Thursday, May 13, 2010

Strategies Michigan Can Do To Revive the Local Economy

The state of Michigan needs to come up with innovative ideas in order to revive its local economy. Entrepreneurs in Michigan can help in this process by improving supply chain management, R & D and cost reduction.

They can build sustainable dynamism by bringing new and emerging business sectors together. This will require workforce which will create employment opportunities. They would be well trained and guided for the duties they need to perform giving. This will give them exposure to new sectors and areas which they thought never existed.

The region has been known as one industry town that is the auto industry. Constant innovation and developments in the auto sector can help in the long run. The car makers around the world have adapted latest technologies and are manufacturing cars and vehicles that are convenient and safe. Even Detroit can improve its R&D division for the auto industry.

Every region is full of talented and skilled people; there is a need to find such people. Schools and colleges are full of budding aspirations. Students and teachers are constantly learning and can come up with innovative business ideas which if executed well can do wonders to the economy. Engineering, environmentalists and others can give ideas about technology and using natural resources for energy generation etc. The sectors which have growth potential can be analyzed well and then be worked upon with expert guidance.

Partnerships with universities can help the state pick up fresh ideas for economic development. University of Michigan and Wayne State University have already joined the race.

The process of reinvigorating a local economy is slow and happens at its own pace. The expectations need to be realistic and the approach focused.

Santander Bank’s Profits Soar in spite of Spain Debt Fears

The Banco Santander posted 6% rise in profits for their first quarter profits leaving behind the doubts and worries about Spain's economy. The driving force behind the profits was Latin America and Britain.

The bank’s UK profits rose by 15% to £426 million. It alone holds 13.4% of Britain's existing mortgage stock, one out of every 5 home loans in Britain were from Santander in the first quarter of 2010.

Santander acted cautious while lending money to its home market Spain. The bank’s total loans in Spain were down 5% on the year. But the company said the fall in loans was due to lack of demand for credit. Spain’s contribution to the bank’s profits also slumped by 8% with £1.9 billion.

Santander which is the eurozone's biggest bank has an exposure of just €200 million to Greek sovereign debt, but €3 billion to Portuguese and €24bn to government bonds issued by Spain.

The Bank’s spokesman said the company’s deposits are increasing making it less reliant on wholesale funding to stimulate its lending.

Santander currently owns Abbey, Alliance & Leicester and the deposit book of Bradford & Bingley. This shows it wants to make a strong hold in the UK market. They say they want and will continue to support UK’s economy by increasing lending to small and medium-sized businesses by 18% and by writing one in five mortgages to UK households. It opened 276,000 new current accounts and 340,000 Individual Savings Accounts during the cross-tax year campaign while it increased investment sales by 5%.

The bank by making profit in the current heated up market has proved there are no rules to make profits the trick is in managing the resources well.