Direct & Current

MAY 2005

"SALES EXPECTATIONS," the term used by the National Association of Electrical Distributors to describe the results of a survey of members, remain "cautiously positive." Of 287 companies responding, 81.9% predicted increased sales for the fourth quarter of last year, while their outlook for the first quarter of this year was slightly more tentative, with 76.3% of respondents anticipating "positive sales change." The greatest number of positive expectations for the first quarter of this year were reported by companies in the South (87%), followed by the West (84.2%).

FIRMS WITH 10 TO 19 EMPLOYEES WERE MOST OPTIMISTIC-81.6%, NAED reported, about future sales, followed by businesses with 30 to 49 employees 78.8%, 20 to 29 employees 77.8%, 1 to 4 employees 76.2%, 5 to 9 employees 75.5%, and firms with 50 or more workers 65.4%.

ANOTHER POSITIVE REPORT comes from the National Association of Credit Managers, which reported "significant growth" in both manu- ; facturing and service. "Across the board, there was economic : growth in every favorable factor," NACM stated. "Favorable" in the credit world includes sales, new credit applications, dollar collections, and amount of credit extended. On the other hand, "unfavorable" includes rejections of credit applications, accounts placed for collection, amounts beyond terms, and bankruptcy filings. NACM has more than 25,000 member businesses.

GETTING RECIPIENTS' PERMISSION BEFORE SENDING FAXES may become law if the Federal Communications Commission starts enforcing a rule that requires commercial faxers to obtain written permission prior to sending faxes, a law that may be difficult to enforce. The FCC has pushed back the deadline twice. The U.S. Congress, always susceptible to lobbying efforts, may pass legislation to remove the rule or to move back the deadline-originally August 2003, then Jan. 1, 2005-again.

CALIFORNIA'S NEW "MILLION SOLAR ROOFS" BILL is a 10-year program to provide 1 million solar electric rooftops on homes and businesses throughout the state, based on a model pioneered in 1994 in Japan, where the cost of residential solar energy was reduced by 72%. California's bill creates a 10-year incentive program to install 3,000 megawatts of solar electricity, equal to about 40 power plants.

BANKRUPTCIES WILL BE HARDER FOR SOME TO DECLARE after a new federal law just passed last month takes effect in six months. Whether the legislation will be tougher on business or on consumers is controversial, the new law appearing to favor business versus individuals with large credit card debts. An advertising campaign by the organization known as MoveOn has been launched against House members who supported the legislation. Backers say the bill will stop deadbeat fathers, while opponents claim it will harm the elderly and single mothers.

THE EDITORS

Copyright Barks Publications May 2005
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