Recovering from Ike

It would be nice to say that this storm is behind us, but its impact will be with us for weeks or months to come. It is the most devastating storm that I have ever seen and its implications are far worse than I have ever experienced (Allison pounded me personally and was horrible for many, but won’t touch the impact of Ike).

Ike is strange. On Saturday I enjoyed the Internet and had water pressure. Now I am boiling water and using almost any means necessary to get information online. A day after writing this post I have full water pressure and the Internet. It is all very interesting. It is clearly a situation of two steps forward, one step back. This creates a sense of vulnerability that I had not felt just on Saturday. You want to feel as though you are only making progress. Storms such as this are not always so accommodating.

We were very fortunate in that we lived just a block or so from a hospital. Our neighborhood was a priority and we are not enjoying power. Most of my friends are without power and have no idea when it will return. Oddly, I actually feel a little guilt. Don’t worry, I will get over it, but it is life after a hurricane.

The long term economic implications are going to be significant. Everyone whose business is Houston has customers at various levels of stability. We are better off than most, but we are only as well off as our weakest clients. We are going to be limping along like our customers.

I have lived in the Houston area since 1990. Since that time the benchmark of a major Hurricane had always been Elisha from the early 1980s. Now people say it is the biggest one since Carla (from the early 1960s), which means Ike will become the most common benchmark. When people in the Houston area talk about “the big one,” it will be Hurricane Ike.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Dispatch From Ike

I have lived in the Houston area for almost two decades and I have slowly become desensitized to those things called Hurricanes. Ike, however, was a big one though and we Houstonians don't like Ike. It actually made me very nervous days before it hit. But my family always stays. We stayed for Rita while others died on the road trying to get away from it. We have decided that if the government wasn't explicitly telling us to leave, we were staying. We weren't part of the evacuation orders and we were not going.

We lost a gate, accumulated a nice body of water in the back, have limbs and leaves all over the front yard and that is about it. But the surrounding area looks like something out of a sci-fi movie. Most stores remain closed and those that are open remind me of the old Soviet Union where the lines were long and the product choices were short. It isn't pretty. We were told to expect up to four weeks to get power restored . We lost ours around 2 am and it was back by 8.30 pm. It helps to live a block from a hospital. Millions, I am told, are still without power and we have a curfew that begins at 7 pm.

Still, there was an upside to the storm, especially on a personal level. I didn't lose anything, unlike the situation with Allison who took my home and car in 2001. But there is also the sense of community that comes from such a storm. Neighbors helping neighbors. People outside and talking to each other because it is more comfortable than being in the house. Parents spending more time with the kids and siblings actually playing together rather than video games, because electricity is out. It is all very nice and reminds me of the good old days that we all miss.

Then again, we couldn't be happier when we saw the truck from the power company come down the street. It was already pitch blank and we gave collective applause we saw that multi-light, crane connected, dream machine cruise down our street. Quickly we were on the quest for the remote and dying to get to the refrigerator that we needed to keep close all day because of our power problems. So much for simpler times! We did all enjoy fighting over the remote though. Together.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

That Stubborn Recession

That stubborn recession. Won't it ever come? What? Surely we are in one? You have to wonder in light of a recent press release from the Conference Board which provides updates of economic activity. The problem is simple. It takes two quarters (six months) of continued economic decline to have a recession. We have been crying "recession" for almost a year, but have struggled to tie together months of decline. It has been really difficult for the doomsayers.

The Conference Board today has only made it even tougher. In a recent press release they point out that there has been an 0.1 percent increase in the Composite Index of Economic Indicators in April and this is the second month in a roll that we have seen such an increase. In March it went up 0.4 percent. It doesn't bode well for those who celebrate decline. The index measures the following ten areas (from Investopedia.com):

1. the average weekly hours worked by manufacturing workers

2. the average number of initial applications for unemployment insurance

3. the amount of manufacturers' new orders for consumer goods and materials

4. the speed of delivery of new merchandise to vendors from suppliers

5. the amount of new orders for capital goods unrelated to defense

6. the amount of new building permits for residential buildings

7. the S&P 500 stock index

8. the inflation-adjusted monetary supply (M2)

9. the spread between long and short interest rates

10. consumer sentiment

The most recent report average a net increase in the above areas. Read the complete release for more details.

I admit, I have seen indicators that the economy is a little softer than I would normally like to admit and I know places other than my Houston have been hard hit. I have seen office space available longer than most would prefer, I have seen a jump in the price of our family's gallon of milk, and other signs of struggle. But this is a remarkably resilient economy and seems to be quietly proving that in spite of headlines with a really negative message.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Houston Area Job Board

Recently dBusinessNews released the following announcement:

Kevin Price, Host of the Houston Business Show (M-F at 11 AM on CNN 650) announced the addition of a new jobs board on HoustonBusinessShow.com. "The job board is new to the Houston Business Show, but is powered by one of the most powerful companies on the Internet when it comes to finding jobs and employees." From day one individuals will find 1.5 million jobs online.

In addition to over a million jobs in thousands of areas, the site offers numerous additional tools including:

* How to Make Your Resume Stand Out

* Find Out What Your Background Shows

* How to Get your Resumes in Front of Hiring Managers

* How to Get More Exposure to Employers

* And Get a Free Salary Report (learn what others in your field are making.

Many of the resources on this site are free and tools are available for both those looking for a job and looking to hire.

Visit the Houston Business Show Jobs site today to post a job, post a resume, and explore the many great resources for employers and potential employees. Email us at Info@HoustonBusinessShow.com if you have any questions.

I am, of course, delighted by this addition and wanted to share it with my readers. The great thing about it is that you can post to find a job or an employee anywhere.

Listen to a helpful audio program on dealing with job loss by clicking here. It is an interview with Kathie Bowersox of Quantum Leap Success Coach.

Recession Resistant Cities

Recently, Forbes magazine did its survey of the ten most "recession proof" cities. I didn't like the term "proof" and softened it with "resistant," because a bad turn in the economy could change everything. I love Forbes and lists like this and was particularly delightful with its choices.

So what are the top ten?

Number 10, Dallas/Fort Worth, Texas. Get used to seeing Texas, it is one of only two states that has more than one city on the list and it enjoys four cities at that. With median home prices up 5 percent, unemployment at a paltry 4.3 percent, and a 5.6 percent increase in jobs in the crucial education and health care areas, DFW is looking pretty.

Number 9, Charlotte, NC. Median home prices are up 3.3 percent, unemployment is a modest 5.4 percent, and there has been an increase of more than 4 percent in the growth of professional, business services, leisure, and hospitality. Obviously a strong city, but some numbers (like unemployment) are going in the wrong direction (up from 4.7 percent since last year). Why wasn't DFW above this?

Number 8, Seattle, WA. The "emerald city" enjoys a median home price up 1.2%, unemployment at 4.3 percent, and employment growth in leisure and hospitality, 4.1%; manufacturing, 2.6%.

Number 7, Houston, TX. I would make it higher on the list, but I am also the poster boy for the city's chamber of commerce. Median home prices are up 1.1 percent, unemployment: 4.2% (acutally less than last year from 4.5%), and key job growth areas that include natural resources, 5.9% and construction, 4.7%.

Number 6, Salt Lake City, UT. Median home prices are up 2.5%, unemployment is a remarkably low 3.1 percent (slightly higher than last year), and key growth areas of education and health services (both up 5.5%).

Number 5, Raleigh, NC. Median home price is up 4%, Unemployment is a low 4.2% (from 3.7%), and their key growth includes rofessional and business Services, +7.4%; education and health, +6%.

Number 4, San Jose, CA. This one made me scratch my heads! Most of California is being taxed and regulated into oblivion, so this is a healthy exception. How healthy? Median home prices are still going up, way up to 11.2%, unemployment is a healthy 5.2% (from 4.7%). and it's
key growth area is in Information is up 4.5%.

Number 3, Austin, TX. Median home prices are up a vigorous 6.4%, unemployment is an extremely low 3.6% (from 3.8%), and the key growth areas are natural resources and construction, 5.1%; and leisure and hospitality, 5.3%

Number 2, San Antonio, TX. Texas' number one city according to Forbes enjoys a median home price increase of up 7.9%, unemployment at 4% (from 4.3%), and key growth areas include construction, 6.3%; and leisure and hospitality, +4.9%.

When I do articles such as this I feel like a disc jokey, and you can almost hear the drumb roll and wild deep voice with "NUMBER ONE..."

Oklahoma City. This is interesting and maybe even a little disappointing. It is linked almost entirely to energy and includes the following numbers: Unemployment: 3.5% (from 4.7% in February 2007) and key growth areas in leisure and hospitality, +6%; construction +11.5% from 2007.

Interesting choices, all largely accurate in my opinion (although I could disagree here and there). All of them are in the West and South and they are also among the fastest growing areas in population in the country. I can speak from personal experience that Houston can absorb more people.

Most of the cities rest comfortably in states with very pro-growth economic policies. They tend to be Right-to-Work, less regulatory, pro growth tax focus, etc. San Jose is about the only one on the list that doesn't have such an approach. How can other states become "recession resistant?" By implementing similar policies as most of the states on this list.

For a copy of the free audio program and free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Staples Reading BizPlusBlog

Today I received a call from a spokes person of Staple Office Supplies and she just wanted to mention that the box store is moving to Houston. I was delighted to be informed and have written about the company often in BizPlusBlog. Further, I wanted to compare them to the mainstay in Houston, Office Depot.

Vanessa Astros (of the Fleishman-Hillard Agency, which represents Staples) was quick to tell me that "I read your blog on March 13 about how there were no Staples stores in Houston, and I thought to myself...wow, this is perfect timing! Staples will open four stores this year, including the first store on Almeda-Genoa and I-45. It's a real neat story because, as you said, it brings competition and options for consumers." Yes, I am a big fan of competition and am looking forward to seeing a Staples in our area.

Four stores is a pretty aggressive effort and I am looking forward to having one added in my area. Furthermore, she said that there would be a couple more added in 2009. The first one is having it's grand opening next week. It will be interesting to see how many Houstonians will press the "Smart Button."

For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Google's Street View: A Very Strange Trip

Any frequent reader of this blog or listener of my show knows that I am from the Detroit, Michigan area. The suburb of Ferndale, to be precise. Growing up there, I had a relatively happy childhood and loved my neighborhood in particular. I have told my kids more than a few stories of my old home town.

The last time I visited was 1981 after living in Texas for around five years. My brother was there at the time and I thought it would be fun to visit. He was planning on coming back to Texas with me so I spent a few weeks catching up with old friends and visiting some of the sites and sounds that made Michigan home. I really thought I would visit again, but that has yet to materialize.

A few years ago Google Maps came on the scene with its nifty satellite and I finally got to see the old neighborhood. Sure, it was just the roof tops and really rough side views, but I got a sense of what it looked like. Then we got Streetview. I noticed it was only at a few locations at first -- none near the Detroit area -- but in no time it all it was in Pleasant Ridge, about a half a mile from where I grew up, and this week, it is along Hilton and zipped right down Goodrich, where I grew up. I saw the church at the end of the street that I went to, the tree I ran into playing football, and all the homes of my friends I grew up with.

It was interesting and, oddly, largely took away my desire to visit. I don't know if that was an intended result, but the travel industry may never be the same. I tell you something else it may have shot -- new websites designed to connect people to their old home towns. At least any such sites that would charge money.

However, Streetview is still cool and I'll keep watching for its expansion. I'm looking forward to seeing the park that I grew up (and often fell down) in.

Click the Google Map image above and you will find the map and a little guy standing on my street. Click Streetview, and then the little guy and you will see where I grew up. If you care. I liked it any way. You might like to go from there to some great places you want to remember.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Remembering Louie Welch

As most readers of this blog or listeners of my show know, I graduated from Abilene Christian University. ACU is well respected -- a top 3 for Master's level universities in Texas and in the top 25 in the South and West according to US News & World Reports, but it isn't well known. Furthermore, we lack the list of prestigious alumni that universities tend to hunger for.

One of those alumni that made a difference was Louie Welch, former mayor of Houston. Welch served four years on the city council before finally winning mayor. Who wouldn't leave that latter position until he finished an impressive five terms. He took over that spot during the turbulent 1960s and his tenure was filled with defusing the tensions between a white population that wasn't ready for equal rights and the African American population that rightfully demanded such.

In the end, he made significant progress on that front, quietly playing a part in protests on the behalf of minorities and overseeing major changes in attitudes. He was, without question, one of the most progressive Southern mayors in the 1960s.

He tried a political comeback in the 1980s and found himself in trouble over statements on homosexuality. In spite of this controversy, Welch is remembered fondly by the Houston community and is a great ACU alum who has made a difference.

I got the opportunity to meet Mr. Welch while we were both waiting for planes at the airport. He was polite and extremely friendly. He was absolutely thrilled that we both shared ACU in common and that I appreciated his service to the city. He was just that kind of person.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Relocating a Business to Houston

I'm asked often by friends all over the country why they keep hearing about business relocating to Houston. Some facts showcased on the Greater Houston Partnership website might provide the best summary to such a phenomenon:

Number 1

Lowest cost of living among 24 largest metropolitan areas (ACCRA Cost of Living Index).

Fastest growing companies (Forbes Magazine).

Job Growth (U.S. Bureau of Labor Statistics).

Number of building permits (Demographia).

Number 2

Most popular city with movers (U-Haul National Migration Trend Report).

Texas –– Best Business Climate in the Nation (Site Selection).

Number 3

Fortune 500 Companies (Fortune Magazine).

Best Metros for Business (Forbes Magazine).

US Metros for Business and Careers (Forbes Magazine).

The list goes on and I encourage readers to check it out. Houston is great for business which is exactly why we are attracting companies, entrepreneurs, and individuals looking for opportunity both nation wide and around the world.

The above video, produced by Houston Business Show Advisor Andy Valadez of Marketing Dynamics, is of Mayor Bill White's comments at a recent Houston Networking News event on why there is so much economic growth in Houston. To keep informed of the best in best news and information, subscribe to the Houston Business Review newsletter.

How to Market to Houston Businesses

Secret: This article will work in almost any city, but even the title is a part of the marketing strategy. At the time of this writing most of my clients are in Houston, I want them to find me in a simple Google search. I think you get the idea.

The way people market today is predicated on factors that really didn't exist just a few years ago. You would almost think that someone would have told many marketing businesses that they have no legitimate reason to exist with the advent of the Internet. Or, at the very least, they should make it clear that there expertise doesn't include the Internet if such is not the case. Ironically, some of the largest and most prestigious lag far behind in developing Internet based strategies.

I believe in the convergence of media. I believe some people like some sources of information while others might prefer a different means. I like everything; audio, video and (I'm old) articles. Some like TV, but increasingly many prefer to watch TV online (as Rupert Murdoch likes to say, "when and where they want it."). My firm uses TV, radio, podcasts (video and audio), articles, blogs, etc. to reach audience for our clients. With over 100,000 unique viewers and around 1 million hits each month, this strategy is working.

The hardest people to reach are business owners. It is quite common for them to work 10 hours plus, but still want to be kept informed. These individuals are quick to turn the page at the first sign of an ad, flip a channel at first sight of the commercial, or spin the radio at first sound of a break in their programming. My answer to that problem is simple. Get your message across when people are listening and watching. The group I describe as "the Accumulators" demand such.

I produced an audio about this important demographic group and I have been told by colleagues that recognizing this group and developing strategies to reach them can make or break a business. I have been encouraged to more vigorously spread the word on it, which is why I am writing this post.

I was recently interviewed by Robbie Adair of the Media A-Team on the power of the convergence of media (an essential element in reaching Accumulators) and want to invite readers to watch it here. Until people understand the importance of a multi-media approach and the role Accumulators are playing in the economy, they are going to find acquiring business a much more frustrating proposition.

Note: Order Kevin Price's audio program The Accumulators, which explains the impact that the Internet is having on marketing and consumer behavior. It is available online here for only $10 plus p and h. Receive the Houston Business Review e-zine free each week by clicking here.

Roger Clemens Goes Back to NY

It is odd, but I get the sense that both my town of Houston and the Big Apple of New York are giving collective sighs of relief that "the Rocket" is going back to the Yankees. Yankees are pleased because their guy is back home. Houston is pleased because we can possibly pick up a few high quality (and very needed) players with change to spare for the dollars required to keep Clemens.

I, personally, wanted to have Clemens retire in Houston. There are no Hall of Famers from the Astros and I was hoping that Clemens would be one of the first (with Bagwell, who should be a shoe in). Instead he will likely be one of the many who wear Yankee uniforms in the great museum.

I use to think retiring in Houston would have certain economic benefits for Clemens, but I don't think it will matter any more. He is rich beyond measure and I don't think he needs to make many long term economic decisions to abundantly secure his future. Furthermore, Texans love him. He will always be the kid from Spring Branch (my kids go to the High School he went to), who has his "Roger Clemens Foundation" sign littered on many good projects. His foundation even provided a scholarship to my daughter to take a dual credit college class she took.

I have no doubt that Clemens will settle down here for good soon, his kids and wife are entrenched in the area. He will likely make as much, or more in that next career as he does now as an athlete. He will probably have a dealership, promote HEB grocery stores or others, and will be an all around good citizen. The economics of Roger Clemens is very good.