[private_member]MEMBERS – Please view in .pdf form – State of the Hunting Industry Report | March 2010[/private_member]
Edition 5 A Publication of Hunting Business Marketing March 2010
Uncertain 2010 + Looming Commercial Real Estate Collapse
Image courtesy of LancerE
Uncertainty rules the US consumer in today’s economy.
There is uncertainty in the way things are shaking up with unemployment. Millions are without jobs today and millions more are underemployed and not happy with the amount they’re making or the outlook for their financial future.
Employment and the cost of living have always been two of the biggest factors on the economy and the hunting industry is certainly affected by these two economic indicators. The outlook is not good for unemployment in the short and long-term future so it’s going to take a new level of innovation and expertise from entrepreneurs like you to succeed in the next 5, 10, 20, and 50 years.
Also looming on the immediate horizon in the impending crash of the commercial real estate bubble. Small banks are working feverously to make things work before, but their efforts appear to be on a crash course with reality.
Thousands of local and community banks are on the brink of collapse as their bets on businesses in the past 5-10 years are not panning out. Malls and offices sit vacant and without rent money coming in there is a buildup in supply while the demand for space is shrinking. Values of properties in the commercial sector will shrink and rents will likely plunge as well.
Many more jobs will be lost and things don’t look good.
The reality for businesses is that consumers are going to be prudent in their spending and it’ll take strong communication of benefits to convince people to make purchases for themselves and their families. It’s important for businesses to be open and transparent in the things they do daily to earn customer trust.
Building successful businesses is still possible and your business can grow and succeed in the future with the right outlook.
Millions of Unemployed Face Years Without Jobs
From New York Times (Feb. 2010):
Even as the American economy shows tentative signs of a rebound, the human toll of the recession continues to mount, with millions of Americans remaining out of work, out of savings and nearing the end of their unemployment benefits.
Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed.
Call them the new poor: people long accustomed to the comforts of middle-class life who are now relying on public assistance for the first time in their lives — potentially for years to come.
Yet the social safety net is already showing severe strains. Roughly 2.7 million jobless people will lose their unemployment check before the end of April unless Congress approves the Obama administration’s proposal to extend the payments, according to the Labor Department.
Here in Southern California, Jean Eisen has been without work since she lost her job selling beauty salon equipment more than two years ago. In the several months she has endured with neither a paycheck nor an unemployment check, she has relied on local food banks for her groceries.
She has learned to live without the prescription medications she is supposed to take for high blood pressure and cholesterol. She has become effusively religious — an unexpected turn for this onetime standup comic with X-rated material — finding in Christianity her only form of health insurance.
“I pray for healing,” says Ms. Eisen, 57. “When you’ve got nothing, you’ve got to go with what you know.”
Read the rest Millions of Unemployed Face Years Without Jobs
Impact on your business
Millions of Americans are unemployed and millions more are working jobs that pay less or offer fewer hours than they have been used to seeing in previous years. It’s a difficult reality for most and emergency lifelines like savings, credit cards, and family loans are running dry.
It’s a difficult climate for any business trying to get started or trying to expand. Any economy depends on a strong unemployment rate where people are able to earn a quality living while seeing their cost of living expand as business innovate and prices drop.
Without an innovative sign in the market (such as the computer and Internet revolution) there is no telling when quality employment will come back to the US.
Brookdale Center Mall Sold at Auction for Big Markdown
From Star Tribune (Feb. 2010):
Brookdale Center went on the auction block at a sheriff’s foreclosure sale Friday, netting just one bid of $12.5 million from the shopping mall’s lenders.
The bid from Brookdale Mall HH LLC was well below the $51.8 million owed on a $54.2 million mortgage by the property’s owners, Brooks Mall Properties of Coral Gables, Fla.
A representative of the lenders declined to comment on the bidding or plans for the Brooklyn Center shopping mall. Other real estate experts said the low bid could make it easier for the owners to redeem or other buyers to purchase the property.
Brooks Mall Properties had agreed to a voluntary foreclosure, so the redemption period will be two months rather than six. Representatives of the firm could not be reached for comment Friday.
The foreclosure doesn’t mean the 47-year-old mall, the second-oldest of the Twin Cities’ “Dales,” is closing.
Brookdale’s struggles began well before the retail market meltdown, and its problems have worsened since then. Sears is its sole remaining anchor. In the last couple of years Macy’s, Barnes & Noble and Mervyn’s have all closed their stores. The mall also has lost other key tenants, such as Steve & Barry’s. Almost 60 percent of its space is vacant, according to recent figures from NorthMarq.
Read the entire story Brookdale Center Mall Sold at Auction for Big Markdown
Impact on your business
On top of the worsening employment situation in the US is the looming commercial real estate bubble that has yet to face reality.
Just as the billions, if not trillions of dollars in residential real estate brought the US economy to its knees two years ago, the bubble in commercial real estate finally appears to be reaching its breaking point.
Businesses are trying all they can to make thing work with lenders, but lenders are afraid of losing out on their investments in commercial real estate from the past 5-10 years. It’s a big problem and one that has potential to be bigger than the residential real estate problem.
There is good and bad news for businesses in the commercial real estate climate. The good news is that rents and prices for office space and other commercial space will likely plummet due to the overcapacity. The bad news is that more businesses will go under and the unemployment will likely climb further, which hampers all economic recoveries.
In D.C., more evidence that commercial real estate headed for foreclosure crisis
From The Washington Post (Feb. 2010):
A mortgage crisis like the one that has devastated homeowners is enveloping the nation’s office and retail buildings, and few places are likely to be hit as hard as Washington.
The foreclosure wave is likely to swamp many smaller community banks across the country, and many well-known properties, including Washington’s Mayflower Hotel and the Boulevard at the Capital Centre in Largo, are at risk, industry analysts say.
The new round of financial pain, which some had anticipated but hoped to avoid, now seems all but certain. “There’s been an enormous bubble in commercial real estate, and it has to come down,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, the watchdog created by Congress to monitor the financial bailout. “There will be significant bankruptcies among developers and significant failures among community banks.”
Unlike the largest banks, such as Citigroup and Wachovia, that got into so much trouble early on, the community banks in general fared better in the residential mortgage crisis. But their turn is coming: Not only did community banks issue a higher proportion of commercial loans, but they also have held on to them rather than sell them to other investors.
Nearly 3,000 community banks — 40 percent of the banking system — have a high proportion of commercial real estate loans relative to their capital, said Warren, whose committee issued a report on commercial real estate last week. “Every dollar they lose in commercial real estate is a dollar they can’t use for small businesses,” she said. Individuals — who saw their home values drop in the residential mortgage crisis — would not feel that kind of loss, but, Warren said, a large-scale failure would “throw sand into the gears of economic recovery.”
In Washington, the number of troubled properties has multiplied at a phenomenal rate, with the value growing from only $13 million in 2007 to $40 billion now, according to CoStar Group, a Bethesda real estate research company. The region trails only South Florida and metropolitan New York in the per capita value of commercial real estate assets in foreclosure, default or delinquency, according to the research group Real Capital Analytics.
The threat is especially acute in the District, the firm said, where the catalogue of troubled commercial real estate properties has grown tenfold since April. Moreover, the region has $7.3 billion in commercial properties that are underwater — worth less than the mortgages on them — according to CoStar.
Read the entire story In D.C., more evidence that commercial real estate headed for crisis
Impact on your business
Many people saw this coming, but the trend in the past year or two has been to ignore the problem and simply not talk about it as there were more pressing issues in the short-term.
The reality is coming close today and most have to deal with the situation.
If you’re in the business of commercial real estate lending or if your customers depend on the income generated from the industry you are likely to be affected. In fact, most in the US economy will be affected due to the large scale of the issue.
The correct thing is for the situation to correct itself as the mismanaged businesses can be liquidated and apt businesses can pick up the pieces and form a proper recovery.
That business could be yours. See opportunity in the hunting industry and do what it takes to find the things people need and want in the new economy.
Commercial Real Estate Apocalypse in 2011-2012
From Mish’s Global Trend Analysis (Feb. 2010):
Inquiring minds are digging deep into a 190 page PDF by the Congressional Oversight Panel regarding Commercial Real Estate Losses and the Risk to Financial Stability.
Over the next few years, a wave of commercial real estate loan failures could threaten America’s already-weakened financial system. The Congressional Oversight Panel is deeply concerned that commercial loan losses could jeopardize the stability of many banks, particularly the nation’s mid-size and smaller banks, and that as the damage spreads beyond individual banks that it will contribute to prolonged weakness throughout the economy.
Between 2010 and 2014, about $1.4 trillion in commercial real estate loans will reach the end of their terms. Nearly half are at present “underwater” – that is, the borrower owes more than the underlying property is currently worth. Commercial property values have fallen more than 40 percent since the beginning of 2007. Increased vacancy rates, which now range from eight percent for multifamily housing to 18 percent for office buildings, and falling rents, which have declined 40 percent for office space and 33 percent for retail space, have exerted a powerful downward pressure on the value of commercial properties.
The largest commercial real estate loan losses are projected for 2011 and beyond; losses at banks alone could range as high as $200-$300 billion. The stress tests conducted last year for 19 major financial institutions examined their capital reserves only through the end of 2010.
Even more significantly, small and mid-sized banks were never subjected to any exercise comparable to the stress tests, despite the fact that small and mid-sized banks are proportionately even more exposed than their larger counterparts to commercial real estate loan losses.
A significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American. Empty office complexes, hotels, and retail stores could lead directly to lost jobs. Foreclosures on apartment complexes could push families out of their residences, even if they had never missed a rent payment. Banks that suffer, or are afraid of suffering, commercial mortgage losses could grow even more reluctant to lend, which could in turn further reduce access to credit for more businesses and families and accelerate a negative economic cycle.
Read the entire story Commercial Real Estate Apocalypse 20011-2012
Impact on your business
The commercial real estate issue is a very big problem. If some of the banks in trouble go under it will have an immediate impact on local communities and businesses.
Businesses will fail and it will be difficult for new and existing businesses to have access to credit at the rates they once had in the past 5-10 years.
It’s important to understand what it will take to be successful in the new economy: savings and quality ideas that consumers need.
Savings is key for the new reality in America. People that have savings will protect it with their lives and will only invest in sound businesses.
Make sure your business is one of the ones built with strong fundamentals.
Programs Aim to Attract New Hunters
From Milwaukee Journal Sentinel (Feb. 2010):
Hunting is as natural to humans as eating. In fact our ancestors couldn’t do one without the other.
But while 21st century Americans display ever more gusto at the table, the food gathering is largely outsourced. Hunting has been in decline for decades.
The reasons are many, including urbanization, loss of wildlife habitat, changes in the way we spend our free time.
We are an increasingly sedentary culture, more connected to digital devices than the natural world.
The trend is reflected in many outdoor pursuits, but is especially marked in hunting.
According to the U.S. Fish and Wildlife Service, the number of licensed hunters in America declined about 35% from 1975 to 2006.
Even in Wisconsin, where deer hunting is considered by many as a second state religion, only about one in eight state residents bought a hunting license last year.
The downward trend is troubling to wildlife managers, who rely on funding from license sales and excise taxes, but also to advocates of the healthfulness of a lifestyle that includes hunting.
The push to stabilize or even increase hunting participation in the Badger State took center stage last weekend when the Department of Natural Resources hosted the first Wisconsin Hunting Heritage Conference.
A banner at the conference featured a quote by Theodore Roosevelt: “Those of us privileged to take to the field are entrusted by fate and circumstance to hold and nurture the hunter’s legacy.”
Read the entire story Programs Aim to Attract New Hunters
Impact on your business
It’s great to see that acquiring new hunters to the hunting industry is a priority.
Hunting is big business and acquiring new hunters is the lifeblood of businesses like yours in the hunting industry. The benefits of hunting need to be expressed to the young folks in our population. Passions need to be passed along by parents and other mentors in the hunting industry if there is to be a prosperous hunting industry in the future.
It can happen and acknowledgement is the first step.
5 Sure Fire Tactics to Promote a Business Blog
From Online Marketing Blog (Feb. 2010):
Relevant, Consistently Updated Content + Flawless Technical Functionality & User Experience = Perfect Blog Launch
What’s missing from the equation above? You guessed it: blog promotion.
Creating a glitch-free blog with informative content means next to nothing without attracting readers.
Start promoting your blog today with these five effective tips:
1) Involve influential industry bloggers.
By linking to popular blogs, you can gain the attention of both the influential blogger and his or her readers.
But your blog won’t be the only one to benefit. You’ll be giving the other blog a little link juice – and be paying them a compliment at the same time.
Try out a few of these ideas for leveraging other blogs:
- Create a post around an interesting concept published by an influential blogger: Be sure to attribute the information to the blogger and link to his or her post. And don’t forget to offer additional unique insight to make the post your own.
- Interview an influential blogger and turn it into a Q&A post: That blogger is sure to link to your post, and his or her readers are likely to visit your blog as a result. Side benefit: Including the insight of a thought leader will help position you as a thought leader as well.
- Create a list of influential blogs: Include popular blogs from your industry, and include a link, short description and even a screenshot. Online Marketing Blog has successfully done this with its BIGLIST of online marketing blogs. Publish a blog post each week highlighting one or two new blogs to promote the list and acquire another link to the list.
Read the entire article 5 Sure Fire Tactics to Promote a Business Blog
Impact on your business
A blog is one of the best ways for businesses to acquire new customers on the Web.
A blog built around attracting, educating, and selling customers on the things your business is how people are having success. Blogs have huge SEO value as the content posted reaches customers searching for general and long-tail keywords in search engines. Once visitors reach the site they are looking to research the products they are interested in purchasing and if a blog is captivating and intriguing they will subscribe and turn into long-term customers that will prove profitable for your business.
8 Reasons You Might Not Be Getting Many Comments
From Problogger (Feb. 2010):
No matter how big their blog is, every blogger loves and wants comments. When you’re just starting out, there are few bigger thrills than writing something and having people comment and give you feedback about what you’ve written. Veteran bloggers love comments and also know that the quantity and quality of the comments says a lot about the impact of the particular post in question.
But sometimes you write something that you think is awesome and the comment thread is like a ghost town. To say that this is discouraging is to put it too lightly. Not only does it suck, but it’s enough to make you start thinking that your writing sucks, and it makes it really hard to hit write and hit publish the next time, too.
Here’s the deal, though: just because you’re not getting a lot of comments doesn’t mean that your posts suck. Here are eight reasons why you might not be getting comments – and what you can do about it.
1) Your Posts Are Too Long
While it’s hard to say that long post always get fewer comments – there are a lot of different considerations at play – as a general rule, longer posts set a bigger barrier to commenting. I write a lot of long posts, and I’ve seen this bear out time and time again.
There are two things to keep in mind when you’re writing longer posts: 1) most blog posts are short(er) and 2) your readers are busy. If they’re used to reading 500 word posts on other blogs and then hit your 3,000 word post, they’re might be a bit overwhelmed. It’s not uncommon for them to bookmark your post for reading “when they have time” and move on to the next, shorter post, only to forget to come back and read yours. (For more considerations on blog length, check out Post Length ‚Äì How Long Should a Blog Post Be?)
Some bloggers manage to thrive in the long post format, but you’ve got to understand that you’ll be going against the current if you write in that style. That’s not a bad thing – just understand that you might not get as many comments as if you wrote shorter posts.
Once your post is published, it’s probably best to leave it, though. In the future, see if you can take a long draft of a post and split it into a series or discrete post. Also try varying the tempo of your blog by following a long post with a short post and vice versa.
Red the entire post 8 Reasons You Might Not Be Getting Many Comments
Impact on your business
Interaction is something all businesses and bloggers are looking for because most understand the benefits of having a strong customer base and readership that is engaged in the things your business is doing.
Follow the steps in the article to crafting blog posts that have potential to generate a lot of comments and you’ll start seeing your readers more interactive (and thus more loyal).
There is a lot of uncertainty in the world today.
Consumers are looking for security in the things they do on a daily basis. They want to make decisions that ensure their family and friends are safe and secure for the future and this is leading to more prudent saving and planning in the market.
It’s a change for most business models as businesses have to be more up front with their benefits to the customers.
Having an open and honest relationship that where you are transparent with your customers is going to make you successful in the next era of the US economy.
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