Facing Disasters: A Plan for Work and Home

The beautiful thing about
living and working in the valley of south Texas is
really the communities. I was raised in the Valley
and I love living here. I work at the Isla Grand Beach
Resort on South Padre Island. It’s a full service
hotel on the beach. And its one of the most
beautiful beaches here in the U.S. In 2008, we had
Hurricane Dolly. And in reality many of the
communities here in the Valley weren’t as prepared as
they could have been.>>The unpredictability and
danger of these conditions have encouraged emergency
officials to shut down the Queen Isabella Causeway. The Valley was not prepared
for the hurricane, but the hotel did have a plan. Though it wasn’t a big
hurricane, it hovered over certain areas for a long time. That’s why it caused
a lot of damage. The windows in the hotel
lobby started to break. It sounded terrible. The wind was very strong. We were in our rooms, praying
to God that it would end. Of course we were scared. I didn’t know what
else would happen. Hurricane Dolly was the
worst in terms of the days we were without
electricity and water. The most dangerous thing I
saw were cables in the middle of the streets, telephone
poles that had fallen. There were roofs that had
fallen off of businesses that I didn’t expect to see. (music) Before the hurricane, the
owner and I met to discuss our emergency plan. We checked with local
officials and they told us it was a voluntary evacuation. We wanted our employees
to be prepared at home before coming back to work,
here at the hotel. I went to prepare my house
to take care of my wife and three kids who stayed
home alone. We boarded up our windows,
filled our cars with gas, bought water and canned food. Businesses can make an
emergency plan to respond to a disaster and they can
also help their employees make an emergency plan. This way individuals,
families, and communities can also prepare. The plan is
divided by department. Each director is
responsible for his area. When Hurricane Dolly arrived,
my plan was to make sure all of the guests were in safe areas,
where they should have been, check the emergency lights
that we have in the hallways, check the generator
and the elevators, to make sure that they were
all functioning normally. As part of the plan we
have water and food to last several days. We have medical kits to ensure
the safety of our clients. The entire lobby flooded and we had to move people
to other areas. We moved the computers and
important documents to the second floor of the hotel. It started to smell like
something was burning and we noticed that the windows in
front of the elevators had broken and cut a wire. So then, we had to turn off the
generator and do without it. The damage that Hurricane
Dolly caused was tremendous. Broken windows, broken
doors, fallen trees, fallen fences. There was a lot
of destruction. A hurricane can affect
our public health system. The water you’re going to
drink can be contaminated. Lack of electricity might
mean that food isn’t refrigerated properly. And it’s important that people
pay attention to local health and state officials. And that they follow their
advice in this situation. The next day we had a meeting
to discuss the damage done by the hurricane. We decided to use our employees
to begin the reconstruction. We all worked together. The bartender was breaking
down walls and painting. And people watched him and
thought, “Well, if he can do it, I can too.” It inspired people to see
someone who had never done it before, do it. So we all worked faster. We entered the hotel rooms
and saw the work we did, and we felt really proud about
how the hotel looks today. The Isla Grand Hotel was
the first hotel to open after the hurricane. It took about two and a half
months to open back up. Without a plan we wouldn’t have
been able to open so quickly. Before each hurricane season,
we review the plan. Let’s talk about
our emergency plan. Let’s talk about what we
can do better next time. I think everything went very
well, with the exception of the tower. There will always be things
that you don’t anticipate. But I think the plan
was really good. What I’ve learned about
preparation at the hotel, I also use at home. It’s very important to
have a grab and go kit. We have two gallons of water
a day for each person? Yes. These are the essentials:
things like food, water, clothes. Fluorescent lanterns
for each common area? Got them right here. I learned a lot from
Hurricane Dolly – That it’s important to
have a flashlight, a radio and batteries. Honestly, I really didn’t
know you needed all of this. But I learned this
here at the hotel. And now I prepare myself. I’m prepared for
another hurricane. Not only individuals and
families but also communities need to be prepared
with a plan. The better prepared you are
the better you can respond to any kind of emergency. I didn’t expect Hurricane Dolly
would be as serious as it was, but we responded well. Now we are well prepared for
a future hurricane that could come and
surprise us again. It’s very important that
businesses have an emergency plan. You can’t ever over-prepare.>>You just saw how businesses
that have a plan in place can weather the crisis and
recover more quickly. Whether it’s a hurricane,
flood, tornado or man-made disaster, individuals and
businesses must be ready to respond and recover from
a major catastrophe. That’s why it’s important to
have a plan, to have essential items needed to live through
a disaster, and to know how you’ll get credible
information during a crisis. Make a plan at
TexasPrepares.org. You can also contact emergency
management organizations to find out more about the plans
available in your area. Your community’s
recovery depends upon it.

Kai Ryssdal explains the Bond Market

If you want to know what’s going on in the economy, what is gonna happen out there, you ought to be watching the The bond market is most fundamentally the U.S. government borrowing money by the trillions and trillions of dollars. The thing is, that money’s not free, right? The government pays interest on those bonds — the yield, it’s called — so as to convince people to buy them. And that yield is the thing I want you to keep your eye on, because here’s the deal: The American government is the most trustworthy borrower in the world. The official phrase is Section 4 of the 14th Amendment. The “Game of Thrones” phrase: “A Lannister always pays his debts.” So when those bond yields go up as they have been the past couple of months, well, that’s the bond market saying, “You know, I know you’re going to pay me what you owe me on that 30-year bond you just bought, but just to be sure, I’m going to make you pay me a little bit more for the privilege of borrowing my money.” Now, why might bond traders want a better return? Maybe they think the economy’s going to fade and they want to put their money safe place. Maybe they’re trying to tell the Federal Reserve it needs to move faster on raising the interest rates it controls. Maybe they’re worried about the government borrowing a whole lot more money and inflation then becoming an actual thing. It could be a lot of things — some of ’em good, some of ’em bad. But watch the bond market. It’s trying to tell you something.

🤝 Supply and demand | How does The Law of Supply and Demand work?

I am going to ask you a weird question:
Whatwas the demand for cars in year 1120? Someone could answer without any hesitation:
“None, there was no cars at the time!” However, imagine following situation. If you were standing next to road and asking
every single horse rider in 1120: “Would you like to have a vehicle that will
let you move around much faster? You could travel up to 1000 km per day
in comfortable way.” Majority of the riders,
except from a few horse riding enthusiasts, would say: “Of course I would,
it would save me time and effort!” I will dare to say that demand for cars existed
ever since the first man travelled by land for the first time. Of course it was unspoken demand, because
no one was able to name a car as a solution to his transportation problems, but surely
everyone wanted to make their travels more effective and efficient. It was only supply that was missing. Nowadays we can hear from mainstream economists that we need to increase demand,
which is not high enough. However it is worth to remember,
that people’s demand is unlimited. We, as a human beings always
want to make our lives easier, to have more time and live our
lives more convenient. There is always a demand for goods and services that are going to help
us to satisfy our needs. Therefore, we must find someone who is going to provide us with those
– we need supply for our demand. We are going to show this on the simple story. Mark – who was a pencil producer,
operated on a market in a small town. He was producing handmade pencils
in quantity of 100 per month. His cost of production was
15 dollars per pencil. He was selling them for 20 $ for one piece
and was able to sell all that he produced every month, so his profit was 500 $. However, this price
was way too high for poorer people and only rich ones could afford them. Poor people were pretty upset with the fact
they have nothing to write with. They used to say to Mark: “I would love
to buy a pencil from you, but the price is too high for me.” Mark knew that demand for pencils is high
but he was neither able to produce more of them nor lower the price. The only way to earn more was either increasing
prices or lowering production cost. Mark chose easier way at first. In order to increase his profit, he announced
that his pencils will now cost 22 $. It turned out that he sold
only 70 of them in following month because some customers chose cheaper, less convenient quill
pen instead of expensive pencil. Mark earned $490. It was less than before! He realised that there is no sense in this
price strategy, and decided that he is going to lower price of pencils
by lowering production cost. He anticipated that it would help him to get to more customers. He took a loan from a bank and using
the money he bought a machine from distant country. The machine was way faster,
way more precise, and used less material per pencil. Thanks to the machine, his productivity went
up, and he was producing 200 pencils per month instead of 100. Total cost of production was $10
so Mark was able to lower the price to 15 $ and he was selling
all produced pencils at that price. His profit increased to 1000 $. He quickly paid the loan and his quality of
life increased significantly. Now, we can point out some
lessons from the story. Firstly, Mark throughout whole story did everything to increase only his own income. He wasn’t worried about poor people,
who couldn’t afford to buy his pencils. He didn’t lower the price because he was
a philanthropist but because the solution was more profitable for him. At first he wanted to increase prices,
but he lost part of his customers and earned less than before
the increase. Afterwards, after lowering prices, he didn’t lower his profit of 5 $ per pencil. This shows us that, his drive to earning more
wasn’t hurting anyone. In fact it was just the opposite. Because of his will to earn more,
he found the way to produce more and cheaper, and by that he was
able to reach greater number of customers. The side effect of his idea was higher wealth
for the whole community. On the free market, prices are falling because
of higher productivity. Peter Schiff in his book “How an economy grows and why it crashes?” wrote
that before the inception of FED, prices in USA were falling steadily throughout almost 150
years, just because of higher and higher efficiency of production. Those who are afraid of blood-thirsty capitalists
should realize one important thing. The only thing the capitalist can do to us
without government assistance is to offer us his products. We, as a customers, can buy it or not. The capitalist will earn only if he would
offer us a good or service that we want in decent price. He is going to do that faster and more effective, when he won’t be interrupted. Our rising standard of living will be a side
effect. There are some exceptions to the law of supply
and demand. You can read about them on our website econclips.com. For more subscribe our channel on YouTube,
like us on Facebook and follow on Twitter.

Labor Markets and Minimum Wage: Crash Course Economics #28

Adriene: Welcome to Crash Course
Economics, I’m Adriene Hill, Jacob: and I’m Jacob Clifford, and today we’re going to talk about labor markets, a pretty important topic. Adriene: Unless you’re independently wealthy,
or fine with living in your parents basement, you probably need to get a job. But how do you even
get a job? And what kind of job should you get? In a lot of ways, it comes down to
supplying a skill that someone else demands. [Theme Music] This is Cristiano Ronaldo. He makes about
$20 million a year playing soccer. Or football, depending on where you live. Pretty much everybody
would agree no one NEEDS that kind of money, but does he deserve it? How do his employers, the
Real Madrid Football Club, justify this huge salary? Admittedly, the market for professional athletes is complex, but on some level, it’s supply and demand. The supply of people that have the skills to
be world class soccer players is low. And the demand for world class soccer
players is incredibly high. Ronaldo might be willing to play for only
10 million dollars a year; it’s a lot of money. He might even play for 5 million. And
if he really truly loved the beautiful game, he might do it for free. So why is he getting
20 million dollars? This goes back to that really high demand.
Having a superstar on your team generates millions in ticket and merchandise sales.
It might help you win some of the many cups up for grabs in international football. So
Real Madrid thought Ronaldo and his double scissor move, were worth 20 million dollars,
and Ronaldo agreed, so they have a contract. These same ideas explain how wages are determined in nearly every labor market. Let’s go the Thought Bubble. Jacob: Usually when Stan goes to the mall
he’s the buyer. He demands sunglasses and giant pretzels and the businesses supply them. But if he wants a job at the mall’s pretzel
shop, the roles are reversed. Since he supplies labor, he is now the seller and the pretzel
shop owner becomes the buyer. A buyer of labor. Now, that’s when wage negotiation ensues. Stan could insist on a wage of $25 an hour
for his pretzel skills, but the owner would point out that they could easily hire other
people for much less. The owner could offer Stan a wage of only $1 per hour, but Stan would point out that he could easily get paid more at the Froyo shop. In the end, they agree on a wage that makes
each of them better off. The owner gets some help around the store and Stan earns money
so he can buy even cooler sunglasses. Economists call this voluntary exchange. The supply of labor depends on the number
of people that are qualified to do the job. Stan would love to get paid more, but since
warming up pretzels doesn’t require extensive skills, the supply of capable workers is high
and consequently the wage is relatively low. But that doesn’t mean that Stan is going to work for peanuts. The wage offered has to cover his opportunity cost — — the value of his lost free time and the money he could be making doing something else. The demand for labor depends on the demand
for the products a business sells. Economists call this derived demand. If pretzel
demand is booming, then the store owners are going to want more pretzel makers. If other
stores also need more employees, demand for workers will increase and drive up wages. Thanks Thought Bubble. Supply and demand explains
why wages are different for different professions. Engineers are in high demand because they
produce the products that many consumers want and their supply is limited because the training
for these jobs is pretty difficult. Social workers and historians, aren’t paid
as much, even though their work is important because demand is relatively low and supply
is relatively high. It’s not rocket science. Adriene: Supply and demand explain a lot,
but there are several reasons why wages in a labor market don’t end up at a competitive
equilibrium. Sometimes workers get paid less not because they have different skill levels,
but because of their race, ethnic origin, sex, age, or other characteristics. This is
called wage discrimination. Wages might also be unfairly low when a labor
market is a monopsony — when there is only one company hiring and workers are relatively
immobile. When you’re the only employer, workers have to take what you offer, or they’re
out of luck. Take the NCAA, the organization that
regulates college athletics in the US. Many economists point out that high profile college athletes are generating millions of dollars for their schools, but they’re forced to accept a very low
“wage” of a scholarship with free tuition. Now sure, baseball and hockey players can
skip straight to the pros, but the NFL prohibits drafting football players until three years
after high school. And NBA teams can’t draft basketball players until they’re 19. There are some situations where wages might
actually be higher than market equilibrium. For example, some employers might voluntarily
offer higher than normal wages to increase worker productivity and retention. Economists
call this efficiency wages. Henry Ford doubled the wages of assembly line
workers in 1914 to keep them from seeking jobs elsewhere. And this still goes on
today. You may not be completely happy with your job, but if it offers way more than what
everyone else is paying, you’re less likely to quit. Unions can also drive up wages. A union is
an organization that advances the collective interest of employees and strives to improve
working conditions and increase wages. They do this through collective bargaining. Representatives for the workers negotiate
with employers and if their demands aren’t met, workers go on strike, and stop production
altogether. Although unions were once very strong in the US, union membership and their
strength has declined since the 1950s. At their height, approximately 1 in 3 American workers were in a labor union. These days it’s more like 1 in 9, and the largest unions represent workers in the public sector, like teachers and firefighters. Wages might also not be at equilibrium when
there is a minimum wage — basically a price floor that prevents employers from paying
workers below a specific amount. Technically, in the US, minimum wage
affects less than 3% of workers. But the Brookings Institution estimates that
an increase in the minimum wage likely wouldn’t just impact that small slice of the labor
market. It would also drive up the wages of people who make just above the minimum wage.
According to Brookings, that ripple effect could raise the wages of nearly 30% of the
workforce. The debate over whether or not there should
be a minimum wage, and how high that minimum wage should be, gets pretty heated pretty
fast. Some classical economists argue against nearly all forms of government manipulation in competitive markets. They say the minimum wage not only leads to unemployment, but it actually hurts the people it claims to help. Their logic goes something like this: A minimum wage deters employers from hiring unskilled workers, hiring only skilled or semi-skilled workers instead.
These economists argue that minimum wage does little or nothing to alleviate poverty,
since instead of earning a minimum wage, unskilled workers end up earning no wage at all. The economists that support a minimum wage argue that real life labor markets aren’t as competitive or transparent as classical economists suggest. They believe that employers have the upper hand when it comes to negotiating wages and that individual workers lack bargaining power. I’m not going to tell you what to think,
but think about it like this: if a grocery store wasn’t required to pay $7.25 an hour,
and the grocery store was the only place hiring, they could likely squeeze individual employees to accepting lower than market value. In this interpretation, minimum wage isn’t interfering with competitive markets, as much as it’s correcting a market failure. Remember anti-trust laws that prevent powerful
monopolies from charging higher prices? Economists that support minimum wage laws say they prevent
employers from using their power to exploit workers. The economists who are entirely opposed to
minimum wage laws are losing the policy battle. Most countries around the world have minimum
wage laws, and many of those countries without them have de facto minimum wages, set by collective
bargaining agreements. But even among economists who support some
sort of minimum wage, there’s disagreement over how high that minimum wage should be, and what raising the minimum wage might do to the economy. Consider the U.S.: the current federal minimum wage is $7.25 an hour. In 2014, 600 economists, including 7 Nobel Prize winners signed a letter arguing that the minimum wage should be increased to $10.10 an hour. They argued that raising the minimum wage
could have a small benefit to the economy. Workers, with their newly increased wages,
would spend more. This would increase demand, and perhaps help stimulate employment. But some of those same economists balked when
it came to the question of raising the minimum wage to fifteen dollars an hour. They argue
that even if a fifteen dollar an hour minimum wage might make sense in an expensive city,
like Los Angeles or New York, where the median income is relatively high, it could have a
significant negative effect on employment in a city or town where incomes are lower. If economics was a pure science, we could
just test these ideas under controlled circumstances. We could have one state set a significantly higher minimum wage than its neighbor and see what happens. It turns out that happened in 1992, and
economists David Card and Alan Krueger studied it. New Jersey raised its minimum wage from $4.25
to $5.05 while Pennsylvania kept theirs at $4.25. The economists surveyed large fast
food chains along the state’s shared border and found that workers didn’t get fired, in fact, employment in New Jersey actually increased. But it’s far from settled. There have also
been studies that indicate raising the minimum wage DOES increase unemployment. A relatively
recent survey of economists, by the University of Chicago, found that a small majority think
raising the minimum wage to nine dollars an hour would make it noticeably harder for poor
people to get work. But, and this is where it gets interesting,
a slim majority also thought the increase would be worthwhile, because the benefits
to people who could find jobs at nine dollars an hour would outweigh the negative effect
on overall employment. Jacob: Very few economists argue a higher
minimum wage will end poverty, but some argue that it could reduce poverty. The minimum
wage doesn’t exist in vacuum. Policies that fight poverty should also focus on providing
education and skills. Adriene: Those skills are what the labor market
values. It’s those skills that are in short supply and high demand, and will command higher
wages. So, while you’re waiting for economists to figure all this out, you might want to
learn a new skill. Practice your double scissor, and maybe take Ronaldo’s job. Jacob: Thanks for watching Crash Course Economics, which is made with the help of all these awesome people. You can help keep Crash Course free for everyone
forever by supporting the show at Patreon. Patreon is a voluntary subscription service where you can help support the show by giving a monthly contribution. Thanks for watching! DFTBA!

The Men in Charge When the Economy Collapsed

Ten years ago the American economy was on the brink of collapse. And three people — — led the fight against economic meltdown. for George W. Bush in 2006. As the crisis deepened, he ran the nationalization of Fannie Mae and Freddie Mac, and he convinced Congress to pass TARP. He and Paulson tried to save Lehman Brothers and brokered the bailout for AIG. Then in 2009, Geithner became secretary of the Treasury. Literally a scholar of the Great Depression, [he] wrote his Ph.D. thesis about it and about the mistakes the Fed made back then that he was determined to avoid. We are talking to all three of those guys. The challenges they had, how they responded So listen, what do you want to ask them? Let us know in the comments section below.

Digital Talks panel talk digitalisation in the UK Chemical Industries

just want to start with with Sharon around the work of the the chemistry Council and sort of looking at the the industry strategy and I know you're involved with the industry sector deal for chemical industries can you just give us an indication of where that is because when it was announced that the CIA conference last November there was a strong link to digitalization and the importance of digitalization in in chemical and what it can bring that sector certainly over the next 10 years so can you can you just give us an update to that please yeah sure so just before I sort of launch into that just interested to know how many people are aware of a group called the chemistry Council have some hands ok chemistry growth partnership okay a few more and so I guess this is perhaps I'll just explain a little bit about them first maybe in just because it's important background this is a group of senior industrialists CEOs of companies from any asked to Unilever who have got together to really sponsor and promote I guess the sector the chemistry making and using sector in the UK and they've been working together for some time now really forming a strategy for growth which if you think about that in itself is a huge challenge because the sector is so diverse across a wide range of things from energy to sort of agri-food as well and that was launched in November last year in 2008 and headed up by Steve foots who's the CEO of a company called Crowder and also Richard Harrington who at the time was a senior base minister and and that's now moved on to a sector deal so the sector deals in the UK are pretty much like the one that established around the made smarter review their four important sectors in the UK and this secretary the chemistry Council I'm sure I've got representatives in the room today represents around about 50 billion of turnover in the UK and over half a million jobs indirect and direct jobs in skilled labour it's an important manufacturing sector for the UK and and in terms of the sector deal they'd recognize that they need to have some help in terms of funding transformation and innovative transformation and as Ian's rightly pointed out the Dayton digitization area was a key one for the sector's it's actually being built into both a strategy in the sector deal and in Ian I know did some work directly on the on the mate smart review so I can I just ask you to expand on on your findings going through that made smarter process and and sort of how how hosaka are digitizing their their business offering as well to see the value from from it well the main smarter was something that was needed for a long long time a long time in coming and basically British industry is very very traditional and has run for many many years without major investment so people have tended to to use a commonly used phrase Sweatt assets they've used things and left them as long as they possibly can and may do amend really with it and the biggest problem there is other countries in Europe especially if you look at Germany they're very machine centric and they've actually invested very heavily in the latest technologies that have gone along so made smarter was an opportunity to look at UK industry across various sectors and benchmark it against other industry sectors and other countries and how they were dealing with it and one of the things that really came out of it was the productivity levels are relatively low and there's big opportunities for improvement in those so typically we've used lots and lots of labour to improve processes and improve process efficiencies rather than actually look at alternative ways of doing it and also looking at how we can get people to be more efficient at what they do and also enjoy what they're doing so this is another part of it how we do it so I guess really as you just said to this morning the outputs of it were three things one was innovation and the technologies that support the change one is adoption how do we adopt these technologies and how to go forward with it and the next one has been defined as leadership but I would say this is very much the skill set and skill sets like because people need to change and they need to understand that what they're going to be doing the future is very different to what they're doing currently so there's a whole range of things that are changing so for me where do you start on this process and I think it comes down to people having to look at where their operations are company are and what they key performance indicators are and what their goals are so rather than using the terms that come out in this in the jargon I tend to think about it it's really coming down to people plant processes products and profit and most companies are driven by profits if you don't make a profit the company's not there so how do you do it well it's through all those other areas most people can't double the price and double the profits they have become more efficient so each of those areas has to improve so if we'd spin it to hosik our what we've actually been looking at doing is how we can understand processes and one of the things that we are a little bit unusual in is we actually don't make products in our contract manufacturing of our own we take other people's materials in process them for a limited time I'd have to get good results out of it by trying to maximize our efficiencies so what we have looked at is how can we model processes and it's very easy to do mathematically the hard bit is the materials that go through it they change all the time and it's a very difficult thing to model but if you've actually got the data coming from the plant the answer has to be right so what we've done is called with the sweeter tools which understands monitor and control our processes and we can apply that across the business and use it for prediction now as well as for the actual production so we've got a whole suite of tools that fit into but you've all started to highlight that importance of data and in the industry and across various industries today data has been collected in in in various forms for many years and it's how it's how we use that to convert it to business value and I know just one more question for Richard before we move on to the or the audience questions you've mentioned data to me before and I just want you to sort of explain in terms of your business how data has helped evolve the formulation and information exchange within that supply chain on data is interesting I've spent most of my career in the chemical manufacturing industry I need joined chemical distribution about six years ago and I was just amazed that the difference between dealing direct to other chemical manufacturing companies and then to the companies that are actually using chemicals and I've had L'Oreal and P&G as customer life but actually when you come into the white called Tier two three four five six seven eight nine ten it's a different perspective of people are using chemicals and blending them and at the end of the day Anna mainly getting formulated product and a lot of time in our business you can effectively if you didn't know what the name of the company was you can basically tell what they're going to doing cuz they're buying a portfolio of products that's going to make a shampoo going to make a floor cleaner on each and you can just pick it out very very gratefully then once you started getting behind that you start looking at well where are they going what information do they need what information do we need to capture because we're also driven by our partners our supply chain partners many of my big global chemicals they want to know about the innovation that's going on in the marketplace thus the cells of what they achieved for us is good but they were more interested lot of timing what's the next big trend what's the next innovative product how are you capturing that information how are you feeding that back to us and one sheriffing Sharon mentioned big data I'd actually cover it from slightly different angle and say small data there's a lot of companies out there with a lot of small data that you've got to put together to get a big picture that potentially can become big data and in this country and again in mice my customer base we have got some very very innovative customers who are doing things which you may not yet find in somewhere like a P&G or a Unilever because innovation doesn't just happen in the big companies some of my partner's what that information because then they can see how they can turn that into other business opportunities in other parts of the world and that's about capturing data so sometimes when I look at our distribution business I I look at it saying we're more in an information industry that actually is monetized through the sale of chemicals it's now becoming more about information than it is just about purely the supply chain the chemicals and that's the data side so we are now spending a lot of a lot of time and a lot of money on capturing data and now looking at how we do that better through the digitization of our business and one you've got quite some with some really good questions actually and this one is might push this to Sharon from sort of a strategy perspective and so it's how it is synonymous but how at risk are UK chemical firms are falling behind in digitalization so they become uncompetitive without wanting to make myself or you um and friendly or whatever in the room I think hugely and because a lot of other countries are moving at speed and the learning if you look outside of our sector is that digitization does transform sectors quite considerably it can reshape the business model quite considerably and you need to be not necessarily at the forefront but you need to be quite early in the in the in the lead process to make sure that you don't get left behind consolidation for example could be precipitated by digitization companies moving up and down the supply chain can be also precipitated by digitization so the whole business models you could see scenarios where things quite substantially shift and again concerns for SMEs you know in terms of helping them through pathways that make sure that they're stronger for the future so I think just reflecting some the comments made earlier you know we work with lots of different companies in different spaces and different shapes and sizes is very much try try some things early see what works and and also look for help from different places either other companies or organizations like ours that network people across different sectors there is help out there for people but yeah I fundamentally believe you have to be up there moving forward ASF unifies its unified its digitalization strategy across the world or is it country specific I wouldn't say country specific I would say regional part of it what we're doing is is are in as on a global scale but it's also on a regional scale so we do have a digital network within BSF and we do have digital weeks in terms of of sharing best practice so so there is now a team running the the digital platforming BSF in terms of the different strains under the different operating divisions what it what it means to be SF in terms of new ideas that coming in what we're trying to do it also works with our our key partners so in terms of on our ERP system so we're a big user of SA P so that's about sharing data in terms of working at the plaza not every parties is up and running on the using the full digital range of tools we've got because one is cost how do you run it out and and it's about learning from from what you're doing from plant to plant but we do share there is a a network a digital network whether that's on the the plant maintenance to make sure so we understand whether that's on the business models or the innovation side and everybody in the company is encouraged to to be part of digital so there are digital wheats which go out last one was in in May and then it's publicized all over our internet in turn the company and anyone can sign up to understand what's going on so there's probably about a hundred different projects ongoing around time which you can if you're in the company you can look into it you can ask the questions I'm for the UK what they call the digital champion for BSF in the UK and part of mine is to make sure people in the UK are aware what's going on in the business in terms of sharing we share with our our customers we share about competitors so part of these digital weeks we've had there like sort of a supply chain or companies like say Brent a Gore or Unilever come and talk about stories about where we've worked together and share best practice and it's all about sharing yeah sharing knowledge and how we do it so if we look along the supply chain one of the big issues we've got is security of supply so and we yeah we're working on do use things like blockchain technology in terms of to make sure from end to end is that right I'm not a blockchain expert I don't know but it's about exploring new ideas in terms of making sure the data is secure so that cyber cyber security is a big issue for us but yes we do share information where appropriate we've our key suppliers and I suppose the biggest one is si P for us in terms of helping us in terms of on the supply chain the manufacturing sites making sure that everybody has the information today and and it's all about data so how do we how do we make the chemical industry more sexy how do we get it more attractive to the to the graduates and the undergraduates and the kids coming out of school I start and pass the microphone on because it's topic of 28 years of thinking about I think I think it's an absolute must that the industry has to come together and it has to pop its head above the parapet and represent itself as a highly innovative industry because that's exactly what it is this industry started on creating novel molecules and molecular design and that is still the industry today and that is there so I think I think it has opportunities but I suspect over the years we've sort of dropped your heads down above below the parapet maybe for some some reasons that we all know about but I think maybe it's time to do the opposite I think interesting the data and digitization presents perhaps an opportunity and just thinking about the skills and talking to the companies that we talk to very few of them have seen digitization as being a skills issues but actually more of a skills opportunity and that's on to two levels one they don't necessarily see a loss of jobs so you hear a lot of scaremongering about you know I'm gonna work to know workforce in my company but actually it's just about redeployment of those people into other jobs which are mostly skilled in the sector and the other one is an interesting one which is around actually we have a hybrid portion of stem within our communities and companies and actually they're very well geared for actually adopting digitization and our e-learning actually because of the core skills they already have and that may present a real opportunity of the sector if it can move quickly and re-skill some of their workforce in the area of digitization but also it might make it more attractive for certainly young stem graduates with computer skills as well to join the industry I'd like in it too if you go back to the brexit issue three years ago I think you get the chemical industry when it was talking to government the government knew what the automotive industry was they could see they can touch the car same with the aerospace industry but typically if you talk to a minister I think they'd say chemicals they say I think the last three years of actually two especially in government I think we need to translate this into two schools is that communication getting them to understand what what chemistry is and where it is and and that every minute of the day you're touching something a chemical you know and to understand in terms of what it creates the innovation behind it and where we get and I think the Grand Challenges in terms of when you look going forward to say thirty years into 2050 but then it's going to be ten billion people on the planet we need to feed those chemistry is gonna be the enabling technology if you want to do cars in terms of battery technology chemistry's is an enabling technology behind those those cars in terms of lightweight so it's getting them to infuse enthusiasm in schools to understand that they can be a part of the new world that's coming than you whether it's digital technologies or understanding innovating in product so how far will the connected supply chain and automation take us and can you see customer having their computers choosing their own product production slots in your factory or ordering products without any human interaction I'll take these centers of I think you'd starting to see some bit already and says when you look at different business models you could already buy by chemicals to delights Fama's on or Alibaba so at a click you can order it there are people in the back background you still have to do the programming there's two people involved so they're still in the skills of that but in terms of that that ERP cloud supply chain it's already there you may not know it it is developing time and time in terms of front-end systems I worked in terms of commercial director and looking at new business models how we do this in terms of customer related systems so they're like web shops in terms of so you not only can look at your your products you can download your your data sheets you can get in terms of terms of information in terms of formulations online in terms of what you're trying to do so in terms of helping the customer in terms of what they're trying to do so it's it's a bit interactive like that so you couldn't you may not speak to somebody but there's somebody in the background feeding that information so a bit like you would do on a shop until you've got a question so you say ok I'm working on this type of formulation what does that mean and then there's a there's a there's either an algorithm or a person in the background supporting the customer on that and then the customer can then click and say ok I want this product and I want it at this at this time in terms of and if it fit fits through and they'll they'll get a a yes or no can we deliver it do we have it in stock does it have is it batch process or is it so these systems are all already in the making if not already there yeah so it's it's it's really it's consumer writing in a way isn't it if that's even a word that exists it's making it more accessible as I like like the Amazon who were speaking now incidentally over at the other side of the room so it's putting that kind of business model linking it more to the industry that weird that we're more familiar with yeah what does the bit what does business want or what is then there the end consumer wants and how do you you you meet that demand yeah and you've got to look at different different aspects in terms of what what does the industry need and how do we or as BSF internal or the chemical industry meet that demand if that is more online services then we would have to go if we're not then that we won't be here and and right through our hundred and fifty for you and it's about what does our customers want and how do we meet those those customer demands I think there's still a people element I think you you can have these virtual systems but there are still people there it's Matt but making sure that we have the right skills for the industry and that's how do we up school in terms of how do we get the training right where it's through the manufacturing side whether it's through the innovative side that chemic chemistry so because the ideas still need to be generated and I think whether that's true computer programming electronic engineering whatever it would yeah it's about getting the right people in the right place

Supply – Economic Lowdown, Ep. 1

Hi, I'm Scott Wolla and this is the Economic
Lowdown Video Companion. If you listened to Episode 7 in our podcast
series, you'll know it's all about supply. Economists define supply as the quantity of
a good or service that producers are willing and able to offer for sale at each possible
price during a given time period. For example, let's say I own a firm that produces
and sells widgets – a piece of hardware people used to improve the performance of their computers. My objective as a business owner is to make
a profit, which is the difference between my cost of producing the widgets, and the
price that I receive for selling the widgets to buyers. The law of supply says that as the price of
a good or service rises, the quantity of the good or service also rises. Likewise, as the price of a good or service
falls, the quantity of the good or service also falls. Notice that I included only two variables:
price and quantity. That's all the law of supply does; it states
how a change in the price of a good or service will affect the quantity supplied. Picture This: If we put the quantity of widgets on the X,
or horizontal axis of a graph, and the price of widgets on the Y, or vertical axis, we
can start to plot the relationship between the two variables. I will only produce a larger quantity of widgets
if the market price of widgets increases. The same principle can be applied at each
possible price, and by connecting the points on the graph, we'll begin to see an upward-sloping
line. The upward slope means that there is a direct
relationship between price and quantity supplied: when price rises, the quantity supplied rises,
and when price falls, the quantity supplied falls. In fact, we could recreate this same scenario
with almost any good or service and get the same result-an upward-sloping line. This upward-sloping line is called a supply
curve. The supply curve is a helpful tool, but it
is not static or unchanging. It shifts back and forth as conditions in
the market change. For example, if new technology allowed me
to produce widgets at a substantially lower cost than my current production cost, the
increased profit would cause me to increase my production of widgets. In this case, the original supply curve no
longer tells the whole story: it must be shifted to the right to accurately reflect the new
widget supply. Or, put another way, the widget-supply curve
shifted to the right because the quantity of widgets supplied by me-and other widget
sellers-would be greater at each of the given prices. Or, consider a change of the cost of inputs
to the production process. Let's assume that widgets are made of copper. If copper prices rise, my cost of producing
widgets would rise as well. This higher cost of production would mean
that my profits-the difference between my costs and the price-would be lower than before,
so I would produce and sell fewer widgets. Other widget producers would likely do the
same. This would shift the widget supply curve to
the left. Other things that might cause a supply-curve
shift to the right or to the left include a change in the number of producers in the
market; government policies, such as taxes, subsidies and regulations; and expectation
of future prices. We call these factors a change in market conditions. Notice we have describe two types of movements:
a shift along the curve that we call a change in the quantity supplied that reflects the
change in price, and the shift of the curve that we call the change in supply that reflects
in change in market conditions. That's all the time we have for today. Thanks for watching. This video is brought to you by the Federal
Reserve Bank of St. Louis. For more information, visit us online at stlouisfed.org.