Caught by the tale!

April 30, 2008

 

As reported today in Bloomberg.com

The Federal Reserve lowered the benchmark U.S. interest rate by a quarter point to 2 percent and indicated it’s ready to pause after seven cuts since September.

“The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time,” the Federal Open Market Committee said in a statement after meeting today in Washington. The central bank also warned that “some indicators of inflation expectations have risen in recent months.”

Chairman Ben S. Bernanke and his colleagues dropped a reference to “downside risks” to the economy, while acknowledging the damage that the housing slump has wrought on the six-year expansion. Stocks surrendered gains on speculation the most aggressive monetary-policy easing in two decades is approaching an end.

“We do not expect to see a rate cut at the next few meetings without a substantial contraction of the economy,” said Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “We are not yet to Memorial Day weekend, but the Fed effectively told us today to take the summer off.”

Inflation Outlook

Oil prices reached another record high of $119.93 a barrel on April 28. The Fed said indicators of inflation expectations have risen.

“The committee expects inflation to moderate in coming quarters, reflecting the projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization,” the Fed added. “It will be necessary to continue to monitor inflation developments carefully,” the Fed said.

At the same time, the economy is faltering. Hours before the Fed decision, the Commerce Department reported that gross domestic product increased at an annual pace of 0.6 percent last quarter. Spending by households, the biggest part of the economy, grew at the slowest pace since 2001, when the U.S. economy was in a recession.

Our Perspective:

Where is the reality check for middle America?

Now the Fed is worrying about inflation. Food and gas prices have risen sharply! This is making it very difficult for families to keep up.

Where will we find relief?

It is getting more difficult to meet monthly expenses, let alone trying to add to our savings account.

Small and medium size businesses are caught in the crunch.

Should you find yourself dealing with these tighter dollar issues, give us a call. We are working with companies creating opportunities to lower cost. There are still many opportunities to find savings.

Don’t be complaisant! Be Proactive!

We are here to serve. Contact george@hbsadvantage.com

Visit our website www.hutchinsonbusinesssolutions.com to learn about opportunities available to reduce cost and provide savings for your company.

As reported in Bloomberg

April 11 (Bloomberg) — Confidence among U.S. consumers sank to a 26-year low in April as the labor market continued to deteriorate and gasoline prices rose.

The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.2 from 69.5 in March. The reading was below the lowest forecast in a Bloomberg News survey and the weakest since March 1982.

Americans are confronting the loss of 232,000 jobs so far this year, along with higher food and energy costs and overall weakening in the economy. Consumer spending in the first half will advance at the slowest rate in 17 years, according to economists surveyed by Bloomberg News.

“The consumer’s feeling increasingly hemmed in,” said Brian Bethune, director of financial economics at Global Insight Inc. in Lexington, Massachusetts. “They’ve got higher energy bills, higher gasoline bills, higher food bills and obviously the employment markets are nowhere near as strong as they were. The economy is in a recession.”

Our Perspective:

The R word keeps popping up. Seems like more people are using it with greater frequency these days.

Allen Greenspan also used it the other day.

Seems like this has become a cyclical thing. That is what happens when we keep pushing the rock forward and not addressing the issues that confront us. We grow complacent.

So many issues are contributing to us being in this predicament. The sad part is that if you look back, we have been talking about the same issues for the last 40+ years.

What or you doing to address this issue in your own back yard?

Are you being proactive?

Are you looking to reduce cost?

Are you making your company more competitive?

So many people have worked hard and put a lot of sweat equity into building their American Dream. Don’t let it slip away.

We are working with our clients, reducing cost and strengthening their bottom line.

The time to act is now!

Do you have a question?

 

Let us know your thoughts?

 

You may email george@hbsadvantage.com

 

Hutchinson Business Solutions ……Your CFO on the Go.

 

Creating Opportunities Today,…Defining Savings for Tomorrow.

Visit http://www.hutchinsonbusinesssolutions.com/ to learn more about saving opportunities available for your company.

 

Spread the good news….. share this information with a friend.

 

U.S. Initial Jobless Claims Rose 22,000 to 378,000  

As reported in Bloomberg .com

March 20 (Bloomberg) — The number of Americans filing first-time claims for unemployment insurance rose last week and the total number on benefit rolls reached the highest since August 2004, signs that firings are increasing.

Initial claims for benefits increased 22,000 to 378,000 in the week ended March 15, more than economists forecast and the highest since the week of Jan. 26, from 356,000 the prior week, the Labor Department said in Washington. The number of people staying on benefits rose to 2.865 million from 2.833 million.

U.S. companies are cutting staff as the biggest housing slump in a quarter century, tighter credit and mounting financial losses push the economy toward a recession. The Federal Reserve, noting labor markets had “softened” as it cut interest rates earlier this week, said it would act “as needed” to promote growth.

“This is pretty much what it looks like heading into recession,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi in New York, said in an interview with Bloomberg Television. “It’s a bad number for the Fed. This is something that might keep them cutting rates.”

Treasuries were little changed after the report, with the benchmark 10-year note yielding 3.33 percent.

Weekly claims were forecast to rise to 360,000 from 353,000 initially reported in the prior week, according to the median projection of 39 economists in a Bloomberg News survey. Estimates ranged from 345,000 to 380,000.

From a company’s perspective

Many companies look to firing or laying off employees to address a downfall in the economy. This may address an immediate need but many fail to realize that this decision lives with them for 4 years.

First, if an employee collects, the payments will be paid out of the State mandated company’s account. The state unemployment programs are set up to mirror that each company has their own checking account.

The state assigns a rate that tells you how much will be put into the account and then notifies you how much has been paid out in claims.

The amount paid out directly affects the balance or reserves held in the account and have a direct relationship in determining what your rate will be over the next 4 years. The state makes a calculation based on the dollar amount of claims paid out, the reserves needed to support future claims as they relate to the taxable wage base.

 Confused yet?

That is the way the states want you to view it.

Should you have any questions about the unemployment or claim process, feel free to contact us. We deal with these issues on a daily basis.

george@hbsadvantage.com

We find many clients have been assigned the wrong rate and our overpaying unemployment taxes.

To learn more visit our website.

www.hbsadvantage.com

We look forward to discussing this with you.

Where did the day go?

December 3, 2007

 

 

Where did the day go? I had a whole list of things I wanted to get done but that went out the window as soon as I walked in this morning.

 

 

Sound familiar! Are you running your day or the day running you?

 Ever think of outsourcing? 

Companies have come to realize that outsourcing is a fairly powerful and effective management tool. It allows you to address an issue, provide a solution; increase efficiencies and profits while keeping your pulse on daily activities that demand your attention.

 

 

When a company approaches outsourcing for the first time the most challenging question is the most basic one: Where do we begin?

 

 

A recent executive forum favored starting with generic, transaction based business processes such as finance, accounting and information technology. They felt that these fields offer quick wins, attractive returns with relatively low levels of risk.

Hutchinson Business Solutions….Your Outsource Solution

Today it is more important than ever to take an objective look at your operating expenses.

 

 

Below are areas with great opportunities for savings.

  • Payroll Taxes – There is a 50% chance you are overpaying payroll taxes.
  • Sales Tax – Long thought to be the “cost of doing business.”
  • Telecom – Clients are saving from 10 % to 40%.
  • Fleet Management – You can now “put your fleet in the palm of your hand.”
  • Data Solutions – Ask about our Virtual CIO Managed Service Program.
  • Utilities – Deregulated savings for large volume users.
  • Insurance – Cost continue to trend from 10% to 20% a year.

Many clients are enjoying the savings and have received refunds for overpayments.

A new global study on business outsourcing relationships finds that

:·        74% use “business outcomes” to measure performance

·        61% say outsourcing helps their companies perform better

·        74% are satisfied with their outsourcing experience

Thinking of outsourcing?  Contact Hutchinson Business Solutions.

 Your CFO on the Go.  

Defining Opportunities Today,…Providing Savings for Tomorrow.

Visit http://www.hutchinsonbusinesssolutions.com/ to learn more about saving opportunities available for your company. Should you want to know more contact george@hbsadvantage.com

 

 

They say, “The only thing constant is change.”  Now a day, gas prices seem to be the most visible symbol of that old adage.  It’s a constant reminder that we are paying more for the same thing.  And this is happening across the board.  Even in the supermarket, prices are going up but the package has gotten smaller.

 

 

Telecom…       We are paying less per minute, but more for services.

                        Our clients are saving from 20% to 40%.

           

Data …           Downtime is the hidden cost.

                        Ask about our Virtual CIO program.

 

 

Fleet Management … Gas is over $3.00

                                     “ Put your fleet in the palm of your hands”

  

If you’ve found yourself troubled about these same issues, feel free to contact us george@hbsadvantage.com . We review and validate your specific costs of doing business, and provide strategic solutions that will increase your cash flow and your bottom line.

 

 

Our team brings over 25 years of experience, independence, objectivity, and responsible analysis to the table.   We stand behind our work to make sure every client is satisfied. 

 

 

Contact us today and ask about our Free 50-minute consultation.

 Spread the good news….. share this information with a friend. 

Should you like to discuss opportunities available for your company to increase profits call us at 856-857-1230.

 

HBS…Your CFO on the Go.  

Defining Opportunities Today,…Providing Savings for Tomorrow.

Visit http://www.hutchinsonbusinesssolutions.com/ to learn more about saving opportunities available for your company.