Corporate Challenges: Corporate America is increasingly facing pressures over climate change and shareholder demands. Companies must prioritize sustainability and transparency to improve performance and meet societal expectations, as seen with Southwest Airlines and military considerations.
Corporate America faces significant challenges, particularly in relation to climate change and shareholder pressure. As companies like Southwest Airlines feel the heat from activist investors seeking to improve performance and stock prices, the need for corporate transparency and accountability grows. Similarly, the military is grappling with climate change as potential threats to national security. This interconnectedness of environmental concerns and corporate strategy reveals how the future of businesses may increasingly rely on sustainability and societal impact. Companies that ignore these issues risk falling behind competitors who adapt to these demands. The discussion highlights the evolving landscape where corporations must align their goals with broader environmental and social responsibilities to survive and thrive in the modern economy, reflecting a shift in priorities toward responsible business practices.
Tech and Mortgages: Intel is pivoting towards GPUs and manufacturing for other companies due to a shift in market demands, while buyers seek assumeable mortgages to cope with high interest rates.
Intel, traditionally known for its CPUs, is shifting focus as demand for AI capabilities grows; companies now need GPUs and accelerators. With missed opportunities in AI and a decline in CPU market share, Intel is investing in manufacturing for others. Additionally, they are pursuing funding to boost chip production in the U.S. Meanwhile, potential homebuyers are exploring creative options in a high-interest market, such as assumeable mortgages, allowing them to take over existing loans at lower rates. Companies like Rome facilitate this process, helping buyers manage costs amid rising prices and interest rates. This represents a shift back to strategies used in the past when mortgage rates soared, highlighting evolving solutions as economic conditions change.
Mortgage Insights: Mortgage assumptions offer a way to buy homes with lower rates, but many are unaware. Simultaneously, automated customer service makes it hard to reach real people, frustrating consumers. Both scenarios highlight challenges in today’s housing and service environments.
Mortgage assumptions, where a buyer takes over a seller's existing loan, are becoming an important option due to high interest rates. However, many sellers and buyers are unaware of eligibility. Companies like Rome help connect buyers with eligible homes but face challenges like lengthy closing processes and lender hesitance. Meanwhile, customer service is increasingly automated, with many companies opting for bots over human representatives to save costs. This trend is frustrating many consumers, as it hinders their ability to get real help when needed. The future may see continued reliance on automated systems in customer service, leaving individuals longing for personal interactions.
Customer Service Trends: Gen Z and millennials appreciate speaking to a person for premium services; companies are adapting by charging fees for phone support.
Many customers value the option to talk to a real person when they have a complaint, particularly Gen Z, who see this as a premium service. Although younger generations often prefer chat over phone calls, they are willing to pay extra fees to speak to someone, especially for high-value products like credit cards. Companies are recognizing this trend, creating different pricing structures that allow customers to access phone support for a fee. As businesses adjust, it is clear that personal customer service is viewed as an exclusive benefit, echoing a desire for a more personalized experience, particularly in the context of larger financial investments or customer loyalty. These trends show companies how essential it is to cater to both tech-savvy clients who favor digital communication and those who seek the assurance of speaking directly to a representative.
Economic Signals: Despite fluctuating COVID test demand and various economic challenges, some businesses are adapting and seeing growth, notably in online sales and customer loyalty, while the government supports testing manufacturers.
The economy shows mixed signals as mortgage-related companies display gains while the government is reintroducing free COVID test kits to prepare for respiratory virus season. While demand for at-home tests has fluctuated, experts note many companies that rose during the pandemic are struggling since demand has not stabilized. Retail businesses like stationery stores are experiencing growth in online sales and returning customer rates, indicating effective marketing strategies. Despite challenges in various sectors due to changing pandemic dynamics, some companies continue to find new opportunities for growth, signaling resilience in the market. Amidst these changes, focus remains on observing consumer behavior as the holiday season approaches and alongside an evolving healthcare landscape.
Seasonal Strategies: A small business owner balances preparing for Christmas sales and creative work while recognizing the impact of climate change on the military. Meanwhile, Boeing faces labor negotiations, showing diverse challenges in today’s economic landscape.
As the busy season approaches, a small business owner is focusing on supporting retailers for Christmas sales while managing a backlog of creative ideas. Despite the optimism surrounding interest rate cuts, the owner emphasizes hard work and ensuring employee care as priorities for sustained business growth. At the same time, the narrative bridges into broader societal issues, highlighting Boeing's labor negotiations and the pressing challenges of climate change affecting military strategies. The ongoing climate crisis has prompted the military to prepare for its impacts, indicating that significant challenges lie ahead, which could alter traditional approaches to security and global stability.
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Recent Episodes from Marketplace
The data dogs
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, counts himself as a data dog. It’s a name for economic policymakers who take the long view and are usually game to wait for more numbers. Goolsbee spoke with “Marketplace” host Kai Ryssdal about his voracious appetite for information and what he calls “the hardest thing that a central bank has to do.” Plus: Sports ticket prices are up 10% in the last year, and California requires retailers to help fund textile recycling.
Evaluating the damage
As the Southeast assesses Hurricane Helene’s damage, Milton barrels toward Florida’s west coast. The proximity of the storms will make it harder for homeowners and insurers to estimate each one’s impact — and likely drive up recovery costs. Also in this episode: Corporate bonds shine after the Fed’s rate cut, the mortgage rate honeymoon is over and Nebraska’s elections attract major campaign spending — along with some odd yard signs.
The cost of being prepared
Natural disaster recovery is often expensive, but this season is shaping up to be particularly costly and painful. The Southeast is reeling from Hurricane Helene, and Hurricane Milton is expected to inflict more damage starting tomorrow night. Disaster preparedness can reduce the economic burden of recovery, but not all localities can afford to be prepared. Also in this episode: The Fed’s interest rate cut raised business owners’ optimism and China invites more young Americans to visit.
We added a ton of jobs last month. Surprise!
Since the COVID-19 pandemic began, firms have taken some unprecedented measures to balance out the effects of lockdown, inflation and supply chain backups, leaving some economic predictors sorta … off. How can forecasters do their jobs when so many economic patterns have changed? Also in this episode: The Author’s Guild announces an anti-AI marketing strategy, consumer credit climbs, and for some agents, the National Association of Realtors settlement was the last straw.
Don’t be like Boeing
It’s a cautionary tale: Boeing was known for its reliably constructed aircraft. But when outsourcing for the sake of the bottom line went too far, product quality — and Boeing’s reputation — diminished. In this episode, the delicate balance of profit and perfection. Plus, the specialty contracting sector adds tons of jobs and an outdoor sleepaway camp in Wyoming combats brain drain.
U.S. exporters are on edge as port strike continues
The United States is the biggest importer and second-biggest exporter in the world. So if the dockworker strike lasts, some sectors may have to look for other ways to get their goods overseas — or pay to store them until cargo starts moving. Also in this episode: Prices probably won’t fall with inflation, economists keep an eye on the diffusion index, and Kai Ryssdal visits a remote atoll in the Pacific Ocean that’s important to U.S. security but vulnerable to climate change.
Biden’s “Great Society”
Medicare, Pell Grants and the Immigration Act of 1965 were all passed under President Lyndon B. Johnson. Several important government agencies were formed too. In fact, some historians argue that LBJ’s Great Society agenda was the last major shift in the relationship between the executive branch and the U.S. economy. In this episode, how does legislation passed under President Joe Biden compare?
Automation on the waterfront
About 45,000 members of the International Longshoremen’s Association went on strike today over pay, yes, but also the automation of their jobs. We take a look at mechanization on the docks and how truckers feel the pain of shipping delays and slowdowns. Plus, the U.S. increased the number of available jobs in August, data centers are going higher and sleeker, and learning about white labels the hard way.
You gotta start paying back those student loans. No, really.
Sept. 30 marks the end of a yearlong grace period that came after a several yearslong pause on student loan repayments. Starting tomorrow, missing a payment will affect borrowers’ credit scores. Are the most vulnerable borrowers prepared to pay? Also in this episode: Women’s sports sponsorships gain ground, Zillow introduces climate risk scores for homebuyers, and a potential longshoremen’s strike looms on the East Coast and Gulf of Mexico.
Disposable income growth chugs along
Disposable income was up 0.2% in August from July, the latest personal consumption expenditures report shows. It’s good news that income is outpacing inflation, but major life expenses like homeownership or retirement are still out of reach for many Americans. Also in this episode: Kamala Harris’ presidential campaign may benefit from Divine Nine-affiliated PACs, California decides how best to recycle EV batteries, and Denver property owners will pay an annual tax to fund sidewalk maintenance.