T-R PHOTOS BY SUSANNA MEYER — Vic and Gayle Hellberg, the owners of Hellberg Jewelers, one of several local businesses that participated in Small Business Saturday in Marshalltown.
Small Business Saturday gives local mom and pop operations a chance to shine after the big shopping rushes of Black Friday at larger chain stores. Matt Gerstandt, the owner of Black Tire Bike Co said it had been a slightly slow day.
“Small Business Saturday hasn’t been gangbusters, but we’re running some select specials and we’ve had some good foot traffic,” Gerstandt said.
While it may not have been as busy as some would have liked, Gerstandt said the Holiday Stroll had a positive impact on business the previous week, jumpstarting the revenue a week early. He remains optimistic for the upcoming holiday season.
“Kids bikes have been great for availability, so we’re getting some of those families that have been patiently waiting for kids bikes. Some of those supply chains are loosening up just a little bit,” Gerstandt said.
Gerstandt also wanted to stress the importance of shopping locally not just because customers can feel better about where their dollars are going.
Matt Gerstandt, the owner of Black Tire Bike Co on Main Street, was happy to see the foot traffic in the downtown area on Small Business Saturday.
“Don’t shop local because it’s local, shop local because you’re getting better service,” Gerstandt said.
Another Main Street Business, Hellberg’s Jewelers, owned by Vic and Gayle Hellberg, was open for business on Saturday, and they were hopeful it would be a successful day.
“It’s definitely better than an average Saturday, so that’s the good part,” Vic Hellberg said.
The Hellbergs also participated in the Marshalltown Area Chamber of Commerce Chamber Bucks giveaway. Select businesses offered the opportunity to register to win Chamber Bucks of different values depending on the business. The Chamber of Commerce has sponsored this giveaway for several years running in an effort to incentivize shopping locally and to support small businesses. While Vic Hellberg has never asked customers if the Chamber Bucks giveaway was a motivation for them to come shop, he was certain it had an effect.
“I know that makes a difference to people. They do come down because our chamber does a good job for our community,” Vic Hellberg said.
Chamber of Commerce Director John Hall was enthusiastic about the giveaway, hoping it would be a helpful tool for businesses looking to gain more shoppers on Small Business Saturday.
“We know the value of small businesses, and the Chamber Bucks giveaway is one more tool to bring in more business,” Hall said.
The Chamber of Commerce partners with the Small Business Development Center, which provides the materials for events like these and ships them to participating businesses. Chamber Bucks can be redeemed at any business or organization that is a member of the Marshalltown Area Chamber of Commerce, and participating businesses can be found at www.marshalltown.org.
In addition to the giveaway, the Chamber of Commerce also partners with Shop Iowa, which provides a free online platform for small businesses to sell online. With resources like Shop Iowa, Hall hopes small businesses can thrive in Marshalltown all year, not just on Small Business Saturday.
——
Contact Susanna Meyer at 641-753-6611 or
smeyer@timesrepublican.com.
T-R PHOTOS BY SUSANNA MEYER — Vic and Gayle Hellberg, the owners of Hellberg Jewelers, one of several local businesses that participated in Small Business Saturday in Marshalltown.
Matt Gerstandt, the owner of Black Tire Bike Co on Main Street, was happy to see the foot traffic in the downtown area on Small Business Saturday.
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Most Read from Bloomberg
U.S. employers probably added more than half a million workers for a second straight month in November, pushing the labor market closer to a full recovery despite swirling inflation worries and persistent Covid-19 infections.
Payrolls are expected to rise by 550,000 and the unemployment rate to edge down to 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to the median estimates of economists ahead of Labor Department data due Friday in Washington.
A strong jobs report, coupled with another monthly jump in consumer prices in Labor Department data out Dec. 10, could seal a decision at the Federal Reserve’s mid-December meeting to accelerate the tapering of bond purchases. But a new pandemic wave might still scupper that, a fear that caused market jitters on Friday.
Fed Chair Jerome Powell, fresh from being picked for a second term by President Joe Biden, is likely to face questions Tuesday about tapering, interest rates and inflation when he appears before the Senate Banking Committee for a regular hearing on the Cares Act, the March 2020 pandemic aid package. Treasury Secretary Janet Yellen will testify alongside Powell, and the House Financial Services Committee has a similar panel scheduled for Wednesday.
The Fed’s Beige Book survey, out Wednesday, will also shed light on the economic situation across the country. Other key U.S. data during the week include pending home sales, consumer confidence, and Institute for Supply Management indexes of manufacturing and services.
What Bloomberg Economics Says:
“A strong jobs report as we expect, together an with elevated CPI reading for November — a highly likely outcome given what we know about energy, housing prices and base effects — will cement policy makers’ decision.”
–Anna Wong, Andrew Husby and Eliza Winger. For full analysis, click here
Elsewhere, the fastest inflation since the euro was created and easing price pressures in Brazil may feature among economic reports due.
Click here for what happened last week, and below is our wrap of what’s coming up in the global economy.
Asia
China’s official PMI reports on Tuesday will give the latest pulse check on the world’s second-largest economy, with economists’ forecasts anticipating an improvement for manufacturers as power shortages abated.
Japan gets a raft of data on production, unemployment and retail sales that will show how the economy was faring at the beginning of this quarter, days after Prime Minister Fumio Kishida launched a record fiscal stimulus package. Capital spending figures will indicate how business sentiment has been holding up.
South Korean export numbers should take the latest pulse of world trade, while inflation figures the following day will show if prices are continuing to heat up.
India posts gross domestic product data for the July-to-September quarter, with the rebound’s pace set to moderate from the prior three months, while GDP data for the third quarter will show how badly Australia’s economy suffered during its lengthy lockdowns.
Europe, Middle East, Africa
Any acceleration in euro-area consumer-price data on Tuesday will mean the region’s enduring the fastest inflation since the creation of the single currency. That will heap further scrutiny on the European Central Bank, whose officials insist the surge is largely transitory as they approach a crucial decision on the future of stimulus.
In Germany, the region’s biggest economy, the cost-of-living squeeze is even more intense. The median prediction of economists is for an inflation rate of 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, though the Bundesbank reckons the outcome may be closer to 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Inflation numbers from elsewhere in Europe will also show significant jumps. Spain’s rate due on Monday is seen at 5.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to the median estimate. Poland’s may be even higher at 7.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Other highlights in western Europe include a speech by Bank of England policy maker Catherine Mann on Tuesday, multiple appearances by Swedish Riksbank officials, and the latest global economic outlook from the OECD in Paris on Wednesday.
In Turkey, foreign trade data on Monday and inflation figures on Friday could move the lira, which just plummeted to its longest losing streak in two decades. President Recep Tayyip Erdogan has defended monetary policy that economists say will cause inflation to spike higher than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The turmoil has even led some banks to stop external forecasts.
In Africa on Monday, Kenya’s central bank is expected to leave its key interest rate unchanged for an 11th straight meeting to spur the economy’s recovery, as demand remains muted even after the government eased Covid-19 lockdown restrictions.
Data on Tuesday will likely show that South Africa’s unemployment rate is still the highest on a global list of 82 countries monitored by Bloomberg. It’s projected to remain above 33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the third quarter, following deadly riots in July and a security breach at the state-owned port operator that hobbled trade.
Also Tuesday, Angola’s central bank will probably hold interest rates steady to give some time for a 450 basis-point-hike in July and new measures by the government aimed at curbing price growth to take effect.
Latin America
Look for November’s reading of Brazil’s broadest inflation measure, out Monday, to slow for a sixth straight month as electricity and food prices ease.
Mexico’s October unemployment data may reflect a pick-up in activity as Covid case counts and lockdowns ease. In Chile, currently Latin America’s hottest economy, the unemployment rate likely extended a six-month decline. Brazil and Colombia will also report October unemployment.
Mexican remittances are running at record highs and have been above $4 billion per month since February. Transfers from the U.S. represent 95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of all remittances received in Mexico and two states — California and Texas — account for half of the total.
Banxico’s quarterly inflation report due Wednesday promises a trove of fresh forecasts and analysis. Also, look for Chile’s economic activity index to post double-digit growth for a seventh month.
Given a litany of headwinds facing Brazil’s economy, analysts have been marking down their 2021 and 2022 GDP forecasts, but third-quarter output data due Thursday may show at least marginal growth after shrinking 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the April-to-June period.
Look for Brazil’s October industrial production figures out Friday to disappoint as supply shortages and rapidly rising interest rates bite.
Almost three times more British MPs declared earnings from financial services companies than from manufacturing, FT analysis has revealed — one of many imbalances that may complicate Tory efforts to defend legislators’ right to pursue part-time careers.
MPs’ right to hold second jobs, which spurred a political row this month, has been defended by Jacob Rees-Mogg, leader of the House of Commons. He told Parliament that it was “a historic strength . . . that MPs should have a wider focus than the Westminster bubble”.
The government has now proposed changes to the rules to bar MPs from doing too many hours of outside work or acting as political consultants — but to preserve their right to have other income. A report on how the new rules might operate is set to be published by a cross-party committee next week.
In declarations made since the last election in 2019, some of which relate to the year before the vote, 37 MPs have registered income of various kinds from financial services companies — the largest such bloc of corporate income. The sector accounts for 8.1 per cent of UK GDP.
These include longstanding contractual relationships as well as one-off payments — such as the £160,000 paid to Theresa May, the former prime minister, by JPMorgan Chase in April 2020. The sum was an “advance payment” for two speeches that were postponed by the pandemic; she has yet to give one of them.
It turns out to be only a small set of businesses that are most interested in paying and entertaining MPs
By contrast, just 13 MPs have received income from manufacturers, which contribute 9.9 per cent of GDP. Just 8 MPs have financial links to retailers, which contribute 4.9 per cent. Public relations or lobbying companies have employed 30 MPs.
Hannah White, deputy director of the Institute for Government who previously ran the independent Committee on Standards in Public Life, said: “If the point of second jobs is to ensure that MPs can bring real life experience to parliament, then it is deeply problematic that the experience MPs are actually getting is so unrepresentative of the UK economy”.
This has become a partisan issue because of an imbalance in who holds these posts: the positions listed above were held by 68 Tory MPs and just 18 legislators from all the other parties combined.
The issue was also brought to public attention by the actions of Owen Paterson, a Conservative former minister, who was found by a bipartisan committee to have “repeatedly used his position as a member to promote the companies by whom he was paid” in a manner not permitted by the rules. The government whipped its MPs to save him from proposed sanctions — only to be forced to retreat in the face of a public backlash.
Some forms of outside income are more bipartisan: 155 MPs received additional funds from filling in surveys for pollsters — receiving between £30 and £275 for each survey, which typically takes less than an hour.
Meanwhile 105 MPs declared earnings from the media, largely for writing articles (including for the FT Group) or TV appearances. Another 63 have held paid roles in local government. An additional 23 have declared income from book publishing.
Westminster MPs are allowed to lobby ministers on behalf of companies that have given them money or gifts, and to advocate for them in debates so long as they do not “initiate” conversations or debates. Clients must also not “exclusively” benefit from anything they propose. They also must not use parliamentary facilities for business.
These rules are weaker than in the UK’s devolved parliaments, and markedly weaker than those in the US House of Representatives — where there is a cap on some kinds of earned income and outright bans on others.
Members of the House of Representatives are banned from practising law to prevent them from having conflicting public and private duties.
In the UK, lawyer-MPs are allowed to practise and are not required to disclose their ultimate clients. The 30 MPs declaring income from law — mostly as barristers — include some of Parliament’s biggest earners, such as Sir Geoffrey Cox, the former attorney-general. Cox, whose large volume of outside work helped fuel the outrage over MPs’ second jobs, told the FT that barristers were hired “to advise and represent . . . on a specific issue or in litigation”, not for general representation.
Lawyers are heavily represented in parliament, but together with accountancy, from which 7 MPs declared earnings, the legal sector contributes just 2.7 per cent of GDP.
In the US, members of the House are banned from accepting most gifts — with a particular prohibition on gifts from lobbyists or anyone who also engages a lobbyist. No such bar exists in the UK, where 26 MPs have registered gifts from betting companies and their lobbying body. A total of 111 MPs have taken gifts or hospitality from sports businesses.
The largest gift went to Tracey Crouch, who has just completed a review of the regulation of English football on behalf of the UK government. She declared a £4,560 hospitality package from the Football Association, the sport’s English body, to watch a football match.
“It turns out to be only a small set of businesses that are most interested in paying and entertaining MPs,” said Duncan Hames, a former MP and director of policy at Transparency International UK. “That these companies are often heavily regulated suggests more interest in their parliamentary role than prior experience they might bring.”
MPs are allowed to hold up to £70,000 of shares in a company without registering the holding, so long as the stake constitutes less than 15 per cent of the equity. They are not required to list participation in any funds. In the US, members of the House of Representatives must declare shareholdings over $1,000, as well as any other investments.
One person involved in administering the current UK system told the FT they were “very sceptical” about comparisons to the US — “not least because of [US politicians’] need to raise campaign finance”. This, they said, led to US politicians being “more in hock to big business”.
Campaigners are calling for much more sweeping reforms than are currently being considered. Hames said: “There are still too many blind spots for mischief to hide . . . It could save a lot of trouble if, like in many other workplaces, those wanting to take on second jobs or other contractual relationships first sought authorisation from an independent body, just as former ministers are expected to do.”
The Chautauqua Chamber of Commerce building is pictured in downtown Jamestown as the chamber gets ready for Small Business Saturday this coming weekend.
Submitted photo
Small businesses across the county are gearing up for Small Business Saturday, a day meant for focusing on shopping local.
Dan Heitzenrater, Chautauqua County Chamber of Commerce president and CEO, said this year it is vital for area residents to focus on supporting local businesses.
“Small Business Saturday is an annual tradition as a part of the holiday season overall, but especially the shopping season,” Heitzenrater said. “The idea is for consumers to support their local community and try to spend some of their dollars locally, as opposed to the traditional Black Friday holiday shopping that is heavily drawn more toward big-box retailers. It’s an opportunity for people to go out, explore their communities and support the local smaller shops.”
Heitzenrater said the efforts are a nationally coordinated initiative by American Express. He added that there are various reasons to do holiday shopping locally this year, including keeping funds local.
“It’s more important than ever this year especially to support small businesses and participate in Small Business Saturday because, first of all, it’s an opportunity to shop safe with the continued, ongoing pandemic,” Heitzenrater said. “It’s typically going to be a safer environment. But, also, there’s a lot of question marks and consumer worry about the supply chain issues. Certainly, some of our small businesses are also experiencing those, but it’s not going to be to the scale likely that larger retailers might experience.”
He said those circumstances, in addition to the large economic hit many small businesses have taken over the past 18 months, are all the more reasons for area residents to get out to local businesses this Saturday and support their local community.
“In a general sense, just like any other year, when you shop small, 67 cents is estimated out of every dollar that you spend stays in the local community. That’s again money that is supporting in your community and then being reinvested.”
However, the benefits aren’t all financial, Heitzenrater said.
“When you participate in Small Business Saturday, make it an experience,” he said. “Small Business Saturday is an opportunity to go out and explore your community. You may have a few specific places you want to stop, but get an experience along the way – take family and friends with you, stop and grab lunch and sit down to take some time to really be in the community and enjoy the experience rather than just making it about a transaction.”
For those who can’t make it out to shop local on Saturday, Heitzenrater invites the public to visit the local business online shopping portal at www.ShopLocalCHQ.com that features various local businesses.
Jamestown Mayor Eddie Sundquist said local businesses are vital to the city.
“Small businesses are the backbone of our local economy and part of what makes Jamestown so special,” Sundquist said. “After the past few years, it is important to reflect on the challenges small businesses face and celebrate their resiliency and contributions to our community. I encourage everyone to celebrate and shop at our local, small businesses not only on Small Business Saturday but every day.”
Yale School of Management released employment data for its MBA program this month
MBA job offers and acceptances were down across the board in 2020, and we don’t need to remind you why. However, while the jobs were harder to find, the ones that graduates did land paid well enough to allow B-schools to boast about the continued strong ROI of their programs.
That was the case at Yale School of Management. Last year, in the depths of the pandemic, the Yale Class of 2020 made news with a major increase in total compensation, fueled by a big boost in median base pay — even as both job offers an acceptances dipped at Yale, as they did elsewhere.
Now, with the release of the SOM’s 2021 numbers, we see a curious reversal: Salaries are up nominally and total compensation is flat overall, but placement rates have rebounded. After dropping from 92.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2019 to 90.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year, offers at three months at Yale bounced way back to 95.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}; after slipping to 85.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 91.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, acceptances at 90 days roared back to 94.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Both numbers represent school records.
MEDIAN PAY FOR 2021 YALE MBAs: $165,248
Yale SOM grads were paid well in 2020. Factoring in an overall median base salary of $140K, up from $130K in 2019, as well as a median signing bonus of $30K (unchanged) reported by 77.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of grads and a median “other” comp of more than $20K reported by just over 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Yale MBAs’ median total comp was $165,333 last year, up from $155,170 the previous year — a 6.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump in one year. For comparison, the overall compensation increase at Yale between 2018 and 2019 was 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Now, even as the Ivy B-school’s job offers and acceptances three months after graduation increased 5.5 and 8.2 percentage points, respectively, pay for Yalies has stagnated. For the 256 of 312 students seeking employment (82.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), SOM saw only a very modest increase in median starting salary, to $140,400, while median bonuses were flat at $30K for a fourth straight year. Those receiving “other” compensation also dropped to a four-year low, at 8.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} — it was nearly 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2018 — though the amount ticked upward to $22,950 from $20,413.
The result is that total median compensation for Yale SOM MBAs in 2021 was $165,248, an $85 decline from 2020 — about 0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Statistically insignificant? Yes. But noteworthy in that it’s the first decline of any kind at Yale in several years, an acute contrast with the big jump in pay when the market was in turmoil in 2020.
COMPARISONS & CONTRASTS
Harvard Business School experienced a similar 2021 to Yale’s. HBS MBAs had plenty of jobs to choose from, with the school’s offers and acceptances bouncing back nicely from the 2020 trough. However, median compensation for Harvard MBAs slipped to $189,850 from $193,200, a decline of about 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and still lag 2019’s level.
It’s not a clear-cut case of every school suffering the same reversal. At Chicago Booth School of Business, coming off a 2020 in which bonuses were flat and total compensation grew only 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 2019, Boothies reported a big jump in median salary, to $155,000, and in median bonuses, to $35,000, powering an overall compensation total of $178,450, up 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 2020. Likewise, at Northwestern Kellogg School of Management, 97.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of two-year MBA graduates in 2021 received offers by three months after graduation, up from 95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year, and 96.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} accepted, up from 93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Pay also climbed, with median starting salaries up to $150,000 from $144,000, leading to a 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} uptick in total compensation, to $175,800 from $172,200. Bonuses, which 86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of grads reported receiving, were the same at a median of $30,000.
And at the Ross School of Business at the University of Michigan — a school that once held Yale’s spot in the top 10 of the rankings — pay was up along with placement rates. Graduates of the Ross School’s full-time MBA program received the highest total median salary package in school history, $171,450, a 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase over the Class of 2020. The class’s median salary was $144,000, 6.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than last year. Placement at Ross, meanwhile, rebounded big time, with 97.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of MBAs receiving offers within three months of graduation (up from 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year), and 96.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} accepting; the latter is a 10-year-high and a nearly 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year improvement.
CONSULTING REMAINS TOP INDUSTRY FOR YALIES; TECH TUMBLES
“Throughout their careers,” reads the Yale SOM MBA employment web page, “Yale MBAs take on a range of challenges across regions and sectors. Graduating students find positions in a variety of industries. The range of employers that hire Yale SOM students is remarkable, reflecting the initiative and creativity that our students bring to shaping their own careers. Alumni of the school excel in roles that span industries, sectors, and regions.”
Currently and historically, consulting is the sector that Yalies love the most. In 2021, more than 34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of grads went into the industry, hired by such firms as McKinsey, Bain, Boston Consulting Group, Deloitte, EY, Strategy&, and Accenture; since 2015 the share of each class that became consultants has grown 4.9 percentage points, or 16.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Consulting peaked at 37.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Yale’s MBA class in 2019.
Finance, meanwhile, is steady-eddie, with 25.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the Class of 2021, up from 23.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year and up 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in six years. Finance has crawled back from a low of 19.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2016. Contrast that with tech, which dropped to 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 12.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and which is on a three-year decline from a high of 14.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2018.
Regionally, Yale MBAs once again preferred to remain in the New York-Boston corridor, with 52.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the class working there, up from 47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year. Those MBAs also make the most, at a median of $150K (unchanged from last year). Next closest was the West, where 26.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the Class of 2021 went, down from 29.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}; median salary for Silicon Valley-bound Yale MBAs was $135K, down from $140K. Once again, more Yale MBAs stayed stateside this year, another reflection of the reality of the pandemic, with 91.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of full-time jobs reported inside the U.S. compared to 87{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last year and just under 80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2019. Yale MBAs working in the U.S. made a median base salary of $150K, up $15K in two years. Of the 8.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} who did find work abroad, most went (or went back) to Asia (40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), though at a considerable pay disadvantage: their median starting salary was $103,629, down from last year’s $106,610.
(Bloomberg) — Samsung Electronics Co. outlined plans for a $17 billion U.S. semiconductor plant that will add more than 2,000 jobs, widen the South Korean giant’s foothold in Texas, and bolster its role as a vital supplier in the global manufacturing supply chain.
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“Increasing domestic production of semiconductor chips is critical for our national and economic security,” U.S. Commerce Secretary Gina Raimondo said in a statement Tuesday lauding the deal. White House officials also said they welcomed the investment, saying in a statement that it would help “protect our supply chains” and boost domestic manufacturing.
The project will create more than 2,000 jobs, Texas Governor Greg Abbott said at a press conference announcing the plans. Samsung also said that the plant would indirectly create thousands of additional jobs once it was operational. “The implications of this facility extend far beyond the boundaries of Texas,” Abbott said. “It’s going to impact the entire world.”
Korea’s largest company will build the facility in Taylor, Texas, about 30 miles from Austin, where Samsung has invested billions in a sprawling complex that already houses more than 3,000 employees and fabricates some of the country’s most sophisticated chips. Construction on the new plant is slated to start in the first half of 2022, and production will begin in the second half of 2024.
On Tuesday, Abbott touted Texas’s low taxes and talent pool as major draws for tech companies, and called Samsung’s decision to invest in the state “a testament to the economic environment that we have built.” Samsung could also receive $3 billion in incentives from the $52 billion bill known as the CHIPS Act if it passes, Texas Senator John Cornyn said Tuesday.
Samsung executive Kinam Kim said that the company’s decision to build in Texas was based on several factors including incentive programs, local talent and “infrastructure readiness and stability.” Infrastructure is particularly important for chip operations, which need a stable supply of power. Earlier this year a cold snap in Texas forced Samsung and other companies to pause operations. But Abbott has sought to reassure businesses that power outages won’t happen again, and that the state is now producing more power than it was earlier this year.
Samsung joins Taiwan Semiconductor Manufacturing Co. in making substantial investments in the U.S. The new facilities further the Biden administration’s goal of safeguarding the production of cutting-edge chips that are vital to defense as well as technologies like autonomous cars. It’s part of Washington’s broader effort to counter China’s rising economic power, as well as lure home some of the advanced manufacturing that in past decades has gravitated toward Asia.
A global shortage of chips this year has exposed imbalances in the industry and prompted governments from Brussels to Tokyo to court TSMC and Samsung — the two companies that make most of the world’s most advanced chips for clients like Apple Inc. and Nvidia Corp.
“Samsung’s new plant will help narrow the gap with TSMC’s production capability by making chips at the clients’ home,” said Kim Sunwoo, an analyst at Meritz Securities. “As the U.S. prioritizes domestic chip manufacturing, the company will be able to receive various benefits with its production base in the country.”
Neither the new Texas project nor TSMC’s $12 billion Arizona expansion are likely to alleviate chip shortages immediately. But their construction could lay the groundwork for a future American-centered chip ecosystem by attracting and training the component suppliers that typically spring up around such operations.
In June, President Joe Biden laid out a sweeping effort to secure critical supply chains. His administration has repeatedly voiced the need to increase semiconductor production in the U.S., saying that was the best way to compete with China and mitigate disruptions like those stemming from Covid-19.
Samsung spent months reviewing different sites and incentive packages before landing on Taylor. Samsung’s de facto leader, Jay Y. Lee, who walked free just months ago after serving time for corruption, green-lit the project after a recent trip in the U.S. where he met with prospective clients and partners from Alphabet Inc.’s Sundar Pichai to Amazon.com Inc. and Microsoft Corp.
The local government pulled out the stops, including waiving 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of property taxes for a decade, and 85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the following 10 years. The project could potentially receive additional tax breaks because it’s in a federal opportunity zone, a program designed to spur investment in poor areas.
“Samsung is targeting American customers aggressively,” said Jeff Pu, an analyst with Haitong International Securities Group.
Read more: White House Spurns Intel Plan to Boost Chip Production in China
The World Is Short of Computer Chips. Here’s Why: QuickTake
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