MARKET - 100 Years of Changes in Value

A chart showing the market capitalization of leading organizations in 1917, 1967 and 2017 shows the changes in value and industry leaders are profound.

Determining what will be the next 'blue chip' investment is complicated. This look at what the economy (consumer) is driving and what the investor is valuing is more than interesting:

FUTURE TRENDS - The Rise of the Barter Economy

Economies around the world are struggling.

What fills the gap when banks and currencies fail? In many instances, the answer is barter.

Unlike the common perception that currency economies are an evolution of barter economies, it now seems that the reverse is true.

Barter economies develop in the wake of currency collapse, such as the rise of barter following the collapse of the Roman empire. (Interestingly, it seems that the actual precursors to currency economies are gift economies.)

Contemporary economies suffering under the current global financial crisis have seen a surge in barter as citizens find creative ways to get their needs met.

Greece has developed a substantial barter economy, facilitated by online barter clubs and direct trades.

The Greek economy has stabilized somewhat in recent years, but the barter system continues to thrive, perhaps due to the ongoing global trust crisis.

Spain has also developed a barter system in response to economic hardship, and a new generation of Spanish farmers and other workers are embracing their new normal.

Their focus on food – growing it, preserving it, storing it, and preparing it – fits with a movement of people preparing for economic (or environmental) collapse.

In India, where the government pulled a huge number of bank notes out of circulation in order to combat corruption, citizens quickly developed their own barter economy to fill the gap.

But barter economies are not limited to situations of extreme stress.

Two companies, Simbi and City Network, offer online barter systems that are less about survival, and more about connection.

According to a profile for Motherboard, City Network (an expansion of the popular Bunz Trading Zone) hopes to “bring users out of their existing circles to interact with strangers, meet people with common interests, get information that will make living in a city easier, and trade without cash.”

Simbi founder KJ Erickson told Y Combinator that she hopes the site will “enable people to do what they love and get what they need without being restricted by costs.”

Echoing the young people in Spain, Erickson says, “The millennial generation is reconceiving work. They want to do things that are both flexible and fulfilling.”

Both Simbi and City Network have plans to monetize, but aren’t forthcoming about how.

Ad revenue, sponsorships, hosted events, or partnerships with charities or festivals are possibilities.

Neither service charges its members, and, as one City Network member told Motherboard, “charging a membership fee for a cashless community is counterintuitive.”

Last year, Simbi raised 1.2 million in funding, and TechCrunch theorized that the site could charge for credits if users want access to services without providing a swap.

Both sites will need to find a way to monetize or they’ll run into the same issues that barter economies across the globe encounter – you can trade for food or skills, but some things, like electricity and other vital services, aren’t (yet) available outside of the currency economy.

People are creative, though.

In Detroit, where economic hardship has been a reality for decades, citizens have created their own gift economy, and communities will continue to find ways to meet their needs through barter, trade, gift, or otherwise.  

About Tiffany Sostar

Tiffany is a published academic, an editor with the Editors Association of Canada, an independent scholar and researcher, and a self-care and narrative coach. She is particularly interested in the intersection of technology and identity - how our tools shape our selves and change our stories, and in how the nature of work is changing as we incorporate more technology into our daily lives.

RESEARCH - Lack of Sleep Costs Economy Hundreds of Billions of Dollars

Researchers at not-for-profit RAND Europe, part of the RAND Corporation, examined the sleep habits of workers and found that along with personal health risks, sleep deprivation is costing the economy hundreds of billions of dollars.

The study, Why Sleep Matters – The Economic Costs of Insufficient Sleep, is the first of its kind to quantify the economic losses due to lack of sleep among workers in five different countries—the US, UK, Canada, Germany, and Japan.

Results show a lack of sleep among the US working population is costing the economy up to $411 billion a year, which is 2.28 percent of the country's GDP.

In total, the US loses just over 1.2 million working days a year due to sleep deprivation among its working population.

Productivity losses at work occur through a combination of employees not being at work and employees who are present but working at a sub-optimal level.

Japan loses up to $138 billion, which is 2.92 percent of its GDP, and around 600,000 working days annually.

Germany (up to $60 billion, or 1.56 percent of its GDP, and just over 200,000 working days lost) and the U.K (up to $50 billion, which is 1.86 percent of its GDP, and just over 200,000 working days lost) have similar losses.

Canada had the best sleep outcomes, but still has significant financial and productivity losses (up to $21.4 billion, which is around 1.35 percent of its GDP, and just under 80,000 working days lost).

The study also determined a person who sleeps on average less than six hours a night has a 13 percent higher mortality risk than someone sleeping between seven and nine hours, while those sleeping between six and seven hours a day have a 7 percent higher mortality risk.

Sleeping between seven and nine hours per night is described as the healthy daily sleep range for adults.

“Our study shows that the effects from a lack of sleep are massive. Sleep deprivation not only influences an individual's health and wellbeing but has a significant impact on a nation's economy, with lower productivity levels and a higher mortality risk among workers,” Marco Hafner, RAND research leader, said in a release.

Increasing nightly sleep from under six hours to between six and seven hours could add $226.4 billion to the US economy.

Lack of sleep is associated with lifestyle factors related to a modern, connected society, such as psychosocial stress, alcohol consumption, smoking, lack of physical activity and excessive electronic media use, as well as job related stress.

2016 research by the Conference Board of Canada indicated that 27 per cent of workers surveyed report being fatigued most days or every day during a typical work week.

“The harmful effects of fatigue are numerous, and in some cases, comparable to the effects of alcohol,” said Mary-Lou MacDonald, Director, Workplace Health, Wellness and Safety Research, The Conference Board of Canada.

“Employers that proactively address their employees’ fatigue will have a more productive workforce and a safer working environment.”

Recommendations from RAND Europe include:

• To improve sleep outcomes, individuals should: Set consistent wake-up times; limit the use of electronic items before bedtime; and exercise.
• Employers should: Recognise the importance of sleep and the employer's role in its promotion; design and build brighter workspaces; combat workplace psychosocial risks; and discourage the extended use of electronic devices.
• Public authorities should: Support health professionals in providing sleep-related help; encourage employers to pay attention to sleep issues; and introduce later school starting times.

BUSINESS - Uber Takes Another Innovative Leap

Uber has already changed the way people get around urban areas, and the company has jumped with both feet into technological and economic shifts. Uber is at the forefront of the sharing economy, and uses leading edge software and technology as part of their business model.

The sharing economy is controversial, and with for-profit companies shifting the focus of the model towards an exchange of money for services it’s questionable whether the term “sharing” even applies.

Alternative phrasing includes “on-demand economy” or “gig economy” and for Uber drivers, Air BnB owners, or Fiverr service providers, these terms make more sense than “sharing,” which comes out of initiatives like Wikipedia, where knowledge is shared freely, and Freecycle, where goods are also shared freely.

Whether it’s called the sharing economy, the gig economy, or the on-demand economy, the fact is that this economic model is challenging existing businesses like taxis and hotels, and it taps into the Internet of Things in a big way.

By relying on connected devices to allow peer-to-peer communication and app-based transactions, this new economic model makes accessing services easier and quicker than before.

Uber uses a network of smart devices, including GPS tracking, to connect drivers and passengers as efficiently as possible.

Youngme Moon, a researcher at Harvard Business School suggests that Uber’s point-to-point transportation system and sophisticated software represent a “disruptive innovation” that already has, and will continue to, change the way people move around urban areas.

The next Uber innovation is self-driving cars. The company has announced the launch of their first fleet of 100 self-driving modified Volvo XC90s in Pittsburgh.

Customers can summon a car as usual, and it might show up without a driver. If it does, the ride will be free.

Each of the self-driving cars will be staffed by two trained engineers who can take over if required, and the trunk will be full of monitoring equipment to report back about how the cars are performing.

The complex interaction between devices, collecting and sharing data, is the Internet of Things in action, and Uber is fully engaged.

Uber has been ahead of regulatory bodies since its inception, leaving cities scrambling to figure out how to regulate the business, and this move is another instance of Uber pushing the economy in directions that regulators aren’t prepared for.

Tesla has already highlighted this regulatory grey area with their “autopilot” feature, available on some Model S cars. The move towards self-driving cars will present significant challenges for regulators, insurers, and other industries.

This is also a significant change to Uber’s business model, and shifts them away from the low overhead and minimal infrastructure of driver-owned vehicles to something that is much more infrastructure-heavy. However, CEO Travis Kalanick places a premium on being at the forefront of industry evolutions.

As smart cities move more and more into automation, Uber wants to be at the edge of that change.

They’ve already outpaced Google’s self-driving car efforts, and with their purchase of the startup Otto, have the potential to move into long-distance trucking as another income stream, or simply adapt the technology to their fleet of cars.

By Tiffany Sostar

Tiffany is a writer, editor, academic, and animal lover who came late to her appreciation of pets. At 18, a rescue pup named Tasha saved her from a depression and she hasn't looked back. She has worked as the canine behaviour program coordinator for the Calgary Humane Society, and was a dog trainer specializing in working with fearful and reactive dogs for many years. She doesn't have any pets right now, but makes up for it by giving her petsitting clients (and any dogs she comes across on her frequent coffee shop adventures) extra snuggles.

Packaged Facts Provides Trends for the Pet Supply Market

In 2014, the nonfood pet supply market had a value of $15 billion USD in the United States according to Packaged Facts (all statistics in this article are from “Pet Supplies in the US, 10th Edition”). From 2010 to 2014 the pet supply industry grew by 15%.

There are approximately 2,250 companies that participate in the American pet supply market and this number continues to increase. Competition is expected to increase as well and the pet supply market is expected to reach $17 billion USD by 2019.

Packaged Facts provided four macrotrends for 2015 and onwards:

1. Impact of economy: Spending on pet supplies will reflect the economy. With the economy not as strong as it once was many people will continue to keep their spending low. While many people struggle financially they are reporting feeling more affluent than in previous years.
2. Savings are a priority: Saving money is important to people. Approximately 50% of people are spending more on pet products. In the past four years, people have been becoming more comfortable with higher priced pet items. The percentage of people that felt that products were too expensive dropped from 74% to 64%. While people may be comfortable with higher prices they still want to see lower prices and sales; most are looking for a good deal.
3. Premiumization and natural pet products: For at least ten years premiumization has been a strong trend in the pet supply market. Many industry experts believe that premiumization is necessary to maintain profit margins on premium products when compared to normal brands. Premiumization is often closely tied with natural pet products. One driving trend to encourage people to spend more on premium and natural products are the potential health benefits to pets. People will spend more if a product could potentially benefit their pet.
4. Baby boomers are key to market growth: With approximately 77 million baby boomers in the U.S. they are a large force in keeping the pet supply market strong. Many boomers have high incomes and are able to spend large amounts of money. Boomers have also remained willing to share their wealth and lifestyle with their pets as they age. If boomers continue this trend as they become seniors then this promises a continued strong pet supply market.

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What are the Results of the 2015-2016 Nation Pet Owners Survey?

Bob Vetere, President and CEO of the American Pet Products Association (APPA), has announced the results of their biennial 2015-2016 National Pet Owners Survey. The survey reached 79.7 million households with pets. One important survey discovery was that there are increased numbers of new and young pet owners. New pet owners populate approximately 10% of the total pet owner population. This represents an increase of almost eight million new pet owners. Vetere states, “These numbers demonstrate huge potential for the industry to grow with up-and-coming, new pet owners.”

The newest generation of pet owners purchase more expensive animals, seek veterinary care more often, and buy more items for their pets. “This generation also likes high-tech gadgets like pet cams and electronic health monitoring collars, and convenience products to take their pets with them or care for them while they’re gone,” said Vetere. “This opens the door for innovation in products and services as well.” Pets and pet products are increasingly being sourced online and by using social media networks.

In previous surveys, the largest population of pet owners was the Baby Boomers. However, Baby Boomers are reaching life stages where they are reducing pet ownership. Vetere is not worried, he states, “In fact, the growing incidence of pet owners among the younger generations is so encouraging, we are extremely optimistic about the future of pet ownership and the industry that stands to serve those pets and their owners.”

The Survey also found that more businesses are becoming pet-friendly. 

• 8% of pet owners are allowed to bring their dogs to work. 
• 28% of pet owners have taken their dog to a hotel. 
• 9% of pet owners have taken their pet to a restaurant.

More people also believe that pets are good for their health. In fact, for 64% of pet owners, owning a pet has positive health benefits that are important to the owner. Vetere states, “Studies now exist that show pets can help improve our cardiovascular health, improve immunity in young children and assist with therapy for autistic children and people suffering from PTSD. Our desire to take better care of our pets and the joys and benefits they provide are continuing to work together to grow pet ownership and keep this great industry strong.”

  READ THE FULL ARTICLE HERE

OVC Economic Impact Huge, Report Says

The Ontario Veterinary College (OVC) at the University of Guelph is an economic engine, directly contributing more than $125 million to Ontario's economy each year and generating 800 jobs annually, according to a new economic analysis by Deloitte LPP. 

The global consulting firm reviewed the 152-year-old veterinary school as part of a process supporting reaccreditation. The report was officially released earlier this month during the opening of Canada's Outdoor Farm Show. 

"We've always known that the University of Guelph and Ontario Veterinary College contribute to the quality of life in our province," said U of G president Franco Vaccarino. "This report shows just how significant an impact OVC has on Ontario's economic vitality." 

To read the full news release and download a copy of the report, visit www.uoguelph.ca. 

Petsecure promotes Pet Health Insurance Month

Veterinary clinics across Canada are partnering with Petsecure pet health insurance during the month of September to raise awareness on the benefits of insuring your pet. 

Participating clinics will be decorating waiting rooms to promote and increase awareness which, according to a survey from Doctor of Veterinary Medicine Magazine, can mean the difference between life and death. The survey found pet owners choosing euthanasia for economic reasons is not uncommon. 

"When a dog or cat with a treatable condition is euthanized because of economics, the situation can be devastating," said Colleen Skavinsky, chief veterinary officer at Petsecure. "Not only for the pet parents, but also for the hospital staff who have devoted their careers to keeping pets healthy. Pet health insurance allows pet owners and veterinarians to make medical decisions based on what's right for their pet without the worry of financial constraints." 

READ THE NEWS RELEASE