manufacturing was identified as a priority and a plan was developed that highlights five steps:

1.  "Create a “California Campaign for Manufacturing” Campaign" - Let advanced manufacturing companies know that we want them here. Often California is labeled “unfriendly.” If we want high-tech manufacturing, let’s tell them. Simple but effective.
 
2." Make California Regulations a Competitive Advantage" - Not as straight forward as
    creating the campaign but it is true that business don’t just compete on products and
    price. In the high-tech world, customers also care about social responsibility and the
    environment. California has some of the strictest regulations in the nation. How can
    companies use this to be more competitive?

3.  "Promote Innovative Manufacturing Partnerships" - California is a big state with a variety of unique regions. Each region has its own assets - universities, community colleges, communities and businesses. These groups need to identify and focus on their high tech manufacturing clusters.

4.  "Support Manufacturing Skills" - Training programs that meet the skills of a region’s high tech manufacturing industry are critical if businesses are to grow.

5.  "Promote Exports and Direct Investments" - No state can beat Southern California when it comes to exports and direct foreign investment opportunities. We have the Ports, airports, Foreign Trade Zones and EB-5 program. They all work together to support exporting and foreign investments.

The next California Economic Summit is on November 7- 8, 2013 at the LA Hotel Downtown, 333 S Figueroa St. This meeting will focus on implementing the plans.  Check it out at www.caeconomy.org/summit. It's not too late to be involved.    

Wednesday, October 30, 2013

Medical center transforms lives

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 10/30/2013 

This year the City of Hope is celebrating its 100th anniversary. It was 1913 when the Los Angeles Sanatorium opened on 10-acres in the City of Duarte. There were two tents - one for the three patients and one for the nurse. It was a free hospital dedicated to the care of those with life threatening diseases, spurred by the lack of care for tuberculosis patients. 

Its reputation for compassion attracted many supporters and by the 1920s the tents had become buildings, the three patients had grown to hundreds of patients and the nurse had become a team of doctors, nurses and caregivers.

By the mid-1940's tuberculosis was on the decline and the institution's leaders adopted a plan to turn the sanatorium into a national medical center with a focus on cancer. In 1949 the institution officially adopted the name "City of Hope." 

Each decade has brought new services generated by new and often astounding discoveries. Today, City of Hope holds more than 30 new investigation drug applications at any given time. More than 200 patients generate over $220 million each year for medical research. Over 4,300 staff members serve at the not-for-profit research center, hospital, and graduate school which now occupies 110 acres in the central San Gabriel Valley.

City of Hope's research promises to transform the future of medical care through reprogramming patients' immune cells, harvesting compounds from super foods, and using stem cells to reboot immune systems to name just a few of its advanced research projects.

While much has changed over the decades - the compassion at the heart of City of Hope has not. One of City of Hope's early leaders, Samuel Goller said "there is no profit in curing the body if, in the process, we destroy the soul." 

None of this would have ever been possible without great leadership. For the last decade, the City of Hope has been under the exemplary leadership of Chief Executive Officer, Dr. Michael Friedman. This year Dr. Friedman announced that he would retire at the end of 2013.  

Thank you Dr. Friedman and congratulations to everyone at the City of Hope. You have transformed the San Gabriel Valley and the world through research, education, and outstanding compassionate medical care.

Wednesday, October 23, 2013

Pasadena, Alhambra rank 20 and 21

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 10/23/2013  

Thank you Livability.com. Finally, a study that doesn’t lump all of Southern California into one place called the “Los Angeles area.” 

Livability is an online publication that looks at life in small to mid-sized cities. Every month it publishes a top-10 list ranking some aspect of city life. It is always looking for the best places to live, work and visit. 

Once a year it selects the top 100 best cities to live in. These 100 cities are selected from more than 1,700 cities nationwide, so it is no easy task to make the list. This year two San Gabriel Valley cities not only made the list - they made the top 25 - Pasadena at 20 and Alhambra at 21. 

The rankings aren’t based on opinions or hunches. Access, affordability, choice and utilization of eight essential attributes of community life are examined - economy, health care, housing, social and civic capital, education, amenities, demographics and infrastructure.

Livability partners with two well-known organizations to prepare the Top 100 list. Martin Prosperity Institute at the University of Toronto’s Rothman School of Management prepares the index and Ipsos Public Affairs, a leading market research company, conducts survey research.

Pasadena’s highest score was for amenities. Livability looked at physical amenities, weather and the arts, which have a positive impact on developing creative and innovative communities. Is it any mystery why Pasadena scored well? Its historic neighborhoods, exceptional architecture, and exemplary climate all added points.

Being home to the Tournament of Roses, Rose Bowl, Kaiser Permanente and Caltech - the number one school in the world - are all amenities that are unmatched in any other place. With 16 museums, 11 performing art halls, restaurants and shopping all accessible by walking, Pasadena easily beat the average amenities score of 46 with a whopping 88. 

Alhambra scored especially high in demographics which includes diversity in race, education level, age and social economic status. Livability says diversity of demographics is necessary to get “diversity of opinions (and) better decisions for businesses, governments and societies.” The average diversity score was 50 but Alhambra blew the competition away with a 79.

All that adds up to a lively mix of businesses, events, international restaurants and markets. Having excellent schools, charming neighborhoods and an active nightlife also helped get Alhambra rank high on the list.

Some of the SGV’s neighbors were also winners. Burbank was 33, Glendale, which just so happens to have a city manager from the SGV, came in at 52 and Whittier 82.

Of course Livability didn’t find all the great SGV cities. Many others - Claremont, Glendora, Sierra Madre, Arcadia, Duarte, and Monrovia just to name a few - are also great places to live. But SGV can’t take all the top awards in the same year!

Congratulations Pasadena and Alhambra for this well-deserved recognition.

Wednesday, October 9, 2013

Snak King honored as top business

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 10/09/2013 
 
Every year the San Gabriel Valley Economic Partnership honors the movers and shakers who make the San Gabriel Valley such a special place. And every year I wonder if we will find honorees that are as deserving as past recipients. I shouldn't worry. Every year we find great companies, organizations and businesses to celebrate, and 2013 was no exception.

Our 2013 Business of the Year is Snak King - an inspiring SGV success story. In 2012 alone the company launched 107 new products, acquired Illinois based C.J. Vitner Co., one of the oldest names in the snack food industry, essentially doubled its work force to 900 employees, and more than doubled its floor capacity to 600,000 square feet, putting an exclamation mark on the company’s reputation as an industry leader. 

Success hasn’t come easily. Snak King was founded in 1978 to produce private-label pork rinds for a local tavern distributor. Chairman and CEO, Barry Levin, started on the production floor making pork rinds, running the fryer, operating the forklift, making sales calls, and keeping the books. The company lost $100,000 in its first year.

A year later, with the company losing money and just three employees, Barry was convinced by his family to take over the business. Two years later Snak King earned a profit. Barry reinvested those profits into the company and gradually added to the product line. In 1994, Snak King purchased its current location in the City of Industry.

Then in 2004, torrential rains caused the roof to collapse at the production facility. The company's future was at risk. Friends advised "take the insurance money and walk away." But the Snak King team rebuilt and retooled the facility at a cost of $30 million. It took three years to bring the facility back to full production, but they did it and they haven't looked back.

Today Snak King is one of the largest independent snack food manufacturers in the United States. Their own brands - Granny Goose, Jensen's Orchard, El Sabroso, The Whole Earth and Vitner's - can be found in stores, vending machines and supermarkets across the world. 

The formula for their success: a commitment to providing the best snack products for their customers and a focus on "team." Barry Levin is the face of the company but he quickly gives credit to his team. Focusing on the team, he believes, allows for greater innovation, better execution and stronger customer service.

Congratulations to Barry Levin and the entire Snak King team. We are proud to have you in the San Gabriel Valley.

Wednesday, October 2, 2013

Foreign trade zones create win-win

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 10/02/2013 

There are several Foreign Trade Zones or FTZs in the San Gabriel Valley. They allow merchandise to be brought into the U.S. without paying the duties and excise tax upon entry. Instead, the tariffs are paid when the merchandise leaves the FTZ. 

FTZs have been around under the oversight of the U.S. Department of Commerce since 1934 so clearly they are providing value but many people don’t understand what that value is and how important they are in a region like the SGV. Recently Craig M. Pool, President of Foreign-Trade Zone Corporation was the speaker at the Industry Manufacturers Council (IMC) lunch. He promised to make FTZ’s simple kept his word.

Foreign trade zones are always located near U.S. points of entry. Property within the zone is considered to be outside the supervision of the U.S. Customs and Border Protection. That means the entry procedures and payments of duties are not required on the foreign merchandise as long as it remains in the FTZ. The duties are paid when the merchandise leaves the zone for “domestic consumption.”

You may be wondering what the big deal is. Why does the government bother authorizing and overseeing these zones just so duties and excise taxes are delayed. Mr. Pool explained why FTZs are good policy and good for business.

FTZs create jobs here. The combined tariffs on the components of a product are sometimes higher than the tariff on the finished product. In order to survive in a competitive market, companies have no choice but to assembly off shore. If the components are brought into and assembled in the zone, the jobs are created here and the company reduces costs by paying the tariff on the finished product. A win-win.

Sometimes a single major component has a higher duty rate than the finished product. For example, the duty rate for the motor used in the “Little Green Machine” vacuum cleaner is 5.3 percent. The duty rate for a vacuum cleaner is 3 percent. If the machines are assembled in an FTZ, it reduces the rate, reduces the product cost and creates jobs.

If during processing, your project has a high yield loss, paying the duty on the end product rather than the raw materials can add up to huge savings.

Duty deferral can be a big help to companies purchasing expensive production equipment. If the equipment goes into the zone and is held until it is ready to be put into use, no duties or excise taxes need to be paid until that time. The cash flow impacts on big projects or seasonal production facilities can be the difference between making or not making the purchase.

In the past the FTZ was a defined geographic area and to take advantage of the benefits, a company had to move some of all of their operations into the zone. That is changing. Now there are alternative frameworks available that allow a company to take advantage of the FTZ benefits without moving. If you are located within the “service area” of an FTZ, the benefits can come to you.

If you think your business might benefit, you can contact the U.S. Department of Commerce Foreign Trade Zone in Washington D.C. at 202-482-2862. 

Wednesday, September 25, 2013

Good time to update your emergency plan

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 9/18/2013

September is National Preparedness Month and a good time to reassess your disaster plans.

The unfortunate truth is that most folks think about getting ready for a disaster right after a disaster. The American Red Cross is trying to change that thinking with the “Prepare the San Gabriel Valley Campaign” and their “Ready Rating Program.”

“Only six percent of Californians have made plans for what to do before, during and after a catastrophic event,” says Ben Green, CEO of the Red Cross San Gabriel Pomona Valley Chapter. “Preparedness is critical in preventing and alleviating the impact of disasters and city officials, businesses, and individuals are encouraged to participate in the campaign.”

If you are thinking that you really should review your plan, National Preparedness Month is a good opportunity to start. The Red Cross knows how important it is to be prepared now. They respond to 70,000 disasters every year. 

It’s not just earthquakes. Disasters come in many forms - wildfires, tsunamis, home fires, pandemics, heat waves, floods, landslides, downed power lines and terrorism. No one is immune from disasters at home or at work.

One-third of businesses have no plan for how they will respond if a disaster interrupts operations. But 82 percent of businesses say they would develop a plan if someone made it easy. 

The Red Cross’s Ready Rating Program makes it easy and convenient. Best of all, it’s free.

Ready Rating is on-line program at www.readyrating.org. After you sign up for the free membership, the 4 minute and 31 second “1-2-3 assessment video” will tell you everything you need to use the site.  

A simple questionnaire allows you to assess your current level of preparedness, create a tailor made plan, begin to implement the plan and even learn how to help others during a disaster. As a member you have access to your assessment anytime you want.

The site allows you to generate customized reports about your plan. Whenever you update your information, a new score card is generated enabling you to track your progress. This easy self-paced tool can dramatically improve your level of preparedness.

Wednesday, September 18, 2013

Revamp should create level playing field

Pasadena Star News  
By: Cynthia Kurtz                   
Posted 9/18/2013 

Let me start with apologies to my readers who are getting tired of so many columns about CEQA reform. However, for people who are interested in how policy is made, this issue is the gift that keeps on giving.

This was to be the year for CEQA “modernization.” The Governor said it would get done. SB 371 was introduced by Senator Steinberg and touted as the CEQA reform bill for California. Interested parties were engaged and business advocates asked for changes to give more certainty to timelines and reduce excessive litigation. 

However, Senator Steinberg said that what business wanted went “too far” and so didn’t include the business-backed changes in his bill.

Last week SB 743 popped up - a “gut and amend” bill also authored by Senator Steinberg. Gut and amend means that at the end of the session a bill that is clearly not going to pass gets rewritten with a new topic and purpose which has nothing to do with the original topic and purpose. When the changes are made at the end of the session, the bill can avoid all the pesky public hearings that are part of the normal legislative process

Last year when a CEQA reform bill that was backed by business was proposed by Senator Rubio at the end of the session there was a hue and cry that CEQA was too important to be changed through gut and amend legislation. Didn’t hear any objections to the process for SB 743. But I digress.

SB 743 expedites the CEQA process for the proposed new downtown Sacramento NBA basketball arena by allowing the project to go straight to court in the event there is CEQA litigation thereby giving more certainty to the timeline. It provides for mediation of disagreements over environmental issues as a shortcut to avoid litigation and requires the courts to issue a ruling within 175 days.

As reported in the Sacramento Bee, the bill was introduced to cut through what “Steinberg and others have called a burdensome environment impact study process under the California Environmental Quality Act.”

In case you aren’t following other northern California news, Senator Steinberg is a candidate for mayor of Sacramento.

I am not suggesting that SB 743 was a bad bill. The arena is not getting an environmental exemption. It will have to meet ALL environment standards. It will have to complete all the studies and reviews required under CEQA. It will have to mitigate its impacts. It will have all the public review required by the California law. 

What I am asserting is there should be a level playing field. If Senator Steinberg and the Legislature believe this process is good for the arena why shouldn’t it apply to other projects? SB 743 was pushed as a job-creation bill. In case there is any misunderstanding, developing housing, expanding manufacturing facilities, and building public infrastructure also creates jobs.

SB 743 passed. SB 731 did not.

Even after this state legislators will continue to scratch their heads and wonder why, year after year, California keeps ending at the bottom of the list of “business friendly” states.