Category Archives: News

Business is Booming for LA’s Airbnb

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Airbnb is big in LA and getting bigger.  In a recent pilot program, at the end of last year, the company set up its Trips platform, which moved it into the indie fashion community industry, expanding its services to facilitate and suggest local spots for travelers to visit. Trips will also ultimately add flights and other services.

So what does that mean for LA?  Coordinating with designer Jill Aiko Yee and Jordana Howard of Echo + Air with a weekend trip entitled ‘The Cutting Edge.’  The two day experience will happen next month and via this programming, there comes a whole slew of various facets in the local fashion industry.

As Yee explained:

“The main thing that Jordana and I want to do is welcome people to the fashion design process and let them know it’s really thriving and growing We just think for fashion in Los Angeles to grow, we need to put a face to it. We want to help get the word out that there’s quality happening in Los Angeles and that there’s ethical production here. Jordana and I really care about the independent design community that’s happening in Los Angeles.  We think it’s rich. We wanted to build a program around what was specific to Los Angeles, specific to local production and eco-friendly production.”

Howard and Airbnb met up at a crafting event at which Howard was asked to create a tour for the firm centered around her own personal interests and lifestyle.  With Yee she has worked on the Open Saturdays small boutique market in downtown LA among various other design events.

This move by Airbnb will likely boost LA’s position on the global fashion market since until now, most consider NY to be the venue.   As JM International Group John Marshall noted, LA does have a ton of up-and-coming designers which he believes is not just restricted to a passing phase.

 

LA: The Business of Transport

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rail-tracksTransport has been an issue for Los Angeles for more years than probably anyone can remember.  Improvements are made here and there but the city is filled with so many people who want their own mode of transportation that making it eco-friendly is often filled with challenges.

However, the Expo rail line (that opened a few months ago) might be changing all of that.  The ability to travel from the Santa Monica beach to downtown without having to drive and sit in traffic for two hours has become incredibly appealing.  Tons of people chose this option, enjoying the 45-minute commute with their beach bags and iPads.

And then there is the Gold Line extension that will operate from Pasadena to Asuza, which opened earlier this year.  People from San Gabriel Valley really benefited from this as it meant they no longer had to sit in the uncomfortable Interstate 210 traffic.

Still, if the convenience does not encourage LA-peoples to leave their cars at home and go public, the possibility of the vote going through by the Board of Supervisors to make a countrywide 1-cent transit sales tax (which would result in raising an annual $860 million for the city) probably will.  Incidentally, the money will be used for 40 major transit projects over the next four decades.

This is a big deal for LA “the car capital of America.” As LA Metropolitan Transportation Authority, Phillip A. Washington said: “We want to once and for all solve the transportation infrastructure challenges in Southern California.”  He added that the situation is only going to get worse unless it is dealt with since “2.3 million more people [are] expected in the county in the next 40 years. The roads are not built to accommodate the influx of people.”

Food Glorious Food

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coffee-shop-673789_640Can sometimes be so much more than food. And the price is indicative of that too. At least that’s what most people will feel when they come across the 24-karat gold doughnut. Described as “the fanciest doughnut ever,” creator Chef Jason Harley (of Birdies LA) explained how they “just wanted to give something a little bit different for the people to try.”   Well, $100 a doughnut sure is different. And the $1,000 “deal” for a dozen is something to talk about too.

But perhaps you are one of those in LA where you couldn’t even afford a 99cent doughnut. In that case you might want to join the fight for LA becoming $15 minimum wage. But in more recent news, California’s Fight for $15 campaign is shifting its focus – to unionizing. A recent strike by thousands of workers with lower wages (often those in the service industry) took part in this rally. According to the Service Employees International Union, over 300 cities in America and 40 countries worldwide. And where did they march to? None other than famous eatery McDonalds…offering foods at a somewhat more reasonable price than the golden doughnut.

And then there are those who are helping those in need get proper nutrition, while enjoying their food. Starbucks is addressing domestic hunger. How? By recycling. Yes, Starbucks is going to be donating all its leftover food to charity, with the ultimate goal of providing close to 5 million meals to food banks around the world from its 7,600 outlets. And, within the next five years, it is hoped that number will reach 50 million meals annually. As Brand Manager Jane Maly explained: “When we thought about our vast store footprint across the U.S. and the impact we could make, it put a fire under us to figure out how to donate this food instead of throwing it away. The challenge was finding a way to preserve the food’s quality during delivery.”

Estimates from the federal government have indicated that over 48 million Americans live in what “food-insecure households,” whereby hunger is a constant worry. Meanwhile, according to the Environmental Protection Agency, America disposes of close to 35 million tons of food annually.

Clearly someone needs to be the matchmaker in these cases and perhaps the golden doughnut makers can do something to help as well.

Boosting LA’s Economy

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comicPotential good news for the economy of Los Angeles.  As WonderCon begins its gathering at the LA Convention Center, officials are predicting that $20 million will be spent over the three day event.  This money will be used for hotels, restaurants and the actual event.  But there is more.  A further $16 million is predicted to be spent during the time the people spend visiting the State.

There is so much on which to spend money in LA.  As Mayor Eric Garcetti pointed out: “Los Angeles is the entertainment capital of the world and a city that captures the imagination.”  What better place to host WonderCon, than the City of Angels?

Gary Toeben, President and CEO of the LA Area Chamber of Commerce welcomed this event.  He said: “A conference of this size, with the ever-growing popularity of WonderCon, will certainly mean great economic benefit, not only for the downtown area, but also for the entire region.”

Drumming up Business?

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warhogBusiness owners/managers are always trying to find new ways to make more money. With all the advanced technology, increasingly interesting out-of-the-box ideas are coming to light. Take the LA Zoo for example. In an attempt to bring more people out to see the animals (and thus make the LA Zoo a more thriving business), the LA Zoo Association – in conjunction with Google – has set up high-tech cameras in animal enclosures. The way it works is that if an animal comes within a certain range of a camera, it will automatically snap a photo. To date, a sloth, tiger and warthog have participated in this new venture.

Another initiative taken by businesses – possibly to get an edge in the business world, or maybe just to make the world a better place – is becoming greener vis-à-vis one’s competitors. This is the case for apparel company Zara which is aiming to have 100% eco-efficient stores by 2020. When this happens the stores will be consuming 30% less energy and 50% less water compared to a conventional store.  To make this happen, the company has applied to the U.S. Green Building Council for LEED (Leadership in Energy and Environmental Design) certification.

And then there is another way of boosting one’s edge in the competitive business world: the enhancement of customer service. In a recent article in Information Week, in situations whereby customers can very easily change where they do business and “superior customer experience drives superior revenue growth. Therefore one needs to focus on providing the best customer service possible, “making doing business with you easy, boosting customer acquisition and retention.”

There are many ways to get ahead of the curve in the LA business world. But one thing’s for sure; the companies that are not always on their toes will not stand the test of time.

Foreseeable Economic Growth?

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jobsWhen it comes to the job market in Los Angeles, the answer to this question is complex. There will be a continued hiring spree throughout the state of California over the next two years. But, this will be less than the hiring that went on in 2015.

In 2016 and 2017 it is anticipated that the state of California will add 650,000 jobs. According to the Los Angeles County Economic Development Corporation (LAEDC), this will reduce the unemployment rate to approximately 5 percent (it currently stands at 7 percent). This is a step in the right direction given that there was an increase in unemployment in 2015 by 3 percent.

As Chief Economist of the LAEDC, Robert Kleinhenz explained: “The California economy will continue to add jobs at a faster pace than the nation. Both will see slower job growth in 2016 than they have seen in the last couple of years.” This will translate into longer hours and people replacing part-time positions with full time ones. But as Kleinhenz pointed out, this “also translates into sort of less-outright job growth.”

Given this situation, the next step should be wage increase. The forecast for that, per capita income is an increase of 3.9 percent in 2016 and 4.9 percent in 2017; substantially greater than the 3.6 percent figure of 2015.

So who will gain from this? Apparently two main industries: healthcare (with an anticipated 29,000 jobs over the next two years), and construction (forecast for an additional 9,800 jobs during this time frame).

In addition, with the deceleration of the economy in China, California is likely to be even more attractive as Chinese investors are putting increased funds into California. Indeed, last year FDI to America increased by more than 30 percent. According to a Rhodium Group Report, California took 20 percent of that amount.

So there is a lot of foreseeable good news for both the job market and the economy in California over the next two years.

 

Business Growth in LA

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planeEconomic growth has been notably on the rise in Los Angeles recently. First of all, tourist figures for 2015 were even higher than a year ago, with numbers “hitting a record for the fifth year in a row,” according to Eric Garcetti, the region’s Mayor. The surge from 2014 was a staggering 1.3 million and it is said that this could be explained by an augmentation in the status of the international airport as well as “booming growth” downtown. In a recent statement Garcetti explained:

“Our city keeps setting records in the tourism sector because we are investing billions at our airport, in mass transit, and other assets that are making L.A. more exciting and accessible than ever.”

One new cool franchise that will be opening next year in downtown LA is Shake Shack, housed at the corner of Hill Street and 8th Street, to replace the 801 Hill nightclub. In an article written by Jenn Harris in The LA Times, it seems that:

“The restaurant has developed a cult-like following, known for its rich frozen custards, cheeseburgers with tangy Shacksauce and long lines in Madison Square Park.”

Indeed, Los Angeles today is not like the ghost town it used to be after 5pm that it was some years ago. Today, thanks to the efforts of Carol Schatz, of the Central City Association. She is in charge of the Downtown Center Business Improvement District that “helps fund security, marketing and economic development efforts.” The Association has also been responsible for “Staples Center and the adaptive-reuse ordinance that made it easier to renovate old office buildings into housing.”

And then of course there is the plan that was approved by the Los Angeles County Board of Supervisors to give more contracts to small businesses, which will give 25 percent of total purchases from the county to small businesses and those businesses owned by disabled veterans by 2020. A plan is being put together by the Department of Consumer and Business Affairs to meet these goals.

So altogether, it’s good news right now for businesses in Los Angeles.

Job Market in LA

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employeesThere is both good and not-so-good news for the job market in Los Angeles. The good news is that, according to figures from the state Employment Development Department, last month – for the first time in eight years – unemployment figures in LA County plummeted (from 6.1 the previous month to 5.9 percent). One reason given for this drop was “holiday retail hiring,” which resulted in substantive job gains. This is definitely a welcome change from the 13.2 percent figure of unemployment LA County encountered in 2010.

Indeed, an additional 5,500 jobs were added by California employers in November. However, it seems this figure is not to be celebrated as usually it is more. These job increases were actually the lowest one month jump in over four years and marked a big decrease from the 40,600 job gains the area enjoyed in October.

In terms of industries it seems that the best place to get a job is in construction (due to a rebound from the housing crash), as well as very high paying industries such as accountants, architects, engineers and lawyers. The industries that encountered losses were financial services, logging, mining, and manufacturing.

Los Angeles Parking Problems: A Solution?

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parkingParking in Los Angeles is not a new issue. What is new however is the different methods experts are proposing on how to deal with it. One recent proposal is by introducing driverless cars. If Toyota’s plans go ahead, by 2020 this will be a reality. There are still some issues to be addressed (technical and ethical, for example), but with the potential of the significant decrease in transportation infrastructure, it is quite an attractive option.

What is the problem in numbers? In incorporated LA County, there is an estimated 18.6 million parking spaces. This covers 14% of the land. Further, for an estimated 95% of the time, cars are not actually driving, but merely occupying space. The math on this speaks for itself. And this is not the same for other states.

Another possible solution is to ditch the classic red, white and green placards in place of a simpler street parking sign. It is argued that this could eliminate driver confusion which results, “unintentionally in parking tickets.” Indeed, according to the motion sponsor, Councilman Paul Krekorian, “every Los Angeles driver has attempted to decipher seemingly conflicting parking signs and has later found a parking ticket on the windshield.”

There has also been a request to ban the sale of public parking spaces, which enable drivers to auction off their spots for a profit. As Mike Bonin, another Councilman pointed out, this is “the stealing economy masquerading as the sharing economy. Not all technology is progress.”

What is the Future for The Los Angeles Times?

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newspaperThere is a good chance that The Los Angeles Times is about to be sold to a group of local investors. According to executive chairman of News Corp, Rupert Murdoch it is likely that the Tribune Publishing’s newspaper group will be acquired.

This might come as somewhat of a surprise to those who know the history of the two publishing giants. There has been a lot of friction between the Times and the Tribune, especially recently when the Times’ publisher, Austin Beutner, was fired by the Tribune. Plus the Tribune announced its depletion by 7 percent after a buyout of employees, many of whom were at the Times.

Whatever happens in the end, should the sale go through and the Los Angeles Times turn to dust, this will mark the end of an era. The first time the paper was published was exactly 135 years ago (tomorrow!). It was at that time called The Los Angeles Daily Times and then 5 years later ‘Daily’ was dropped. It was only in June 2000 that the paper went under the umbrella of the Tribune Company in its acquisition of the Mirror, that was in the past, a parent of the Los Angeles Times.