🍺Employee burnout, a plastic predicament, & getting rid of those dirty rats. (Said in our best James Cagney voice.)
The Weekly from The Liquid Lunch Project, Issue No 114 | April 19, 2024
This Day in History: The American Revolution kicked off with a bang (and probably a few musket shots) with the Battles of Lexington and Concord. The British were sent packing back to Boston while the American militia belted out Yankee Doodle. Nothing says "fight for independence" like a catchy tune and a swift retreat. 🦅
ON TAP THIS WEEK
😵💫 From Buzzword to Burnout: Tips for keeping employees satisfied (and sane).
⚙️ Chipocalypse Now: Let the Semiconductor frenzy begin!
🎵 Is Udio's AI the ultimate remix for a music industry tune-up?
👋🏼 Fortune 500 Middle Managers Left High and Dry as Corporate Retreats Hit the Auction Block.
🚫 The Plastic Predicament Putting Profit Projections on the Chopping Block.
💰 Payday Panic? Learn how to pay yourself...the right way.
🌐 And from Around the Web: Rats, Rents, and Retirement.
THE CLASSROOM
Navigating Employee Burnout
by Luigi Rosabianca
In today's fast-paced world, employee burnout has become more than just a buzzword; it's a reality your business cannot afford to ignore. Throw in a pandemic (which only exacerbated this issue), and you've got a lot of employees who were (and still are) emotionally and physically drained. As entrepreneurs and business owners, it's crucial to recognize the signs of burnout and take proactive steps to cultivate a work environment that fosters productivity and well-being.
HEARD ON THE STREET
🥔 Chips are the New Hot Potato
AI’s rise has put semiconductor demand at warp speed as nations race to become top producers. South Korean President Yoon Suk Yeol recently said his country would invest $7B into its AI and chip tech by 2027. (That’s a lot of Yen.) Thanks to groups like Samsung and Hynix, South Korea is the world’s No. 2 chip producer after Taiwan. Last month, its chip exports hit their highest level in nearly two years, totaling $11.7B – 1/5 of all its exports. Now, South Korea plans to use the $7B cash infusion to develop AI products like next-gen high-speed memory chips.
Uncle Joe pledged $6.6B to Taiwan’s TSMC (the world’s largest chipmaker) to help build three factories in Arizona. TSMC manufactures chips for huge names like Apple, AMD, and Nvidia. China, a big importer of US chips, has also boosted domestic production as it faces sanctions. Last year, Biden barred China from importing advanced AI chips, like Nvidia’s H100, which could be used in military tech. China responded by curbing exports of key chip metals like gallium (it controls 98% of global supply).
Chip nationalism took off after pandemic supply-chain disruptions forced governments to restore production. Now, AI has supersized chip hunger. Countries can use their AI edge as political leverage (i.e., American charitable munificence!). The tech is expected to be a critical driver of economic growth, so countries want to lead the next era of revolutionary tech to stay relevant while maintaining security from supply chain and political issues.
🎶 New Meaning to Singing in the Shower
Emerging generative AI tools are revolutionizing content creation in ways that could result in “zero-cost” production across content media. Recently, the AI song-creation platform Udio launched its Beta product, capturing the attention of music industry experts, artists, and technologists. With a simple text prompt on Udio, anyone can create, remix, edit, or extend 30-second music clips. AI-enabled song creation seems poised to disrupt the music industry.
For streaming giants like Spotify and Apple Music, tools like Udio present both threats and opportunities. By lowering the barriers to music creation, Udio could enable new distribution channels and add to the music supply. Spotify and Apple Music might harness tools like Udio and create their own AI-generated music - perhaps their own AI-creation tools, too - cementing their market leadership positions in music.
Benefiting creators, AI tools like Udio will lower the barriers to entry in the music industry, enabling people without formal music backgrounds to create music and new markets. Given the industry’s copyright and licensing regimes, platforms currently police what music can and cannot be played. Creators could gain more control of the process in real-time with AI-enabled music - anywhere, any time.
🤵🏼 GE Drops its Storied RE
For decades, it was the site where General Electric managers arrived for days of lectures, workshops, and strategy sessions on manicured grounds overlooking the Hudson River. Now, Crotonville, GE's famed management academy outside NYC is in new hands. An entity made up of RE investors and family offices has purchased the 60-acre campus for $22M. It will now function as a conference center that outside groups can book.
Corporate giants are shedding properties once used to train high-performing employees, and this practice is now trending. 3M is looking for a buyer for a more than 600-acre retreat center in northern Minnesota known as Wonewok, and Boeing is selling its nearly 285-acre leadership center near St. Louis.
Management specialists say that executives can now easily train staffers via videoconference or through off-site events held in hotels or other venues. In recent years, GE has also emphasized to employees that learning should happen closer to core operations or at production sites, such as factory floors. HQs like the GE Crotonville offices, a theoretical and corporate descendant of Edison's Menlo Park, are officially a thing of the past. So, you may ask, where will the Fortune 500 folks train their up-and-coming middle management team? Really … The Liquid Lunch Project Happy Hour, of course! 🍸
Each month, we're sitting down with (vetted) industry experts on trending topics that matter most to small business owners. From marketing to AI, cash flow, funding, tax prep, and more, this live-stream event is a great way to learn from some of the best!
➡️➡️CLICK HERE to learn more about signing up, and use code HAPPYHOUR2024 at checkout to get the next month FREE!
🛢️ A Slippery Slope for Oil
After a century long peak of the gasoline age, the current decline is being met with creative solutions. Gasoline isn't going away, but it won't be the sales driver it once was. So, oil companies are pivoting to the one market for fossil fuels whose peak is decades away - chemicals.
The issue? Too many companies are ramping up chemical production at the same time, leading to a serious glut that looks like it will last for years. (Chemical companies could be looking at years of diminished earnings; that'll take some of the shine off their stocks.) Shell recently opened a chemical complex the size of 300 football fields in Pennsylvania, with the capacity to produce 1.6M tons of plastic pellets a year. China has built so many plastics factories in the past five years that it's on pace to add as much capacity by the end of this year as currently exists in Europe, Japan, and Korea - COMBINED.
The global ramp-up is swamping an already saturated market. Most chemicals end up as plastics, and the plastic content of several everyday products has been growing. The average car had 411 pounds of plastic in '21, 16% more than in '12. Aside from single-use plastics like detergent bottles and straws, which have been targeted for their environmental harm, most of the industry has escaped deeper scrutiny and regulations. Consumers don't think of oil rigs when they pull on their polyester pants. Those pants—along with the bumper on your car, the rug in your office, and the PVC pipes in your home—will be much harder to replace than gasoline.
The irony of the eco-friendly purchase of an EV that has MORE gasoline-based plastic in it does not escape us! 👀
THE MONEY MINUTE WITH MRM
Show (You) the Money: Remember to pay yourself.
with Matthew R. Meehan
Here's a friendly reminder that it's time to cash in on all those hustle hours you've been putting in. And if paying yourself as a business owner feels like diving into a financial labyrinth, pay attention.
This guide walks you through all the options, from owner's draws to regular salaries, ensuring you're equipped to make the best financial decisions for your business and yourself.
AROUND THE WEB
Rat Birth Control. (Honestly, we could stop the story right there.) In The Big Apple's neverending quest to get its rodent 🐀🐀 population under control (remember last year’s czar?), it's saying bye to snap traps and hello to salty, fatty rat contraceptives. Let's hope this is a solution that finally delivers... figuratively.
The Cost of Being Single: According to a SmartAsset analysis, living solo in the priciest U.S. states will have you dreaming of six-figure salaries just to cover the basics. If you find yourself below that threshold, now's the time to consider diving into entrepreneurship and boosting those income streams. 🤑 Fun Fact: Our book, Buying the American Dream, could be your ticket to financial freedom. Available now on Amazon!
And Speaking of Income Streams: Ah, Millennials. The generation that expects to retire before 60... on dreams and a prayer. The reality is that most of 'em lack the necessary funds to fulfill such aspirations. With retirement savings falling far short of expectations, many find themselves grappling with the harsh truth: Early retirement will have to wait until avocado toast becomes currency. 🥑🍞
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