Net Gain

Remembrance Day debate

By Michael Hammond, Record staff

A Record reader brought up an interesting point in Tuesday's edition of the newspaper about stores putting up Christmas decorations before Nov. 11th. You can read the letter here. There has always been a debate over how Canadians observe Remembrance Day. When I was younger, there was an argument over whether Nov. 11th should be a day off school. I recall when it was a day off. In each of these cases, the arguments are essentially the same. Should we go about our business on Nov. 11th or make more of an effort to recall the sacrifices of our veterans?

Our reader essentially suggests that stores should not put up Christmas displays before Nov. 12th. I'm not sure what Christmas displays before Nov. 11th has to do with Remembrance Day, but I think the argument is it's tacky.

As for whether children should have a day off, the reason against making it a day off is that children need to be in school to observe the day rather than at home playing video games or watching TV.

It may seem like we make these arguments every year and you may be sick of hearing them every Nov. 11th. Not me. The fact that people hold this day so dear shows me how much they care about this country. It also shows people still care about what so many brave men and women have done to ensure we are the true north strong and free.

mhammond@therecord.com

Jungian therapy keeps everyone happy

By Chuck Howitt, Record staff

During an Oct. 30 appearance before the Cambridge Chamber of Commerce, John Jung, the new chief executive officer of Canada's Technology Triangle, walked a fine line between amalgamation and autonomy among the region's seven lower-tier municipalities.

Amalgamation is always a sensitive topic, especially in Cambridge, where any mention of the word is guaranteed to make the blood pressure rise among many citizens, especially Mayor Doug Craig.

During his speech on "successful cities of the world," Jung stressed the need for cities to compete as regions for new investment and talent. Only regions have the "critical mass" to attract the best and the brightest on a global scale, he said. Infrastructure is also critical, he said, including services such as good transit and a decent airport, both of which have improved under regional management.

Later, Jung went on to praise Cambridge for its charming downtown area, referring to old Galt. Its European ambience and "unique sense of place" are among the top features cited by business development officers when they promote this area abroad, Jung said.

Not for nothing has Jung risen to the top of the global city movement. The current chair and co-founder of the Intelligent Community Forum, a global think tank that annually picks the world's most intelligent cities, knows that part of being intelligent is keeping squabbling factions happy.

chowitt@therecord.com

Extra! Extra! Read all about it!

By Michael Hammond, Record staff

I found this interesting photo essay on an American newspaper's website yesterday. The slide show was essentially a collection of photos of eager Detroit residents hoping to purchase a copy of the Detroit Free Press's edition following Barack Obama's historic presidential victory. To see that slide show, click here.

Looking at the photos of people lining up to buy a paper got me to thinking about the changes going on in the newspaper industry. A number of people conclude that the decline in the newspaper industry is simply a matter of people going to the internet for their news. Essentially, the internet is killing the newspaper. That's the argument anyway. However, a number of people point out that this argument is far too simplistic and in many cases, just plain wrong.

Seeing the demand for the newspaper following Obama's victory illustrates just how much trust people still have in the printed word. I remember covering a severe one-day flash flood when I was a reporter in Peterborough, Ont. five years ago. The day after that freak event, there was not a paper left on the racks throughout the city. Same goes for Sept. 12, 2001, as people turned to newspapers to make sense of what was happening. I don't think there was a newspaper anywhere that didn't sell out.

There is way more to the whole newspaper versus internet debate, which I won't get into, since it's not my job as a reporter. I merely want to point out that newspapers are still obviously a valuable commodity. If television and radio couldn't kill them, it seems a little weird to write off the entire newspaper industry now.

mhammond@therecord.com

When bad is good

By Michael Hammond, Record staff

I was a little worried when I came to work this morning. I was wondering if readers were going to question my story, October batters local housing market. After all, it almost seems at odds with the story I wrote a day earlier when Canada Mortgage and Housing Corp. analysts predicted a somewhat decent year ahead for the regional housing market.

At first glance the two stories seem to contradict each other. I was relieved that no one seemed to notice this possibility. But you have to take the regional numbers in context to fully appreciate why the two stories aren't at odds with each other. It is true that real estate numbers are expected to dip by 6.2 per cent next year while this year's sales figures will come in below CMHC predictions. However, there is a silver lining.

Compare Waterloo Region to Toronto. In the Big Smoke, not only are home sales down by 35 per cent in October, house prices have fallen by 10 per cent. Here, home sales fell by 21 per cent in Kitchener and Waterloo and 32 per cent in Cambridge, But the key difference between here and Toronto is that home prices continue to rise. On a year-to-date basis, home prices are still rising. And housing starts are now on pace to match previous CMHC estimates. Starts are also expected to rise by 3.3 per cent next year. This all means there is still demand for homes here, which is not necessarily the case. That means the market is still relatively healthy. That was the message from Karen Shartun of the Kitchener-Waterloo Real Estate Board.

If we weren't in the midst of an unknown financial crisis, I'd imagine that these local real estate numbers would be a bit of a downer. But when you live in interesting times, bad can seem good, it seems.

mhammond@therecord.com

After the Obama euphoria

By Michael Hammond, Record staff

Even yesterday, as I sat listening to Canada Mortgage and Housing Corp. analysts talk about the coming year's housing market conditions for this region, I couldn't escape it. Everyone seemed to be thinking about the U.S. election. It didn't take long for the subject of Barrack Obama to come up.

After CMHC economic Ted Tsiakopoulos made his presentation about what is ahead for Ontario's economy next year, someone asked an Obama question. He asked what impact it might have on Ontario should Obama be elected, which he was, obviously.

Tsiakopoulos chuckled, hesitated, chuckled again before politely declining to answer the question.

"That's probably the most speculative question you could ask," he joked.

But the question raised an interesting point. For all the euphoria surrounding Obama's historic victory, there are some serious questions being asked about what impact he will have on Canada and Ontario in particular. After all, he did indicate at one point a desire to reopen the North American Free Trade Agreement. While that may be good news to organized labour leaders here, a number of business executives expressed caution, considering how much Ontario's economy relies on exports to the US. Many argue that free trade has certainly benefited Ontario. That point, of course, is debatable, depending on your point of view. Obama's inexperience in federal and international politics also raises questions over what impact he will have on Canada, the US's largest trade partner.

Today, it seems most are content to marvel at history being made. The tough questions are there, but it seems as though they can wait for now.

mhammond@therecord.com

Good news, or not so bad news

By Michael Hammond, Record staff

The good news these days is that our bad news isn't so bad. That was about the sum of the mesaage at today's Housing Outlook Conference for the Kitchener census area. The Canadian Mortgage and Housing Corp. unveiled its outlook for this market this morning at the Holiday Inn. Here are the three essential numbers that might surprise you.

1. Existing home sales are predicted to drop by 6.2 per cent

2. Housing starts are pegged to rise by 3.5 per cent

3. Home prices will rise by 2.2 per cent to an average of $277,000.

Read our web story here.

The first stat might surprise you only if you didn't know we saw record existing home sales last year and are on track to see relatively comparable numbers this year. The second stat might surprise you given that in these uncertain economic times, the prospect of building a new home might not be on your mind. But, those numbers might be heavily influenced by condo construction, pointing to a need for more affordable housing options. The final stat might be a pleasant surprise. To have home prices rise by the rate of inflation will be a welcome sight to homebuyers, no doubt, after years of robust increases.

It all points to an economy that the experts say is holding its own. These days, that's high praise.

mhammond@therecord.com

Ontario, the have not

By Michael Hammond, Record staff

I was a little surprised by the story I read in the Record this morning, where Ontario's Finance Minister Dwight Duncan essentially questioning a move by the federal government to give this province some equalization money. I guess I thought the sniping between the provincial Liberals and the federal Conservatives was laid to rest.

You may recall that Federal Finance Minister Jim Flaherty engaged in a spirited war of words with Duncan in March following Flaherty's suggestion that we have become a have-not province. Duncan at the time said Flaherty's words were demeaning to the country's most populous province. This time around, Flaherty has been trumpeting the federal government's first ever equalization cheque for Ontario, worth $347 million. Duncan basically said he would believe it when he saw it. Flaherty said Ontario will be happy with the money, but Duncan has suggested that he doesn't trust Flaherty will deliver the goods.

Given that the two sides will have to live with each other in the coming years, you'd think they would have learned their lessons from March. Both were painted in opinion columns as childish. Since this equalization cheque essentially cements Ontario as a so-called "have-not" province for the time being, there can't be any argument over this. I guess it's understandable that there will be some political hay made over the amount of the equalization payment.

I just wonder how much will be accomplished in the coming years, if the provincial Liberals and federal Tories are engaged in more sniping so soon after the federal election.

mhammond@therecord.com

Amid the gloom, there is resolve

By Michael Hammond, Record staff

I received an email recently from a colleague at Igloo Software. She reminded me of a manufacturing industry initiative that was first unveiled at Kitchener City Hall in March. The Manufacturing Innovation Network will be informally launched in November and will be officially launched in the first quarter of next year. Checking back to the story I wrote last March, the MIN was described as a networking group for area manufacturers where they can share their successes and failures. The MIN was described at that meeting as the industry's version of Communitech, which is the region's technology industry association.

To read the story from our archives, click here.

There are already examples of how this type of networking group has helped Ontario manufacturers. There are similar groups elsewhere and they have met with varied success. The local MIN, which will include a social networking-style website, will obviously depend on the level of participation of local manufacturers.

There is reason to be optimistic, judging by what was said in March. As the city presented its manufacturing industry findings, there were two statistics that struck me as interesting.

Of the 88 manufacturers surveyed for a city study, two thirds said they either kept staffing stable or hired more people in 2007. These companies also said they intended to hire this year.

The flip side is the other third of companies surveyed said they cut their workforces by an average of 27 per cent.

Mayor Carl Zehr said at the event that the study's findings suggested to him that there are a large number of small, specialized manufacturing businesses that are growing here. If that is the case, I'd imagine there are a number of people who could use this manufacturing networking group to find out how this growth is being achieved in tough times.

mhammond@therecord.com

Is bigger better?

By Michael Hammond, Record staff

You may have noticed the story in today's newspaper about Canadian Tire testing the waters on stocking groceries in its stores. This, of course, is not a new idea. Wal-Mart has been stocking groceries at its stores for several years. Shoppers Drug Mart has done this at certain stores, including its new location in downtown Kitchener. The Loblaws chain, including Zehrs, has dabbled in a number of retail offerings outside its main grocery business. Zehrs operates a Real Canadian Superstore in Kitchener's west end. Bigger seems to be better for our country's larger retailers.

I was a little surprised when I first read about the Canadian Tire move, but this consolidation seems to be gaining steam in retail circles. A retail analyst quoted in today's story gave the move the thumbs-up. The reasoning seems sound, at face value. He said Canadians are busier. If stores can allow consumers the ability to buy all that they need in one store, a retailer seems to benefit.

I wonder about this Canadians-are-busier argument. I sometimes wonder if pundits say we're busier when what they really mean to say is we're faster moving. It may not so much be that we're busier. We might just be more demanding.

Either way, retailers are betting on us being busier, faster moving, more demanding or however you want to put it. For now, the Canadian Tire experiment is taking place at two stores, but if it is successful, you can expect to buy some break and milk along with your winter tires in the not-too-distant future.

mhammond@therecord.com

Technology isn't always the answer

By Michael Hammond, Record staff

Canada's big banks are beginning the process of switching over every debit card in Canada to a new microchip-enabled card. Check out our web story here. Those of us in Kitchener and Waterloo have already used these chip cards for months. That local trial officially wrapped up today. The goal of the chip cards is to make it tougher for high-tech fraudsters from hacking into our bank accounts.

I was in contact with a sergeant with the Waterloo Regional Police's fraud branch this morning and he reminded me of a good point. Although the chip cards are much harder to compromise than cards with only a magnetic stripe, it doesn't mean card fraud is a thing of the past. The sergeant reminded me that these chip cards do not offer the superior protection when they are used in an older bank machines or point-of-sale terminals that don't handle the chip technology.

This means you'll be using your magentic stripe for a couple years still and that means the magentic stripe, with all its faults, will still leave you a target of fraud if you're not careful. That is the police service's message. Of course, this means protecting your PIN number and not using terminals you don't trust.

I learned this the hard way when my old magnetic stripe card was hacked, which meant I lost $1,000 from my account in an instant before my bank realized it wasn't me taking out the money.

mhammond@therecord.com