Bumpy Ride Ahead for Air Industries

Airlines are consolidating and becoming more efficient. Airfares are going lower. Temporarily stored planes are being dusted off and returned to service. This is good news for airlines, but not good news for Boeing and Airbus, who after decades of bitter competition are facing new market realities about their future. A bruising WTO battle that has drawn blood from both sides, plus renewed competition from Bombardier, are adding to their problems.

Special Report - Aviation - Bumpy Ride Ahead for Air Industries

Bulldozers Meet Historic Quarters in Beijing, to Mixed Reaction

The Gulou neighborhood, just north of the Forbidden City, is one of the few undeveloped areas left in Beijing. It's famous for its brick towers where drums and bells help locals tell the time. All that will change soon, when the government sends in bulldozers to redevelop the area into the "Beijing Time Cultural City." Not everyone is happy with this latest redevelopment plan.

Beijing Journal - Bulldozers Meet Historic Quarters in Beijing, to Mixed Reaction - NYTimes.com

Coke, Pepsi Grab for Pakistani Market Share

It's easy to forget, with news media obsessed with stories involving death and destruction, that Pakistan and India remain important emerging markets poised for growth. Pakistan, with 175 million people, is larger than many Asian countries attracting FDI, so it's only natural that companies are beginning to pay closer attention to it. Coke and Pepsi are always early entrants into emerging markets, but in Pakistan Pepsi had an early-mover advantage, with 80% market share in the late 1990's. Coke has now set its sights on conquering Pepsi. There's tremendous room for growth -- Pakistan's per-capita consumption of Coke is 15 bottles per year, while in Mexico (Coke's top per-capita market), it's a whopping 665 bottles per head.

Coke, Pepsi Grab for Pakistani Market Share - WSJ.com

Retailers Push Apparel Suppliers for Shorter Lead-Time

Most clothes Americans wear are made in China. This means that the folks who design and make the clothes (retailers such as Aeropostale, Gap, Abercrombie, etc) have to place their orders with Chinese factories about nine months ahead of time in order to make manufacturing and shipping deadlines. That model doesn't work, however, in an uncertain economy where the consumer may or may not buy a particular line. Incorrect forecasting means lots of discounted items after a "fashion miss" which is not good for profits or the brand. Retailers are therefore turning to "chasing" where they purposely under-order lines to see how they do on the floor first. If the line is successful, they press suppliers for more product. This has caused some suppliers in turn to respond by pushing up prices and passing on more costs to the retailers.

Retailers Push Apparel Suppliers for Shorter Lead-Time - WSJ.com

FedEx Looks to 777s to Deliver an Edge

In the globalized economy, moving goods quickly between producer and customer is a key ingredient to success. FedEx is hoping to help make that transaction happen by developing and purchasing its own version of Boeing's 777 airliner, outfitted as a cargo plane. FedEx is the only shipper to purchase the 777, allowing it to carry heavy cargo between Asia and the U.S. without a fuel stop in Alaska. The result is that Chinese factories can work three extra hours and still make next day U.S. delivery. FedEx hopes this gives them the competitive edge as the shipper of choice for time critical shipments.

FedEx Looks to 777s to Deliver an Edge - WSJ.com

China Begins Planning for Slower Growth Future

Is China slowing down? All signs indicate the answer is yes. After an extraordinary period of economic expansion, lasting longer and reaching higher than most of human history, the economy is starting to slow down as the supply of cheap and ready labor begins to dry up. A major report on the future of China's economy at the link.


China Begins Planning for Slower Growth Future - WSJ.com

Happy Independence Day

What do you get when you combine the words of the Declaration of Independence with your favorite NPR hosts? Some spine-tingling moments, that's what. Happy Fourth of July everyone!