The Business Page

Kodak Reports

2007-01-31T09:05:00.000-05:00

Kodak is out with its fourth-quarter and year-end earnings, and the phrase of the day is "in the black." The company posted a small profit during October, November and December - the first in many quarters. But the net earnings $16 million represent a significant turnaround of $62 million turnaround. (Kodak lost $46 million in the fourth quarter of 2005.) Have a look at the release directly. One thing to note is that much of the turnaround has to do with diminished restructuring costs compared to a year ago. What this means is, to use a cliche, the rubber is about to meet the road: The company is going to have to show the ability to grow with the businesses it has in hand. Here's one more version from the financial wires, from Reuters.

Grab Bag

2007-01-26T10:35:00.000-05:00

Items from the notebook:

The choice of Deputy Mayor Patricia Malgieri as this year's Athena Award winner is interesting in part for where she works. Both she and last year's winner, Jean Howard, are top advisers to Rochester Mayor Robert Duffy. The Athena Award recognizes a top female professional. It would seem to be a good measure of the type of talent that Duffy has been able to recruit; only time will tell how long he's able to hang on to them.
WHAM-13 news anchor Ginny Ryan, the MC of the awards, told a joke at the ceremony that involves Adam and Eve. The punchline has God advising Eve that he created man with a bit of ago, and as a result, "You are going to have to let him believe I made him first."
The proposal for new housing at High Falls marks another part of Kodak's effort to help assist the local economy. The company will donate its visitor parking lot along State Street to the new apartment building, which will include condos and town homes. It sounds as if the project may extend to the next block, which is filled with a couple of small businesses (but little else.)

Economic Development in Upstate

2007-01-24T10:22:00.000-05:00

So Eliot Spitzer has chosen someone from outside the region, and outside New York, to lead his charge to rebuild upstate's economy. Daniel Gunderson is coming up from Pennsylvania to serve as co-chairman of the Empire State Development Corp., the state's economic development arm.
He was serving as the No. 2 in charge at Pennsylvania's Department of Community and Economic Development. He's been busy there. The state just played a key role in triggering phase one of a massive investment in downtown Pittsburgh, that could bring new life to that city's cultural district. One positive aspect of Gunderson's hiring is his department was apparently pursuing industries similar to those of importance to upstate New York.

While Gunderson's geographic resume was probably a surprise to some, the reality is that the job's biggest challenge is a political one: Figuring out how to share power and scarce resources with the downstate co-chairman.

Grab bag

2007-01-17T10:49:00.000-05:00

Some items crossing my desk of late:

Maggie Brooks on Tuesday challenged local elected representatives on an issue that is a recurring theme this community. The county executive, who will stand for election this year, called on the Council of Governments "to propose specific ideas for further cooperation and consolidation." She cited collaborative projects in areas such as public health, public safety and transportation as examples. She also urged the council to update this 2001 study on intermunicipal governmental cooperation. Her call is remarkably consistent with her position on consolidation. During her successful 2003 campaign, Brooks argued that consolidation of services -- not consolidation of government units -- was the way to achieve real cost savings in the public sector. With all due respect to the county executive, maybe there's another way: Controlling local government employment. The number of local government jobs in the Rochester metro area grew 7.1 percent between 2000 and 2006; statewide, the increase was 4.4 percent. Perhaps more interesting is that local government employment is now making up a larger part of our economy than it did six years ago - 12.7 percent compared to 11.5.
It's perhaps not surprising but a new study showed that sentiment among manufacturing companies in New York dropped dramatically between last month to this. The Federal Reserve Bank index went from 22 percent to 9 percent. Here's a link. Greater Rochester's economy remains heavily weighted in the manufacturing sector. For other Federal Reserve reports, go here.

A Company You're Not Supposed to See

2007-01-15T11:42:00.000-05:00

The employees at KEK Associates Inc. have a work life that is never dull. The Henrietta company is a self-styled "product architect" -- they are hired by other companies to design and develop new products. The company has a fascinating mix of clients, stretching from Kodak and Xerox to Nike to the Massachusetts Bay Transit Authority. Just last week the company had a role in new products introduced by both Kodak and Icuiti Corp. at the Consumer Electronics Show in Las Vegas. This portion of KEK's web site shows a little about how the company does the work. Click on the circles to see some of the initial designs, and how the final products look.

Sandy Parker at the Rochester Rotary

2007-01-09T15:32:00.000-05:00

If you've never been to a luncheon sponsored by the Rochester Rotary Club, well, let's just say it's an experience. They are a group with some lively traditions -- including issuing "fines" when members "step out of line," such as a member who had to cough up $28 for apparently forgetting to mention the rotary in a recent newspaper interview.

Today's luncheon speaker was Sandy Parker, the CEO of the Rochester Business Alliance, who is becoming the poster child for efforts to improve the upstate economy. It was a year ago, during her annual rotary speech, when Parker kicked off Unshackle Upstate, a coalition of upstate business interests.

Anyway, Parker today was a bit more upbeat -- predicting a legislative success for the Unshackle coalition, but also flattish job growth, a delay in the Renaissance Square project in downtown Rochester and a Stanley Cup for the Buffalo Sabres, owned by Rochester's own Tom Golisano.

Perhaps the best one-liner, though, came from newscaster Don Alhart of Channel 13, a long-time Rotarian who warms up the crowd with a news report. One of his items today was about a zoo in Australia that is conducting an experiment by placing humans on display.

"They are already exhibiting strange behavior," Alhart said. "I understand they have formed a Rotary Club -- that, of course, because they were rejected by the Lions."

(Rim shot.)

Spitzer and the Upstate Economy

2007-01-05T11:51:00.000-05:00

The folks at the Rochester Business Alliance may be pinching themselves following Gov. Eliot Spitzer's first week in office. The very first press release of Spitzer's term was an agenda for change aimed at improving the upstate economy.

The RBA and its partners in Buffalo and other parts of the state have been talking for a year about policy prescriptions designed to boost the region's economy. Their agenda, called Unshackle Upstate, parallels Spitzer's. It calls for reforming worker's compensation, health care and other areas to reduce the cost of business.

It also calls for decentralizing economic development funds to give local areas more control over their own destinies. Spitzer has indicated his intention to appoint an upstate chairman of the Empire State Development Corp., the state's economic development arm. Upstate officials have long complained at the the ESDC has a distinct downstate focus.

It's unclear at this writing who the upstate chairman will be. In a conversation this week, State Sen. Jim Alesi, R-Perinton, said he had discussed the job with Spitzer's administration, in a contact initiated by the new governor's team. But he said that unless something changes, he prefers to remain in the Republican-controlled Senate. Alesi told me he thinks that Spitzer is looking for someone with both legislative and business experience.

It's important to note that both Spitzer and the business community will face a challenge from organized labor, which has a different perspective on the policy prescriptions. For instance, unions and other activists believe the state should look closely at fraud by insurers in the worker's compensation system.

So it will make for an interesting couple of months.

GoodReads

2007-01-02T12:40:00.000-05:00

Starting the new year with some interesting business items worth noting:

The world's largest retailer is putting its heft behind one aspect of the move toward energy conservation. Read about Wal-Mart's plans for more energy efficient light bulbs. (NY Times.)
I wrote last week about digitalXtractions, a Rochester start-up with a promising idea for a new web-cam technology. The company sees the technology as useful in security and human resources management. Perhaps they are onto something, as this story from the Orlando Sentinel shows.
More proof that in this day, every business is a tech business: A project involving Ford Motor Corp. and Microsoft. (Milwaukee Journal-Sentinel.)
Another iconic company in the new economy is facing a union battle, according to the Seattle Times.
Here's a company that has developed technology that -- if you like -- will keep track of your every move: GPS-enabled sneakers. (Miami Herald.)

The Things You Miss...

2006-12-29T10:18:00.000-05:00

...when you are off of work. Earlier this month Kodak awarded options on an additional 314,530 shares of company stock to Chairman and CEO Antonio M. Perez.

This should not be confused as money in his pocket. Options give an executive the right but not the obligation to buy the stock in the future, at a price set today.

In theory, if the company realizes its potential, the stock price will rise. If that happens, the executive makes money. If it doesn't, the options expire without the executive realizing a penny. (A common occurrence to more than a few Kodak executives in recent years.)

The stock doesn't have to move much from current levels for Perez to realize a decent gain. If, for example, Kodak shares move up just 5 percent from the option exercise price of $25.88 a share, Perez would net $405,743.

Of course, out of that amount you have to subtract taxes and consider inflation. The options are restricted -- Perez will gain control of one third of the options in each of the next three years.

There is a multiplier effect here as well. If the shares grow 25 percent, the net gain is $2.03 million; at 40 percent the gain is $3.3 million.

Options are something that Perez has a lot of. In his four year tenure at Kodak, the CEO has received options on 1,076,630 shares. The exercise prices range from a low of $24.49 a share to a high of $31.71.

The Perks of Business

2006-12-28T17:23:00.000-05:00

This surely doesn't happen as much as it used to, but I got a reminder today how interesting it can be to work at Eastman Kodak.

Neil Montanus, a retired senior photographer from Kodak, called the newsroom to point out that he'd taken the official portrait of Gerald Ford that is running in many newspapers since the former president's death earlier this week.

Montanus and I had a nice chat today, and he forwarded some of the images taken by the official White House photographer of him doing the work. He wryly notes in an e-mail: "I looked different back then..."

Perhaps the most amazing detail is that Montanus inadvertently brought back a leaf of an ivy plant that was on a mantel in the Oval Office. He gave it to his wife, who got the leaf to sprout roots. Thirty years later, the plant still thrives. He sent along a more current picture, also below.

Post Holiday Post

2006-12-26T13:01:00.000-05:00

Back from Christmas break! Hope your holidays are pleasant. Unloading a few items from the very crowded Inbox:

It is quite likely that area colleges and universities are playing the key role in this area's economic redevelopment. And they seem to understand it as well, if this new web site is any indication. The site offers data and showcases the resources available at 18 area institutions of higher learning. It was funded by a state and local grants of $105,000. The schools have a total enrollment of more 84,000 students. To date, some of the most popular search terms on the site include workforce development, internships, product testing, venture funding, and faculty and student research. University research is starting to have an impact with new companies, such as Vaccinex Inc.
I think it is notable when something in our community gets done without the standard hulabaloo over public funding. The latest example: A new splash pool at the Seneca Park Zoo for elephants Genny C and Lilac. The splash pool will hold approximately 50,000 gallons of water, up to five feet deep. It will feature a sloping entrance that resembles a watering hole in their native environment. The pool will be funded in large part by $250,000 in private contributions raised through Monroe County's "Experience Great Things" campaign.
This week brings to the close the third annual "Voice Your Choice" program, which gives you a chance to choose a company to supply your electricity and a pricing option. The deadline is Friday night.

What the world needs now...

2006-12-14T10:46:00.000-05:00

...is more doughnut stores. And thankfully, the people of Monroe County are getting one. Dunkin' Donuts recently opened its 33rd store in the greater Rochester market. This one is located at 2044 Latta Road, just off Route 390, in Greece. It's the third Dunkin' Donuts in Greece; this one employs 15 people.

What the store's arrival means is that there is now one DD for every 22,272 people in Monroe County. It's not enough. We think it should be closer to 1:5.

Good Reads

2006-12-11T12:03:00.000-05:00

Starting the week with some interesting business news:

In a sign of changing times, Madison Avenue has locked onto the public's anxiety over gas prices, the New York Times reports.
Talk of home networking has seemingly subsided, but there is still great interest in giving consumers the ability to link together their household devices. The San Jose Mercury News tells you how.
Speaking of alternative energy sources: Wind turbines are supposed to harness the power of wind to produce power. In this instance, the wind OVERpowered the turbine, according to the Des Moines Register.
Perhaps in the least surprising sign that the forces of supply and demand work, apparently the housing market in New Orleans is very much in favor of the buyer, says the New Orleans Times-Picayune.
Wondering what well happen if Delta and US Airways get the OK to merge? The Atlanta Journal Constitution tells you.

Repositioning Rochester

2006-12-05T17:55:00.000-05:00

I am closing the loop here. Today was the 19th installment of the Rochester Downtown Development Corp.'s "Repositioning Rochester" series.

At the meeting County Executive Maggie Brooks said: "We see the glass as half empty, but it's really half full."

Guess that means only 19 more sessions before we fill the rest of the glass.

GoodReads

2006-12-04T11:38:00.000-05:00

Getting back on track this cold Monday with some good and interesting business reads:

A story of local interest, to start. Eastman Kodak Co. is doing some rejuggling of its approach to sponsoring race cars. The company will now have its name and c olor s on cars in three different series. Here's a photo of one of the new cars:

Speaking of Kodak -- two information organizations have discovered that the ubiquitous nature of camera phones can benefit them in new ways. Welcome to the world of citizen photojournalism (and maybe say goodbye to privacy.) (NY Times)
Wish I could have been on this McDonald's management meeting, when someone suggested this particular market as a growth opportunity: Children's Hospitals! (AP, via the Chicago Tribune.)
Can't resist a headline that reads, "The Bill Gates of China." Expect to start seeing more deals for lower cost Lenovo personal computers. (Business Week.)
Here's an inside look at one of the anti-Wal Mart campaigns making life tough for the nation's largest retailer. (Fortune Magazine.)

Camera finder

2006-11-28T15:47:00.000-05:00

In the category of, gee, ain't this cool?

Flickr, the photo-sharing web site owned by Yahoo, has introduced a "camera finder" feature. Using this feature, you can now search for all the photos taken by a particular camera -- useful when you're in the market for a new picture-taking gizmo.

According to results checked Tuesday afternoon, the camera that has produced the most Kodak pictures on Flickr is the EasyShare DX6490 Zoom -- but the popularity is dropping, predictably, because technology stands still for no one. But that camera was the source of nearly 700,000 images on Flickr. Climbing fast is the Z740 Zoom.

The No. 1-ranked camera on the site was the Canon EOS Rebel Digital XT, with more than 8.1 million photos uploaded to the site.

Here's an article about the feature.

Readable

2006-11-15T11:48:00.000-05:00

Good reads, on a day when the sun finally shines:

Mega-airline time. US Airways is bidding to buy Delta Airlines. Cynics among us will point out that it's another sign that airlines aren't the best run businesses in the world: Delta is just emerging from bankruptcy court; if the bid is accepted, creditors will receive about 50 cents on the dollar, according to the NY Times.
The voice of commercialization at Christmas speaks. Target Corp. will make a donation to the Salvation Army, but don't expect to hear the bell-ringing outside the company's stores again this year. (Minneapolis Star Tribune.)
The debate over whether or not the world's oil supplies are now on a downhill slide continues. Here's a new study that challenges some previous assumptions about so-called "peak oil." (Kansas City Star.)
Cleveland's efforts to rebuild that area's economy, similar to those in Rochester, are starting to show signs of trouble. (Plain-Dealer.)
As Rochester pursues economic development through entrepreneurship, here is one community it might want to tap into. (Associated Press via Sun-Sentinel of Florida.)

Top 101

2006-11-08T17:42:00.000-05:00

A few of the one-liners from the annual Rochester Top 100 luncheon, which this year should be called the Top 101, because there was a tie. The luncheon was held at the Rochester Riverside Convention Center, with more than 1,800 attendees, a record. No truth to the rumor that recruiters for the Second City comedy club chain were in attendance.

"He's still out on the campaign trail. Nobody's told Jim Alesi that he's won." - Event MC Don Alhart while introducing the members of the head table at the event. Alesi, a state senator, was the only head table invitee whose chair was empty.
"When I get knocked down -- and I do frequently -- she is the first one to pick me up. Of course, she's the one who knocks me down half the time." Retiring RIT President Albert Simone, talking about his wife, Carolee Simone.
"Still no sign of Jim Alesi. We do have one report that he was last seen in the parking garage with Joe Klein." - Alhart again, referring to the CEO of Klein Steel Service, who gave a take-no-prisoners speech several weeks ago about the problems facing the upstate economy. In that speech, Klein lambasted several state legislators.
"My 13-year-old son said, 'Dad, if you have any hope of holding the attention of the people in that room, you better let mom do all the talking." - Charles Lill, describing what his son, Jesse, said after learning that Lill's company, Frank Lill & Son, was the No. 1 company in the Top 100.

I Can't Help It

2006-11-07T16:50:00.000-05:00

I'll be spending lunch-time tomorrow listening to some speech-ifying at the Rochester Riverside Convention Center. It's the luncheon for the 2006 Rochester Top 100, which ranks the 100 fastest-growing private companies in our region. We wrote about this year's batch of winners on Sunday.

Now in its 20th year, the Top 100 ranks privately held companies based on three most recent years of revenue growth. Companies must have at least $1 million in revenue for each of those years, and rankings take into account both dollar and percentage growth. This year's winner is Frank Lill and Co.

Don't exactly know how the luncheon will unfold...but I believe there is one matter that is a safe bet. Put the mortgage money on this:

Joe Klein, the chief executive officer of Klein Steel Service, will NOT be allowed near the microphone.

(Klein created a stir in October with a take-no-prisoners speech after being named small business person of the year by the Small Business Council of the Rochester Business Alliance. The RBA is one of the co-organizers of the Top 1oo.)

But Klein could very well be at the luncheon. His company ranks No. 45 on the Top 100 and has been a member of the list for many years.

Just a random thought

2006-11-03T18:00:00.000-05:00

Mailtime is always interesting in the business section. Earlier this week we received an invitation to the 19th event in the "Repositioning Rochester" series, sponsored by the Rochester Downtown Development Corp. (This one features Rochester Mayor Robert Duffy and County Executive Maggie Brooks.)

A colleague notes, with more than just a hint of truth: "After 19 events....shouldn't we be repositioned by now?"

Think about it.

High Falls Pub at the Airport

2006-11-02T09:56:00.000-05:00

Once upon a time a few years ago, the High Falls Brewing Co. was considering opening a tasting house/restaurant at its historic factory on St. Paul Street. But plans never materialized. Now the company, which brews Genesee beer, has found a better spot for its investment. High Falls and Monroe County officials this afternoon are officially opening the JW Dundee's Pub & Alehouse at the Greater Rochester International Airport. It is the first JW Dundee's branded on-premise establishment. The restaurant is beyond the security checkpoint, so it will be available only to travelers.

Back to work

2006-10-30T10:45:00.000-05:00

I am back on the job after a week's vacation, which included a lovely drive to Vermont (a place unlike most I have experienced.)

Just a couple of observations:

In the category of comings and goings, an arrival: Medley Centre has another new tenant. It's Hobby House Toys, an area toy store. This is actually an expansion. Hobby House has stores in Southtown Plaza and on Pittsford-Palmyra Road. According to Medley Centre, the chain carries unique items, from "models to plush animals, building sets to board games, rockets to magic kits." This comes on the heels of the opening of a new Target store on the Medley Centre property. It also goes against the grain a bit, as independent toy stores have been struggling with competition from Wal-Mart. Owner Susan O'Neil says the secret lies in inventory selection: "you have to spend a lot of time to make sure you don't have what Wal-Mart has."
Kodak's third-quarter earnings will be out in the morning. It is again considerably challenging to predict what the numbers will show. Projections reported to Thomson Financial call for adjusted earnings in line with the third quarter a year ago -- 19 cents a share. But those analysts are also forecasting an 8 percent decline in revenue., to $3.2 billion. One outstanding issue is the disposition of the company's health group. Kodak has said it will be considering strategic options and hoped to have an announcement by year's end. Excuse the self-promotion, but we'll have updates at www.democratandchronicle.com starting at about 7 a.m. tomorrow.
Experts are gathering today to compare more notes about seeking economic opportunity out of alternative energy. Called “Turning Green into Growth,” the forum was hosted by Greater Rochester Enterprise; Stantec, an international architectural and engineering firm; and the U.S. Green Building Council (USGBC), a non-profit coalition promoting buildings that are environmentally responsible, profitable and healthy. The event was designed to highlight "green” building, and to help move Rochester toward the goal of being a clean energy leader.

Not Taking Business So Seriously

2006-10-17T15:17:00.000-04:00

Just came back to my desk to find an e-mail linking to a hilarious video on YouTube. It was presented Sunday night by Eastman Kodak Co. to customers at Graph Expo 2006, the largest annual trade show for the graphic arts industry. The actor is Steve Tom, a former NBC News correspondent who now has a lively career in acting, presentations and voice overs (and many, many movie credits.) The video is in the context of Kodak's brand reinvention, which aims to establish the company as a hip, digital innovator. "It's to get people to think about Kodak differently," spokeswoman Barbara Pierce said. Judging from some of the cultural references -- such as from the movie This Is Spinal Tap -- mission accomplished.

Monday Morning Reads

2006-10-16T12:52:00.000-04:00

Business stories of note the last few days:

As time moves on and technology changes, standards of success do too. So here's a new one: Getting cast in a video game. Check out this Reuters reporter making it big. (NY Times.)
While this is just an exhibition, the face of moon travel is changing, as this contest shows. (Denver Post.)
The World Is Flat, exhibit No. 100,233,553, courtesy of the Associated Press. This time it's about Israeli's who are working for American companies through the thrill of telecommunications. (Via the Pittsburgh Post-Gazette.)
The Milwaukee Journal-Sentinel has done some good work on some of the risks facing fishermen in the Great Lakes.
Here's an in-depth look on the next-generation technology for making ethanol. (Seattle Times.)

Overheard

2006-10-12T15:56:00.000-04:00

The Fast Ferry is obviously very much front of mind for people working for the city of Rochester. For the second time in a week, a city official has used the ferry for comic relief in a public address. This time it was Mayor Robert Duffy. Speaking Wednesday to a forum on business opportunities in China -- sponsored by the Rochester Business Alliance and the U.S. Chamber of Commerce -- Duffy said he was willing to take extraordinary measures to unload the ship.

"If anybody needs a ferry service," he said, "I'll personally push it away
from the dock at this point."

Last week's ferry humor was supplied by R. Carlos Carballada, commissioner of economic development for the city.

Monday Must Reads

2006-10-09T11:05:00.000-04:00

Starting the week with a look at some of the more interesting business reads:

Normally when you're introducing a new product and it's riddled with bugs, it doesn't bode well for the future. The software industry is probably different, since the software has to learn how to interact with thousands of disparate devices. Still, the magnitude of the debugging the new version of Windows makes for an interesting tale. (NY Times.)
Probably no surprise here: Rochester did not place on the GQ Magazine's list of the 100 top clothing stores for men in the United States. Here's the list. (Boston Globe.)
Xerox Corp. has once again placed two executives on the list of the 50 Most Powerful Women in Business, the annual list compiled by Fortune Magazine. They are Ursula Burns and Anne Mulcahy, who ranks at No. 2. The most powerful woman is Indira Nooyi, CEO of PepsiCo. (Fortune Magazine.)
Just when greater Rochester seemed to be getting its act together on the venture capital front comes this news: There may be an "innovation drought." (Business Week.)
Speaking of bugs: apparently studio executives are struggling with a movie project that has a soaring budget and may end up as the most expensive comedy of all time. (L.A. Times.)

Overheard

2006-10-05T12:09:00.000-04:00

R. Carlos Carballada, addressing a crowd of 450 business and economic leaders at Wednesday's luncheon of the Rochester Downtown Development Corp., which looked at the State of Rochester's Economy:

"Anybody want to buy a Ferry? We have a special discount, until 12:01 a.m. tomorrow."

Items and observations

2006-09-27T12:54:00.000-04:00

Some random thoughts from a business reporter on the move:

Wonder what the executives at Kodak and Xerox -- particularly CEOs Antonio Perez and Anne Mulcahy -- think about the widening scandal at Hewlett-Packard? Might this create some managerial distraction they could exploit in digital photography and printing?
Next week starts a new "Voice Your Choice" season at RG&E, where customers will be asked to choose a supplier of electricity and a pricing option for the next 12 months. Expect to start getting bombarded by Voice Your Choice materials soon.
Along those lines, there is a new choice available for small commercial customers in upstate New York, including Rochester. It's BlueRock Energy Inc., based in Syracuse.
Technology that's considered a "crown jewel" in the University of Rochester Medical Center's portfolio of intellectual property is moving forward in a unique partership with the FDA. Researchers will apply cutting-edge software for analyzing electrocardiograms to a ECG database the agency now maintains. The goal: To develop early predictors of cardiac risk. Related technology earlier this year was licensed to iCardiac Technologies Inc. of Rochester.
If you've been out on Monroe Avenue lately, you might be wondering what Wegmans is up to at its flagship Pittsford store. Seems the grocery chain is creating some breathing room for its growing base of patrons. Wegmans is adding 25 new parking spaces in the southeast corner of the property, near the entrance to Monroe Avenue. This follows the addition of about 50 spaces near the Tastings restaurant.

On Start-ups and other measures

2006-09-22T16:36:00.000-04:00

It's been a busy week down here at the newspaper, but an interesting one. Coming off several recent new job announcements, the talk around Rochester has turned to entrepreneurship, with two conferences in town designed to promote funding for innovative ideas. The conferences were UNYTech, which is an alliance of upstate universities, and the National Association of Seed and Venture Funds, which is a group of investors devoted to helping business get off the ground.

Depending on whom you speak to, Rochester is either doing very well or is struggling. But it is fair to say there is no shortage of effort to help the region realize its entrepreneurial dreams.

Some of that effort was on display at the UNYTech conference, which featured pitches from companies to investors. Some of the more interesting:

iCardiac Technologies Inc. of Rochester has developed software that analyzes electrocardiogram data to help pharmaceutical companies produce drugs that are less harmful to the heart.
Campus Current, also of Rochester, a company comign out of the Simon School at the University of Rochester. Campus Current aims to be a simplified version of social networking sites such as Facebook.com and MySpace.com.
Pathologics LLC of Penfield, an early stage biosensor company for use in a range of markets.
e2eMaterials LLC of Ithaca, a company coming out of Cornell University that is looking into producing petroleum free biodegradable composites.
Sunward Medical LLC of Troy, a company that has developed a way of recording and analyzing chest sounds to diagnose disorders such as asthma and bronchitis.

Job bounce?

2006-09-14T15:25:00.000-04:00

Lots of job news of late, and in general, the only safe conclusion is that we remain a tale of two economies. This year alone, we have had commitments to increase jobs from HF Technologies, a Rochester supplier of components for copiers and printers (76 jobs); CareGuide Inc., a provider of information technology for health care management (200 jobs); Barilla America, which is building a pasta making plant in Avon (121 jobs); and Harris RF Communications (200 jobs.)

Yet the unemployment data out today show us still struggling. Greater Rochester had 2,800 fewer jobs in August than it did a year earlier, sending the unemployment rate up a notch. See the numbers yourself here.

It's likely that our gains are getting obscured by job losses at larger companies such as Kodak. Which is why the impending conclusion of the Kodak's long and painful digital restructuring (20,000 jobs locally since 1998) will be good news in more ways than one.

Monday Reads

2006-09-11T11:11:00.000-04:00

On this day of memorials, some interesting business news to soak in:

Even five years later, advertising and media businesses are struggling to find the right balance in their use of Sept. 11. (NY Times.)
And to think, someone in an office called the Office of the Special Counsel, spent time on giving fashion tips to employees. (Chicago Tribune.)
For the sake of our photo-literate community, here's an idea from a Detroit couple that maybe holds some intrigue. Or maybe not. (Detroit News.)
Here's another community benefitting from increased spending on homeland security. (San Diego Union Tribune.)
Forgetting your wallet at the store may not be a huge problem in the future, if this technology spreads to our area. (Milwaukee Journal-Sentinel.)
A glimpse inside the boardroom is always interesting. In the case of HP, it's ugly, too. Apparently that company's board can't decide what to do about its chairwoman. (San Jose Mercury News.)

Grab Bag of Items

2006-09-08T13:04:00.000-04:00

Some items worth mentioning on a sunny Friday:

Kodak and others say growth in the digital camera market is starting to level off. But this introduction suggests cameras are not a product going away anytime soon. Disney Consumer Products, the consumer arm of Walt Disney Corp., is offering a new line of digital cameras for kids and teens. According to Disney, the cameras and camcorders are available in themed designs for all ages including High School Musical, Cars and Pirates of the Caribbean. Some of the cameras sell for as little as $19.99. Disney's cameras may not be attractions for very advanced photographers, but they are not technological slouches either: One model gathers images at three megapixels, enough to print 5x7 or 8x10 pictures.
The next great change in habits may come in the cellphone. According to a report in Forbes magazine, Apple Computer may be about a half-year away from introducing its own cell phone, which will apparently be available in three colors -- white, black, and platinum. The phone will integrate communications capability with Apple's iPod digital music technology. Read the report here.

Tuesday Reading List

2006-09-05T10:34:00.000-04:00

Starting the school year with some interesting business stories worth checking out:

Fans of the old Dungeons and Dragons board game, rejoice! A new online fantasy game has taken the world by storm, with more than 7 million paying customers. (NY Times.)
Here's a list on which you won't find Rochester's three most recognizable employers (Kodak, Xerox and B&L.) Fortune Magazine has ranked the nation's fastest-growing companies. No. 1 is Vaalco Energy of Houston which is involved in - yes, you guessed it - oil exploration and production. (Fortune Magazine.)
Another sign that no business is safe in the day and age of technological innovation: MySpace, the popular networking site for young people, is becoming a major player in music retailing. (Business Week.)
In the category of ideas you just knew wouldn't work, put this: a hybrid car/plane. One of those is on the block, according to the Seattle Times.
In my college days, I would have happily put up with ads in my textbooks, since it meant more money for beer. Today's students are getting that choice.

Venture Capitalism

2006-08-31T11:51:00.000-04:00

A brief local business item of note, as the weather speaks of fall and the start of school is just a week away:

The national conference of the National Association of Seed and Venture Funds, an association that focuses on investing in start-up businesses, is coming to Rochester in late September. The conference features some heavy-hitters in the venture game, such as John May, chairman of the Angel Capital Association, and Mark Heesen, president of the National Venture Capital Association. The goal of the conference is to talk about the state of the art. While the initial conference participation was by invitation only, the Association is now welcoming involvement by others locally. Go to the seed fund web site or contact Greater Rochester Enterprise at (585) 530-6200 for information. One caution: the registration fees are $845.

Monday Reads

2006-08-21T12:30:00.000-04:00

Getting back on schedule with interesting business stories to read at the start of this late summer week:

The movie business is becoming increasingly global, as actor Will Smith is finding out. An interesting tale of taking Hollywood overseas. (NY Times.)
Oil prices are on everyone's mind. And there are a lot of doom and gloom scenarios floating around. But here's a contrarian case to be made for lower prices. (Business Week.)
Approaching the first anniversary of Hurricane Katrina, a major business magazine dissects the rebuilding of New Orleans. (Fortune.)
Talk about scale: Dell Computer got 28 million visits to its web site after announcing a battery recall affecting laptop computers. (San Francisco Chronicle.) Note the unfortunate placement of a Hewlett-Packard ad promoting the lifespan of its laptop batteries.
The controversy over placement of cell phone towers is going to look puny compared to the outcry about this idea, regarding ways to get more broadly available wireless service. (The Oregonian.)

Koda-Vision

2006-08-18T16:09:00.000-04:00

In an event in New York City in April, Eastman Kodak uncharacteristically discussed some of the cutting-edge work in its research labs. The work centers around making use of artificial intelligence in images -- developing software, for instance, that automatically recognizes faces or sorts images by decade. You can see a video about this subject at this site here.

Turns out that Kodak may be in a race to perfect the technology with the hottest name in dot-coms. Google this week purchased a small company called Neven Vision, which specializes in technology for automatically extracting information from a photo. Word is Google will use the technology with its Picasa photo software, which is available free to Google users. The purchase is getting some attention among the bloggers, such as this one.

Paetec Goes Public

2006-08-16T12:12:00.000-04:00

Perhaps the most interesting aspect of PAETEC Communications Inc.'s proposal to purchase US LEC of North Carolina involves the personalities and their path to doing business together. Arunas Chesonis, slated to be chairman and CEO of the combined firm, used to work for US LEC principal Richard Aab at ACC Corp., a Rochester company acquired by AT&T Corp.

But there's a bigger story of entrepreneurial connections in telecommunications. Chesonis also worked at Rochester Telephone with Steve Dubnik, who founded Choice One Communications, which recently went private through a series of acquisitions. The company is now known as One Communications.

And there's more. Phil Yawman, also an ACC alumnus, is now CEO of Rocket Broadband Networks, which is targeting telecommunications services to tenants of apartments. Yawman used to work for Dubnik at Choice One.

Other telecom companies with ties to Rochester's telecom past: Fibertech Networks, which builds local area fiber networks, and American Fiber Systems.

Colleague Dave Tyler will be weighing in further on Rochester Tel's family tree in a future issue of the D&C. Stay tuned.

Camera Cellphones and Rochester

2006-08-11T17:53:00.000-04:00

Connecting some dots here about a company that appears to be doing all the right things in a market that is obviously on the way to becoming enormous.

New Scale Technologies of Victor manufactures miniature ceramic motors for use in cellphones with built-in digital still cameras. The motors are needed to power zoom lenses. The first generation of the phones contained static lenses but that is starting to change.

Anyway, last month New Scale signed a licensing agreement with Tamron Co. Ltd. of Japan. Tamron will be using New Scale's motors in optical imaging assemblies. Tamron is a significant provider of photographic lenses and accessories. The agreement transforms New Scale out of the start-up phase.

All of this comes as the market for cameraphones continues to explode, according to a new study. Lyra Research of Boston is predicting that the number of cameraphones will reach 1.5 billion by 2010. Cameraphones have already exceeded the combined sales of digital and film cameras.

New Scale is located in Victor.

Names that Rhyme

2006-08-08T17:25:00.000-04:00

Back at work after a week's vacation, and just thought I'd start with a light-hearted observation.

In this business you get to meet a large number of people with diverse backgrounds -- Smiths, Joneses, Fishers, Schneiders.

And sometimes, the people you meet have names that even rhyme. Even when you least expect it!

Today I spoke to two top managers at Kodak about the relaunch of the Kodak.com web site, which went live today.

One was Betty Noonan, director of brand management and marketing services.

The other was Judith Goonan, director of Kodak.com.

There's no joke here, just an unusual coincidence.

Friday Reads

2006-07-28T17:17:00.000-04:00

Some stuff to read at the onset of a hot weekend:

So you think it's a coincidence that your doctor is prescribing this drug or that drug? Maybe not. Here's a pretty interesting look at how pharmaceutical companies do business. (NY Times.)
He didn't get to where he is without setting high goals. But Renault's Carlos Ghosn seems to have an unrealistic bar for any alliance with General Motors, such as rewards exceeding risks by 10 times. (Detroit Free-Press.)
The struggle between Wal-Mart and the city of Chicago could be on the verge of spreading, according to analysts. (chicago Sun-Times.)
The annual rankings of brand strength are on the newsstand, courtesy of Business Week. Eastman Kodak's brand took another hit. It was valued at $4.4 billion, down from $4.9 billion a year earlier. Kodak is ranked No. 70 on the list of the 100 top global brands. Xerox's brand, however, grew in value by 4 percent to $5.9 billion. (Business Week.)
Easy to beat up on Exxon for its profits. But it's not the only oil company reaping a windfall, according to this Associated Press story. (Via the Houston Chronicle.)

Waterpark Resort

2006-07-25T15:23:00.000-04:00

Being the parent of young children, these are the kinds of announcements that get my personal interest. But setting aside my own bias...today's proposal for a new hotel, indoor waterpark and retail complex in Canandaigua sure sounds like a significant economic development.

This site talks about the kinds of facilities this company is apparently slated to build. Go here to learn about Splash Lagoon, a spot in Erie, Penn. that has attracted patrons from here -- including my own personal neighborhood.

Quoting from the release:

An 86-acre destination resort, featuring an indoor waterworld, two hotels, conference center, restaurant, fitness center, spa, arcade and gift shop is being proposed for construction in Farmington. Named Glacier Lakes Resort and Aquazonia Indoor Waterworld, this initial phase of construction is projected to break ground during the first quarter of 2007. Anticipated phase one opening is slated for Fall 2008.

The facility's location would be approximately 2.8 miles south of NYS Thruway exit 44/Canandaigua. Individual facilities at Glacier Lakes Resort would include a 175-room themed hotel; a 100-room franchise hotel; a 22,000 square-foot conference center hosting conventions, meetings, events, weddings and more; a family style restaurant; a themed restaurant, a complete
fitness center and spa; along with a gaming arcade, gift shop and outdoor pool. The Aquazonia Indoor Waterworld, a component of Glacier Lakes Resort, would offer 70,000 square feet of heated, indoor water-related recreational activities.

Prints on Everything!

2006-07-21T17:00:00.000-04:00

A Rochester company is adding a couple of jobs to market intriguing new equipment that could change the way we see the world.

Durst Image Technology U.S. of Henrietta is now selling inkjet machines that will literally print on any material: corrugated cardboard, glass, metal, linoleum, laminate, tile and more. See the release here.

It's apparently part of a trend as companies look for improved printing services regarding products. The Durst equipment, manufactured in Italy, works in conjunction with manufacturing processes, the company says.

Here's a printing company, a spinoff of Flower City Printing, that is pursuing the identical market at the retail level.

Monday Must-Reads

2006-07-17T12:00:00.000-04:00

Some business stories to read to keep you out of the heat:

OK. Advertisers have officially lost their minds. Check out this new frontier for advertising, brought to you by CBS: Your eggs. (New York Times.)
Slower economic growth usually isn't something to celebrate -- but when it leads to lower gas prices, it might be. Check out this story from Reuters via the Boston Globe.
There are a frightening number of cars on the roads in the United States. Ever wonder what happens when they stop working? This Alabama company has an answer. (The Birmingham News.)
The Exxon Valdez oil spill was almost 20 years ago, yet a lawsuit regarding the event just doesn't seem to end. Plaintiffs are still waiting to collect. (Anchorage Daily News.)
Even the residents of Hawaii are poking their noses into the prospects for biofuels. According to one analyst, Hawaii could become the "Saudi Arabia of the Pacific." (Honolulu Star Bulletin.)
How much makeup do you have to sell to earn $1 million in commissions? A Dallas woman today has the answer. (Dallas Morning News.)

Job Fair

2006-07-13T17:35:00.000-04:00

Just posting to give a head's up about a fairly sizeable job fair coming up. As too many of us know, jobs (or the increasing scarcity of them) will determine the future of our region.

Anyway, the fair is scheduled for 11:30 a.m. to 4 p.m. next Wednesday, July 19 at Bryant & Stratton College's Greece Campus, 150 Bellwood Drive. The event is free and open to the public. Call (585) 720-0660 for details or visit www.bryantstratton.edu.

A preliminary list of companies and organizations at the fair:

ABVI Goodwill
Adecco Health
Advantage Professionals
Aflac NY
Blue Tie, Inc.
Cintas Corporation
Democrat and Chronicle
Employment World
Fingerlakes DDSO
First Niagara Bank
Frontier Communications
HCR
Hickey Freeman
Highland Hospital
K&K Food Marts
LiDestri Foods, Inc.
Lifespan of Greater Rochester
Lifetime Assistance
Lifetime Care
M&T Bank
McCall Staffing Associates
Med-Scribe Inc.
Mr. Rooter
Northwest Family YMCA
OS-Cubed, Inc.
Paychex
Pralid
Premier HR Solutions Group
Robert Half International
Rochester City School District – Transportation Department
Rochester Police Department
Spherion
Staples
Time Warner Cable
Verizon Wireless
Visiting Nurse Service

Entrepreneurial Zinger

2006-07-12T10:58:00.000-04:00

Quote of the day:

"It's amazing what you can get somebody to say about you for $13 million. I
don't know if I can afford any more accolades."

- Livingston County entrepreneur Phil Saunders, following an effusive introduction by Rochester Institute of Technology President Albert Simone. Saunders, a pioneer in the truck stop industry, announced Tuesday he's donating $13 million to RIT's College of Business.

(Quote courtesy of D&C colleague Matt Daneman, who reports on higher education.)

Kodak Wi-Fi Camera

2006-07-11T12:33:00.000-04:00

More than a year ago Kodak introduced the world's first WiFi digital camera, allowing users to e-mail images without first going through a PC. It took longer than expected to get to the market -- hey, that's technology -- but the camera is taking a beating this week from CNET, one of the more popular technology web sites.

CNET put the EasyShare-One on its list of the 10 worst technologies for the second quarter of 2006. EasyShare-One was named the "worst camera surrounding a good idea.;" CNET notes that while the wireless transmission works well, the camera struggles from "bad menu navigation, murky backgrounds, purple/pink halos."

It's at least got good company. Also meriting CNET's derision: Apple co-founder Steve Wozniak for trying to popularize the Segway scooter by using it in a polo match (Worst New Sport); and "X-Men: The Official Game" video game (Worst Game Based on a Movie.)

Tuesday Reads

2006-07-11T11:28:00.000-04:00

As I was off Monday for a certain young man's 6th birthday party, I start the week with my regular listing of good business reads:

Some of the nation's best known advertising characters are getting makeovers, according to the New York Times. Among them: Mr. Peanut and the Sun-Maid Raisin Girl.
While Congress continues to struggle with immigration reform, state legislatures are working to enact stricter new regulations on employers. (The Christian Science Monitor.)
Ever wonder where all the debris goes following a natural disaster? This Florida company has the answer. (Orlando Sentinel.)
Disney apparently has a monster hit on its hands in Pirates of the Carribbean. (L.A. Daily News.)
The outsourcing outcry seems to have faded in recent months. Here's an interesting take on what the debate should really be about. (Business Week.)

Energy Alternatives

2006-07-06T11:26:00.000-04:00

As a journalist, one of the surest ways of getting reader reaction these days (besides writing about national security issues) is to weigh in on the subject of ethanol. The notion of a corn-based fuel as a replacement for gasoline seems to get people a little riled. The main reason: Studies that apparently show that it takes more energy to produce ethanol than the ethanol itself produces.

But as the recent renewable energy conference in Rochester showed, the alternative fuel discussion is not just about ethanol. Investments here and nationwide span a wide range of technologies, such as solar, wind, fuel cell and more.

Here are a few examples:

Wakonda Technologies, which is developing solar cells under separate research grants from the U.S. Department of Energy and the U.S. Air Force. There is a description of Wakonda's work in this newsletter.
Noble Environmental Power, a Connecticut-based wind energy company. Noble is working on developing a 67-turbine wind farm this year in Bliss, Wyoming County and has a second proposal on the way. According to Greater Rochester Enterprise, there are more than 60 companies locally with the ability to manufacture components for turbines.
Coler Natural Insulation, which provides materials like recycled blue jeans for use as insulation. The company believes the bio-based materials are more energy efficienct.

If there is going to be a solution using alternative energy, it is likely to require bits and pieces of a wide-range of technologies, as investors in our region have apparently discovered.

Monday Must Reads

2006-07-03T10:58:00.000-04:00

Some pre-July 4th holiday business reading:

Ready for free phone calls? Internet phone calling companies such as Vonage are putting pressure on mainstay telecommunications companies like Verizon and AT&T, according to the NY Times. One of the results may be to make the calls free.
OK, so who knows? Maybe the days of journalists serving as electronic commentators may be in for a shakeout. Apparently the blogospher is experiencing some growing pains. (NY Times.)
Leave it to the gamblers. Apparently the new hot gambling topic is hurricanes. (Associated Press via the Houston Post.)
See, I knew I should have paid attention in math class. Here's a story about some entrepreneurs in Minnesota applying the laws of geometry to guitar-building. (Minn. Star-Tribune.)
Here's a cool little story in Business Week about the power of failure. I believe that the people who make it big in business are the ones who expect failure - but are quick to learn from it. Check out the slideshow -- there's a Xerox example! (Business Week.)
Money seemingly isn't all there is, at least not for this Microsoft billionaire. Read what he's going upon retirement from the software giant. (Fortune Magazine.)

Of Powerful Women

2006-06-27T10:46:00.000-04:00

One of the big benefits of journalism is the element of surprise. You can never be completely sure what the day will bring. I knew I was in for that kind of day Monday morning when I answered my cell phone and found myself talking to Martha Stew art. Yes, that Martha Stewart.
The call was previously scheduled by Kodak to discuss a partnership involving the company's EasyShare Gallery online photofinishing site. I didn't know when the day started that that partnership was with Martha Stewart Living Omnimedia and I certainly didn't expect to be talking with the domestic diva herself. Here's an Associated Press story on the subject. And here's a link to a press release on the subject on the Kodak site (with adjacent photo, downloaded from the Kodak site. That's Kodak CEO Antonio Perez with Stewart, who visited Rochester before signing the deal.)

What made the day unusual was that I was also assigned in the afternoon to attend a press conference called by U.S. Sen. Hillary Clinton of New York. Sen. Clinton was in town to participate in a conference on alternative energy and join in a call to organize resources to make Rochester a leader in the field. The conference was held by New Jobs New York, a non-profit economic development group.

Through my career I've interviewed any number of well-known individuals -- governors, quarterbacks, CEOs, actors, etc. -- but rarely have I had a day with two such encounters.

Military Matters and Rochester

2006-06-22T12:15:00.000-04:00

Three area companies are slated to receive money from the 2007 appropriations bill for the Department of Defense.

Pictometry International Inc. of Henrietta has been preliminarily approved to receive $1 million to build a state-of-the-art visual imaging tool for the U.S. Marine Corps. Pictometry markets a pioneering system for capturing and analyzing aeral images. The system is in use in most major metropolitan areas in the United States.
Harris RF Communications of Rochester is on tap to land $3 million to make high-tech, high-frequency radios for the U.S. Army Reserve. Harris RF is one of the region's economic success stories, having grown from scratch to employ more than 1,500 people here.
Icuiti Corp. of Brighton may get a $1.8 million check to design a microdisplay computer lens system for use in special and clandestine operations. The system will allow users to view information on a monitor small enough to be concealed in a pair of sunglasses. Microdisplays are extremely small, typically less than one inch in size, but provide high resolution images.

Announcement of the grants came from the office of U.S. Rep. Thomas Reynolds, R-Clarence, but the money still must be approved by the U.S. Senate and signed into law by President Bush.

All that Jazz

2006-06-21T11:02:00.000-04:00

So while some people are dreaming of spending $200 million for a downtown canal and $174 million for huge new theaters, the organizers of the Rochester International JazzFest are just getting the job done for the area by creating an event that grows in popularity. I would venture a guess that drawing 80,000 people downtown, from a range of states, is incredibly valuable for the economy. This is an asset not to be taken for granted, however, judging from this comment from founder John Nugent:

“High level creativity and in-depth artistry in music is what I live for," Nugent added. "Marc Iacona and I will continue working tirelessly for this community if the economics are in place to progress. And we look forward to being here as long as the support for our growth is in place.”

Nugent leaves himself no time to rest. He went from Rochester to Sweden to produce the Stockholm Jazz Festival from July 18-22.

Monday Morning Must-Reads

2006-06-19T11:15:00.000-04:00

Starting the rainy week with my list of interesting business stories to explore:

OK, is it just me, or does this transaction, announced today, seem to come straight from "Bizarro World" from Seinfeld? Nestle, responsible for -- well, getting at least some of us fat with its Kit Kat bars and other sweet treats -- is buying the Jenny Craig weight-loss chain. Seriously. For $600 million. (NY Times.) Here's a link to the press release.
Another reminder that while we have our winter weather, every area of the country has its unpleasant side. Homeowners and businesses in Florida, it seems, are getting socked with major increases in insurance due to the intensity of the last two hurrican seasons. (St. Petersburg, Fla. Times.)
Detroit may be in complete upheaval. But some foreign automakers continue to invest here. See this story about an area near Milwaukee that is courting Honda. (Milwaukee Journal-Sentinel.)
The future of the "free" Internet may be at stake in connection with legislation moving through Congress. It goes by a typically fancy name -- "net neutrality." But the Philadelphia Inquirer has done an admirable job of explaining it.
The world of computing as we know it is changing under our feet. No longer do we have to hit the Best Buys and Circuit Citys of the world to find the latest software -- it will come to use via the Web. Read two stories here and here.

Lastly -- it's always a risk to bring attention to matters such as these. But as a parent, I feel it important to shine some light here. The state's Consumer Protection Board is warning parents about the new video uploading service offered by Google. According to the CPB, the service is filled with explicit, violent or otherwise inappropriate videos. While these videos have always been available, Google is warehousing them in a single, easily-accessed, searchable site, the board believes. Google isn't the only one grappling with the issue, according to this story from CNET News via the NY Times.

Hurricane Season

2006-06-16T12:13:00.000-04:00

The flurry of interest in the start of hurricane season has a mostly-indirect Rochester technology link. The Space Systems division of ITT Industries Inc. has developed imagers, sounders and other instruments aboard various meteorological satellites. The Space Systems division is headquartered in Rochester but most of the meteorological work takes place in Fort Wayne, Ind. ITT is also developing what it describes as the most-capable American-built imager ever used on a NOAA weather satellite -- the GOES Advanced Baseline Imager.

Local Honors and Other News

2006-06-15T10:32:00.000-04:00

A grab bag of items on a sunny Thursday:

A primary player in Eastman Kodak's push into commercial digital printing has earned a prestigious recognition. Venkat Purushotham, general manager of digital printing in Kodak's graphic communications group, was named as one of the 50 outstanding Asian-Americans in business by the Asian American Business Development Center. Purushotham and other winners will be honored at an award ceremony on Friday at the New York Hilton and Towers. Sen. Hillary Rodham Clinton is giving the keynote. Purushotham previously headed NexPress Solutions LLC, the joint venture between Kodak and Heidelberger Druckmaschinen AG. Kodak bought out Heidelberg's share of the venture in 2004.
Every so often our friends at the New York Times discover there's more to New York than Manhattan. The latest installment is a story about the alarm over population declines in our region -- and issue the Rochester Business Alliance has been talking about all year. Here's a link.
The magic of the Wegmans Food Markets Inc. reputation continues. People flocked to the opening of its newest store -- this one, in Cherry Hill, N.J. Here's a story from the Courier Post newspaper.
I wrote Sunday about RIT Professor Robert Manning, who many people feel is the leading critic of the nation's financial services industry. I neglected in that article to mention his web site -- www.creditcardnation.com. If you're at all concerned about the state of our nation's finances, this is a good site to check out. Manning served as editorial adviser to "In Debt We Trust," a documentary based on his work, that debuts Friday at the Nantucket Film Festival. The trailer to the movie is available here. The film's web site is here.

Tuesday Tips

2006-06-13T11:11:00.000-04:00

A technical glitch prevented me from posting some interesting reading links yesterday. Which is fortunate, because it allows me to direct you to one of the more entertaining pieces of the day, about the phenomenon of Bob Barker, who is entering is 35th year with the Price is Right. Read the New York Times article here. Other notable business stories:

With more than 2,500 stores, Wal-Mart is obviously in the need of new horizons to conquer. It is apparently looking into more urban areas -- but may run headfirst into some municipal regulations. (Chicago Tribune.)
Rochester has an important auto industry heritage. So the events of the United Auto Workers convention, the first in four years, may be of interest. The union president says times are tough but there is reason for optimism. Here's a link to the text of his remarks. (Detroit Free Press.)
We're obviously not Pittsburgh, but the Steel City is showing that getting businesses to come back downtown is not impossible. (Pittsburgh Tribune-Review.)
Only in Hollywood can it be seen as disappointing when you generate $60 million over three days. I'm talking about the movie "Cars," the newest animated feature from the Pixar/Disney partnership. (L.A. Daily News.)
Companies around here trumpet when they land $2 million in venture capital. The company scored $36 million. (Philadelphia Inquirer.)

Interesting Job Posting

2006-06-12T11:39:00.000-04:00

Not that this blog is trying to compete with the Monster's of the world, but here's an interesting job posting that came into my mailbox today. It's for the executive director of the High Falls Film Festival:

High Falls Film Festival is looking for a new Executive Director, to fill the position Randi Minetor has held for the last 2 ½ years. Minetor is leaving to devote more time to her successful public relations business. The Festival is currently searching for a candidate whose primary duties and responsibilities will include fundraising and development, community presence, and overall organizational administrative responsibility. Candidates must have excellent oral and written communication skills in every area -- interpersonal, marketing, public relations, public speaking -- and the ability to work creatively and collaboratively. Ability and experience working with artistic organizations a plus. The festival is asking that a cover letter, resume, examples of fundraising and marketing/public relations successes, and contact information of three professional references be sent via mail only (no emails or phone calls) by June 30 to: Search Committee, High Falls Film Festival, 45 East Ave., Suite 400, Rochester, NY 14604.
The High Falls Film Festival, Nov. 8-13, now in its sixth year, is the premiere east coast festival spotlighting women in film and video. The annual international festival features stars such as Angela Bassett, Jane Alexander and Candice Bergen, filmmakers from around the world and over 75 feature films, documentaries, shorts, children's programs, panels, workshops, events, parties and more. For more information about the festival, visit http://www.highfallsfilmfestival.com/

New Companies

2006-06-09T17:23:00.000-04:00

Next week brings another edition of Entrepreneurs and Angels, an event sponsored by Digital Rochester, a network of the region's tech-arazzi. Fledgling companies go to Entepreneurs and Angels to introduce themselves to potential investors in formal presentations.

There are four presenters on tap:

Campus Current: An online company launching later this year that promises to create communities on college campuses using web technology. The idea is to connect people with similar interests.
Lighthouse Biosciences: a UR-connected start-up that is working on cutting-edge technology for medical diagnostic instruments;
OptionC: A Web-based company that offers online learning and student management systems for Catholic schools in the United States;
Solar Sentry: Another of the many alternative-energy companies developing in our area. Solar Sentry has created a monitoring system for solar panels in large scale solar farms.

Presenters get 10 minutes each to talk about their companies, followed by networking. If you're interested in attending, go to www.digitalrochester.com.

Fuji Promoting Kodak

2006-06-08T11:41:00.000-04:00

I am sure there are many examples like this in the connected world, but here's a funny little tale about how digital technology is taking the wind out of the once-fierce competition between Kodak and Fuji.

Fuji operates a web site designed to make it easy for consumers to find outlets for printing images from their digital cameras and camera cellphones. The site is www.digitalcameradeveloping.com.

Anyway, the site is driven by zip codes. So, for example, choose the option "order pictures online and pick up the same day" and then click on the "Start Now" oval.

Enter a Rochester-area zip code and the site will return a list of printing outlets, including this one:

EASTMAN KODAK # 1
1600 LEXINGTON AVE
ROCHESTER, NY 14652

In case you're wondering, that address is in the heart of Kodak Park.

This piece of irony is provided by Jerry O'Neill, a Rochester-based freelance writer specializing in the photo industry. He surmises that opposition research may be the explanation -- in other words, Kodak has purchased a Fuji photoprocessing machine for the sake of reverse engineering. But he quickly adds: "Who Knows?"

UR Professor Goes Big Time

2006-06-07T10:57:00.000-04:00

He's not talking to us about it, but UR professor Charles Plosser has landed a prestigious appointment that will help shape the nation's monetary policy. Plosser was named as president of the Federal Reserve Bank of Philadelphia, a spot that gives him a seat on the Federal Open Market Committee. That committee sets interest rates, which in turn control the availability of money. Here's a story about the appointment from Reuters and a lengthier piece from the Philadelphia Inquirer. Want to learn more about the Federal Reserve and how it works? Follow this link.

Monday Must Reads

2006-06-05T10:27:00.000-04:00

Starting the week with some interesting business stories from the last few days:

I've heard of hotels being named after founding families. I'm thinking this may be the first time a hotel has been named after a magazine. Where else would this happen but Las Vegas? (NY Times.)
At first glance, it's a story about pop culture. But Jim Cramer's crazy program on CNBC is more than that. He can move stocks, as this story shows. (Associated Press via the Houston Chronicle.)
The maker of Heinz ketchup is facing some challenge in the financial marketplace. A well-known investor is angling for changes. (Pittsburgh Post-Gazette.)
Here is another example that again proves the old adage - technology for technology's sake never works. It's a tale about Microsoft Corp.'s Internet wristwatch, which apparently isn't working so well. (Business Week.)
Think you're safe from computer viruses using an Apple computer? A Seattle Times columnist thinks not. (Seattle Times.)
That robotic vacuum cleaner? Apparently, it works! At least according to this columnist for the San Jose Mercury News.

Tuesday Tips

2006-05-30T11:08:00.000-04:00

Coming off the long Memorial Day weekend, here are links to some of the more interesting business stories making news:

A Wall Street executive is getting the government's most important economic job: Secretary of the Treasury. (NY Times.)
Here's an interesting look at the vagaries of the stock market. Apparently earnings analysis may not be the truly determining factor in the price of equities. (NY Times.)
As if drivers didn't have enough to worry about with rising gas prices. Now it's getting more expensive to visit Canada. (St. Petersburg Times of Florida.)
A tale of globalization. It turns out that tax breaks aren't a U.S.-only phenomenon. (The Seattle Times.)
One of the two senators whose names are on the landmark corporate reform bill from a couple of years ago is retiring. Paul Sarbanes talks about his legacy in this article. (The Sun of Baltimore.)
An update on that overhyped invention from a few years ago -- the one that was supposed to change the world and make us all forget our cars. The Segway may be going public. (The Oregonian of Portland.)

Xerox Annual Meeting

2006-05-24T11:50:00.000-04:00

In business, numbers tell the story -- most of the time. Occasionally, though, words are far more important. And that may have been case today at Xerox Corp.'s annual shareholder meeting.

Toward the end of the session, a prominent member of the audience stood to ask a question of CEO Anne Mulcahy. The person then took a moment to hand out some high praise.

"I am proud to be part of the Xerox company and a shareholder," the participant said. "There was a long period where I was not. Once again I am proud. It’s a thrill for me to be here."

The speaker? J. Christine Wilson, daughter of Xerox legend Joseph C. Wilson and a prominent local philanthropist.

Corning's Bounce

2006-05-23T11:17:00.000-04:00

Focus around these parts is rightfully on the transformation at Eastman Kodak Co. But another major company in the region is having its own roller-coaster ride in adapting to marketplace changes.

Corning Inc. shares declined 5 percent Monday after the company reduced its forecast for demand for glass for liquid-crystal display screens. But that's after the shares almost doubled to $30 a share over the last 12 months. Analysts said the decline in demand for LCD glass was likely a temporary phenomenon.

The current stock price of about $23 is still a long way from the telecommunications bust, when Corning fell to just over $1 a share. Earnings growth has surged and even with yesterday's glass forecast, the company continues to say it will hit financial targets for 2006.

The company has a long history of reinvention. And perhaps, just perhaps, we're seeing the latest entry in that heritage.

Monday Must Reads

2006-05-22T14:37:00.000-04:00

Starting the week again with some business stories worth checking out:

Former Hewlett-Packard CEO Carly Fiorina is starting to make the rounds again, more than a year after she was dismissed from the company. No wonder: She's got a memoir to sell. She gave a speech to book publishers recently in which she invoked the name of Eastman Kodak. (Business Week.)
One of the subjects that seems to stir up readers these days is the notion that Ethanol may be a solution to our gas price woes. Upstate New York is attracting serious investors to brew the fuel here. Here's a look at some common conceptions the corn-derived fuel. (Business Week.)
Speaking of environmental matters, former President Bill Clinton weighed in over the weekend on how one particular industry could help -- the shopping center industry. (Denver Post.)
Not that the federal government has distinguished itself of late with its ability to predict, but the National Oceanic and Atmospheric Administration is out with its forecast for the summer hurricane season. (Dallas Morning News.)
It's not just Buffalo that is grappling with issues surrounding the expansion of gambling. The addition of slots in Pennsylvania apparently has casino operators in Atlantic City all geared up. (Philadelphia Inquirer.)

Grab bag of items

2006-05-18T10:46:00.000-04:00

Some observations on items of local business interest:

The decision by RIT President Albert Simone to retire next year provides a challenge for the school, of course. But it also has implications for rebuilding upstate's economy. Simone has been a prominent proponent for university-led economic redevelopment. For instance, he helped launch RIT's a high-technology business incubator. Also under his watch, RIT launched an aggressive push to support the region's growing competence in biotechnology and he's been a great booster of entrepreneurship. Off campus, He's been active in the Rump Group (now merged with the Rochester Business Alliance.)
Several of my bosses and I had our annual opportunity to interview Eastman Kodak Co.'s chairman and CEO recently. (A full transcript will be in Sunday's Democrat and Chronicle, with audio excerpts available online.) Antonio Perez spoke with us on-the-record for about 45 minutes and discussed the company's progress in making the switch from film to digital technology. He also explained at length the decision to seek alternatives for the company's health group. One area he touched on as an opportunity is in the news. Perez believes that digital imaging in the future will expand far beyond digital cameras and cell phones. For instance, there are crude imaging sensors in cars and other medical devices. To pursue the opportunity, Kodak is working with IBM and other companies to commercialize so-called CMOS image sensors. CMOS sensors are less expensive to produce and more powerful because they can include many of a camera's functions on a single chip. Anyway, Kodak's not alone in pursuing this, as this article in Business Week suggests.
It's not a Rochester company, but LEGO Group has chosen this Buffalo firm to help make the new LEGO PC Games online gaming service available to more than 10 million broadband homes. The company, Synacor is a provider of premium content and services on the Internet. On this project, Synacor will work with Freeloader.com, a game site that this week lists "Driving School" as its most popular download.

Monday morning reads

2006-05-15T11:01:00.000-04:00

Getting back on track after a very busy couple of weeks with some must-reading for a Monday morning:

In the area of breaking news: Bausch & Lomb this morning is making a decision that appears to have some finality regarding a contact lens cleaning solution. The solution was used by many contact lens wearers treated for a rare eye infection. B&L is "permanently" removing the solution from store shelves worldwide.
Given the amount of press it gets and stock price it commands, one would think that Google is relatively invincible in the Internet search market. But innovators keep coming, as this article shows. Interesting concept. (AP via the Detroit News.)
With technology comes complications. Companies are now looking to your cellphone as a way of collecting information about your habits. (NY Times.)
Speaking of Google, the company is promising to be more open about what happens inside its storied headquarters. Check out this story. (Fortune Magazine.)
Apparently not even $70 a barrel for oil can crack our addiction to driving. This story says we're not driving any less even as gas soars to record prices. (Business Week.)
The story behind the story of the rebranding of Volkswagen involves the "craziest" ad guys in America, according to Business Week.

Monday Must Reads

2006-05-08T10:23:00.000-04:00

More stories of interest in business to catch-up on this Monday morning:

File this in the category of provocative business symbolism: Apparently Nokia wants to stir up Motorola a little bit with a store on Motorola's turf. (Chicago Sun-Times.)
Once upon a time Rochester was the flower city. We might have surrendered that title at least in part to Miami, as this story shows. (Miami Herald.)
The next frontier for the iPod? Maybe, the cell phone. The Chicago Tribune explains, in a story published in the Denver Post.
Another business hardball story. Who would have thought that C-Span would get fussy over rebroadcast of some of its programming? (NY Times.)

Monday Must Reads

2006-05-01T10:52:00.000-04:00

After a week off, we get back to our Monday tradition of linking to some of the more interesting business-oriented stories published this weekend.

The more things change, the more they stay the same, as the folks at Google are finding out. The hottest name in technology has issues with Microsoft's control of the browser market. I'm having a hard time mustering up sympathy for Google. (NY Times.)
The Times also has an interesting backstory about the creation of American Idol. Seems the show almost didn't make it to air.
Local angle to a national story. Eastman Kodak is attempting to crack the vast market for information technology in health care. Cerner Corp., one of its main competitors, today announced an alliance with one of the nation's leading health care centers. (Kansas City Star.)
A Silicon Valley company is proposing a very high-tech way of finding the lowest gas price. (San Jose Mercury News.)
The immigration debate doesn't seem to be abating anytime soon. Here's a story that tries to separate fact from fiction in the economics of the argument. (The Washington Times.)

Cool Kodak Technology

2006-04-26T16:33:00.000-04:00

I am just back from New York, where Kodak had a little gathering of reporters and analysts to talk about some futuristic technology straight out of movies such as "Minority Report."

Kodak, for instance, is playing around with software that will recognize faces. The application would be able, theoretically, to search all the pictures on your hard drive and pull out every image of you son or daughter, aunt or uncle, mom or dad.

That's all well and good, but what then? Kodak's got software that will automatically organize those images into albums. So, for instance, you could end up this process with an album that tells the story of your family's year in pictures. Or more.

In the future there may be the capacity to analyze the pictures for certain scenes -- grouping indoor and outdoor shots together, for example, or even spotting Christmas tree shots.

This is more than vaporware. Kodak's now marketing an industrial scanner that will allow you to bring your shoeboxes of images into a local retailer -- it's being tested at Wegmans right now -- and walk out with a Picture CD.

But not any old CD. The software is able to look for clues in the images and group them by decade, based on the type of photo technology that was prevalent in that time frame. For instance, there was a brief period when the photo industry liked to print pictures with rounded corners. With all that information in hand, it becomes relatively easy to direct the software to route the images to the 1970s file.

Mitch Goldstone, undoubtedly the nation's most outspoken photo retailer, has had this scanning service in place for about a year. Though he's in California, he's willing to scan images long distance (if you're confident sending them!) Go to this site for more details.

Here's a story in Wired Magazine, the domain of tech geeks, about the event.

What I think is interesting about the theme of Tuesday's event is Kodak's analogy to digital music. Just like the Apple iPod and other MP3 devices unleashed music from their CD prisons, so, too, is photography on the cusp of a liberating revolution, where pictures would be more than stray bits and bytes on a hard drive. They'd be freed to be turned into lasting memories -- albums, online slide shows, picture instant messages and more.

The open question is whether Kodak can make money from the new technologies. The reality is, no one knows for sure until the technologies get into the marketplace. We shall see.

Getting a JOLT

2006-04-19T16:06:00.000-04:00

I wrote Sunday about Jolt, the Pittsford-based beverage that broke the rules when it was introduced 20 years ago with twice the caffeine of Coke and Pepsi. Jolt really has a remarkable record that I was reminded of when I interviewed founder C.J. Rapp. Not only did the drink become a satirical tool for late night talk-show host David Letterman, but was also featured on a wide-range of Hollywood blockbusters, such as Wayne's World and Jurassic Park. It was also parodied as "Volt" on the MTV classic Beavis and Butthead.

Jolt is working to capitalize on the phenomenon triggered by Red Bull, the quirky Austrian company that has a single beverage now sold in more than 130 countries. The new resealable aluminum can, which holds 23.5 ounces, is getting a lot of traction. Sales of Jolt have doubled over the past year, according to Rapp.

The bottle has a local connection. It was a project spearheaded by Mason Selkowitz Marketing of Penfield.

Reading Business

2006-04-17T11:36:00.000-04:00

My Monday morning must-reads for April 17:

In the things that make you go "huh?" department: New York's governor and legislative leaders apparently sign a confidentiality agreement when they meet to divide a pot of $200 million in tax money dedicated to local projects. This is according to an investigative story in the Albany Times-Union. The key words there are "tax money," otherwise known as "public money."
This story about China is probably more political than economic. But China is undeniably the most significant economic force of our time, and now its leader is coming to visit the United States. (NY Times.)
In any talk of economic development in Rochester, our weather almost always comes up in some form. But there are very few locations with the perfect climate. Here's an example: Businesses in Dallas today are dealing with some unusual weather of their own. In April. (Dallas Morning News.)
Another good business idea you and I didn't think of. A Minneapolis area man is marketing his collection of rock-n-roll memorabilia. (Star-Tribune of Minneapolis.)
The information age is scuttling yet another aspect of surprise in daily life. This time it's restaurant reviews. (Associated Press via the Louisville Courier-Journal.)
Business Week has rated the world's most innovative companies. Apple is No. 1, Google is No. 2, but neither Kodak nor Xerox are on the list -- not even in the top 100.

Monroe County's budget

2006-04-14T16:45:00.000-04:00

Maggie Brooks has announced her plan to reduce Monroe County's deficit, which is expected to top $100 million over the next two years. It's a complex proposal, headlined by a potential boost in the sales tax from 8 percent to 8.75 percent, which county officials say would cost an average of about $150 a year.

Opponents are lining up. One of the main complaints comes from business, which fears that the increase would make the region even more uncompetitive.

This could very well be true, but in reading Brooks' analysis, it is clear that inaction is not an option. To close the deficit through cuts, she claims, would require very severe cutbacks, such as closing the Seneca Park Zoo. I would submit that cuts like these would far more damage to our ability to market this community.

That leaves two choices: Increase the sales tax, or increase the property tax. Brooks has made her choice. Here's a look at the Democratic proposal (written by a former colleague.)

Let the debate unfold.

Senator Pothole

2006-04-13T17:39:00.000-04:00

They used to call Al D'Amato that when he represented New York in the U.S. Senate. It wasn't meant to be an insult -- just a comment on D'Amato's embrace of the notion that all politics is local, even on the national scene.

While D'Amato is long gone from the Senate, the guy who beat him obviously has the same philosophy, as Sen. Charles Schumer proved again today.

Schumer appeared at the Greater Rochester International Airport today to call on regulators to drop a proposal that could free airlines from 20-year-old advertising restrictions.

Schumer said that if adopted, airlines would potentially be free to advertise fares separately from surcharges, taxes and fees -- meaning that consumers could be in for a surprise when they hit the checkout button. (The Department of Transportation could ultimately decide to do nothing and keep current policy in place.)

Even the airlines are a bit split. The bigger carriers support the changes while the smaller airlines, such as Jet Blue Airways, want the rule to stay in place.

Schumer says he'll introduce legislation if the changes are adopted.

I asked Sen. Schumer today if the separation of taxes and fees was any different than charging sales tax at the cash register. His answer: Adding a 7 percent sales tax is a little different from extra charges that could be as much as the original ticket.

Monday Morning Must-Reads

2006-04-10T10:47:00.000-04:00

Starting the week with a business reading list:

Want to make some serious dough? Study up on stock options, deferred compensation and other issues and become an executive compensation consultant. According to this story, some consultants draw salaries of $950 an hour. For some other interesting data, follow this link to find out how much you're not making in comparison to top executives. The head of CSX had a pretty good year -- compensation up 958 percent. (NY Times.)
We might believe that we're subjected to a lot of invasive security measures today. This story about a convention in Las Vegas indicates we're just getting started. (Las Vegas Review-Journal.)
Monroe County still eyes biotechnology as an important economic development opportunity. But so do many other communities, as this story shows. (The Daily Camera of Boulder, Colo.)
IKEA, the Swedish furniture store, has a cult following. Some have a fantasy about the chain coming here. But IKEA has apparently set its sights on a far bigger market. (Associated Press, via the Billings, Mont. Gazette.)
The push to find alternatives to oil is ongoing. But some places are actually looking backwards, rather than at new technology. (Associated Press, via the Cincinnati Enquirer.)
Hurricane Katrina gripped the nation, but the real story of recovering is playing out now. This story tells about some homeowners' struggles with insurance companies. (New Orleans Times-Picayune.)

The Singing Economist

2006-04-07T15:10:00.000-04:00

Economics is commonly derided as the "dismal science," but Kent Gardner of the Center for Governmental Research is doing his part to help his profession shed that moniker.

At a lunchtime address this week to a joint meeting of the Rochester Women's Network and the local chapter of the National Association of Women Business Owners, Gardner broke into song.

Yes, song. One moment, he was talking about upstate New York's economic woes and their intersection with state government, and the next, he was satirically singing (a capella, of course) about Albany.

For example, to the tune of "Camelot," from the famous musical Camelot, he crooned this verse:

"Once elected I need never have to worry.
The district's boundaries make each win a breeze.
In short I must decree, That I've a life carefree
I'm happ'ly-ever-aftering---
here in Albany."

And then, a few moments later, to the tune of "Maria" from West Side Story, Gardner sang this verse:

"The most beautiful sound I ever heard--the budget. The budget, the budget, the budget!
All the deals of the year in a single word--the budget. The budget, the budget, the budget!
They've offered to sell us the budget.
So a campaign needs a check! I know pays off handsomely!
The budget--I can't wait to spend NY's budget!"

Kent told me after the meeting that he briefly was a music minor in college, which explains his fair attempts to jazz up a subject that some people find...well...dismal!

Voice from the Past

2006-04-04T11:28:00.000-04:00

He hasn't been a Rochesterian for almost seven years now, but George Fisher, former chairman and CEO of Kodak, is back in the news.

He's the lead independent director at General Motors Corp., which is perhaps the most troubled of all the auto companies. Yesterday he issued a vote of confidence on behalf of the board for that company's chief exec, Rick Wagoner. Read the statement here and stories about the subject from the Detroit Free Press and the Detroit News.

Interestingly enough, the Free Press story lists Fisher as a senior adviser to Kohlberg Kravis Roberts & Co., the private equity firm made famous in the takeover struggle involving RJR Nabisco in the 1980s. That saga was chronicled in the book, Barbarians at the Gate, later made into a movie.

Fortune writes about KKR and mentions Fisher here, as does a newspaper published by the Harvard Business School here.

Here's a little dot to connect, then: Yesterday, an investor group led by affiliates of KKR bought a majority stake in GMAC, GM's financing arm.

Reading List

2006-04-03T10:55:00.000-04:00

Time for some Monday morning must-reads:

A big shakeup at the top of this year's Fortune 500 -- though probably not surprising, given the year we've had at the gas pump. The new No. 1 is Exxon Mobil, which last year brought in almost $340 billion. That's the equivalent of $1,078 a second. In terms of local companies, Xerox registers as the 142nd largest company; Kodak checks in at 155th; Corning's at No. 455. It's a breakthrough year for Constellation Brands, which makes the list for the first time at No. 487. Further down, you'll find Paychex at No. 991. Interesting non-local detail: Yahoo makes the list for the first time. Here's a link to the Fortune 500 section.
It's sort of hard to believe that a country of more than 2 billion people could have labor shortages, but that's apparently what's happening in China, according to this report . The interesting aspect here is that labor shortages tend to drive up wages, and higher wages would make the cost equation of moving jobs from the United States to China a little more challenging. (NY Times.)
Patricia Russo worked for Eastman Kodak Co. a few years ago just long enough to have a cup of coffee. Then she left for Lucent Technologies. Now, through a merger with Alcatel, she's moving to Paris. Read about it here. (Newark, N.J. Star Ledger.)
General Motors may be taking the GM out of GMAC, the auto company's financing arm. GM is selling its majority stake as the automaker works to regain its footing. (Detroit Free Press.)
Designing products is no longer dominated by manufacturing engineers. Today, cultural anthopologists typically get in on the act. Eastman Kodak's been doing this for years, as has Xerox Corp., but now other companies are catching on. (San Diego Union Tribune.)
I confess that I have wondered why people would want to watch television shows or movies on small cell phone or PDA screens. Perhaps it's not a trend that's meant for the demographic I represent. Here's how some people down south are viewing the new capabilities. (St. Petersburg, Fla. Times.)

Another Grab Bag

2006-03-30T14:03:00.000-05:00

Some more interesting items crossing my line of sight on a sunny Thursday:

Colleague David Tyler and I on Sunday chronicled the growing number of proposals for ethanol and biodiesel factories in upstate New York. (At last count, seven, with an eighth under discussion.) It would appear that the investors in these plants are on top of things. A new report suggests that the country is soon facing an ethanol shortage. Read about it here in USA Today, in Business Week, and the Houston Chronicle. The bad news is that the ethanol shortage could drive up gas prices in the near term. Here is a link to testimony by the head of the Renewable Fuels Association. For more on ethanol, visit the Energy Information Association page here.
You know you've spent a lot when your total debt expands to 14 digits -- in other words, $10,000,000,000,000, or $10 trillion. That's the situation for the U.S. government, and it's causing some unintended consequences in New York City. My question: Can't he just expand the board?
Lastly, here's a good time-waster, one that'll inspire a few laughs.

A Grab Bag

2006-03-29T11:25:00.000-05:00

Just some stray thoughts from a thinking mind:

Polling sure has come a long way from the famed Gallup presidential polls. Harris Interactive of Rochester took time out from weightier subjects such as Iraq to determine the nation's favorite college basketball team. The winner, for the fourth year in a row, is Duke. Good sign for the region: Syracuse comes in as the sixth favorite after years of not being on the list.
Speaking of having fun, the folks at Pictometry International Corp. must love getting up in the morning. The company's digital imagery is featured in the recently released movie "The Inside Man," starring Denzel Washington. The movie was directed by Spike Lee. Pictometry's Brian Jackson got to spend time on the set helping the movie apply the imagery. Here's a photo of Brian in the movie's "control room:"
The Center for Governmental Research is out with a provocative new report on Albany's use of "member items" -- money provided to legislators to gain goodwill back in their home communities. According to CGR, founded by George Eastman, there are no defined guidelines for choosing which projects get money and very little oversight. There is also an issue in terms of which regions get the largest amounts -- with the Albany region reaping the greatest windfall. Read the report here.

Good Reads

2006-03-27T11:15:00.000-05:00

My weekly Monday Morning Must-reads:

All right, it's not really about business, but who can resist the story of the little engine that could? Talking, of course, about George Mason University and its participation in the Final Four of the NCAA Division 1 basketball tournament. It's an epic run, a feel-good story and, depending on how it all turns out, a future Hollywood movie. Read some regional coverage from around the campus here, here, and here.
The New York Times takes a pretty good run at explaining the delay in the new Windows operating system. Those of us who still use Windows '98 are relieved.
It's a big day at the Federal Reserve, providing Alan Greenspan's replacement his first chance to raise or lower interest rates. (NY Times.)
The high-end department store chain Nordstrom, which has an extremely loyal following, is edging closer to our region. Pittsburgh shoppers are getting a store. (Pittsburgh Post-Gazette.)
Not sure what this young man wanted to prove, but here's an intriguing way to spend your spring break. Drake University student spent 41 hours straight inside a Wal-Mart. (Des Moines Register.)
Boosters of a casino in Rochester: Apparently only Pennsylvania is on the radar screens of the nation's gambling companies, according to this report. (Las Vegas Review-Journal.)
Many municipalities in our region are considering or have taken steps to build wireless Internet networks for their citizens. Here's a story about a community in Colorado that has several years of experience at it. (Rocky Mountain News, Denver.)

The Buffalo-Rochester Fight

2006-03-24T18:22:00.000-05:00

Some will undoubtedly say that State Sen. Joseph Robach was politicking this week when he quarreled with his colleagues over state aid for Rochester. (Forgive the self-serving link.) And, undoubtedly, politics were at play.

You can say this, however: At least here was a member of our state delegation showing passion about helping his hometown. And who can argue with the logic? Buffalo and Rochester are similar cities in many ways, yet Buffalo generates one-third more in per-capita state aid.

The notion that you have to steal from Buffalo to give to Rochester seems goofy. In the scope of a $108 billion state budget, surely there's a way to find a $20 million to $25 million or more. Just for context, that amount is 0.022% of the state's projected revenues, or two one-hundredths of a percent. Let's be even more conservative: The $25 million is just six-tenths of a percent of the projected year-end surplus.

Yes, I know there are demands from all over New York for more money. But across the 343-page fiscal plan, there's got to be some way to find wasteful or unproductive spending and redirect it toward one of the state's largest cities.

Another Laptop Privacy Threat

2006-03-23T14:30:00.000-05:00

Not to sound insensitive, but what is it with people carrying around laptop computers with highly sensitive personal information? Last summer Eastman Kodak Co. disclosed that a laptop belonging to a human resources consultant had been stolen; the laptop contained personal information for about 5,800 former Kodak workers.

Now fast forward a few months, as history repeats itself: Last month someone stole a laptop belonging to Fidelity Investments that contains information on 196,000 retirement accounts. The owners of the accounts are participants in Hewlett-Packard Corp.'s pension and 401(k) plans. Read the story here.

Hmmm, come to think of it there are few people running Kodak who may be wondering if they're among the 196,000....for one, CEO and Chairman Antonio Perez, who worked for HP for 25 years.

Talking Business on Campus

2006-03-22T15:49:00.000-05:00

Rochester Institute of Technology has two interesting events coming up for people who have their minds on business.

Tomorrow, the school's Center for Integrated Manufacturing Studies is conducting a day-long seminar examining the state of manufacturing in our region and country. Members of the U.S. departments of Commerce and Energy and the National Academies of Science and Engineering will speak, along with representatives of local businesses. The seminar is part of CIMS' ongoing study designed to help area manufacturers become more competitive. It is by invitation only.

Then, on Friday, one of the country's pre-eminent experts in intellectual property and cyber-law will be speaking. Lawrence Lessig, professor of law at Stanford University, will talk on his favorite subjects from 9 to 11 a.m. in Ingle Auditorium in the Student Alumni Union. Lessig is one of the nation's pre-eminent scholars in the intersection of law with the Internet. The speech is free and open to the public.

Monday Morning Reading

2006-03-20T11:23:00.000-05:00

If it's Monday - and it sure feels like it - it must be time for my Monday Morning Must Reads:

Online retailer Amazon.com sells books and music and all sorts of stuff. Sounds controversy-proof, right? Think again. The company is getting flak related to the abortion debate. (NY Times.)
Oh great. As if the United States doesn't have enough question marks in terms of productivity. Now comes a technology that will come in handy if your boss approaches while you're watching live feeds of the NCAA basketball tournament. (NY Times.)
The life-changing world of information technology arguably began here. Now Stanford University is turning 40 -- and is celebrating. (S.F. Chronicle.)
Think the Fast Ferry and Renaissance Square projects are pricey? Not even close. Check out this $625 million project in downtown Boston. (Boston Globe.)
Carl Icahn got Kodak all lathered up a couple of years ago, then faded away. The activist investor, though, is still lingering around the digital imaging arena. He's making noises about potentially opposing an acquisition involving Lexar Media, which manufactures and markets digital memory cards. Lexar and Kodak have a marketing partnership. (BizJournals.com)
One of the more interesting business stories today involves Overstock.com, an online retailer. The company and its CEO is at the heart of a dispute involving short sellers, journalists and others. (San Diego Union-Tribune.)

Can you say 'geek?'

2006-03-16T10:59:00.000-05:00

This has nothing really to do with business, or with greater Rochester, but I just thought I'd push this story along. This high school student in Virginia memorized and correctly recited something like more than 8,000 digits of pi. While admittedly quite a feat, I'm not sure if this will do anything to help him get dates.

Mullen Leaves 'Em Laughing

2006-03-15T10:38:00.000-05:00

Dennis Mullen, the former CEO of Bird's Eye Foods and now the head of Greater Rochester Enterprise, showed he might have a second career in the making as a stand-up comedian during his speech Wednesday to the Rochester Rotary Club. A few of his one-liners:

"If my parents were here, my other would be proud. But my father would be saying, 'who are they talking about?'" - Commenting on his introduction from Sandy Parker, CEO of the Rochester Business Alliance.
"I've been happily married for 24 years. But I've been married for 29 years."
"The only reason you're here is you didn't get an invitation to see the real president."

He wasn't the only one making the crowd laugh. Commercial realtor Bob Moore shared some great news about his life: That his daughter had gotten engaged during a recent vacation. "We had the privilege of having our daughter come to Florida with her boyfriend," Moore told Rotarians, "and leave with her fiancee!"

After the applause died down, Moore felt the need to clarify: "It was the same person!" he shouted.

Good Stuff to Read

2006-03-13T11:06:00.000-05:00

My Monday morning reading list for March 13:

The future of the newspaper industry is in the headlines across the county today as Knight-Ridder agrees to sell itself to McClatchy Co., whose biggest publication is the Star-Tribune of Minneapolis. To some it's a sign that printed newspapers are a dying breed. Any opinions out there? (NY Times.)
The author of one of the world's top-selling novels in recent years is on the witness stand this morning, defending himself against accusations of copyright infringement. (NY Times.)
Another fairly fascinating story about competitive strategy, involving the ever-popular iPod. Apparently Apple is dominating the market through an exclusive piece of software -- although I think history has shown that exclusivity in software can be an oxymoron. (Fortune.)
March Madness is here, and here is an interesting business angle on basketball hoopla. It's also a piece that reflects on corporate strategy. (Forbes Magazine)
A savior for Microsoft? The one-year anniversary of Microsoft's hiring of a computer industry legend brings this update. (Boston Globe.)
While Detroit retrenches, the Japanese automakers continue to thrive. Toyota Motor Corp. today announced plans to build 100,000 Camry's in Lafayette, Ind.

Economic Announcement Update

2006-03-10T16:59:00.000-05:00

The decision by Barilla of America Inc. to build a manufacturing plant in Livingston County gives credence to greater Rochester as a center for food and beverage manufacturing. (Here's a story about the deal from the Des Moines Register.) Greater Rochester Enterprise added food and beverage as an economic development focus this year.

According to research by my colleague, David Tyler, the following products are made or administered here in at least some quantity:

Franceso Rinaldi tomato sauce (Fairport.)
Mott's Applesauce (Wayne County.)
Cool Whip (Avon.)
Bird's Eye frozen vegetables (various locations.)
Heluva Good cheese. (Sodus.)
J.W. Dundee Honey Brown beer (Rochester.)

The Region's Economy Wins One

2006-03-10T09:54:00.000-05:00

This story is developing this morning, but the region's efforts to get its act together economically has landed a big, big win. Barilla America Inc., the U.S. subsidiary of the Italian pasta giant -- yes, that Barilla -- will build and operate a manufacturing factory in Avon. At the same time, a partner will develop a related warehouse and distribution center for Barilla products.
The 300,000 square-foot-facility will be located on a 49-acre site north of Route 5 & 20 in the village of Avon. Barilla is a 129-year-old company based in Parma, Italy. Its products are widely distributed in area grocery stores. "We sought a location that felt like a home away from home," said Barilla America President Kirk Trofholz. In this morning's news release, officials say Barilla is joining a "food corridor" that includes companies such as Kraft, ADM, Sweeteners Plus and Frank Perdue. It's also part of the region's growing focus on the food and beverage industry for potential growth. Here's a link to the announcement.

Business Stories to Scope

2006-03-06T13:03:00.000-05:00

My Monday morning business reading list for March 6:

So much for landmark court decisions. More than two decades ago, a judge ruled at AT&T was too large and needed to be broken up into pieces -- seven individual companies, to be precise. With AT&T's proposal to buy BellSouth, that number has been reduced to three: AT&T, Verizon and Qwest. Proves again that what comes around, goes around in business. (New York Times.)
Don't ask me to explain the Enron mess in layman's terms, but the trial of its former CEOs will get interesting this week with the testimony of its former chief financial officer. (Houston Chronicle.)
In the name of progress: A New Hampshire town is struggling with what to do now that it has learned that a 1799 bridge is in the way of a high school construction project. (Boston Globe.)
Another reminder of a selling point of living in Rochester: More often than not, you can find a place to park at the airport. Not always true in Chicago. (Chicago Tribune.)
Games of the rich and famous. Paul Allen, co-founder of Microsoft, is having trouble with a prominent set of business ventures in Portland. (Seattle Times.)
Here's a job that's a no-win: Replacing Warren Buffett. Apparently his successor has been chosen. (L.A. Times.)

Spitzer and Economic Development

2006-03-01T17:14:00.000-05:00

A Rochester audience will be among the first to hear Eliot Spitzer's vision for redeveloping the state's economy. The Democratic candidate for governor will be speaking at the Rochester Institute of Technology on Thursday. According to his campaign office, it will be the first in a series of speeches on economic development policy. The focus: Innovation and growing strategic industries. Speech is slated for 10:30 a.m. Call (212) 529-2006 for information.

Kodak Blings at the Academy

2006-03-01T16:48:00.000-05:00

I suppose I am just playing into the company's dastardly plan to get attention. But as this is an idea that probably was conceived, planned and executed in Rochester, it's too good to pass up.

Eastman Kodak is participating in a high-level marketing stunt in connection with the 78th Academy Awards on Sunday in Hollywood. Each nominee for best actress will receive a special Kodak EasyShare V570 camera, the world's first camera with two lenses. The rub: Each camera will be personalized with the actress's initials in 75 "brilliant-cut diamonds" provided by partner Kwiat Diamonds. Estimated value: $20,000 apiece. No word if that includes the cost of the camera.

The deal is getting attention from one of the top technology web sites, Engadget. Check out some of the vitriolic comments at the end.

Business Stories to Scope

2006-02-27T12:52:00.000-05:00

My Monday morning reading list:

The new trend in cybercrime: Logging your keystrokes. The New York Times dissects it.
In a tale of the cutthroat competition in business, Samsung hired one of the original designers of software for the iPod to create a competing device. (NY Times)
Wal-Mart Stores has signed up a high-powered spokesman to fight back against critics: Andrew Young, former UN Ambassador and mayor of Atlanta. (Washington Post)
The search engine wars remain hot. Ask.com has "fired" Jeeves, the cartoon butler who has served as it mascot for ten years. (Chicago Tribune)
Notice an increase in graphics in your local weather report? There's a reason, according to the Boston Globe.
A Seattle-area company is playing a role in a program that could streamline airport check-ins. (Seattle Times.)
Carl Icahn, who rattled a few cages at Kodak a few years ago, is fresh off a battle with Time Warner. He's now mobilizing against a Korean telecommunication company. Business Week asks: What does it mean?
The Most Admired Company in America, chosen and ranked by Fortune, is a predictable one. It's General Electric. The list includes M&T Bank and Xerox, both of which have a significant presence here.

Note that some of these sites require registration.

Economic Development and Rochester

2006-02-24T17:03:00.000-05:00

The appointment of R. Carlos Carballada as Rochester's economic development director brings to city government a man once described as the "most recognizable face" in area business circles. Carballada was featured in a series of memorable television commercials when he ran Central Trust Co., one of the many community banks long since purchased by the bigger institutions. He's also well-known in community service, having spent 21 years as part of the New York State Board of Regents and on various boards, such as the IBERO American Action League and American Red Cross. He last served as a CEO in 1999, when First National Bank of Rochester was sold to M&T Bank. Clearly he's a guy with a Rolodex, and, as Mayor Duffy pointed out, an understanding of financing, managing and growing businesses.

The appointment gives the city administration another newcomer to city government with a background in business and management. Besides Carballada, Duffy's team also includes:

Thomas Richards as corporation counsel. Richards is the former chairman and CEO of the former parent of Rochester Gas & Electric Corp.
Edward J. Ciaschi as director of human resources. He worked in human resources at Xerox for 37 years.
G. Jean Howard as chief of staff. She was CEO of Wilson Commencement Park and served several years on the corporate board of directors of RG&E's parent company.
Patricia Malgieri as deputy mayor. She was president of the Center for Governmental Research, an organization formed by George Eastman to conduct non-partisan public policy research.
Molly Clifford as director of the Neighborhood Empowerment Teams. Clifford was once public affairs manager for Rural/Metro Medical Services.
Gary Walker as communications director. He was former vice president of television at WXXI-TV.
Charles Reaves as director of parks and recreation. Reaves was chief executive of the YMCA of Greater Rochester.

If you assume the recent election was a vote for change, then change is apparently what you'll get.

Another Deal for Pictometry

2006-02-22T14:11:00.000-05:00

Pictometry International of Henrietta may rapidly be turning into the area's most interesting company. The company has pioneered a system for capturing aerial images at an angle and analyzing them with software. And now, the technology is spreading worldwide. Pictometry's partner in Europe, Blom ASA, has signed a deal with Great Britain's national mapping agency, known as Ordnance Survey. The agency has a rich history with origins back to conflicts in the late 1700s.

The image to the right is of the Millennium Dome in Greenwich, England, taken using Pictometry technology. The Dome straddles the international time line and will probably be a prime venue in the 2012 Olympics. The Pictometry image is provided courtesy of Simmons Aerofilms, a Blom subsidiary.

Wall Street Skewered

2006-02-18T21:04:00.000-05:00

Not that I recommend reading anybody's business blog except for mine, :), but I have found a site that's probably a must read for people who know not to take the corporate world TOO seriously. It's called Wall Street Folly and you can find it here. I'll let the content speak for itself.

Renaissance Square and More Theaters

2006-02-14T11:33:00.000-05:00

The $172 million proposal to add three performing arts theaters with about 4,500 seats in downtown Rochester is sure to get some serious scrutiny, particularly in the wake of the Fast Ferry's demise.

One would hope that scrutiny would include both a clear vision for how the new theaters would be used, as well as what would happen to existing performing arts assets in the city.

Here are just a few of those assets, for the sake of discussion:

Geva Theatre Center, located in an historic hall on Woodbury Boulevard, has a 552-seat main stage and 180-seat "NextStage." Geva is one of the largest regional professional theaters outside New York. The NextStage was constructed within the last decade.

The Auditorium Theater on East Main Street, seats about 2,500 people for traveling Broadway shows sponsored by the Rochester Broadway Theater League. This venue was renovated three years ago.

Eastman Theater, the grandfather of all spaces downtown on Gibbs Street, has room for almost 3,100 people and also was just recently upgraded. The adjacent Kilbourn Hall has a capacity of 455.

Hochstein School of Music and Dance is able to put more than 850 people within 50 feet of its stage. This theater was restored in 1999.

Here's an even longer list of other performing spaces in and around our community.

Mergers and Economic Development

2006-02-09T11:50:00.000-05:00

News of the proposed merger between the Rochester Business Alliance and the Rump Group is not getting the best reviews from some members of a local networking group. Some members of a local networking organization, made up of professionals who use online and offline tools to trade information about the local job market, are expressing concerns. "No question the task is challenging! BUT... BIGGER IS NOT ALWAYS BETTER! Sharp focus and positive execution of strategy is needed!" writes one member in an e-mail exchange. Another member is vowing to collect contact information and reach out to Rump Group members to express their doubts. The main thrust of their concerns is that the Rump Group, an ad-hoc group of 18-20 officials from business and academia, will lose their edge by joining with the larger RBA. Not everyone agrees, of course. "What's the fuss? Let them merge," one member writes.

Ice Cream Machines and Other Dreams

2006-02-08T11:03:00.000-05:00

There are vending machines for soda pop and candy, for lottery tickets and live bait, for DVDs and toys. Kodak once played around with vending machines for film. Here's a new one: Vending machines for fresh ice cream. MooBella Inc. of Massachusetts this week is demonstrating a machine that will combine milk and other ingredients and flash-freeze it into ice cream in 45 seconds. It's a computer-controlled system that also allows users to choose "mix-ins" like candy pieces.

The technology is getting a rollout at this year's DEMO Conference in Arizona, which annually presents cutting-edge innovations from companies both large and small. Here's an article that describes some of this year's presenters. MooBella is undoubtedly gets the award for the most-talked about potential invention. Many others have to do with things very high-tech, but there are a few of great interest.

A company called Pay By Touch Inc. of San Francisco is developing technology that will allow customers to pay for purchases by having their fingerprint scanned.
Tiny Pictures Inc. is promsing new software that will optimize the photographic experience for users of camera cellphones.
Bones In Motion of Austin, Texas combined GPS technology and cellular telephones for the sake of personal fitness. An inital application uses the cell phone to track distance, speed and route for runners.