This Week's Quotes

“Snow and adolescence are the only problems that disappear

if you ignore them long enough.”

Earl Wilson

American journalist, gossip columnist, and author

“I may not have gone where I intend to go but I think

I have ended up where I needed to be”

Douglas Adams

English author, humorist, and screenwriter

Best known for The Hitchhiker's Guide to the Galaxy

“Siamo angeli con un’ala sola: possiamo volare solo se abbracciati.” “We are one-wing angels: we can only fly together.”

Dante

(1265-1321)

Italian poet, writer, and philosopher. 

His Divine Comedy is widely considered

one of the most important poems of the Middle Ages and

the greatest literary work in the Italian language.

Success is not final; failure is not fatal:

It is the courage to continue that counts."

Winston S. Churchill

Winston Churchill, in addition to his careers as a soldier

and politician, was a prolific writer

“The only difference between me and a Madman is that I am not mad”

Salvador Dali

Spanish surrealist artist

To dare, is to lose one’s footing momentarily.

To not, is to lose oneself.

S. Kierkegaard

 Danish theologian, philosopher, poet, social critic, and religious author who is widely considered to be the first existentialist philosopher

A Warehouse Store Promises Housing for South LA, in Bulk

A mixed-use development featuring 800 small residential units atop a large retail store, colloquially termed a "Costco prison," has drawn the interest of housing advocates as a potential blueprint for affordable housing construction. 

Costco Wholesale Corp., the members-only retail giant known for low-priced bulk goods, is branching into real estate with a new urban project in South Los Angeles.

This venture will include 800 residential units above the Costco store, 184 allocated for low-income residents. The complex will offer a range of studios, one-bedroom, and two-bedroom apartments, along with amenities such as a basketball court, a rooftop pool, and community gardens.

Although multifamily developments with retail on the ground floor are common, this project has attracted notable attention since its inception. Proponents see it as a solution to the city's housing crisis, while detractors criticize its uniform design and narrow corridors, dubbing it a "Costco prison." Concerns have also been voiced about whether the apartments are suitable for families, given the high costs associated with urban living.

Stonehenge’s so-called Altar Stone — once believed to have been transported from Wales — is in fact from north-east Scotland, researchers have found © Will Dunham/Reuters

Off Topic, but Worth Reading

A Stonehenge rock was shifted 400 miles from Scotland.

How did prehistoric people transport the six-ton Altar Stone to southern England?

Why is it geologically different to the neighboring stones?

Off Topic explains how researchers made such a discovery and speaks to experts for clues on the details. 

CPI Falls to Lowest Level since March 2021

Less than expected rises in inflation in the US and UK have bolstered the cases for interest rate cuts.

In the US, the consumer price index fell to 2.9 per cent in July, dropping below 3 per cent for the first time since March 2021. Core CPI, which excludes volatile food and energy prices, rose by 3.2 per cent, compared with 3.3 per cent in June. Separate data yesterday showed producer prices also slowing more than expected in another sign of price pressures easing.  

Fed officials have been waiting for more evidence that inflation was cooling before lowering borrowing costs as Americans show signs of curbing their spending.

Is It Time to Give India a Closer Look?

Five undervalued qualities of the Indian economy:

1. An emerging services power:

The idea of India as the world's back office and call center needs updating. 

2. A talented workforce:

India's workforce in STEM fields is a force to be reckoned with, with more than one-third of Indian students choosing these degrees. This, combined with the country's vast population, makes it one of the largest pools of graduates in digital services, engineering, computing, and data sciences in the world.

3. Entrepreneurial spirit:

India's 'can-do' attitude is not just a cultural trait but a powerful force driving the country's growth, innovation, and investment. This spirit is prevalent across the nation and is a key factor in its economic success.

4. Maturing capital markets:

In recent years, institutional and retail investors have been plowing cash into Indian companies, lured by the nation's growth narrative.

5. Resilience:

India's emerging strength in services makes its growth more robust. Additionally, India has enormous potential for renewable energy generation. In 2022, 40 percent of the energy capacity installed came from renewable sources, making it the world's third-largest producer. This promising trend in the renewable energy sector clearly indicates India's potential for a sustainable and resilient future.

Random Notes:

"Wild Year" for Industrial

As uncertainty persists around interest rates, slowed transactional volumes, and a future of unknowns has left investors in the industrial sector standing and watching:

• Volatility around rates has also led to investor hesitancy in making long-term commitments, further impacting transaction volumes.
• Onshoring is a continued tailwind for the industrial sector, especially on the manufacturing side and upticks in high-tech chip manufacturing and transitioning the auto fleet to electric are also drivers of long-term industrial demand.

Can Consultants Solve Clients' Biggest Problems?

One client organization challenge is particularly prominent in the current landscape: Enhancing Cross-Organization Collaboration.

Consulting firms might hold the key, yet they must effectively market it.

Most clients, two-thirds to be precise, express an urgent need to modernize their organization's technology to remain viable, while 21% acknowledge that their business aspirations exceed their technological capabilities.

This suggests a methodology of consulting—and indeed, all professional services—which is often overshadowed by its application, such as technology implementation.

However, clients often find investing in a methodology, such as a multidisciplinary approach, more challenging.

California Aims to Put Housing on Surplus School District Land

California School districts own 75,000 acres of developable land, which is enough to create an estimated 2.3M new housing units.

Travel Notes:

• Over 50% of American travelers took an overnight leisure trip in the last month, with a similar percentage visiting friends or relatives.
• Millennials and Gen Z travelers were the most likely to take overnight leisure trips.
• On average, American travelers consider 2.1 destinations for their trips.
• Many Americans use "buy now, pay later" options for travel expenses, and many Gen Z travelers borrow funds to cover trip costs.

Superstore Summer Update:

• Superstores and wholesalers experienced a year-over-year (YoY) increase in visits.
• Walmart saw a 3.9% increase, Target saw a 2.0% increase, BJ’s Wholesale saw a 7.4% increase, Sam’s Club saw a 7.5% increase, and Costco saw a 12.2% increase.
• Compared to the second quarter of 2019, quarterly visits to these five retailers were also higher, with wholesale clubs showing the most significant growth in visits.
• Target's Circle Week, which occurred in July 2024, led to a noticeable YoY increase in visits. In the week of July 8th, the visits were up 6.8% compared to the year-to-date weekly visit average and up 8.7% relative to last year's Circle Week.

California Hotel Sales Fall Almost 50%

The mid-year sales survey by Atlas Hospitality Group for 2024 indicates a substantial decrease in hotel sales dollar volume in California.

• The total dollar volume plummeted by nearly 50% to around $1.2 billion in the first half of 2024, down from $2.3 billion during the same period in 2023. Despite this steep drop in dollar volume, the number of hotel transactions only fell marginally from 124 to 122, encompassing both completed and pending deals.
• This downturn is attributed to several factors, including financing hurdles and rising labor costs.
• Nonetheless, there is a sense of optimism for the latter half of the year, with the anticipation of heightened deal activity should interest rates decrease, and distressed properties become available.

Bonneville Research is committed to a just economy that increasingly depends on skilled and well-connected populations.