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Small business went down Lawrence cement any acts in the nitty -- we have a jam packed show let's kick it off with Fox Business.
Dot com Kate Rogers still isn't out two small business surveys that are showing conflicting pictures of the economy gets its confidence level out there -- tells.
Exactly so election is about four weeks away yesterday we got two reports from two different small business advocacy groups and they have very different.
Results on how optimistic entrepreneurs are feeling.
So the first one is -- National Federation of Independent Businesses there September optimism index and that's the index that we always talk about on the show.
And it's still starkly in recession territory and it fell.
Point one point so it's 292 point eat and what's even worse is that job creation plans actually fell six points so that is not so they're not hiring and are -- -- buying new equipment which is meant no harm the factories in the manufacturing sector now.
Definitely not good news.
The good -- you know the bright side of this was that the outlook for expansion in the next six months gained three points -- and also those business owners who feel that things -- after the election exactly.
-- improve in the next three months also gained two points okay that's all good and this is based on about 700 small business owners who are part of and a -- membership.
And a small businesses getting.
Any business under 500 yeah exactly so that's see down importing to station with -- of these surveys is at an FID they go by the SBA the Small Business Administration.
-- -- standards for what a small businesses and that's 500 employees -- -- -- now onto our next survey which says that.
-- -- are feeling a lot more optimistic than what the NFIB says this is from the national association.
For self employed.
And also the small business majority -- and they -- the business owners with specifically ten employees -- -- a really.
Yes those are my kind of micro business is exactly -- -- found.
That more than 50% of them said that the increase their revenues in the past two years and that another 50% of them plan to hire within the next two years plus -- a -- -- -- -- -- -- -- there.
Very bullish yet telling followers whereas the media and by the numbers we don't know some not so much OK so you know that's interest and one more important stat from that second survey from the small business majority.
They said that those who are forty or under are even more optimistic about 67% of them say that they're doing well right now and I guess to life.
They didn't specify as to why.
I mean that he's only factors that go into it says each group look at the same pool the same number of businesses about 700 yes about any other thing that FID and then it was just under 500 for the second -- -- pretty.
Pretty bad yeah pretty big but then you know it's -- business side that really and -- -- into.
What they're feeling and thinking -- now.
Well let's hope that in the second set to hit -- is right yes and we definitely are more optimistic going I hope since he brought his -- went your article up on Fox Business downtown now.
Everyone wants more information.
Some hints respond businesses out there on on the status of small businesses across the nation in September wasn't such a great month now that'll be interesting to see post election feeling to get down for the past five months I was not good -- and yes.
But only 2728.
Days for the election you know we have 4 eastern yesterday sound crazy NASDAQ and you gonna go to a break we'll be right back.
We're back okay Leo Kelly I -- is joining us with high tower financial advisory firm we're talking about manufacturing sector it's taken a hit lately that you say manufacturing is back why is that.
Well I think there's there's three main reasons and then three game changer so we've seen since the financial crisis a few years ago.
One would be the change and energy -- -- two is China and what's happening in China specifically.
And then three is changes in the labor force that have occurred over the last several years in terms of cost of labor act and so if you if you take each one of those.
Fracking is change the equation for energy crisis and so with fracking now.
We are this Saudi Arabia of natural guests and so the real issue is how -- we get that distribution center.
Built so that -- some businesses here in the US can use it when we do and if we do correctly and we have good policy energy policy.
That's gonna bring down energy prices by high gas prices are super -- The super cheap and the side effect of fracking is were actually finding oil.
And so really look at the US second largest and oil production growth in the world last year Canada Brazil.
Suddenly and you have.
Significant change in pricing for energy at least potential for the that's -- And so energy dependence.
We're that we're getting there the -- and I -- one is to China.
Massive changes going -- massive changes so what's happening in China which is really interest -- his China is going through this metamorphosis that there was this huge export business.
And everyone was offshoring over to China and saying we have to go there because it's cheaper.
And along the way here's what's happening inflation is starting to pick up and -- -- and wage inflation is going through the roof.
Not the same time the cost of productivity technology has come down dramatically in the gap.
Between manufacturing labor and productivity -- manufacturing automation has collapsed.
And so now suddenly you can pool saved -- -- factory back from China.
And put in the US and the cost or not that different.
-- just did it G -- had a plant making water tree artsy new water heaters right and they were in China and G decided we're better off from Kentucky.
And so they took the whole plant back over and now they know they're making water heaters here in the United States right and have you on the website they'll tell you it's not more expensive.
Because of shipping cost because of of labor cost they can have less people making the product.
Energy costs are cheaper here with the rising with the rising price of the yen.
Suddenly this is a very very sensible way to manufacture there's actually -- term for it's called -- short.
Restoring -- everything back -- back to -- Still a lot of bum.
Concern about the quality of Chinese goods I mean just today there's that whole counterfeit airbag issue that could affect -- tenth of vehicles here in the United States where.
Arafat airbags manufactured in China had been reinstall didn't.
You know cars that are sold -- used -- and well you could have that.
Fake air bag in your -- at risk but there's examples like this that from again.
Well I think if you're if you're CDO.
United States CEO and you've been making products in China I think you have to ask yourself those in the following questions.
If it's even close in terms of cost is it worth the risk of patent infringement is it worth the risk.
Safety and quality issues shipping cost going up because a high energy prices it worth the currency risk.
And let -- flying down to that's -- that's -- while they have grown their wealth I mean.
Their economy I think it's expect from about seven point 8% this year is still tremendous I know I wish for a program that -- for them that's pretty slow.
Well be great but the reality is it's slower than what they've been doing enough because China needs to -- -- they have to change.
From an export economy to a consumer economy and that's why they let their currency go -- And because of that costs have changed the structure is changed.
And there's other things go along with China today for example Japan.
But what's going on in the south -- and now you're seeing Honda and Toyota their point now.
They're coming out of China -- a little nervous by the way Honda Toyota BMW.
Airbus the -- putting manufacturing here in the United States.
I rate now even -- I think they opened a plant.
Here in the US -- -- in South Carolina coming out despite a lot of pressure from from the unions they open it South Carolina decided to stay here at.
And that's that's a big deal I think what you see is.
It's the larger more sophisticated products that are coming here -- first planes trains and automobiles and trains and automobiles and -- -- -- We think about health politics -- -- all -- and asking because you know.
Because where four weeks away from friends in need here.
Some people saying label China -- currency manipulator or come down hard on China and that.
Patty fill out that headwind that affect.
Manufacturing as a whole.
But the manufacturing the decision where you put a plan.
-- it comes down to a few basic imports how much does it cost to make a product there's energy input yet there's labor cost so wish -- -- is that every US manufacturing -- -- -- which candidate Romney -- Obama.
Is better for many a -- I think I think I think the broad the broad manufacturing.
Business and itself was gonna say Iran because what we're looking at is.
If we could think about this if we could lower regulation.
If we could lower taxes on corporate America and if we could actually sent corporate America to bring money back here.
To to open manufacturing plants.
You're lowering the input costs and that that encourages business come here now that said.
This is gonna happen regardless their business finds a way the reason why the US continues to thrive.
Cycle after cycle after cycles were the most efficient user capital of the world has and so business finds a way and so really what I think is more important.
Is that the broader economic macroeconomic impact that that the change in China is having in the lower cost here in the US.
A lot of people say manufacturing is a whole different landscape now because the demographic of -- -- -- has -- a lot of it has moved online for a NEC a lot more women entering the war -- where is sure how does that affect the manufacturing sector kinda loses its esteem -- an away -- Well it may have before 20082009.
But right now with unemployment being as high as it is I think I think what's more important people's getting -- job.
And so if we can bring it back -- I saw survey.
Study that was done that's it for every ten jobs GE.
Opens and they're trying to move they're trying to bring 151000 new jobs the US.
And for every ten that they bring in 52 new jobs are created small business supporting.
Yeah and so.
There's there's there's other jobs other than just the factory line or just the person supporting the automation.
Definitely true Leo Kelli thank you some of them coming on things -- -- your perspectives and showing your web -- high tower now.
And now we hope to have you -- -- -- an interesting topic it's definitely an -- I think election.
Hits closer to us -- let's go out to Dallas we have Martin atlas CS joining us Brian I.
I -- and I -- -- name.
And -- -- did okay had I say it.
It's malicious -- -- -- like that even better.
-- in -- with ten this tour is so you are you a storm chase so our worry was storm chase there.
Well I guess I am a storm chaser technically.
And of course side from the founder and president of -- the stores which are founded in 2000.
-- -- -- -- -- -- -- -- -- -- Can you describe it.
Well to -- sewers is an adventure travel company and we're based in Arlington Arlington Texas and we take people from around the world storm chasing and we introduce.
The science of storm chasing of storms.
And the romance that goes along with that to them.
And here you're researching your video has been.
CNN some movies in my at all seeing right.
Yes I'm quite a few different movies and documentaries on television -- film actually.
-- I mean you know this three years chasing a storm is no big deal.
You know it's just any other job but for me and someone who's very interested in these things it seems what is it like it seems scary and makes your blood flow so much or just looking at some video now and -- really useful what's it like it did he errands and do it again.
It's liberating right now I'm sitting in down -- balance.
And I'd much rather be out there on the open plains -- thunderstorm.
You know it's it's free it's big sky is big.
And there is fraction and it's very beautiful -- it scared.
No I'm not very often I would say you really not at all I am playing severe weather fascinating I understand it.
And to me it's something that's natural that hasn't been touched by man.
That I'm able to see in a pristine form so that's the way -- that that Alec a severe weather.
Over the past twelve years Howell has your business ground.
It's grown steadily.
We see about 5% growth a year.
-- we get it we can have a lot of return guests in fact.
Some of -- more dedicated guest book here in advance OK and how many toys you -- a year and how long are -- and how much panic.
Typically weren't about eight to 92 words every spring.
During the months primarily of may and June.
And they ranged in price from about 16100 dollars to about 3200 dollars -- why change it.
May and June is the climax for tornado season in tornado Alley.
And what if you don't get a tornado is our all that all the people on the -- disappointed.
-- now they're not usually disappointed I mean they would like to see a tornado that we.
Regularly -- you really.
A type of storm that we see a lot has called a super cell and it's really what we're trying to forecast an intercept.
And a super cell thunderstorm produces a lot of brilliant.
Photogenic lightning and beautiful sunsets and dark clouds and and -- -- get to see something beautiful and wonderful almost every single tour and a tornado is sort of like.
And cherry on the top of the the Sunday so to speak.
A tornado is the cherry on top of his son the Sunday for a storm to agent chase or not for someone in its -- What are your plans for your business since this is small business center Wednesday.
What are your plans going -- Well our plans is hard to can be continue to.
Improve our company and different ways.
Our on line presence.
Of social networking.
But also who just.
You know couple improvements include improvements in our equipment and our software and our techniques.
Although we have twelve years behind us.
And a lot of her staff have.
Fifteen to 2.5 years of experience prior to that.
The storm chasing so.
We're just tweaking it right now.
Martin -- thank you so much for coming on -- telling us all about tempest tours.
Have a great day there in Dallas and there's a website everybody wants some more information.
-- we are -- -- -- heading to guest.
I would go break and we will be right back with one not more.
Story if you guys remember just answers something like that.
Welcome back RA we had and decrypt seeing analysis CEO of -- -- dot com which you might be more familiar with as it just -- Right what is told that come.
From a -- website where people go and -- wanna talk to a doctor or a lawyer for mechanic or veterinarian or any kind of professional on the Internet one on one.
You have a question any need valid -- -- Want to.
Authority -- -- -- let's say -- get it is there C.
There is so it costs about thirty bucks talk to a doctor -- lawyer mechanic any of our experts anywhere from ten to about ninety -- talk to them on the phone -- -- Internet.
Conclude my chatter you can post back and forth about anything's going on your life.
Hello again the doctors lawyers and experts to to get this request we've got about 101000 of these professionals and and they come to our side because the they feel like helping people -- and it's another good -- being confident especially in this down economy some of these professionals are making anywhere from.
Dollars a month on the left about 40000 dollars a month.
Well I think -- a lot of questions -- -- -- -- it from anywhere right at fifty you know questions at a timely hits they had have someone who wants to talk about.
Some disease and you just filled it out -- do they get on the question this is all real time for the real time in the average response times and a seven and a half minutes twenty -- -- -- -- great idea what is crawled -- -- it.
By eight we're gonna come from yet so we used to be called just answer dot com and our -- dot -- and we found was that hey we don't just.
Answer any more than a national fund insider actually had a real time one on one conversations with the within the customers and number two.
We we want to make sure that we are differentiated nobody else in this case that that we actually connect you with a real bear hide.
High quality professional.
Not to finish the regular personal history and number three -- -- comments that the great man obviously pearl of wisdom.
Elevate the pearl of wisdom -- it and you had a couple something yes so how competitive it.
-- -- And so it's.
What what what we're seeing today is professional services are moving online just like the -- moved online over the last fifteen years for fifteen years ago when he wanted to -- Booker.
Shoes or whatever -- you've got to.
-- -- Borders or wherever you go and now of course 16% of the US GDP consumer goods goes through eBay and Amazon a -- Professional services -- we play.
To a -- is bigger than profession and and the consumer goods market.
And we want to be the Amazon professional services sector and you know everybody's moving online and I think we look forward in the future in the port ten years from now.
Everything expect to be able to talk to professional on the phone are on the Internet just like they expect to -- -- to -- anything they want on the Internet.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Face of course so that's where it's a nice.
Combination of the Internet and that face to face so obviously sometimes you gotta go see doctor a lawyer mechanic hurt for years.
Situation we're really great with triage Qaeda linked to a need to worry about this -- -- I've got a cold and it's not really quite going away.
And all those kind of nagging issues off the second opinions -- great.
What's the craziest thing you would expect -- -- -- asked.
We get us a lot of crazy question because anonymous writes -- anonymous people can ask anything.
That's going on their lives.
We want to know some of the things that are asking yes -- the most -- field that questions are asked the medical is it.
That was the biggest her doctors lawyers.
Mechanics tech supporter.
Veterinarians tax -- coming out so accountants pretty soon going to be taking -- -- us can imagine we've got about 700 different types of professionals 101000 different.
Professionals answer those questions.
Constant every different type of specialty as well you think about accounting that's equivalent I feel like with accounting that you really need you need a lot of you telephone.
Think -- I didn't play -- -- -- -- and it was great because it's really people giving Turbotax these days yes that is him playing my -- and I via.
-- HR block and some of those accounting firms Jackson Hewitt.
And -- -- whenever you're gonna do Turbotax is always that one thing you have a question -- -- attacks can't answer right now and that's where you come in the -- you see yourself let's say five years from now.
So five years from now this whole professional services sectors moving on line where the biggest by far in the states today and we're gonna continue to grow really quick piece of the things that we're doing now where.
Where we just praised.
Another 269 dollars bringing the total of 51 million in the last couple years.
We say raise other fees they charge no now we're doing it on a -- year in -- so that's raised from outside investors.
Yeah I think people answering asking questions I have a lot of questions and I answered yeah.
Coming and we just raised 26 million dollars on top of the 25.
And we did -- -- than that to build a grand.
-- yard doing live television advertising starting soon.
We're going to be coming out of mobile apps that we already have the iPhone app for getting ready to launch -- -- five version for the Kenneth -- recited them fully mobile version.
-- -- mobile because that's the thing you know everyone's China.
Get on the web but it's almost like if you haven't -- online -- -- -- behind because now it's all about and commerce and business that's all about -- mobile and today it's me Facebook's problem and they make money from the users.
They send -- your business I totally respect that you have to charge that.
Because you have to -- -- you know that's how the world operates the police say it would hear competitors say who who don't necessarily attached their client.
So -- users well this different types of approaches of the market it's essentially -- -- doctors and lawyers.
And mechanics and mean they need to be able to charge money for what it appear as they went to medical school for a long time -- get that couldn't really can't -- and so you know twenty bucks is a pretty 203040 dollars to pretty.
Low price to go pay for access to fashion like.
Thank you for bringing us your pearls of wisdom and very successful I don't you know I see you're not a small business.
We're running out of my how many workers you have 300 folks up access technically still a small businessmen probably won't be next -- nonchalant and -- -- CEO -- dot com thank you so much.
Great to see you ending -- to everybody for watching us on this Wednesday edition of the small business center now while they're right back here tomorrow.
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