Page 12 - ATR 4 2021 digital

NEWS IN BRIEF, — companies in which two or more
Continued from page 10 family members exercise control, con-
currently or sequentially — represent
FAMILY BUSINESSES HAVE about 90% of American businesses.
STAYING POWER Ranging in size from two-person part-
Conversations and articles about nerships to Fortune 500 firms, these
family businesses today often cite the businesses account for half of the
“three-generation rule,” which says that nation’s employment and half of the
most don’t survive beyond three genera- U.S. gross national product.
tions.
That “rule” originates from a single BONUS CHECKS FOR BABIES
1980s study of manufacturing
companies in Illinois, and, data
suggests, is atypical of fam-
ily businesses. In fact, they
dominate most lists of the
longest-lasting companies Even those industries hardest hit
in the world, and they’re by the pandemic like oil and gas and
well-positioned to remain Many leisure and hospitality are budgeting
competitive in the 21st parents received salary increases of 2.4%
century economy; especially a “Christmas in These increases coincide with the
considering how they tend to July” gift from Uncle Sam continued rise of consumer prices,
thrive when times get tough. by way of up to $300 per child. which rose 0.9% in June, the biggest
The pandemic has provided The payments are part of the child monthly jump in 13 years. Additionally,
evidence of this. Though few businesses tax credit; a break on income taxes U.S. consumer sentiment in early
have been immune to the challenges of normally paid to families in a lump July slumped to its lowest level in five
the pandemic, family businesses seem sum after they file (or it may be used months on concerns that higher infla-
to be emerging in better shape than to reduce how much a parent or couple tion will persist.
their competitors. owes in taxes). Typically, the credit is up Despite big name brands like
In December 2020, the Harvard to $2,000 per child age 17 and younger. Chipotle, McDonald’s, Under Armour
Business Review surveyed 140 family The IRS is providing early distribu- and Bank of America announcing pay
businesses from five continents repre- tion of the child tax credit, thanks to increases in recent months, worker pay
senting more than 25 industries and the pandemic aid package passed in is not rising at a pace that would fuel a
found an optimism that they not only March. The federal relief bill increased wage-price spiral.
had weathered the worst, but an expec- the amount of the credit to as much In June, average hourly earnings
tation that they will gain ground in the as $3,600 per child age 5 and under or rose 0.3% compared with May and
months ahead. Even at the height of the $3,000 per child ages 6–17. The amount 3.6% compared with June 2020, accord-
pandemic, a full 25% of those surveyed depends on a parent’s or couple’s income. ing to the Labor Department.
believed that their market share would Now, instead of giving the credit
not only survive but increase in the after a parent or family files their A $2.25 BILLION UBER RIDE
years ahead. income taxes, they will now receive half Uber Freight, the trucking divi-
Why does family ownership seem the amount they’re eligible for broken sion of ride-sharing company Uber
to offer a competitive advantage? Family up into monthly payments from July to Technologies Inc., announced plans
businesses, with owners close to the December. The other half of the credit to purchase transportation manage-
business, can adapt quickly to changing will be given after they file in 2022, as ment and logistics company Transplace
circumstances and balance navigating normal. of Dallas, which just opened a
each crisis with implications for the 150,000-square foot operations center
long-term; meaning they can preserve MORE MONEY, MORE INFLATION? in Rogers, Ark.
cash while also ensuring the well-being According to a survey by Willis Uber said the $2.25 billion deal will
of employees and communities. Towers Watson, 97% of companies plan create “one of the leading logistics tech-
This is good news considering the to boost salaries next year, an increase nology platforms, with one of the larg-
longevity of family businesses benefits from the 92% of companies surveyed est and most comprehensive managed
the economy overall. According to the in 2020 that intended to raise employee transportation and logistics networks in
U.S. Census Bureau, family businesses pay this year. the world.”

12 Issue 4 2021 | ARKANSAS TRUCKING REPORT