Top Jobs and the Road to Getting There

In a recent link to a PowerPoint by the Birmingham Business Journal, I found a list of the highest paying jobs in the Birmingham market.  The list includes an interesting category from mining and geological engineering coming in at 25 in rank at an income of $92,670 to your general Internist being the number one paying job in the Birmingham market coming in at $246,460. 

          The specifics of the survey pull from the US Bureau of Labor and Statistics.  The rank order for Birmingham is as follows: 

          25 Mining and Geological Engineers $92,670

          24 Purchasing Managers $94,600

          23 Medical and Health Services Managers $95, 580

          22 Marketing Managers $102,910

          21 Advertising and Promotions Managers $103,950

          20 Education Administrators, Post Secondary $103,970

          19 Sales Managers, $104,900

          18 Human Resource Managers $106.090

          17 Computer and Information Resource Managers $108,060

          16 Architectural and Engineering Managers $111, 010

          15 General and Operations Managers $111,530

          14 Pharmacists $111,720

          13 Aerospace Engineers $112,090

          12 Financial Managers $117,770

          11 Administrative Law Judges, Adjudicators and Hearing Officers

                   $137,840

          10 Lawyers $138,130

          9  General Pediatricians $138,670

          8  Family and General Medicine $142,490

          7  Biological Teachers (postsecondary) $150,260

          6  Anesthesiologists $155, 150

          5  Psychiatrist $158,900

          4  General Dentists $179,770

          3  Chief Executives $198,220

          2  Physicians and Surgeons $210,700

1       General Internists $246,460 

          As you read through the list you may be struck by the dollar figures, but I challenge you to think a bit deeper.  The devil is in the details as they say, and not factored into these numbers are a few key questions that are not discussed in the absolute number.  Take a minute to think about two key business concepts.  The first is Opportunity Cost and the second is the Time Value of Money.  

          For the most part, every job title on this list requires some level of graduate work with rare exception.  This means seeing your time through high school, college, and then graduate school before really getting down to the business of work that pays a higher income.  To accomplish this, there is a high level of focus, sacrifice and at least some delayed gratification.  

          A simple example is the opportunity cost of blowing off studying for the long weekend to head to the beach vs. the payoff of taking your books, relaxing, but remaining focused on the work that waits for you when you return.  The idea is simple.  What costs more in the long run? 

The idea of the time value of money means that for every minute or dollar that you invest today, you will see dividends in the future that will be missed if you choose to not invest your time or money.  This too is a no-brainer, but it is the rare person indeed who is willing to forgo what they “want or deserve” today for some future reward like interest on money, or the fruits of some hard work toward an education for a better job.  

As you review the above list of top Birmingham earners, think not on their income, but the sacrifice that was made to achieve this type of opportunity.  In addition, think about the work that starts at 630 or 700AM and is never really over, but the person tries to end it around 12 or 13 hours later.  These jobs require not just dedication but patience.  It may take years for many of these jobs to create enough revenue to pay off the academic debt incurred on the road to the role.  Also, don’t overlook the value of all of the additional jobs that these earners create or support.   

In business, in school and at home, begin today to value education and expect hard work.  This is how true change begins.

2012 Economic Forecast, Birmingham Business Journal and Samford Brock School of Business

I phone?  Check.  Business Plan?  Check.  Clients? Check.  Crystal Ball?  I wish!  What are the drivers of business as we enter into 2012?  According to speakers for the recent Birmingham Business Journal event, they include the European Debt Crisis, China, Hiring and Labor Force Expectations, Growth issues, tax policy and the election.
An esteemed foursome of speakers addressed the potentials for business as we move in to 2012 at the Birmingham Business Journal’s 2012 Economic Forecast Panel held at Samford University  Brock School of Business this past week.  The discussion was similar to last years event, and according to the panel,  the slow pace of economic recovery last year will remain relatively unchanged in 2012 and could continue into 2013 or longer Samford University Latest from The Business Journals Top of the list: Education guideBBA may form PAC targeting political cloutUA is nation's 201st most selective school Follow this company .
The four panelists included Sara Helms,  an economics professor and research associate at the Lister Hill Center for Health Policy; Ahmad Ijaz, director of economic forecasting at the University of Alabama Center for Business and Economic Research, John Norris, a wealth management and investment services professional at Oakworth Capital Bank, and Rick Davis, senior vice president of economic development for the Birmingham Business Alliance.  
The panel summed their cautious outlook from the international down to the local picture in terms of where we are and where we may be heading in 2012. Uncertainty stemming from indecision and political infighting in Washington and Europe’s sovereign debt crisis were listed as primary factors causing the slow growth.  According to Norris, “Europe is a problem that is a long time coming.”  Ijaz interjected that, “An attempt with Europe to have one currency but 17 different monetary policies will continue to struggle, and perhaps cease to exist.”  With respect to Europe and debt problems, the question is will Europe hang together or splinter apart.   “The great unknown is China with its slow down and it will have a profound impact,” Norris continued.  Citing an anticipated slow down in China’s high-speed economic growth that is expected to further impact the global economy, they projected the slow economic recovery would continue in 2013 as the private sector continues de-leveraging.
On a state level, the economy is growing, but very slowly with a suggested 2.5-3.0% growth for this year and a modest 1-1.5% growth in employment.  Davis challenged the group to “Stop calling this a Recovery.  We have not gotten out of the woods yet, and we are still ringing distressed assets out.”  “If you want 4 percent growth, you may have to wait a few years,” said panelist John Norris.
One of the greatest challenges for 2012 will be how to manage the uncertainty.  Most shift in to neutral when the future is colored with unpredictable waves.  From hiring to predictions of growth, much is unknown.  “Most businesses are just not sure what capital investments they should make or whether they should hire,” Ijaz said. 
There are two halves to the issue of hiring and labor, and proper worker expectations play a big part in any true recovery.  Some discussion was made by the group to addressing not only high school completion, but also training in tech related jobs.  There was a stated observation of a general unwillingness of new college graduates to take more simple entry level work.  According to Norris, “Goal setting should be to find a way for the (new graduates) to set themselves apart.  Do what is beneath you to get experience.  Focus on work ethic, and start at the bottom with a goal to work up.” Helms added, “The Occupy movement has shown us that people have degrees of very little value.”  Birmingham Business Alliance Latest from The Business Journals JeffCo deal breaker will cost dearlyBBA campaign sets sights on national mediaBBA may form PAC targeting political clout Follow this company
The group agreed that recovering job sectors include science, technology, medicine and health services – areas the Birmingham region is well positioned to capitalize upon.  But, commercial real estate, development in any manner related to the bubble, and manufacturing will decline.  What does the future of manufacturing look like then?  The group discussed the public service announcement by Mike Roe of Dirty Jobs and the effort to encourage students to pursue advanced manufacturing jobs.  These high tech manufacturing jobs are high knowledge base, and it “ain’t your Daddy’s work shop” anymore.  White lab coats are taking the place of the fiery shop floor, and the highly trained, tech manufacturing worker is in certainly in demand.
With respect to unemployment, Helms cited 42-45% of the unemployed as having been unemployed for 6 months or longer.  Retraining is needed because your skills start to atrophy.  Davis also cited that 15% of the businesses create 50% of the jobs, and this must change to become sustainable. 
With regard to Banking, Davis describes the state we see now as the “new normal”.  “Actually the new normal is the old normal if you take a brief glance at the past.  Remember when you had to actually save some money for a down payment?” he reminded the group.  Now you must put some skin in the game, and banks are requiring up to 35% collateral for some loans.  Norris reminded the group that banks are “those places that you go to borrow money, when you don’t need any.”   
Turning it around?  This will certainly take some time to accomplish.  Ijaz cited that while the 2001 recession took 44-45 months to recover, the 2008 recession may take 3, 4 or even 5 years. 
These are defining times.  Pay attention, educate yourself, and do a quick roll up of your sleeves to get this one done.

Birmingham Business Journal and 2011 Forecast

The Birmingham Business Journal and several key corporate sponsors played host to the Economic Forecast update this week held at the Harbert Center. Noted speakers included Dr. Sam Addy of the Center for Business and Economic Research at the University of Alabama, Dr. Andrea Rauterkus, Assistant Professor of Finance at UAB, Dr. Chris Westley, Associate Professor at Jacksonville, and Tom Nelson, economic analyst for Vulcan Materials. Scholarly leaders they are, and let me share with you some of their insight for what 2011 holds for us.


Firstly, while optimistic, the group remains cautious and warned to take improvements in the market in the proper context. The recession was in fact a long time coming, and due to our behaviors. The slow structural change has been frustrating, and corrections have been slowing due to incessant government interventions. There was a collective agreement that the corrections need to occur to right the wrongs of the past and move us toward sustainable growth.

Since the recession, saving has increased and borrowers are starting to behave. (I am talking individual here, certainly not US Government.) This is the true heart of wealth creation and it is really just that simple. It does take the hard work of self discipline and the high need for self control and delayed gratification. Unfortunately, these are not common terms at the average American dinner table. The Business Cycle is built from the simple notion that sustainable growth is born in a person who saves so that they can invest in a company. That company then builds more stuff that we can buy. Buy more of our stuff, and they can hire more people.

Wealth has become valued more realistically of late, and we are moving into a new normal. The GDP is expected to grow at about 3.5% and employment at only 1.4% or 2 million jobs nationally. The public sector is starting to realize that it needs to contribute, and not just consume to get us back on track. This is a key realization as policy makers search for what is optimal and sustainable to address what we see as a decline of the middle class. The need to address and support small business was a message laced through all four presenters’ comments. Dr. Addy was keen to remind the audience that all large companies were indeed at once a small business. He gave the challenge to the audience to look at the system which creates the dynamic that allows the growth of small business.

So which sector will lead us into this growth? According to the group certainly healthcare will continue to grow both locally and nationally, and it will add jobs. Education will continue to be challenged by the limits of state financial revenues, and interestingly manufacturing will grow about 5%, but not add any measurable amount of jobs. Manufacturing is learning to do its work better, and as the daily reports of downsizing show, they are doing it with fewer workers.

The banking sector will continue to compete for a smaller group of potential borrowers, and market indicators are pointing to a continued rise in interest rates. Many countries are attempting growth by currency devaluation, and they all agreed that this will prolong any recovery in the market place. On a more local level, all discussed the need for a community bank that takes on a personal banker role to small business. This will open the door to loans based on tangible business models, not just credit models, and a keep a needed check on the veracity of loan access and payback.

What about the debt? According to the US Debt Clock (www.usdebtclock.org) we are 14 Trillion in debt with 1 Trillion owed to China. We owe Japan nearly that same amount, and the United Kingdom half a Trillion. This is clearly a very big number, and the debt clock is pretty scary let me tell you. I am really a bit sorry that I found it, and it is truly mesmerizing to sit and watch these astronomical numbers click away glibly before your very eyes. It is truly stunning to see in real time our debt, and how it breaks down to a per tax payer burden of about $45,000. By the way, only 1 in 3 pay taxes, and you can see that on the debt clock too. Next time you hear someone talking about “spreading the responsibility” or “everyone doing their fair share” to support this bail out or that bail out, remember that fine point.

All in all, better to know the facts as you make decisions going forward. Yes, 2010 was a disappointing year, but the trough occurred in June of 2009 actually. Our pick up will sputter, and our speakers maintained that the outlook should improve by the second half of this year. So hang in and hang on as we are not out of the woods just yet.