You will need the Flash plugin to view this publication

Download the Flash plugin for free here. Just refresh this page after installing Flash.
Also make sure that javascript is enabled in your browser.

Alternatively, you can download this publication in PDF-format - Click here.

Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
TourGuideYoup19TECHNOLOGYHowlittledataismakingusallmoreefcientSUPPLYCHAINTheNortheastPassageisopenorbusinessIDEASE-commerceistakingoinChinaPOLICYJapanisatthecenterotradetalksor2014ENERGYNewNorthAmericanenergyiscreatingjobsACCESS25ThebiggestideasredefningglobalopportunityInrastructurep11PadmasreeWarriorp6THE2014REVIEWOFGLOBALOPPORTUNITYFROMFEDEXPADMASREEWARRIORCiscostechnologyandstrategychieonmakingnewglobalconnectionsp6LUXURYGOODSTAKEFLIGHTTheremarkablestoryoU.K.watchmakerBremontp16ON-DEMANDMEDICINESame-dayhomedeliveryissavinglivesinLosAngelesp22ALLENEDMONDSTakingMadeinAmericashoesglobalp2625ACCESS accessmore.Globalconnectionsarecreatingnewopportunitiesforyouandyourcommunity.Findoutmoreandsignupforfreeemailalertsatfedex.comaccess. 1ACCESSFEDEXCORPORATIONVicePresidentCorporateCommunicationsNEILGIBSONDirectorCitizenshipReputationCINDYCONNERManagerReputationManagementNATASHIAGREGOIRECommunicationsAdvisorTRACEESMITHStaffPhotographerSTEVECOOKContactusaccessfedex.comTogetafreesubscriptionandadditionalAccesscontentgotofedex.comaccess.AccessisproducedbytheFedExCorporationandHanleyWoodMinneapolisMinn.Vol.820142014FEDEXCORPORATIONAllrightsreserved.HANLEYWOODExecutiveEditorROBERTGIBSONStrategicDirectorBRYANIWAMOTOExecutiveArtDirectorSANDYGIRARDProgramDirectorsLIZSCHINDLERERINWALTONKERNSProductionDirectorPAMMUNDSTOCKProjectManagerKELLIESCHMIDTITSSTILL24901MILESINCIRCUMFERENCEthesamesizeitsbeenorthepast4.5billionyears.Tokyoremainsprecisely6737milesromNewYorkCitynotonemileewer.Nowedontliveinashrinkingworld.Weliveinamoreconnectedone.CONSIDERIttookChristopherColumbusnearlythreemonthstocrosstheAtlanticin1492.Todayyoursupplychaincanjumpthatgapinhourseveryday.Withaickoyourthumbyoucanmanageyourbusinessromthebeachwithyourphonejustoneomorethan6billionmobilephonesanddevicesthatsend50billioninstantmessageseveryday.ANDYETMORETHANEVERitsthelittlestnumberthatmattersmostone.Thatsthenumberoglobalconnectionsittakestochangetheworld.AMOUSECLICKcanlaunchamulti-billion-dollarbusiness.Atweetcanstartarevolution.Oneemailcanreengineeramarketsegment.Asinglepackagecanlitupacommunityandevensavelives.ThatsthepoweroAccess.ATFEDEXwehaveapassionormakingtheconnectionsthatchangetheworld.Whatwillamoreconnectedplanetmeanorallousin2014WereachedouttothoughtleadersaroundtheworldtofndoutandtheresultisthisyearsAccess25.WHICHDOYOULIKEBESTWhatsonyourownpersonallistWehopetheAccess25spursconversationandweencourageyoutogotofedex.comaccesstoshareyourthoughts.WELCOMETOACCESSTHEWORLDISNOTGETTINGSMALLER. ACCESSOUTLOOK2014AFTERSHIPPINGONLY900PAIRSOFSHOESADAYin2009lastyearAllenEdmondspage26uppedthattomorethan3500packagesinoneday.ThecompanywhoseshoeshavebeenwornbyfourU.S.presidentshasturnedMadeinAmericaintoaglobalfashionstatementthatprojectsauthenticityandquality.ThebrandisespeciallypopularinChinathehomeofthreenewretailstores.HowdidAllenEdmondsdoitByheedingasimplecalltoactionConnect.Thecompanyconnectedwithmensfashiontrends.Itconnectedwithqualitysourcesofleatheraroundtheworld.Andthanksinparttoe-commerceitconnectedwithglobaldemand.TheresulthasbeenasharpriseinrevenuejobgrowthandcivicprideinthetownofPortWashingtonWisconsin.WHYCONNECTAtFedExwebelievethatwhenpeoplemakeconnectionsthepoweroftechnologytransportationinformationandideascompoundandmultiply.Innovationsoarsandenergizesthemarketplace.Entrepreneursandbigbusinessalikecreatejobsthatlifttheircommunities.Itsespeciallyimportantinpartsoftheworldwherepeoplearehungryforaccesstotheeducationgoodsservicesandjobsthatleadtoabetterlife.HeressomefoodforthoughtFedExconnects99percentofglobalGDP.Morethan7billionpeopleaccesstheinternetworldwide.Therearemoremobiledevicesthanpeopleontheplanet.Yetonly1percentofwhatcouldbeconnectedintheworldactuallyisaccordingtoPadmasreeWarriorCiscoSystemstechnologychiefpage6.ACONNECTEDWORLDISAMOREINNOVATIVEWORLDThefutureoftenarrivesintheformofachoiceEithermakeaboldcommitmenttoevolveorbesweptawaybytheforcesofchange.SlammedbytheGreatRecessionaWisconsinshoemanufacturingcompanyputitsbestfootforwardandreinventeditselfasagutsyretailerwithaglobalvision.byFREDERICKW.SMITHMIKEDUCKERChieoperatingofcerandpresidentFedExExpressInternationalTRADEMoreandmorecountriesarenowconvincedothebenetsoreertradeanddeepereconomicintegration.Theactualnegotiationsremainchallengingbutmanycountriesseemtobemovingintherightdirection.TheWTOTradeFacilitationagreementthatwasannouncedinDecemberisahugesteporward.Theagreementwillgiveusabasisromwhichtodrivecustomsmodernizationaroundtheworldandthatinturnwillmakeiteasierorcompaniesespeciallysmalltomedium-sizedbusinessestoexpandtheirbusinessglobally.CONNECTIONSWHATSTHEPAYOFFRAJSUBRAMANIAMExecutivevicepresidentmarketingandcommunicationsFedExServicesE-COMMERCEThelargestdrivingorceintheglobaleconomyise-commerceandwithinthenexttwoyearsglobale-commercesalesareexpectedtoreach1trillion.Withonlinesalesgrowingmorethanthreetimesasterthantraditionalbrick-and-mortarsalesonlineshoppinghasrevolutionizedbothretailshoppingandtheglobalnetworkdeliveryindustry.Withaglobalmarketplacenowdifuseandmobilee-commercewillcontinuetobetheorcethatwilldriveeconomicgrowthintheuture.2ACCESS HerpointissimplebutprooundWerejustbeginningtocreateaninternetoeverythingonethatconnectsnotjustdevicesbutcarstrafclightsappliancesandevenwhatwewear.Shebelievesthoseconnectionswhichcouldgrowto50billionby2020cansolvesomeotheworldsmostpersistentproblems.TheAccess25thebiggestideasinglobalconnectivitypage4demonstrateshowthisdeepeningintersectionbetweendigitalandphysicalconnectionsisalreadyaectingourbusinessesandlivesOnlineshoppingisgrowingfastergloballythanintheU.S.E-commercesalesareexpectedtotop1trillionin20161percentoglobalGDP.E-commerceisnotonlychangingourbuyinghabitsbutoursourcinganddistributionstrategies.JustasktheoundersoBremontpage16aU.K.luxurywatchmakerwhosebusinessisridinga50percentgrowthcurve.Transportationchoicesareshiftingtoaccommo-datebusinessneeds.Thegrowthoglobaltradehasslowedormanyreasonsincludinghighuelcostsandpolicydecisionsbymajorworldgovernmentsthatimpedecommerce.Businessesareworkingtofndgreaterefcienciesintheirsupplychainsincludingaccessingawiderangeotransportationservicesthatmatchtheirneeds.Theprovenanceofgoodsisincreasinglyimportanttoconsumers.Brandshavealwaysmatteredtoconsumers.NowcompaniesromPatagoniatoApplearebecomingmoreopenabouttheirsupplychains.Consumersareusingthepowerothewebtounderstandhowandwheretheiravoriteproductsgetmade.Near-shoringisshiftingthebalanceofmanufacturing.Thepriceouelandlaborisenticingmorebusinessestomovemanuacturingbacktotheirownregioninottheirowncountry.InNorthAmericatheshaleboomisloweringenergycostsmakingitmoreefcientormajorbrandstomanuactureintheU.S.TheBostonConsultingGroupreportedthatby2020U.S.exportscouldincreasebybillionsodollars.Betterinformationisgivingusthepowertosolveproblemsandchangelives.Datagivesustheabilitytomakebetterdecisionsinrealtime.Thisincludeseverythingrommoreefcientlymanagingyourinventoryandsupplychaintoconsultingaftnesstrackertoimproveyourownwell-being.TakeafewminutestoenjoythisissueofAccess.AsauthorandorganizationalmanagementthoughtleaderMargaretJ.WheatleysaysInnovationisosteredbyinormationgatheredromnewconnectionsrominsightsgainedbyjourneysintootherdisciplinesorplacesromactivecollegialnetworksanduidopenboundaries.HowconnectedareyouGotofedex.comaccesstolearnmoreabouthowconnectionscancatalyzecreativityandinnovation.ELIZABETHFINCHVicepresidentFedExExpressSalesEuropetheMiddleEastIndiaandAfricaMITCHJACKSONVicepresidentofEnvironmentalAffairsandSustainabilityforFedEx.EMPOWERMENTConnectivitylaysthegroundworkorempowermentandtherameworkorinnovation.Ideasthatwerealreadyinpeoplesheadssuddenlybecomeeconomicallyviablethroughaccesstolargermarkets.AnentrepreneurinTirupurasmalltowninIndiacannowconnectinrealtimetotherecenttrendsinParisorNewYork.Hehastheabilitytoreachouttoapotentialcustomerinthesecitiesandoeraproductthatshugelycompetitive.Indiasve-yearplanencouragesinnovationsthatareaordableandimplementableatamasslevel.INNOVATIONIbelievethatglobalconnectivityandinnovationgohandinhand.Iyouthinkaboutitattemptsatglobalizationhavebeenongoingorcenturies.BookslikeASplendidExchangeHowTradeShapedtheWorldGrovePressillustratemanyotheseeorts.Whatmakesourcurrenteortsdierentisthestateotechnologyusedorglobalconnectivityprovidingbetterefcienciesspeedandinormation.Innovationisclearlyadrivingorceorthesechangesandinturnthesechangesosterinnovationthatmakestheworldabetterplace.ACCESS3 LOSANGELESMILWAUKEEOXFORDSHIREAFRICAMEXICOCANADATHELATINAMERICANTIGEROverthepastseveralyearsChileanditseconomyhascontinuedtooutpacevirtuallyalloitsneighbors.page21SMARTTRANSITMetrobustheagshipprojectoEMBARQisacilitating900000tripsadayinMexicoCityreducingcarbondioxideemissionsby120000tonsayear.page13PADMASREEWARRIORCiscosstrategyandtechnologychiesaysonly1percentowhatcouldbeconnectedaroundtheworldactuallyis.page6CHILEON-DEMANDMEDICINELosAngelesbasedAIDSHealthcareFoundationisusingsame-daysame-cityshippingtosavelives.page22PORTLANDSANFRANCISCOMADEINAMERICASourcingfneleathersromSpainandItalyAllenEdmondsisbringingMadeinAmericashoestotheworld.page26The2014Access25isourrankingothemostintriguingandexcitingpeopleplacesandideasredefningglobalconnectivityandopportunity.25ACCESSTHEMAKERMOVEMENTAllovertheworldbrandslikeOregon-basedShwoodarereimaginingmanuacturingatalocallevel.page10FREER-FLOWINGNORTHAMERICANENERGY1millionothe2.7millionnewjobsintheU.S.between2002and2012wererelatedtoshaleoilandgasdrillingaccordingtoMoodysAnalytics.page12 MUMBAICHINAJAPANCHANGEINTHEVALUEOFRELIABILITYVERSUSSPEEDThestandardspeedoacontainershipisslowerthanitwasfveyearsago.Findoutwhy.page15INDIAONTHEMOVEWillIndiasprospectsbrightenin2014page12JAPANANDFTAsThereisarguablynobiggerplayeringlobaltradenegotiationsrightnowthanJapan.page14CHINESECONTAINERSHIPSOUTHKOREANCONTAINERSHIPE-COMMERCEE-commercewillbeontheothersideoatippingpointin2014makingitanevenbiggerplayerinourincreasinglyglobalborderlesseconomy.page8WHATELSEYOULLFINDINTHE2014ACCESS25Inrastructurepage11FasterWi-Fipage12Kaizenpage15TourGuideYoupage19TheInternetoThingspage19TheQuantifableYoupage20RoboNewspage20Citiespage24TheSharingEconomypage24InternetorEveryonepage24DematerializedGlobalismpage25163millionAricasworking-agepopulationwillgrowby163millioninthisdecade.page11AFRICANORTHEASTPASSAGEShrinkingarcticicehasopenedupanewmoreefcientshippingroutebetweenChinaandEurope.page18LUXURYGOODSThisgloballuxurybrandhasbroughtwatchmakingbacktotheUKandissendingitsproductstoDubaiNewYorkCityandbeyond.page16 ACCESS25ACCESSCiscohasarguedthatonly1percentowhatcouldbeconnectedintheworldactuallyisconnected.WhatsthethinkingbehindthatPADMASREEWARRIORYouhavetolookatallthethingsthatcanbeconnectednotjustpeople.Todayiyoulookathowmanysubscriberstherecurrentlyareonmobileandontheinternetthatsroughlyhaltheworldspopulation.Butyoualsohavetolookatthenumberodevicesthingsliketrafclightsandcarsandeventhingswewearthattodayarenotyetconnected.Weexpectthenumberoconnectedthingstoreach50billionby2020.ACCESSWouldamoreconnectedworldbeabetterworldPWAbsolutely.Ithinkthemoreconnectedwearethemorewecanshareandthemoreinormationpeoplewillhave.TheinternethasbroughteconomiestogetherandIthinkinmanycasesithaschangedthepoliticallandscapesosomecountries.Itsdrivencommerceinamuchmorelogicalmuchmoredemocratizedway.Sowedefnitelythinkthatthereisahugepotentialupsidethemoreconnectedwemaketheworld.ACCESSCanaso-calledinternetoeverythingimprovethewaysinwhichweliveoureverydaylivesPWWereallybelievethatbyintegratingtheworldsdataandprocessingcapabilitywecanhelphumanbeingsmakedecisionsthataremuchsmarterandmuchmoredata-driven.Weestimatethatwillcreatealotovalueorbusinessesroughly14trillionoverthenextdecadeinrevenueandnewproftsacrossalldierentsectorsinthebusinesslandscape.ACCESSYouhavemorethan1.4millionTwitterollowers.SomanyC-levelcorporateexecutivesavoidsocialmedia.Someareevenaraidoit.WhatdoyouseeinitthattheydontPWItsaplatormormetoexpressanopinion.IreadallotherepliesthatIgetandIusethattoollowshitsinthinking.ItgivesmeanopportunitytointeractwithpeoplearoundtheworldromdierentsegmentsthatInormallywouldnthaveanopportunitytointeractwith.Icallitmydigitalwatercooler.OnetimeIrememberIwaspreparingorakeynoteandIwasthinkingabouttheutureocollaboration.HowwillpeoplecollaborateintheutureandwhatwillbetheirplatormsIpostedthatquestionandtherewasalotocommentarythatcamebackwhichIactuallyendedupincorporatingintohowIwasthinkingaboutcollaboration.Forexamplepeoplesaidalotocollaborationintheuturewillbeonthemobileplatorm.SoaswedevelopsolutionsorcollaborationinCiscosportolioitreallyhastobetargetedatthemobileuserfrst.Thatisdefnitelypartoourcollabora-tionstrategycurrently.TwitterisaveryinterestingmeansobouncingthingsotheworldIguessyoucouldsay.ACCESSArecentCiscosurveyoundthattwooutoeveryfveyoungpeoplewouldtakealower-payingjobinsteadoonethatdidntallowthemtouseamobiledeviceorsocialmedia.WhatdoesthissayaboutyoungpeopletodayandwhatdoesitmeanortheworkplacesotheuturePWThatsaascinatingstudyrightWhatthatsaystomeisthatyoungerpeopleviewthemobiledeviceasanextensionotheirpersonaorpersonality.WhatthatmeansintheworkcontextisthatcompanieshavetoreallythinkaboutenablingwhatwecallBYODorBringYourOwnDeviceintheworkplace.IthinkcompaniesPadmasreeWarriorCiscostrategyandtechnologychiePadmasreeWarriorbelievesthemoreconnectedwearethebetterowellbe.byCHUCKREECETWITTERIusemyTwittereedalottofndothersourcesoinormation.SCIENTIFICAMERICANForverydetailedarticlesanddetailedresearch.MASHABLEAmongthetech-ocusedblogsthisoneismyavorite.THREEWEBSITESPADMASREEWARRIORCANNOTLIVEWITHOUTPHOTOGRAPHYBYJAMIETANAKA6ACCESS1PadmasreeWarriorthechietechnologyandstrategyofcerorCiscohasbigideasandabigaudienceorthemwithaglobalollowingonearly1.5millionTwitterollowers.WarriorandhercolleaguesatCiscobelievethatwiththeinternetoeverythingwecansolvetheworldsmostpersistentproblemsromhungertocleanwatertotheragilityotheglobalfnancialsystem. Ciscobelievesonly1percentofwhatcouldbeconnectedaroundtheworldactuallyis.1havetoreallyembracethispolicyespeciallyiftheirworkforceandtheircustomersaregoingtogrowupinthismobilecloudspace.Theotherthingthatshappeningmorerecentlyisthatwhenpeoplebringtheirowndevicesofcoursetheyrebringingtheirownapplications.SoitsactuallynowturningintoBYOAorBringYourOwnApps.Thatcausessomesecurityconcernsforenterprisessowereworkingonhelpingbusinessesaddressthosebyenablingsecureaccesstoenterpriseapplicationsonmobileplatforms.CiscoisaBYODenterprise.Weletpeoplebringtheirdevices.OurCIOhasalreadyembracedthattransition.Thelinesareblurringbetweenwhatusedtobeaconsumersegmentandanenterprisesegment.ACCESSThemorepeopleareconnectedthemoretheyseemtocravemomentsofdisconnection.IsthistruetoyourexperienceespeciallyasaleaderIfsohowshouldwemanagedisconnectionPWIthinktherearetimeswhenwehavetoimmerseourselvesinthephysicalworldaroundus.Connectivityistheretohelpusbemoreproductiveandenjoythingsmoreandbemorecreativeinourbusinessendeavors.Itisntmeanttobeadistractionoraburden.Ithinkeachofushasadifferentthresholdofhowmuchconnectionwecanhandle.IhavemydigitaldetoxsessionshoursonaweekendordayswhereIdosomethingthatisdifferentfromjustbeingconnectedallthetime.IpaintIwritepoetryIgoforlongwalks.Itakephotographs.Ispendtimewithmyfriendsandmyfamily.Ithinkthatisreallyimportant.Justbecauseyoureabletoconnectdoesntmeanthatyouhavetoconnect.ACCESS7 AninternetcafeinChinawherethewebpopulationhit718millionin2013.8ACCESSACCESS25E-COMMERCEE-commercewillbeontheothersideofatippingpointin2014makingitanevenbiggerplayerinourincreasinglyglobalborderlesseconomy.HERESTHEBIGNEWSNorthAmericaisnowNo.2inecommercetrailingtheAsiaPacifcregionwhichbythewayisgrowingatmorethantwicetherateoNorthAmericaintermsoecommercesalesaccordingtoeMarketerWorldwide.Thereareimplicationshereoreverythingromsupplychainmanagementtolocalzoningandretaildevelopment.Formanysectorsotheeconomytheprolierationomobiledevicesamongagrowingmiddleclasscoupledwithshowroomingandcocooningaremakingyesterdaysretailstrategiesobsolete.Justaskthebigboxstores.WhetheryoureamultinationalbasedinKyotooramomandpopbasedinKansasatrulyglobalecommercesourcinganddistributionstrategyismorecriticaltobusinesssurvivaleveryday.2 in2013AsiaPacifictoppedNorthAmericaastheworldsbiggeste-commercemarket.ACCESS9 InPortlandeyewearmakerShwoodhasgrownfromagaragestart-uptoabusinessof45withmorethan40percentofitsbusinessnowoverseas.40THEMAKERMOVEMENTShwoodisamongtheleadinglightsofthislocavoremanufacturingmovement.ENTREPRENEURSAROUNDTHEWORLDarecombiningtech-nologysocialmediaDIYcultureandapassionforwell-madegoodstocreateanewgenerationofspecialtybrands.TheyevenhavetheirownconventionMakerFaire.Astart-upcalledShinolatheypurchasedtheexistingclassicbrandnamehasrejuvenateda30000-square-footfactoryinDetroitemployingmorethan100intheproductionofbicyclesandwristwatches.InPortlandOre.eyewearmakerShwoodhasgrownfromagaragestart-uptoabusinessof45withmorethan40percentofitsbusinessnowoverseas.ACCESS2510ACCESS3 AFRICABy2040Africasworking-agepopulationwillbelargerthaneitherChinasorIndias.AmongthemanyremarkabletakeawaysinhisbookSuccessinAfricaCEOInsightsfromaContinentontheRiseJonathanBermansobservationsonthecontinentsworkorcemightbethemostthoughtprovoking.TheabsolutegrowthrateinadultworkerscombinedwiththeworldslowestdependencyratiobasicallymeansAricaisgoingtobecometheworldsworkplacehepredicts.By2035Aricasworking-agepopulationages15to64willsurpassChinasby2040IndiasmakingAricastheworldslargestlabororce.MeanwhileowingtohighmortalityamongearliergenerationstodaysyoungAricanswillmatureintoaworkingclasslessburdenedbyelderdependentsthanmostWesternandAsiansocieties.Thatlikelymeanstheyllhavemoredisposableincome.Theyllbemoremobile.Andtheylldemandvastamountsoeducationequipmentandothertypesoenablementoverthecourseotheirworkinglives.ItsanopportunityprovidedyouoerproductsandservicesthathelpthoseworkersbeproductiveBermansays.Puttingproductivity-enhancingtoolsintheirhands.Aswellasprovidingthepowergridandotherinrastructuretohelpthemmakeandmovegoodsoutthedoor.Thatswherethebigopportunitylies.INFRASTRUCTUREWhileJapanandGermanystillleadthepackininfrastructurereadinesstheU.S.isamongalonglistofcountriesdesperateforinvestment.Aninrastructuredefcitcontinuestobeanalbatrossaroundtheneckotheglobaleconomy.ExpertsincludingWorldBankchieeconomistJustinLinseeinrastructureinvestmentasawaytojump-starttheworldeconomyduringtheslowrecoveryromtheGreatRecession.IntheU.S.LauraDAndreaTysonproessorintheHaasSchooloBusinessattheUniversityoCaliorniaBerkeleyhasarguedthatinvestinganadditional150billionperyearinnewhighwaysbridgesrailwaysandairportcapacitywouldcreate1.8millionnewjobsandaddupto400billiontoU.S.GDPby2020.Investinganadditional150Bininfrastructureperyearwouldcreate1.8Mnewjobsandaddupto400BtoU.S.GDPby2020.163millionAfricasworking-agepopulationwillgrowby163millioninthisdecade.ReadaQAwithBermanatfedex.comaccess.PHOTOGRAPHYONLEFTBYSTEVECOOKACCESS1145 12ACCESSACCESS25FASTERWI-FIThelatestWi-Fistandardcomingtoalaptoporbasestationnearyouistwotimesasterthantheprevious.In2013anewWi-Fistandarddubbedacwasofciallycertifedandadoptedbythemanuacturerswhoplantouseit.BytheendothisyearexpertspredictacdeviceswillmakeupthemajorityotheWi-Fimarket.WiththeaveragenumberoWi-FidevicesinU.S.homesdoublingeveryfveyearshomeWi-Finetworksarestrugglingduringpeakdemand.Thenewstandardlargelyavoidsthisproblemandrequireslesspowerconsumption.CellphonecompaniesareexpectedtotakeadvantageoactechnologybyincreasinglydeployingWi-Fihotspotstoooadtrafcromtheircongestednetworks.FREER-FLOWINGNORTHAMERICANENERGYItsbeenthesecretsauceintheNorthAmericaneconomicrecovery.NewlydiscoveredsourcesooilandnaturalgasarebiggerbooststotheNorthAmericaneconomythanevenexpertsestimated.ResidentialU.S.naturalgaspricesellbetween12percentand32percentsince2008dependingonlocationaccordingtotheU.S.DepartmentoEnergy.TheresultmoremoneyinthepocketsoAmericanconsumersasmuchas1200ayearaccordingtoarecentIHSstudy.NaturalgaspricesinmuchoEuropearethreetimesthatoU.S.levelswithAsianpricesevenhigher.TheshitingcostoenergyisonereasoncompanieslikeMotorolahavechosenNorthAmericaasahomeornewmanuacturingacilities.PriceWaterhouseCoopersestimatestheshalegasboomwilladdanadditional1millionmanuacturingjobstotheU.S.economyby2025.RecentlyMexicowhichhastremendousoilandnaturalgasresourcesbegantoopenupitsstate-ownedenergysectortonewprivateinvestment.Thiscouldtiltthebalanceoglobalmanuacturingevenurther.INDIAONTHEMOVEIn2013infationandacreditcrunchhadconstructioncranesstandingeerilystillinMumbai.Will2014markIndiasreturnByAugustoflastyeartheIndianeconomyastarofthedevelopingworldwasinacrisis.Therupeehadplunged25percentagainstthedollar.Creditwasevaporating.Thepriceofdieselwassoaringnearlycripplingacountrydependentonit.oneMillion1millionofthe2.7millionnewjobsintheU.S.between2002and2012wererelatedtoshaleoilandgasdrillingaccordingtoMoodysAnalytics.67RemarkablybyNovembereconomicvitalsstabilizedandbytheNewYearforeigninvestorshadreturned.Expertsarenowoptimisticthat2014willmarkIndiascomeback.TheIndianeconomycontinuestogrowatover5percentsaysElizabethFinchvicepresidentSalesFedExExpressEuropeMiddleEastIndianSubcontinentandAfricaEMEA.Whilethatisacomedownfromthe8to9percentgrowththecountryhadwitnessedinthepastdecadethesizeoftheeconomyandtherealitythatevenintheworstoftimesIndiacontinuestomaintainahighergrowthratethanmostcountriescannotbediscounted.8 ACCESS13EMBARQconnectedpeopletoabetterlifefrom2002to2012SMARTTRANSITThinkyouhaveatoughcommuteIttakesMadelinathreehourstojourneyromhometoherjobinMexicoCityandthreemorehourstoreturnjusttoworkaneight-hourday.Inactmanypeoplelivinginlow-incomehousinglikeMadelinaspenduptofvetimesmoreontransportationthantheydoonhousing.ITSANALARMINGTRENDsharedbymillionsworldwideaschaoticgrowthoverwhelmsinadequateinrastructureandcityplanning.Atleast615millionmorecitydwellersareexpectedinIndiaandChinaaloneby2030.Spiralingcongestionairpollutiontracinjuriesanddeathputtransportationatthecenterothisproblem.Butwhenimplementedsustainablytransportationalsoholdsthepromiseorimprovinglives.ThatsthemissionoEMBARQtheWorldResourcesInstitutesCenterorSustainableTransportation.Itsinthemidstoave-yearplantoinfuencemorethan200citiestoadoptsolutionslikebusrapidtransit.TheirgoaltosaelyandeconomicallyconnectpeoplelikeMadelinatojobsandabetterlie.EMBARQsfagshipMetrobusmasstransitprojectinMexicoscapitalacilitates900000tripsadayandlastyearitreducedcarbondioxideemissionsby120000tons.Anditssavinglives.WorkingwithFedExsaetyexpertstheEMBARQSaetyFirstprojectisdramaticallyreducingtheroadaccidentratethroughnewdrivertrainingprograms.Gotoembarq.orgtolearnmore.5BILLIONPEOPLESERVED.9billionHOURSOFTRAVELTIMESAVED2.6MILLIONTONSOFC02AVOIDED50REDUCTIONINROADFATALITIESSource2012EMBARQAnnualReport9 ShibuyaTokyohomeoftheworldsbusiestintersection.ACCESS2514ACCESSJAPANANDFTAsJapanjoinedtheTPPtradetalkslastsummerandisalsointhemidstofdiscussingaseparatefreetradeagreementFTAwiththeEU.JAPANANDTHEEUhavebeentwoothemorebeleagueredeconomiesothepastdecadesbutanewFTAinnegotiationcouldchangethat.Talksbetweenthetwoeconomicpowersheatedupin2013andshouldconcludeby2018accordingtoanalysts.JapanisalsoatthecenterotheTransPacifcPartnershipTPPnegotiationswhichcontinuesasseparatetradetalks.JapanannounceditwasjoiningtheTPPtalksinMarch2013puttingpressureonotherAPACcountriesnottobeletout.PeterA.PetriavisitingellowatthePetersonInstituteorInternationalEconomicsestimatestheTPPwouldallowJapantojump-startitsstagnantmanuacturingsectorandincreaseexportsby14percent.ItwouldalsobringbillionsingrowthtootherTPPcountriesincludingtheU.S.thatdonothaveFTAswithJapan.10 ACCESS15CHANGEINTHEVALUEOFRELIABILITYVERSUSSPEEDWhyslowandsteadyisthenewsupplychainstandardinmanyindustries.ContainershipsarenowtakinglongertocrosstheAtlanticandPacifcthantheBritishCuttySarkdidmorethan100yearsago.Thistimehowevertheslowspeedsarebeingdrivenbychoicenotwindandsailcloth.Acombinationorisinguelcostsmoresophisticatedjust-in-timesupplychainmanagementandimprovedshipment-monitoringtechnologyhasinspiredmanyshippingproviderstoadoptslowsteamingtooptimizeueleconomywhileprovidingcustomersgreatereconomyanddeliveryprecision.Thestandardspeedoaninternationalcontainershiphasdroppedrom24knotsto20knotswithmanycompaniesevenshippingat12knots14mph.Where24knotswasonceroutineforacontainershipitsnow20knots.TheEUestimatesaJapan-EUFTAwouldcreate400000jobsboostingEUexportstoJapanbynearly33andJapaneseexportstotheEUby23.5KAIZENItmeanscontinuousimprovementinJapanese.ItsattheheartofcompanieslikeToyotawhosecorporategivingdeliversbigexpertisenotjustbigchecks.TheFoodBankorNewYorkCityreliesonanumberocorporatesponsorsorundingbutToyotamightbethemostunique.InsteadodonatingindollarsitdonateskaizenaJapaneseapproachtoefciency.Toyotaprocessengineeringexpertsgoon-sitehelpingwitheverythingromreducingwaittimesordinnertomaximizingwarehouseefciency.WhenwegiveourteammemberstheopportunitytoimplementToyotasknow-howandcorephilosophiesatanonproftwithscarceresourcesitsanextremelyvaluableandrewardingwaytohoneproblem-solvingskills.AndithelpsusdeveloputureleadersatToyotasaysJamieBoniniGeneralManagerotheToyotaProductionSystemSupportCenter.1.5millionTheFoodBankforNewYorkCitythecountryslargestfeedsmorethan1.5millionpeopleeveryyear.1112 16ACCESSACCESS25ForBremontoundersNickandGilesEnglishitsastorythatstartsinthesky.AterallthatswheretheiratherDr.EuanEnglishspentmuchohistimeastheyweregrowingup.Dr.EnglishwasaRoyalAirForcepilotaeronauticalengineerandowneroahistoricaircratrestorationbusiness.HewasaborntinkererapassionthatNickandGilesquicklygrewtoshare.AskidsNicknoteswespentawholelototimeintheworkshopmakingthings.OvertimeNickandGilesgrewtobecomeexpertpilotsintheirownrightandpartnersintheamilysaviationbusiness.Thenonedayinearlyspring1995thecourseotheirliveswasirrevocablyaltered.WhileNickandhisatherwerepracticingoranairshowintheirWWIIHarvardtheplaneranintoengineproblemsandailedtorecover.TheresultwasahorrendousaccidentDr.EnglishdiedatthesceneandNicksueredlie-threateninginjuries.CommittedtotriumphinginthewakeotragedyNickandGileswentbacktotheirengineeringrootseventuallyoundingBremontin2002.TheirgoalreinventtheBritishluxurymechanicaltimepiece.FromaestheticstounctionalityBremontwatcheswouldbepiecesoprecisionequipmentequallyathomeonthewristoanexecutiveorafghterpilot.GREATTIMINGEstablishingasmallbusinessischallengingenoughletalonenavigatingthecomplexitiesowatchmakinginthehyper-competitiveworldoluxurygoods.NickandGileswereortunateenoughtogetearlyhelpromWalpoleaU.K.-basedsmall-businessincubatorthatpairsup-and-comingluxurybrandswithmentorsromacrosstheBritishbusinesslandscape.NickandGileswereconnectedwithAndrewGosheronVicePresidentoFieldSalesEuropeFedEx.Importingwatchcomponentsorhandcratingandexportingfnishedwatchesinternationallyisacomplexendeavor.WithGosheronsguidanceNickandGileswereabletosmoothlymanagecustomsandturntheirattentiontocustomerserviceanddeliverycriticaloraluxurybrand.Bremontshipsitshigh-endtimepieceseverywhereromShanghaitoSanFranciscousingFedExInternationalPrioritywhichmeanstheydonthavetoworryaboutcustomsholdups.ShippingintheU.K.ishandledwithFedExNextDayanovernightservicethatbolsterstheBremontbrandshigh-endimage.Forbehind-the-sceneslogisticsincludingcreatinglabelsandonlinebillingBremontusesFedExShipManageratedex.comgb.ItsnotjustaboutgettingtheproductoutthedoorNicksays.Itsaboutputtingthingsinplacethatwillsavemoneyandtimedowntheroad.GROWTHYOUCANSETYOURWATCHBYBremontmovedintoanewheadquartersinOxordshireinJanuary2013wheretheynowemployastao40including15watchmakers.GoodwatchmakingjobssuchasthesehaventexistedintheU.K.orgenerations.WereessentiallybuildingaskilledworkorceintheU.K.romscratchsaysSarahWeareBremontsglobalmarketingmanager.WeareputsBremontgrowthata50percentannualclip.LikemanyluxurygoodsbrandsBremonthasafrmtoeholdintheCaribbeanandtheUnitedArabEmiratesespeciallyinDubai.TheyalsojustopenedtheirsecondbrandedboutiqueinHongKongandarenowmovingaggressivelyintotheU.S.bysellingthroughanetworkohighlyprestigiousindependentretailersandbuildingstrategicbrandpartnerships.WellhavequitealotgoingonintheStatesin2014Wearesays.AsorNickandGilesEnglishtheyrestillgrateuloreverythingFedExdidtogettheirbrandairborne.AsNicknotesIIdidntknowAndrewGosheronIdontknowhowmuchothiswouldhavehappened.LuxuryGoodsBremonthasbroughtluxurywatchmakingbacktotheUKandcreatedjobsallovertheworldwhiletheyreatit.byROBERTGIBSONLikemanyluxurygoodsbrandsBremonthasafrmtoeholdintheCaribbeanandtheUnitedArabEmiratesespeciallyinDubai.PHOTOGRAPHYCOURTESYOFBREMONT13 35BremontoundersNickandGilesEnglishhavetheirluxurybrandtakingfight.LedbygrowthinAsiaPacifcspendingonluxurygoodsisprojectedtoincreasebymorethan35percentoverthenextfveyearsaccordingtointernationalmarketresearchfrmEuromonitor.ACCESS17 10-1133ShippingtimesavedbyusingtheNortheastPassagebetweenEastAsiaandEurope.18ACCESSACCESS2514NORTHEASTPASSAGEForfourmonthsayeartheresnowanice-freeroutefromAlaskatoNorway.WITHTHENORTHEASTPASSAGEalongRussiasnortherncoastnowopenandlargelyice-reeourmonthsayearcargoshiptrafctherehasincreasedmorethanten-oldsince2010.Inlate2013theChineseevensenta19000-tonvesselthroughthepassageonareightrun.SomeexpertsseeChinamovingsignicanttrafctotheNortheastPassageinthecomingyears. ACCESS19THEINTERNETOFTHINGSWishyoucouldturnuptheACfromyouriPadTheresanappforthat.BeoreleavingworktonightwillyouadjustyourhomethermostatusingyourmobilephoneInotyousoonwill.Theinternetiscomingtoyourlightbulbsrunningshoesandpacemaker.InsectorsromtransportationtomanuacturingtohealthcarephysicalobjectslinkedthroughwiredandwirelessnetworksviatheInternetProtocolwillcontinuetoimproveproductivity.McKinseyprincipalMarkusLferrecentlyreerredtothisastheourthindustrialrevolutiononeinwhichsmartproductsgovernthemselvestakecorrectiveactionandevenautomaticallyreplenishsuppliestechnologiesthatalreadyexisttoday.AsLfertellsMcKinseyProcessanddevicewillbeinseparablephysicalthingsbecomepartotheprocess.Machinesandworkfowsmergetobecomeasingleentity.Theworkfowceasestoexistasanindependentlogisticallayeritisintegratedintothehardware.TOURGUIDEYOUTechnologychipsawayatthebarrierbetweencuratorsandcurated.Thedaysorentingclunkyheadphonesoradigitalaudiotourarenumbered.GooglerecentlyreleasedaGoogleGlassversionoitsreeFieldTripappwhichallowsanyonetocreateandpostaguidedtourwhetheritsoaculturalattractionoralocalneighborhood.ItsapairingthatgoesnicelywithGoogleArtProjectwww.googleartproject.comwhichalreadyallowsyoutotakevirtualtoursomorethan17otheworldsleadingmuseumsromVersaillestoMoMausingGoogleStreetView.Youdontevenhavetoleaveyourcouch.StillcravetherealthingAstart-upcalledMuseumHackwww.museumhack.comisnowoeringalternativetoursomajormuseumsincludingtheMetwithsurprisesaroundeverycorner.GoogleArtProjectoffersvirtualtoursof17majormuseums.1516 20ACCESSACCESS255THEQUANTIFIABLEYOUFitnesstrackersareincreasingouraccesstopersonaldata.TheresBigDataandthenthereslittledatathekindosmall-scalepersonaldataweeachcanusetomakebetterdecisionsaboutourdailylives.Howtoperormbetteratourjobsorduringworkouts.Howtobemoreefcient.Trackingeverythingincludingyouractivitylevelsleepqualityandcaloriesburnedwearabletechisgivingusallexpandedaccesstoabettersel.Expertssayitsadevelopmentthatwillmovequicklyromtrendtoeverydayandplayanincreasingroleinhealthcare.ROBONEWSCompaniesnowusedataandalgorithmstowritenewscontent.Iyouthinkthatonlinestorycoveringyoursonshighschoolootballgamewaspostedatlightningspeedyourenotaro.Anewspapercantaordtosendareportertoeveryhighschoolsportseventorhavemeteorologistspositionedthroughouttheircoverageareabutnewtechnologyisallowingmediaoutletstoaordablybroadenandquickenthereportingoremoteevents.CompanieslikeNarrativeScienceoundedbyNorthwesternUniversityjournalismschoolgraduateshavefguredouthowtousecomputeralgorithmstowriteshockinglycrediblenewsstoriesonvirtuallyanytopicthatcomeswithadatasetsportsbusinessweatherorexample.UPbyJawboneChileseconomyisexpectedtogrowbynearly5percentin2013outpacingnearlyanyWesternnationyoucanname.1718 THELATINAMERICANTIGERIsChileshoteconomythetruestarofSouthAmericaBRAZILMAYHAVEBEENthedarlingotheworldsfnancialmediaoverthepastewyearsbuttheOrganisationorEconomicCo-operationandDevelopmentOECDrecentlynamedChileasthemostinnovativecountryinSouthAmerica.Business-riendlypolicyandaggressivepursuitoFTAshavedriventhenationsunemploymentratetoaseven-yearlowandconsumerspendingisrobust.DespitesevereeconomicinequalityandproductivityissuesChileremainsastarinSouthAmerica.AwinemerchantinSantiagoChileSouthAmericasmoststableeconomy.ACCESS2119 ACCESS25AHFpharmacistYanaBuduitskyprepareslife-savingmedicationsforsame-dayshippinginLosAngeles.FIRSTOPENED2000inLosAngelesU.S.LOCATIONS20FUNDING96ofeverydollarcollectedbyAHFPharmacydirectlyfundsAHFsHIVAIDSprogramsandservicesAHFPHARMACYSTATS22ACCESS ACCESS23Inthepastseveralyearsretailersandespeciallye-tailershavediscoveredhowsame-daydeliveryprovidesnewlevelsovaluetotheircustomers.Orderatoasterovenonlineinthemorningandyoucanbemakingagrilledcheesesandwichordinner.LosAngelesbasedAIDSHealthcareFoundationAHFisusingthissameconcepttodelivermedicationtopeoplewhoselivesdependonit.Foundedin1987asa25-bedend-o-liehospicecenterAHFisanon-proftthattodayservesmorethan200000clientsin28countriesprovidingcounselingadvocacyandmedicalcare.Thankstothe1996revolutioninanti-viraldrugsAHFisabletohelpmanyoitsclientsliveullactivelivesdespiteanHIVorAIDSdiagnosis.Pharmaceuticalsinotherwordsarecritical.PeoplecantakeonepillonceadayandpotentiallyliveanormallieexpectancysaysAHFpresidentMichaelWeinsteinoneotheoriginalchampionsoHIVAIDSadvocacy.ButbreakthroughpharmacologicaltreatmentshaventloweredtheurgencyinAHFsbattlewithHIVAIDS.Inacttheyvedoubledit.THELASTTHREEMILESOFCAREToconnectclientswithtodaysnewestmostpowerulandeectivemedicationstheorganizationlaunchedanetworkoAHFPharmaciesacrossthecountryromLosAngelestoWashingtonD.C.Someothesepharmaciesservemorethan1000peoplemanyowhomrelyonthehomedeliveryomedicationduetoincapacitatingillnesstransportationchallengesorpersonalschedules.WhileopeningaworldoopportunityoritsclientshomedeliverydidpresentAHFwithachallenge.Ontheonehandthecutting-edgeanti-viralpharmaceuticalsAHFPharmacywasdeliveringthrilledclientsandsavedlives.Ontheotherhandapatched-togethernetworkolocalcourierservicesandhealthcaredeliveryspecialistsdidntallowAHFPharmacytodeliverthosedrugsasquicklyreliablyanddiscreetlyastheyneededto.ThesepatientshavetohavethesemedicationswhentheyneedthemsaysAHFseniorvicepresidentPeterReis.Theirmonthlyrefllhastobethereontime.SowhileAHFhadastate-o-the-artworldwidenetworkocareorHIVclientsitwastoootenthelastthreemilesocarethatprovedvexing.Adaysdelayorinthecaseocriticalclientsadelayoevenaewhourswasunacceptable.AsaresulttheorganizationlaunchedaLosAngelesbasedpilotwithFedExSameDayCityaservicethatallowedAHFpharmacistsnear-real-timemedicationdeliveryasquicklyaswithintwohoursoreadytime.InadditiontheserviceprovidedAHFwithshipmenttrackinganewlevelovisibilitythatprovidedevenmoresecurityessentialgiventhevalueothemedicationsandclientprivacyneeds.TimelinessandreliabilityarecriticaltomypatientsbecauseitheymissevenonedoseotheirmedicationitcanthrowotheirentiretherapysaysAHFpharmacistDaleJackson.ItheyneedthatdosetodayFedExSameDayCityisagreatwaytogetittothem.TheinitialpilotprovedsosuccessulthatAHFhasrolledoutFedExSameDayCitytoaquicklygrowinglistoU.S.marketsAtlantaDallasSeattleandWashing-tonD.C.ItsnotwhatwehearromclientsthattellsusthisissuccessulJacksonsays.Itswhatwedonthear.Thecomplaintshavedisappeared.ON-DemandMedicineSame-daysame-cityshippingnotonlyhelpsAIDSHealthcareFoundationsavetimeandmoneyithelpsthemsavelives.byROBERTGIBSONPartofourjobistotakeanyexcuseorobstacleaway.Youcanpickupyourmedicationwhenyoucometoyourdoctorsappointment.Youcanhavesomebodyhand-deliverit.Everyoptionpossibleisavailable.MichaelWeinsteinAHFPresidentSeeAHFvideoatfedex.comaccess.PHOTOGRAPHYBYKEVINBURKE20 24ACCESSACCESS25INTERNETFOREVERYONEFacebookisleadingagroupoSiliconValleycompaniesonamissiontobringthewebtotheworldsmostremotecorners.Todayonlyone-thirdofushaveinternetaccessandalloftheopportunitiesforeconomicadvancementitaffords.Moretroublingaccessisgrowingatjust9percentayear.GoogleandFacebookareamongthetechgiantsaimingtochangethat.Internet.orgisaFacebook-ledpartnershipincludingEricssonMediaTekNokiaOperaQualcommandSamsungthatplanstolaunchnewinitiativestobringinternetaccesstothedevelopingworld.Goalsincludesimplifyingmobilephoneapplicationsimprovingnetworksandinfrastructureandextendingbatterylifesomobiledevicesaremorepracticalindevelopingregions.GooglesFreeZonemeanwhileofferswirelessusersinsomedevelopingcountriesfreeaccesstoGmailwhileGooglesProjectLoonpurportstobeplanningtobeaminternetaccessdowntoEarthfromdirigiblesmorethan11mileshighintheatmosphere.Two-thirdsopeopleontheplanetlackinternetaccess.66CITIESPeopleincreasinglywanttoliveinthem.TheyreresponsibleormostotheworldsGDP.WhatdoesthatmeanorpolicyBy20305billionpeoplewillliveincitiescomparedto3.6billiontodaymakingtheglobaleconomyevenmoreurbanized.Muchofthisgrowthwillhappenindevelopingnationsmeaningfromapolicyperspectiveissuessuchasenergyeducationsustainabilityandinfrastructurewillbecomeevenmoreimportant.WhatmakesacitygreatCultureBusinessconnec-tionsMcKinseyrecentlycrunchedthedataandyoucanreadtheir44-pagereportatmckinsey.com.THESHARINGECONOMYAnewbreedocompanypromisesusefcienciesinconnectingdemandtoslackresources.By2030theworldscitieswillgainnearly1.5billionnewresidents.1.5BillionPHOTOGRAPHYONRIGHTBYDOUGMENUEZ21Ahostofstart-upshavelaunchedwiththegoalofhelpingyoudojustthatteachyourpassionSkillsharecontractyourlaborTaskRabbitcreateyourowncarserviceLyftSidecar.Mobiletechnologyandthestagnanteconomyarehugedriversofthistrendbutsotooisculture.Studiesshowmillennialsforexamplearefarlessinterestedincarownershipthanpreviousgenerations.Thatcarsittinginyourgarage.Yourpassionwhichyouvebeendyingtoteach.Theyrebothexamplesofwhataneconomistwouldcallslackresourcesthingswaitingtobeusedandmonetizedinacapitalisticeconomy.2322 DEMATERIALIZEDGLOBALISMGlobaltradeisincreasinglydefnedbytradeinserviceslesssobyhardgoods.Soshouldourtradepolicyexpertsargue.DEMATERIALIZEDGLOBALISMreferstoaworldeconomydominatedmorebywonkerythanwidgets.SosayArvindSubramanianandMartinKesslerofthePetersonInstituteforInternationalEconomicsina2013paperTheHyperglobalizationofTradeandItsFuture.Unfortunatelytheseexpertssayourtradepolicyhasntkeptpace.Whilenationshavenegotiatedlowerbarrierstotradeingoodsagreementsforloweredbarrierstotradeinserviceshavetrailedbehind.TheTradeInServicesAgreementTISAwhichincludestheEUand21othercountriesholdssomehope.Readtheullpaperatwww.piie.compublicationswpwp13-6.pd.ACCESS25Internationaltradeinserviceshasdoubledoverthepast12yearsaccordingtotheOrganisationforEconomicCo-operationandDevelopment.24 ACCESS25RamonTamayoputseachnewpairofshoesthroughthebufferbeforetheyreboxedup.26ACCESSSteppingOutbyROBERTGIBSONphotographybySTEVECOOKFiveyearsaftertheGreatRecessionbeganAllenEdmondsisashoe-intohitsalesrecordsforathirdyearinarowbybringingMadeinAmericatotheworld.MADEINAMERICA25 ACCESS27ThisentirebuildingwasntevenhereayearagoRoehrsaysgesturingtoameticulouslyorganizedwarehousethesizeoajumboaircrathangar.Tightlypackedpalletstwiceastallasthemenwhowillweartheshoestheyholdawaitpickupbysemi.Nowtheyresayingtheymightknockoutthebackwallsowecangrowagain.RoehrssupervisorRandyWojcikandhisteamassembled14milesoshelvingandmoved54000pairsoshoestocreatethisnewacilityjustlastMarch.Ohbythewaytheydiditinasingleweekend.AndyouthoughtorganizingyourclosetwashardworkRoehrbarelypausestospeakasshequicklyappliesshippinglabelstotheboxesinrontoher.Threeotheourpairsarehigh-endcordovandressshoesboundorShanghaiwhereAllenEdmondsjustopeneditsfrstretailstoretoexcitedshoppers.ThecompanyplanstoopenthreeretailstoresinChinabytheendotheyear.ItsapartotheworldwhereMadeinAmericabrandslikeAllenEdmondsRedWingandWoolricharered-hot.Roehrisalreadytraininginanotherclerktohelpsharetheinternationalworkloadoneo24jobsthecompanyhascreatedindistributionalonesince2008.IcantellyouthisRoehrsaysAllenEdmondsisheretogrow.GRANDBRANDREBORNThefrstthingyounoticewhenyouwalkintoAllenEdmondsdistributionacilityisthatithasthesamescentasanyoneoits46globalretaillocations.Itstheperectmixohigh-gradeleatherslikecordovanandcalskinshoecreamsandpolisheshorsehairbrushesandahintoHarrisTweed.Itsthesmelloeleganceohistoryothingsyouhavetoearnovertime.Ithemostvaluablethingsyourathertaughtyouaboutliecouldhaveascentvaluetrustrespectthiswouldbeit.Asyoutakeadeepbreathwhilelookingatthetowersoshoeboxesstretchingasarastheeyecanseeitshardtoimaginethatjustaewyearsagothiscompanysbalancesheetwasupsidedown.In2008itwasburiedinamountainodebt.Companyleadershipwaseagertoreinvigorateitsproductlinewithclassicdesignsinnewcolorsandtexturesanddeterminedtoreignitedemandrombothitstraditionalcustomerandaneweryoungertarget.ThentheGreatRecessionhit.HonestlyitcamedowntoashowohandsintheboardroomsaysthecompanysCFOJaySchauer.AliepreservercameintheormoacapitalinjectionromGoldnerHawnaMinneapolis-basedprivateequityfrmwhichatthetimeincludedamanagingdirectornamedPaulGrangaard.ClearlyGrangaardsawsomethingspecialintheshoecompanyHesoonresignedromGoldnerHawntoassumetheroleoAllenEdmondsnewCEOandrighttheship.FromtheactoryoortotheexecutiveofcesGrangaardandhismanagementteamareuniormlyrespectedandcreditedwithsavingthecompany.Grangaardimmediatelyputthenewcapitaltouserepositioningthecompanyortheeconomicturnaround.Keytothisplan1.recommittingthecompanytoitscoreclassicswhileIFYOUWANTTOUNDERSTANDWHEREALLENEDMONDSHASBEENandwhereitsgoingtheresarguablynobetterpersonintheworldtotalktothanJeanRoehr.Roehrwhohasbeenwiththecompanysince1971isnttheCEO.Inactshedoesntevenworkinthesamebuildingastheexecutives.RoehristheleadinternationalshippingclerkattheAllenEdmondsBywaterdistributioncenterinPortWashingtonWis.FromherworkstationjustaewstepsromthecompanysourmainloadingdocksshesatthevortexotheU.S.-ownedshoemanuacturersaggressiveexpansionintointernationalmarkets.EveryU.S.presidentgetsapairoAllenEdmondsshoesuponenteringofce.FourpresidentshaveevenwornthemtotheirinaugurationsPresidentRONALDREAGANPresidentGEORGEH.W.BUSHPresidentBILLCLINTONPresidentGEORGEW.BUSH1981198919932001 Astheworldclimbedbackfromnear-economicruinnewjob-seekingmenneededtoupgradetheirwardrobe.SalesrepVincenzoVitaleftsacustomerinoneoAllenEdmonds46globalretaillocations.ACCESS2528ACCESS expandingintomodernstyles2.moreapparelandaccessories3.anaggressiveretailpresenceunderanexpandedootprintoAllenEdmondsbrandedstoresand4repositioningAllenEdmondsasagreatAmericanmanuacturer.Thegoalgettheattentionoayoungerdemographicandtakemorecontrolovermarketingandthepoint-o-saleexperience.Timingcouldnthavebeenbetter.Astheworldclimbedbackromitsbrushwitheconomicruinjob-seekingmenneededtoupgradetheirwardrobe.Atthesametimeyoungermenbegandressingupagainandinmanycasesspendingmorethaneverbeore.SuddenlyAllenEdmondsshoeswhichrangeinpricerom175to695wererightinmaleshopperscrosshairs.REDVESTRECRUITSAvisittotheAllenEdmondsPortWashingtonactoryshowsjusthowrightGrangaardsinstinctswere.Theacilityechoeswithnearlyrelentlessnoiseandactivity.Leatheriscareullyinspectedandtrimmed.Leatheruppersareastenedtolasts.UsingpowerulmachinerycratsmenattachAllenEdmondsamouscorkootbedtoeachshoeoneatatime.Bufngwheelsspin.ProductionManagerBobSteesa13-yearcompanyveteranpointsouttheworkersinredvests.Thevestssigniynewhiresapprenticeswithewerthan90daysonthejob.Todaythereare42ontheooreachgettingahands-oneducationinmakingsomeothefnestmensshoesintheworld.TheirteachersarecratsmenwhoinmanycaseshavebeenwithAllenEdmondsordecades.Workersherereceivestrongpayhealthbeneftsanda401k.GrangaardmayhaveaddednewstylestotheAllenEdmondsarsenalandchangeditsretailstrategybutvirtuallynothinghaschangedaboutthewaytheshoesaremade.Steesandhisteamsstillcratmorethan90percentotheminWisconsinusingapainstaking212-stepprocess.Andtodaytheyremakingmoreshoesthanever.In09weweremakingabout900pairsperdaySteessays.Todayitsabout2300pairsperday.WereworkingovertimeabouttwooutoeverythreeFridaystokeepupwithdemand.EveryonetakesprideinqualitysaysLindaNewkirk.SheshouldknowShesqualityteamleadortheactoryanda22-yearcompanyveteran.Shealsoknowsshespartoacompanyontherise.Iconvincedmyhusbandtogiveuptruckdrivingtoworkhereshesayslaughing.AndhesgladhedidTheytakegreatcareous.NewkirkdoesadmitthereisonedownsidetoworkingatAllenEdmonds.IfndmysellookingatmenseetallthetimethinkingYoushouldbewearingbettershoesGLOBALREACHWhilethesecretsauceintherebirthoAllenEdmondshasundoubtedlybeensmartstyleandevensmarterretailingakeyingredientinthatsaucehasbeenshippingandlogistics.Itsbeencriticaltokeepingupwiththenewdemand.WithourmoreaggressivegrowthstrategyweneededamoreaggressiveshippingstrategysaysTerryHowellAllenEdmondssupplychainmanagerwhotodayiswearingashinypairobourbonMcAllisters.Lastyearweshipped2000packagesonourbusiestday.Lastweekweshippedmorethan3500packagesinadayandIknowwellbreakthatrecordagainbeoretheyearends.Onlinesalesviawww.allenedmonds.comareahugedriverwithe-commercegrowingat60percentyear-over-yearaccordingtoHowell.pairsofAllenEdmondsshoesaremanufacturedeachyear.500ThousandRandyWojcikandJeffLansershelveoneofthe54000pairsofshoesininventory.Continuedonpage32ACCESS29 allenedmondsbythenumbersCarsonCityCasualbootsawaittheirnewoutersoles.30ACCESSONEThousandemployeesworldwide500Thousandpairsofshoesmanufacturedperyear500employeesinPortWashingtonWis.250jobsaddedinPortWashingtonsince2008 140millionALLENEDMONDS2013REVENUEACCESS31WHOLESALENORDSTROMSAKSETC.RETAILANDE-COMMERCEWWW.ALLENEDMONDS.COMANDRETAIL46ALLENEDMONDSRETAILLOCATIONS24000beltssoldinamonth46retaillocationsaroundtheworld91yearsAllenEdmondshasbeenmakingshoes212stepsittakestocraftanAllenEdmondsshoe In2012AllenEdmondsturnedtoFedExandaskedthecompanywhatitcoulddotostreamlinetheAllenEdmondssupplychain.EnterFedExDistrictSalesManagerJohnWhit-tingtonandanentireteamoFedExlogisticsandautomationexperts.ThesolutiontheydeliveredtoAllenEdmondstappedvirtuallyeveryserviceFedExoersitscustomers.OntheinboundsidetheworldsfnestleathersandothercomponentsarriverommultipleportsaroundtheworldGermanyItalyandIndiatonamejustthreeviaFedExTradeNetworks.Andthenakeytwo-times-per-weekinboundshipmentomaterialsarrivesromtheDominicanRepublicviaFedExExpressCaribbeanTransportationSolutionsandFedExPriorityOvernightAirFreightdeliveredtwoullbusinessdaysasterthanthepreviouslogisticsnetworkoered.TheseskidsarecriticalormanuacturingoperationsandFedExhasdonenothingshortoconverttimeintomoneyorAllenEdmonds.WithourpriorcarriertherewasasetshippingscheduleandwehadtoorganizeourproductionacilityarounditsaysDaveBarbervicepresidentoSystemsandTechnologyTOP-SELLINGSHOESTYLES1PARKAVENUE345.002STRAND345.003MCALLISTER345.0075AllenEdmondsbusiestshippingdayin2013had75morevolumethan2012.OmarCollazoperformsoneofthe212stepsthatgointoanAllenEdmondsshoe.32ACCESS atAllenEdmonds.WhatsniceaboutFedExistheycreatedashippingprogramtomeetourschedule.IAllenEdmondscansourcearawmaterialanywhereintheworldwecangetittoPortWashingtonintwotothreedaysWhittingtonsays.OntheoutboundsideAllenEdmondsnowreliesonFedExGroundorweeklymerchandisedeliveriestoits46retaillocations.Andoritsexplodinge-commercebusinessitusesFedExHomeDeliveryandFedExExpressthelatterpopularwithAllenEdmondsmoredemandingcustomerswhorequentlywanttheirdressshoesbythenextmorning.E-commerceintegrationwasairlyeasythanksinlargeparttohowmuchFedExhelpedusBarbersays.WHERETONEXTThereisaconsistentmessagecomingoutoAllenEdmondsWewillalwaysbeashoecompanyfrstandwewillalwaysstaytruetomen.AsSchauersaysAllenEdmondsisalwaysgoingtobeamensliestylebranddrivenromtheootup.Atthesametimetheresundeniableexcitementoverthebrandsincreasingdiversifcationintoaccessoriesandapparel.Schauerproudlynotesthatbeltsalesaloneareup40percent.AsmenaredrawntoAllenEdmondsorantasticshoestheyreincreasinglyexploringwhatelsethebrandhastooer.TodaythatincludesnotjustbeltsbutalsoherringbonesportcoatswoolscarvesbriecasesandevenleatheriPhonecovers.AsmuchaspossibletheseitemsareallsourcedandmanuacturedintheU.S.TheutureoAllenEdmondsinotherwordsappearstobeasbrightastheshineonanewpairocalskinParkAvenues.ThebrandishotSchauersays.Menaredressingbetter.Theyrewearingbrownshoesinsteadobeat-uptennisshoes.Thegrungelookisout.Wearereallywellpositionedtocapitalizeonhowmenarethinkingaboutthemselvestoday.NOWHEREDOESALARGECOMPANYMEANMORETOACOMMUNITYTHANINASMALLTOWNandthatscertainlythecasehere.AllenEdmondsiscurrentlythetownslargestemployerjustaheadoinsuranceandbenetsproviderAnsayAssociates.TheheritageothisareaismanuacturingsaysAllenEdmondsCFOJaySchauer.Weresoproudtobeapartothat.Since2008wevehiredmorethan250peopleinPortWashingtonalone.Fromajobsandtax-basestandpointAllenEdmondsishuge.NodoubtaboutitsaysPortWashingtonMayorTomMlada.Butheaddsitgoesbeyondthat.WhatIvaluemostisthepartnershiphesays.IwehaveeventshereinthecityAllenEdmondsisalwayswillingtoserve.MladaevenaskedSchauertoserveonthePortWashingtonEconomicDevelopmentCommittee.ThegoalHowcanthecityincubatethenextAllenEdmondsAllenEdmondswantstopayitorwardMladasays.Tohavethatkindoexpertisethatkindoinputinwhatwedoitsreallycritical.SHOETOURISMThebiggestimpactAllenEdmondshasonPortWashingtonmightbetourism.ThecompanysShoeBankwhichisattachedtotheproductionacilityandsellssteeplydiscountedactorysecondsdrawsasteadystreamovisitorsromallovertheMidwestespeciallyChicago.TheycometoPortWashingtontobuyapairoshoesontheirwaytoDoorCounty.Theyvisitthemarina.Theybuylunch.TheyleaveandexportthePortWashingtonbrand.Theresahugedown-the-lineimpactMladasays.TheimpactissogreatthatthemayorsaysthenorthendotownwheretheShoeBankislocatedhasbeenidentiedormoredevelopmentincludinglandscapingandadditionalretail.ThatShoeBankstoredoesasmuchbusinessasanyAllenEdmondsstoreinNewYorkCity.WhentheysharedthatwithmeIwasblownawayMladasays.WhatmayorwouldntlovetohaveAllenEdmondsashisorhercityscallingcardItsagreatcompanyandagreatAmericanstory.WeresoproudAllenEdmondscallsourcityhome.Thatsenseoprideiseverywhere.OntheeetoPortWashingtonpoliceofcerEricSchmelingashewalkswiththemayoryouguesseditapairoAllenEdmonds.ThemayorofPortWashingtonWis.TomMlada.ACCESS33WHATSHOESMEANTOMAINSTREETItsimpossiblenottofallinlovewithPortWashingtonWis.Apicturesquesmalltownof12000ontheshoreofLakeMichiganwithasparklingmarinaithasallthecharmofaNewEnglandseasidevillagewhilestillbeinganeasy30-minutedrivefromdowntownMilwaukee.SeetheAllenEdmondsvideo.Gotofedex.comaccess. Thiscouldbetheconnectionthatchangeseverything.Itcouldbeanewenergy-savingtechnology.Perhapsthenextmedicalbreakthrough.Orapricelessfamilyheirloomrediscovered.Whenpeopleaccesstheworldanythingbecomespossible.Tolearnmoregotofedex.comaccess.FedEx.SolutionsThatMatter.SM