Wednesday, May 18, 2005

INVENTORY TO SALES RATIO--TECHNOLOGY AT WORK?

The inventory to sales ratio has never been lower. Companies have learned how to lower their costs by using technology to reduce inventories.

The information revolution continues to lower costs in industry after industry. Polls show that Americans do not appreciate the savings. Apparently the high price of gas has weighed on the pocketbooks and minds of consumers.

Gradually, Americans grow wealthier. Current figures show that American families now have more disposable income and wealth than ever before. The use of birth control has lowered the average family size. Families of today with two children are not likely to fully appreciate just how financially stressful it would be to raise 4 children.

The case can be made that the extra disposable income is being wasted on videos, game machines, music and cell phones. The truth is that we could all get by with much less, but with costs going down, we can afford more than ever.

Why spend it all now? When times are good, it is the right time to invest for the tough times that may come. Money not used during tough times can be enjoyed during retirement.

THE BOOMING PRODUCTIVITY IS UNDER-APPRECIATED BY INVESTORS. THE EXTRA RAPID PRODUCTIVITY GROWTH IN CHINA IS FUELING SAVINGS TO AMERICANS. THE CONSUMER WINS WHEN COSTS GO DOWN!

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