Running Windows XP? Time to Think of Alternatives

From The Kiplinger Letter, Sept. 13, 2013

If your computers use Microsoft's Windows XP operating system, take note:

As of April 8, 2014, Microsoft will no longer provide technical support for it, despite the popularity of the venerable software. So users will no longer receive fixes for glitches or updates to ward off the latest security threats, as they have for years. Most businesses will upgrade to Windows 7, one of three operating systems currently sold by Microsoft. But before upgrading, make sure your current computers are powerful enough to run the newer software. Many users will need new machines for Windows 7 or the more advanced Windows 8, meant for devices with touch screens.

Watch for more and more touch screens to pop up in business applications, as folks used to smart phones and tablets in their personal lives increasingly prefer to tap and swipe rather than click and type. Tablets and other touch screen devices let office workers instantly share files, work together online and do other group tasks in ways that PCs can't, making the offices more collaborative...and more productive.

Also sure to catch on: "Coauthoring software," which allows multiple workers to edit and/or write documents simultaneously. Versions from Google, Microsoft and others will track each worker's changes and keep everyone on the same page, even folks based in different physical locations. That promises to boost efficiency… no more e-mailing Word files back and forth or keeping track of the latest version.

Modest Growth for Southeastern States -- From The Kiplinger Letter, Sept. 13, 2013

Moderate economic improvement next year for most of the Southeast U.S.

North Carolina. Buoyed by gains in the leisure and hospitality sectors, as well as by business and professional services and software companies, growth will accelerate by half a percentage point or so, nearing the 4% mark. Look for hiring to pick up enough to lop half a percentage point off the state's high 8.9% jobless rate.

South Carolina. Similar improvement for N.C.'s sibling state in 2014… about 4% economic growth, spurred largely by continued expansion in construction, manufacturing and financial services. The Palmetto State's 8.1% unemployment rate isn't as high as N.C.'s, and at the end of next year, it will likely hover around 7.5%.

Georgia. More jobs in aircraft assembly, business and financial services, and production of construction equipment will lower the Peach State's 8.8% jobless rate to 8.3% or so by year-end 2014. Economic growth…rising from 3.3% in 2013 to 4%.

Florida. More improvement in the state's hospitality and tourism industries plus the convalescence of the Sunshine State's devastated housing market spell jobs. Unemployment will dip from 7.1% to about 6.7% by the end of 2014, as the pace of economic growth climbs from about 3.3% this year to the 3.7% neighborhood, next.

Alabama. Already enjoying the lowest jobless rate in the Southeastern states, Ala. can look forward to unemployment touching 6% by the time 2014 closes. The push will come mainly from the state's auto and auto parts manufacturers, makers of transportation equipment and technology businesses. Still, Ala.'s economy won't see much better than average growth…say 2.2% in 2013 and 3.2% in 2014.

Tennessee. A more moderate pickup in the pace of manufacturing growth for the Volunteer State this year and next. But help from mining, natural resources and professional and business services will bolster it, allowing about 3.7% growth in 2014, up from 2.5% this year. From 8.5% now, joblessness will slip below 8%.

New Technologies for Cars, Trucks Coming -- From The Kiplinger Letter, Sept. 13, 2013

A slew of automotive innovations are on the way: An electronic clutch from Germany's Bosch…the mechanical simplicity and lower fuel usage of a manual transmission combined with the easy-driving appeal of an automatic.

Solid tires, in the works at Bridgestone of Japan and other tire suppliers. Built as a single unit, the wheel and tire reduces weight, eliminates flats and saves gas.

And energy-generating shock absorbers, being developed by Levant Power of Mass. in partnership with German equipment maker ZF. Special fluid-filled valves greatly decrease vibration...helping trucks ride more smoothly and cars handle better... while using the suspension's motion to produce electricity. Look for it in a few years.

How India's Slowdown Affects the U.S., World -- From The Kiplinger Letter, Sept. 13, 2013

India's deepening economic crisis is troublesome, if only because the country is huge. The 10th-largest economy, it dominates the Asian subcontinent and ranks second only to China in importance to Asia as a whole. With growth now running at about half of the brisk 9% or so it averaged from 2003 through 2007…

The potential to dampen global growth and, with it, U.S. exports is very real, though key Indian policymakers are determined to push through the reforms needed.

The main impact for now is the hastening of capital flows into the U.S. Tarnished prospects for emerging market growth, combined with investor expectations that U.S. interest rates are headed higher, are spurring increased investment here.

The dollar's value will continue to strengthen, and not just against the rupee.

Shipping Crude by Rail Booming, But New Regs Loom -- From The Kiplinger Letter, Sept. 13, 2013

Booming oil output will be a boon to freight railroads for years to come. Refiners are finding rail shipping, once viewed as a temporary stopgap till sufficient pipelines were built to get crude to markets, as fast, flexible and affordable.

Look for more investment in rail infrastructure…new terminals at refineries on the East, West and Gulf coasts as well as inland, especially in N.D. and Texas.

Orders for tank cars will keep mounting, to handle the rising volumes of crude being pumped from southern Texas to western Canada. Railcar manufacturers figure to keep busy for years delivering enough tank cars to meet the flood of orders.

But surging use of rail to move crude will spur more regulatory scrutiny, especially in the wake of July's fatal tank car derailment and explosion in Canada. Multiple federal agencies are mulling the need to impose tougher rules on shippers.

Among likely new safety requirements to prevent spills: Better crew training, to ensure rail personnel can spot developing problems. Stepped-up federal inspections, focusing on rail control rooms. And stipulating that existing tank cars be hardened. The feds say 77,000 existing tank cars aren't strong enough to withstand a collision or derailment. The cost: Up to $1 billion if regulators adopt stringent standards.

Coatings Will Let Phones, Other Electronics Shed Water -- From The Kiplinger Letter, Sept. 6, 2013

Waterlogged electronics will soon be a thing of the past. Ultrathin coatings will render smart phones, radios and other sensitive gear all but waterproof in a few years, leading to a new generation of rugged but lightweight mobile devices. That'll be a boon for businesses that have workers who face harsh environments. Now they often must make do with a handful of custom-built, weatherized products.

Existing gear can be waterproofed, too. California-based Liquipel, for instance, will treat smart phones and tablets with its protective coating. The cost: $60 and up.

More Private Satellites to Improve Phone, Data Services -- From The Kiplinger Letter, Sept. 6, 2013

It'll soon be easier for private companies to launch commercial satellites, thanks to a series of rule changes by the Federal Communications Commission.

Agency streamlining of regulations should lead to more private satellites in the sky.

The result: Better, less expensive cellular phone and Internet services in remote areas that don't have coverage now. And more investment in technology that can help terrestrial businesses. One example: Real-time images from above, which are valuable to real estate agents, insurance underwriters and researchers.

South Central State Economies to Ride Energy Boom -- From The Kiplinger Letter, Sept. 6, 2013

A mostly solid outlook for the economy of the South Central U.S. next year. Strength in the oil and gas industries will buoy growth in several states, while at least one state will continue to struggle, lagging behind the U.S. as a whole.

Mississippi. Gains in the state's durable goods manufacturing businesses and health care companies will help whittle unemployment to near 8% next year. But, little chance that the Magnolia State's economic growth will climb over 2.5%.

Louisiana. Rising profits and productivity in natural gas, petroleum refining and petrochemical industries will keep Louisiana growing faster than the average in 2014…about 4%, after a 3% gain in 2013. Unemployment next year…below 7%.

Arkansas. The Natural State might just as well be called the Norm State, economically speaking, with unemployment and growth paralleling the U.S. average. Joblessness, now at 7.4%, will tick toward 7%, while output gains climb from 2% this year to about 3% in 2014. Give the improving outlook for home construction much of the credit in both cases. Also helping Arkansas…chemicals manufacturing, production of lumber and wood products, and the leisure and hospitality industries.

Oklahoma. Also getting a boost from construction, leisure and hospitality, the Sooner State will benefit mostly from gains in the energy sector. Joblessness is likely to slip below the 5% mark next year, from 5.3% now, with economic growth notching up by a percentage point or so…from about 3.5% this year to 4.5% in 2014.

Texas. The Lone Star State's economy will remain the brightest in the region, with a booming housing market and a fast-growing energy sector. A respectable rate of economic growth this year…about 3.5%...will accelerate next year to a robust 5%. Now 6.5%, unemployment will end 2014 down an additional few tenths of a point.

Sequester Cuts Reach Down to the States -- From The Kiplinger Letter, Sept. 6, 2013

State governments will face another round of program cuts later this year, part of the pass-down pain from sequester cuts in the next federal budget. Uncle Sam's temporary spending plan will be finished by Oct. 1. State budgets have largely been in place since July 1, when a new sequester round wasn't certain and state officials could only guess at the program cuts they'd need to make later. Look for the sequester to cost states a total of nearly $4.4 billion in 2014. Rather than gut some programs, the pain will be spread wide. 75% of grant projects will be cut: public housing, some education initiatives, rural economic development, community development block grants and state help for businesses of all sizes. States receive about 30% of their funding from the U.S., 90% in the form of grants.

Work for the Government, Get Student Debt Relief -- From The Kiplinger Letter, Sept. 6, 2013

Government job recruiters are playing up a benefit of public sector work: Relief from the mountain of debt that follows some job seekers from college.

The private sector can't forgive government loans, giving state and federal agencies a chance to compete when trying to attract top candidates entering the workforce. The recruiting efforts will target teachers, nurses, emergency responders and others. In addition to attracting workers to positions that usually offer lower salaries than many comparable jobs in the private sector, the loan relief efforts will help to retain employees. Anyone who leaves a job before a minimum commitment is met… often a decade…will lose the benefit and will have to start making full loan payments.

Finding Value in Social-Media Advertising -- From The Kiplinger Letter, Aug. 30, 2013

Consider low-cost ads on Facebook and Twitter to tout goods or services. The most effective ads on the two social media sites appear in news feeds… updates from friends and family posted on users' Facebook or Twitter home pages.

A $5 ad on Facebook can put your firm in front of as many as 2,000 people. For $100...at least 28,000 viewers. Twitter ads will be billed only when users engage. The typical cost to the sender: $1.50 to $2.20 per tweet. Both Facebook and Twitter are also looking at targeting ads to users by ZIP code…a boon to small businesses.

Midsize Cities Tout Appeal to Tech Start-Ups -- From The Kiplinger Letter, Aug. 30, 2013

Move over, Silicon Valley. The boom in high-tech start-ups is spreading out. Several midsize cities around the country are luring new ventures in fields ranging from software and biotech to pharmaceutical research. Low living expenses, cheap office space and friendly climates are proving powerful magnets for new firms.

Among the new hot spots: Sioux Falls, S.D. Missoula, Mt. And Cheyenne, Wy. All offer ample space for manufacturing facilities and access to high-speed Internet, supercomputing facilities or data centers…key resources for aspiring tech ventures. Other locations to watch: Raleigh, N.C., Bend, Ore. and Provo, Utah. Big data centers that need lots of air-conditioning will be especially drawn to areas with cool climates.

Central States to Post Above-Average Growth -- From The Kiplinger Letter, Aug. 30, 2013

For much of the central U.S., better 2014 growth than the national average.

North Dakota. Once again, a front-runner, propelled by the state's shale gas and oil industries plus a strengthening agricultural sector. Economic growth next year is likely to top 7%, while unemployment slides below this year's already enviable 3%.

South Dakota. Far behind its northern cousin's, S.D.'s 2014 economic growth of 4% will top the national average, buoyed by the hospitality and leisure industry and financial services. Also…improved prices for the state's farmers and ranchers.

Nebraska. Strength in its service industries, particularly hospitality and health care, will keep the Cornhusker State at or above average 2014 growth… about 3.5%, following a 2.5% gain this year. Unemployment, now 4.2%, won't change.

Kansas. The state's below-average 5.9% unemployment rate will tick lower next year, as growth in economic activity tops the 4% mark, after a 3% gain in 2013. Higher cattle prices and rising farm productivity will help bring in more revenue.

Missouri. Manufacturing will give this state a lift in late 2013 and 2014, while job gains in hospitality and leisure, plus trade, transportation and utilities push joblessness below 7%. Economic growth near 3% in 2014, closer to 2% in 2013.

Iowa. Look for the economy in the Hawkeye State to pick up a bit more steam next year, 3.3% or so, with both manufacturing and service industries on the upswing. Agriculture, too. Unemployment, at 4.8% now, won't drop much more, though.

Minnesota. Improvement in educational and health services will help the state finally hit its stride this year, pushing unemployment to about 5% by year-end, 2014. Economic activity…gaining close to 4% next year. This year, less than 3% growth.

Rubio, Too, Will Back Off Immigration Reform -- From The Kiplinger Letter, Aug. 16, 2013

The next big sign that comprehensive immigration reform is dead this year? Sen. Marco Rubio (R-FL), a key proponent of change, will temper his push for a major overhaul in favor of taking smaller, less conspicuous steps toward reform. Rubio, who has designs on the presidency in 2016, is getting off the reform bandwagon after realizing he has little chance of winning over the far right if he stays the course.

Moreover, neither political party will budge from its entrenched position. The majority of House Republicans and many of their constituents remain opposed to a law that would pave the way for more foreigners to live and work in the U.S., because they see it as giving amnesty to more than 10 million undocumented workers. Senate Democrats and a handful of GOP allies are determined to have a new law include a pathway to citizenship for law-abiding people who are in the country illegally.

Rental Market Will Continue to Grow -- From The Kiplinger Letter, Aug. 16, 2013

Expect to see fewer vacancy signs on rental properties for a few years or so as the rental market heats up. About two-thirds of newly finished apartment units were rented in the first quarter of 2013, up from 50% four years ago and on a par with prerecession norms. 35% of U.S. residents live in rental units instead of buying.

Driving the increase in renters: A gradual hike in mortgage loan rates, which will make owning less affordable, especially after the Federal Reserve pulls back on quantitative easing. Higher interest will continue to cool off some potential buyers. For now, tenants will see their payments to landlords grow faster than their incomes.

Watch, too, for more investors to see rentable units as attractive investments. The buy-to-rent market will grow quickly, from $17 billion to over $50 billion over the next three to five years. Wall Street will join the action, packaging shares of rental units. Blackstone is an early player. Other big names will be sure to follow.

Court: Ohio Must Recognize a Same-Sex Marriage -- From The Kiplinger Tax Letter, Aug. 16, 2013

An Ohio death certificate must reflect the decedent's same-sex marriage, a federal court says. Two men living in Ohio had been together for over 20 years. When one of them was close to death, the couple flew to Md., where they married on the airport tarmac and then returned to Ohio. Same-sex marriage is legal in Md., but Ohio doesn't allow the unions, nor does it recognize such marriages as legal if performed in other states. The couple asked a court to require the Ohio registrar to list on the eventual death certificate of the terminally ill spouse that he was married. The court told the registrar to do so, noting that the state OK'd opposite-sex marriages from other states and must do so for same-sex ones.

Americans' Appetite for Burgers to Stay Strong -- From The Kiplinger Agriculture Letter, Aug. 9, 2013

Though per capita beef consumption in the U.S. will keep slipping overall… Americans aren't about to let go of hamburgers.

A survey found 95% of consumers report eating burgers at least once a month…51% at fast-food restaurants, up from 43% since '11. Leading the beef patties surge are premium choices…think Five Guys Burgers and Fries and the like…as consumers grow more picky. Over half of people surveyed want burgers from never-frozen beef, and 64% want multiple choices in toppings and such.

More Pain Ahead for European Economies -- From The Kiplinger Letter, Aug. 16, 2013

Europe's slight growth in the second quarter isn't much more than a glimmer of light in what's likely to be a long, dark tunnel of economic misery ahead… not the beginning of a sharp turnaround. The economies of most peripheral nations will continue to shrink, as France and Germany manage to eke out modest growth.

As a whole, the region will lose more ground this year. In 2014…a slim gain.

What's more, the euro zone's debt woes are worsening. Austerity measures intended to rein in government debt aren't working. The region's total debt rose by $200 billion in the first quarter of the year, hitting a record 92.2% of GDP. Odds are the slender second-quarter GDP gain won't be enough to improve on that. Indeed, for many euro zone countries, GDP is shrinking faster than their debt.

New Applications for Space-Based Technology -- From The Kiplinger Letter, Aug. 16, 2013

On the way: Earthbound roles for hardware designed for use in space. Remote ultrasound devices, much smaller than those used in hospitals. Pressure monitors that can be used in minisubmarines, planes and diving gear. Cold-plasma systems, shown in trials to promote wound healing and kill germs.

Better robots, too, modeled on the robotic arm on the International Space Station. Many of the devices, already sized to fit tight spaces, will shrink even more for portability and access. The new gear will join first-generation space inventions that have long been absorbed into everyday activities and are now taken for granted: Scratch-resistant lenses. Cordless tools. Photovoltaic cells. Aircraft de-icing systems.

Government Buying Sugar for Fuel Production -- From The Kiplinger Agriculture Letter, Aug. 9, 2013

USDA will soon begin buying raw sugar and reselling it to make ethanol, a backup plan established by Congress to avoid excess sugar stocks. So far, USDA is trying to stem a surplus by paying firms to re-export sugar, but stocks will weigh in at a bulky 2 million tons in Sept., and refined sugar has slid to 25¢/lb. So the Ag Dept. will buy some sugar in an effort to keep prices high enough so that farmers' sugar beet and cane co-ops won't just keep their USDA-financed loans and forfeit their sugar to the Dept. of Agriculture…allowed when prices fall too low.

IRS Looking Closely at Worker Misclassification -- From The Kiplinger Tax Letter, Aug. 2., 2013

The IRS is focusing a lot of resources on contractor-vs.-employee classifications. It'll step up its efforts to make sure that workers are classified correctly. A recent review of 5,000 cases by U.S. Treasury inspectors found that in 15% of them, employers kept on issuing Form 1099-MISC to the workers instead of giving W-2s. Misclassification by employers potentially costs millions in lost taxes.

Major League's Fans Will Return to the Parks -- From The Kiplinger Letter, Aug. 16, 2013

Don't read too much into Major League Baseball's recent dip in attendance.

Odds are fans will be back next year. Though crowds are down about 2% from a year ago, the drop-off is likely the result of a confluence of unusual factors: Foul spring weather. Struggling big-market teams. And the renewed flap over steroids.

Minor league games still draw…a good sign for merchants catering to fans.

And don't fret about a boycott of the Winter Olympics in Sochi, Russia. Moscow's granting of asylum to U.S. leaker Edward Snowden and its antigay views are ruffling feathers, but that's not enough to keep American athletes home in Feb.

Decent Growth for Midwest Economies in '13, '14 -- From The Kiplinger Letter, Aug. 16, 2013

A middling outlook for much of the U.S. Midwest this year and next.

Ohio. The strengthening auto industry and solid growth in health care will help push Ohio unemployment below 7% by year-end and nudge wages up by about 3.5% in 2013 and in 2014, when that'll top the average raise in the U.S. About 2.6% economic growth this year and a bit over 3% next for the Buckeye State.

Kentucky. Stagnating coal production will be more than offset by gains in the business services industry, pushing economic growth over 3% this year. Come next year…a percentage point or so higher. Better than average, both years.

Indiana. About the same as Kentucky, with growth boosted by a revival in manufacturing and strength in the pharmaceuticals industry. Nevertheless, the state's unemployment rate, now 8.4%, will likely remain somewhat above average.

Illinois. Less impressive employment growth than some of its neighbors this year and next…about 2%. The state's lone bright spot, manufacturing growth, won't be enough to lower the 9.2% jobless rate...second highest in the U.S...by more than a few percentage points. Overall growth this year…2.5%. Next year…about 3%.

Michigan. The boon from a pickup in vehicle sales, particularly light trucks, will continue to buoy growth, pushing it from about 2.2% this year to just over 3% in 2014. Unemployment will decline but still top 8% as 2014 draws to a close.

Wisconsin. A recovering housing sector plus job growth in leisure, mining and other natural resources industries spell growth of about 1.7% this year. Nearly double that next year, as gains in these industries continue to pick up steam.

Verizon to Facilitate Texting Charitable Donations -- From The Kiplinger Letter, Aug. 16, 2013

Charities that receive donations by text message will get a lift by mid-2014, when Verizon joins other mobile carriers that allow digital gifts of up to $25. That's critical because Verizon is the service provider for about 33% of U.S. customers. Now, texted donations for $5 or $10 can be repeated, but that's too time consuming to be popular. As more folks get the $25 option, nonprofits will start talking it up.

Donation-by-text pitches are especially common after natural disasters.

Economic Growth in "BRICS" Countries Slowing -- From The Kiplinger Letter, Aug. 9, 2013

Steam is rapidly leaking from the economic engine called the BRICS nations. The economies of all five…Brazil, Russia, India, China and South Africa... are growing more slowly than they have been, with consequences for global gains.

For Brazil…only about 2% growth this year and not much more in 2014. The big agricultural and commodity producer is feeling the strain of reduced exports to China. Street protests by unhappy union members aren't likely to go away soon.

Not much better for Russia…about 2.5% this year, but gathering strength in 2014 to rack up a 3.5% or so gain. President Putin plans to pour nearly $14 billion into infrastructure and small business lending to give the country's economy a jolt. Longer term, Russia's hostile climate toward overseas capital clouds growth potential.

About 5% growth for India...a huge, swift decline from the 8% rate posted for most of the past decade. That, plus a stubbornly high 10% inflation rate, a decline of about 10% in the value of the rupee so far this year, and a slide in investment and savings rates, casts doubts on whether India can turn the situation around.

For China, figure on 7% this year and perhaps a bit more next. With wages on the rise and the economy slowing, maintaining the massive government investment that has fueled much of China's amazing growth in recent years will be tough. South Africa...dipping from 2.5% growth to 2% this year, mildly better next.

Squeezing Power Generation from Existing Dams -- From The Kiplinger Letter, Aug. 9, 2013

Hydroelectric power is getting a boost from Congress. New legislation streamlines the permitting process, making it easier and faster to install turbines in existing dams and other water infrastructure. Just 3% of dams generate electricity. The vast majority of dams were built only for flood control and irrigation purposes.

Most power projects will be small, generating 5 megawatts or less of juice by incorporating turbines into large water mains, canals and other water networks. Many projects will be done as part of regular pipe replacement and other maintenance. But the legislation also frees up work on some bigger projects…allowing owners of large flood control dams to develop generating stations rivaling small power plants.

Hundreds of potential sites could be affected, particularly in the Northwest. Unlike many federal energy efforts, this one will cost taxpayers little or nothing.

U.S. Energy Output on the Rise -- From The Kiplinger Letter, Aug. 9, 2013

There's even more oil and gas underground in the U.S. than thought: Huge upward revisions in reserve tallies as new deposits are discovered and new drilling technologies make recovering them economically feasible. Crude oil: 3.8 billion additional barrels, about 7 months' worth of domestic consumption. Natural gas: 31 trillion cubic feet, more than the U.S. burns in an entire year.

So expect production to keep rising. At 7.5 million barrels per day, crude oil is flowing at a 22-year high. By year-end, it figures to hit 8 million barrels per day. And U.S. gas production, already the highest in the world, will keep setting records.

Airline Merger May Not Bode Well for Travelers -- From The Kiplinger Letter, Aug. 9, 2013

The merger of US Airways and American Airlines will create turbulence, once regulators approve the deal this fall. The two carriers have very different cultures and business models, making integration tough. Passengers can expect some snafus, such as lost luggage and dropped reservations, while the new company irons out the wrinkles.

Travelers should be proactive during the transition phase. Confirm tickets booked online with a follow-up call. And check up on frequent-flier-account balances. Also, look out for attractive deals from competitors trying to poach disgruntled fliers.

Student Loan Fix Is Congress' Only Sure Thing -- From The Kiplinger Letter, July 3, 2013

Though six months remain in 2013, there's little time for big moves by Congress this year, thanks to two nearly month-long recesses. The year will end the same way it started: In a huge traffic jam bottling up major deals, with lawmakers having to settle for piecemeal solutions.

Student loan interest rates are the lone sure-to-pass bill. Congress will tie rates to market rates and do so retroactively, canceling the doubling that occurred July 1.