Thriving Minorities

Economy,

Thanks to the generosity of the city, New York’s women and minority sector business (MWBE’s)  owners could be the recipient of part of the city contracts that have been pigeonholed for these groups from the City.

In an unprecedented move, a staggering $1 billion+ is being given over to these groups.  That figure is over double of what was allocated for the entire 2017 fiscal year (which was $400 million in 2015 and $700 million last year).

According to a recent report compiled by the New York City Bar Association, NYC law firms have a large presence of women and those from racial/ethnic minorities in key positions too.  There has been a steady increase since 2015 of those who hold positions on management committees in law firms.

Furthermore, NYC has established its $10 million contract financing loan fund with a focus on MWBEs. Those who apply to borrow the money have to have already secured (or are pursuing) a contract/subcontractor on a city-funded project and be a for-profit company. The industry of the MWBE does not impact eligibility as long as their product/service is purchased by the city.  The contract is the loan’s collateral.

Christmastime…

Featured, ,

And what type of tree should you buy exactly?  Choose from one of these if you are in New York; they seem to be the most popular: Frasier Fir (popular in the streets of NYC), Balsam Fir (spacious branches and very aromatic); Noble Fir (most regal and festive) and Nordmann Fir (pricey but extremely elegant).

And how much will this set you back?  Apparently anywhere between $35 and $200, depending on its size (for New York apartments, 5-6 feet tall seems standard).  Check out local garden stores and local playgrounds with vendors and you’ll really feel like you are getting into the holiday spirit.

In general most of the trees that end up in NYC for sale hail from Michigan, North Carolina, Oregon and Pennsylvania.  But those from Michigan might just be pricier this year: Christmas tree farms across northern Michigan are working to ship trees across the country.

 

Company Culture and Success

Employment, , , ,

When it comes to revenue, which privately-held company is doing best in New York?  Based on 2016 revenue data, Crain’s has determined their list, with the top three as:

  1. Hearst
  2. Bloomberg LP
  3. Horizon Media

However, Partnership for New York City analysis found that business in New York is lacking in  metropolitan characteristics.  It found that most of New York’s foreign companies actually come from Europe and thus it is the responsibility of the government to make it more attractive for businesses from Asia, the Middle East and South America to come to America. As Partnership President Kathryn Wylde said: “We should really pay attention to countries with a growing market demand for goods and services from New York, and one important way to do that is to have more of their companies have operations here.”

De Blasio’s Tale of Two Cities

Economy, ,

How much has de Blasio done to tackle New York’s age-old issue of being a “tale of two cities”?  Some would say quite a bit; others would say it’s just the economy that has fueled the impact of change.   But given that he ran on a platform of tackling this as it was the “defining issue of the day,” the question we must ask is, has he?  And if so, how much?

Still, when it comes to wages (increasing) and unemployment (decreasing) during his time, people are quick to see him in a positive light.  And the President.  And the government.  Or at least, the previous government which enjoyed “the longest economic expansion in the city [of New York’s] history.”

As Samar Khurshid recently noted, due to the economic climate though, de Blasio has worked toward putting policies in place that reduce inequality, in large part by developing the size and scope of city government.  But bear in mind that de Blasio has not (yet) had to encounter any crazy economic crisis or even stressors which would impact his progressive policies on the slashing of large government expenditures.

De Blasio is however, currently exercising caution with a partial hiring freeze on city agencies while focusing on the stimulation of private sector job growth via city government levers.

Over the years what he has done is this: put “progressivism” as an economic strategy as a top priority.  Right now he seems pretty undefeatable in a re-election.

Manhattan for Rent

Real Estate,

Office leasing for Manhattaners is finally becoming easier.  Landlords are offering significantly sweeter deals these days to make it more attractive for business people to find space to lease.  This is a response to companies reducing the space they want to rent as well as the addition of new buildings throughout New York.

The Savills Studley Report showed that in the last three months there was a 32 percent increase in Manhattan leasing to 9.1 million square feet (substantially greater than the historical 7.5 million average). As such, asking rents dropped 2.2 percent in Q3 2017 to $73.21 per square foot.

NY: Escalating Wineries

Economy, ,

While New York today boasts 140 wineries, 35 years ago there were around 10!  According to a prior head of the New York Wine and Grape Foundation, Jim Trezise (who now leads a national association advocating for the entire wine industry in America), the wine industry has significantly expanded its economic presence in Finger Lakes. Given that it is today commonplace to find good restaurants at wineries and the region is often regarded as one of the world’s “top wine country destinations,” things really are changing.

Indeed, it has been estimated by the 2017 Economic Impact Report on the American Wine Industry that wine country regions will generate around 43 million tourist visits and $17.7 b in annual tourism expenditures.

And New York is definitely doing its part.  Indeed, the total number jumped from $9.4b in 2012 to $13.8b this year – an increase of over 45% in just five years – with New York ranking number 2 in the country’s wine industry list (California holding the first spot).

According to New York Wine and Grape Foundation President Sam Filler:

“New York continues to expand its impact and growth as a leading wine producing state. Gov. (Andrew) Cuomo and our state Legislature deserve credit for their work on improving New York’s business climate by modernizing the state’s alcohol beverage laws and reducing regulatory burdens. Their continued partnership and support will ensure that the New York wine and grape industry continues its national leadership role.”

 

NYC ATM Fees

Economy, ,

Fees seem to be disproportionately high for New York’s ATM users.  Indeed, New Yorkers are encountering the second highest average out-of-network fees in a recent Bankrate.com survey conducted among 25 major metropolitan regions.  In 2016 they ranked number 6; and now it has worsened, given that per transaction the fee has elevated to an average of $5.14 (from $4.86).

One explanation of this came from CEO and President of the Cooperate Credit Union Association, Paul Gentile who said:

“No offense, but the big banks dominate the New York City footprint — and they have some of the biggest fees. New York is also one of the most expensive cities in the country, so some people are more willing to pay ATM fees there, compared to other locations, like the Midwest.”

New York is not alone in over-exorbitant ATM machine fees though.  The same survey found that they have increased over 50% in the last decade, nationwide.  The average has increased $3.03 per transaction since 2007.

Mobilizing New York

Infrastructure,

New York City has always been “the place to be,” in so many spheres:  entertainment, business, lifestyle and more.  But, all of that comes at a price.  And it seems that one of the biggest price tags is transportation and mobility.

According to a recent article in Crain’s New York by Scott Rechler, there are many things that can be done.  Move New York’s has already started this process with a logical congestion pricing plan created by transportation experts.  Other ideas include bringing in a traffic management strategy to lower tolls on overnight deliveries while increasing them during peak time.

In general, Rechler believes there needs to be a more efficient use of the transportation infrastructure that is already in place, such as taking greater advantage of traffic-enforcement cameras (which can be relatively easily installed) and invoking more radical fines for roadway misdemeanors.