Definition of Chicago: "Tough city to get people to relocate from or to". Its citizens are tough to move. I
am in the latter category. I have over my career turned down 3 opportunities to
move there - primarily due to the winters.
But I have always appreciated the efficiency of the city, even on those nasty winter
days. Subways straight from O'Hare and Midway airports. Rental cars at the
Midway terminal building - 20 to 30 minute savings each way.
And this visit, I saw another dimension of the efficiency. On my way to the
McCormick Place for
the HR Tech show, the event bus took what is called the Busway.
When I boarded the bus, I asked the driver how long he thought it would be.
10-15 minutes. Right, I said with the steady drizzle outside. We made the 2.5
mile ride, parallel to the railway tracks and only open to charter convention
buses, in 8 minutes.
McCormick, one of the largest convention centers in the world, can have up to
25,000 folks on a busy day. Using the Busway keeps hundreds of buses and
taxis from clogging the streets.
And allows visitors to leave the city with another pleasant memory to add to
their other favorable views of the city.
Where are the rollbacks?
While the oil industry can never win the PR game, gas prices for the most part follow crude oil prices as the chart above shows (at least in the USA - in other countries, significant subsidies and taxes reduce that correlation). So, in all the other doom and gloom it is nice to see gas down below $ 3.00 a gallon.
Even better, most other food and other commodities are down substantially. So, where are the other price rollbacks? Like airlines which tacked on all kinds of fees in the last few months? Like products which either reduced sizes or tacked on large increases in the last few months?
And what about technology vendors? With the rupee down, Indian vendors should be rolling back prices. For years now, software vendors and outsourcers have been offshoring a bulk of their staff and not rolling back prices. Or consolidating and not rolling back their savings in SG&A. Other vendors are using open source components and automation to become leaner but not passing along savings.
Recessions may be tough on investors, vendors and workers, but they are generally good to buyers. Expect to see the Walmart smiley faces on many more products in the next few months.
October 19, 2008 in Industry Commentary | Permalink | Comments (1) | TrackBack (0)