Brief Bytes
Health Insurance, Fuel Costs Concern Small Business Owners
Rising costs related to health insurance, fuel and inflation are the top concerns among small business owners, according to a survey by the National Federation of Independent Business (NFIB) and Wells Fargo.
Released in June, the Small Business Problems and Priorities survey ranks health insurance costs as the top issue facing small business owners. More than 56 percent of respondents ranked the cost of health insurance as a “critical problem.” Other top 10 concerns include the cost of fuels and electricity, supplies, inventories and worker’s compensation insurance.
NFIB conducts the study every four years. Results are based on 3,530 small business owner responses to a mail survey circulated in the first three months of this year.
“For four years, the economy provided a good, stable foundation for small business owners to do business, but as it started to take a negative turn over the last several months, they felt the effects of rising costs of doing business as reflected by these results,” says Bruce D. Phillips of the NFIB Research Foundation.
For more information on the NFIB survey, contact Mike Diegel at the National Federation of Independent Business at (202) 314-2004 or visit www.nfib.com.
Dallas-Fort Worth at Lowest Risk for Falling Home Prices
There is a less than 1 percent chance that home prices in the Dallas-Fort Worth area will be lower than they are today in the spring of 2010. That’s according to a July report by PMI Mortgage Insurance Co., which forecasts the likelihood of home price declines among the nation’s 50 largest metropolitan statistical areas.
Austin, Houston and San Antonio also ranked among the metropolitan statistical areas (MSAs) with the lowest risk for home-price declines. Each had less than a 1 percent chance of home-price declines.
PMI’s Summer 2008 U.S. Market Risk Index ranks the nation’s 50 largest MSAs, according to the likelihood that home prices will be lower in two years. Riverside-San Bernardino-Ontario, Calif., has the highest risk of future price declines, with a 95 percent chance, followed by Fort Lauderdale-Pompano Beach-Deerfield Beach, Florida, with a 92 percent chance.
There’s been a significant increase in the number of existing single-family homes for sale relative to the number of buyers compared with a year earlier, says PMI’s David Berson in the report. He expects national home price declines to continue into at least 2009.
For more information or to download a complete copy of the report, visit www.pmi-us.com/eret.
Port of Galveston Secures $28 Million Loan
The Port of Galveston closed on a $28.1 million loan in July to modernize its facilities for handling larger oceangoing vessels.
The port obtained the loan through the Texas Industry Development Loan Program (TID). Administered by the Governor’s office, TID loans offer low-cost, long-term financing to cover costs of economic development projects. The port will use the funds to revitalize aging infrastructure and will pay the loan back over 17 years.
Funded projects include deepening the Galveston Harbor Channel and modernizing channel front berths. An economic impact analysis commissioned by the port determined that the improvements could create more than 2,000 new jobs and $405 million in additional revenue when completed.
During 2006 and 2007 the Port of Galveston was the fourth busiest cruise port in the U.S. and 11th in the world.
For more information, contact Cristina Galego, Port of Galveston, at (409) 766-6119 or visit www.portofgalveston.com.
Saving Energy, Increasing Profits
The new Texas Agricultural Technical Assistance Program will provide farmers and ranchers with information on cost-effective energy choices, help identify funding and incentive sources, conduct training and offer free Energy Assessment Reports (EARs) of producers’ buildings and facilities.
The State Energy Conservation Office (SECO), a division of the Comptroller’s office, oversees the program.
“This program seeks to enhance the continued success of our state’s agriculture industry by streamlining energy costs and keeping Texas competitive,” says Texas Comptroller Susan Combs.
Energy consumption usage data and information about the farming equipment used in production will be included in the reports. They will identify ways to reduce energy costs and recommend changes to electricity, propane and diesel fuel use within the farm operation.
For more information, visit SECO online at www.seco.cpa.state.tx.us.
Your Money or Your Thermostat
A pilot program in Dallas and Houston, begun in July, is aimed at cutting electricity bills and consumption during late summer afternoons. The Center for the Commercialization of Electric Technology (CCET) wants consumers to hand over their thermostat controls in order to conserve electricity during peak times. This is also aimed at bringing down wholesale energy costs energy for the electric companies.
CCET was created in 2005 by the electric industry, technology companies and universities to promote new technology. Dallas-based Oncor Electric Delivery is providing the technology to complete the project in Dallas, while Reliant Energy, TXU Energy and Direct Energy recruited volunteer participants.
Customers received payment, a free inspection of their air conditioning system and a new thermostat for participating. Up to 500 residents in each city are participating.
For more information, visit www.electrictechnologycenter.com.