Fort Lauderdale News from Fort Lauderdale, Florida • Page 30

8C Fort Lauderdale News, Friday. Sept14, 1979 Diversify Business For Growth, Broward Told outgoing freight goes by air. Broward should be able to capitalize on the balance." Development of the export trade "let's not ignore imports either," he said would eventually amount to being more than a middle man in foreign trading, Luytjes stressed. While South Florida has a competitive advantage in trading to the south, the next question Involves ways to increase the "value-added component" of the goods traded. "The next step is getting assembly work here," Luytjes said.

"In the last decade, billions of dollars of foreign investments have moved into Florida. What we see hapening here is that it's more advantageous for these investors to make their business decisions here rather than in Colombia or Venezuela." Latins from Venezuela, Colombia and Ecuador comprise the largest growth sector in South Florida's population at present, Luytjes said, because the area, primarily Miami, has developed an image in international trade. "We're being recognized as an area to come to," Luytjes said. "We are so new as a City of the Americas, yet it's amazing how much we've grown." escalating taxes create an environment where the middle-income or fixed-income retirees can't survive. That leads Luytjes to advocate" diversification and expansion of business, and the seminar's subject, exports.

"In 1972, 1 wrote an article that wasn't greeted with enthusiasm when I said the traditional reliance on tourism and senior citizens was not a viable economy any longer," said Luytjes. "The growth strategy should be development of international trade." Part of that study, the educator added, was a determination of where the best market for Florida would be. "We had to determine where we would have the greatest competitive advantage and we would have a competitive advantage nowhere else than Latin America," he said. Since 1972, U.S. exports to the Caribbean and Latin America (excluding Mexico) have risen from $1 billion to 5.5 billion, Luytjes said.

Discounting the effect of inflation, exports have tripled since 1972. Compared to the rest of the U.S., Florida's share of the export business has risen from 20 percent to 31.2 percent of the market since 1974, he added. "Almost one-third of the exports to Latin America and the Caribbean go through South Florida, Broward, Dade and Palm Beach counties," Luytjes said. "We have become the major export area. Broward, with its foreign trade zone, has the opportunity to capitalize on this business.

Miami's foreign trade zone is oriented toward air freight, but only 40 percent of all By Joe Summers Biiftani Writer Broward County, with its many retired citizens, should plan now for the diversification of business that will be needed in the future to insure economic growth. So said the sometimes controversial Dr. Jan Luytjes, professor of international business at Florida International University, before executives at an export seminar yesterday at Pier 66. "From a growth standpoint, for Broward, some diversification must be taken," he said. "My concern is the effect inflation is going to have on people of middle and lower income, people on fixed income.

It's question- able that we want to encourage more people to move here under present conditions." Luytjes referred to a 1976 study be conducted, using Internal Revenue Service data, to measure inflation's impact on the elderly. The study revealed that 22 percent of Broward's population is age 65 or over "Assuming a 7-percent rate of inflation, which Is low, I'm reasonably confident that on the average the purchasing power of the senior citizen has declined by 2 to 3 percent per year since 1970." Broward's growth won't continue at its present rate if inflation and 1TT1 nn 7A 3 Brief ImkU, J-h r. cnvmiuuMUi. if i FOOD ViTARiHIOUSI: Grand Union Kills Frills For Discounts nic Sit Fat 4 A I -1 1 Staff Photo By NICK VON STADEN Nancy Hegeman 'test shops' with an extra large cart. By Joe Summers BuslocHi Writer Don't look for bag boys.

In fact, you'll have tc provide or buy your own bags. There'll be no tile on the floor, no fancy displays, no loss-leader items limited to one with a $5 purchase. But, says the Grand Union you can save as much as 30 percent when you shop at its new Basics Food Warehouse, when it opens 8 a.m. Sunday at 8100 W. Oakland Park just off University Drive, in Sunrise.

1 1 Basics is a concept being tested by Grand Union in the building that once was occupied by one of the company's less profitable stores. After two years of market research, Grand Union believes western Broward has the type of shopper who might visit the store every other week to buy $300 to $400 worth of food. Grand Union hired 125 people for Basics. "The store" we had here previously opened before the population grew into the area it was operating at a loss and closed," said Donald C. Vaillancourt, director of corporate communications for Grand Union.

"We believe this is a good test area for us. There seems to be a more sophisticated shopper living in this area." Shoppers at Basics will find a plain store: cement floors, bare ceilings, walls paneled with cardboard, and displays of canned goods and merchandise in cardboard boxes. service. To the best of our knowledge, you won't find an item with a lower price than ours at a competing food store." 4 Supermarkets make deals with suppliers by offering to advertise the product in a cooperative manner. Basics plans to do little advertising, turning that money into savings for the customer.

"We won't buy merchandise for this store unless we get a deal on it," said Vaillancourt "There won't be any advertised specials, but our pricing will be below that of conventional food stores." The store will carry 2,600 different items, Including fresh produce and meats, compared to the average supermarket line of 8,000 to 12,000 products. When the shopper reaches the check-out stand, cashiers will quickly pass merchandise over an electronic scanner that will ring up price and inventory numbers and deliver a receipt. From there the shopper is on his, or her, own. Cashiers will not bag the groceries. The shopper must do that, helping himself to nearby boxes or placing the merchandise in bags brought from home.

If you want bags, the store will sell them at 2 cents apiece. Basics will accept food stamps and cash, but not checks. "A Publix, for example, offers tremendous service," said Vaillancourt. "But the shopper pays for that 15 Surge Over Year Ago Chrysler Sets Early-September Sales Record Miller: High Rates Shouldn't Impede Worthy Investments TREASURY SECRETARY G. William Miller says rising interest rates should not discourage worthwhile profitable investments.

To the extent projects are "not worthwhile," he said, they may be impeded by the continued rises in the prime and other interest rates. Miller, speaking to the National Association of Mutual Savings Banks in Washington, declined to speculate how high interest rates will rise. The prime rate, charged commercial banks' best customers, was increased by Chase Manhattan Bank to a record 13 percent. Many economists believe it will continue rising in the next month. Four Government Sponsors Sought For Lockheed Plane LOCKHEED-CALIFORNIA CO.

of Burbank wants to develop a liquid hydrogen-fueled cargo plane on an experimental basis under sponsorship of four governments. Purpose of the experimental plane, the company said, would be to demonstrate that liquid hydrogen is feasible as an alternative to petroleum fuel in aviation. It was suggested that four modified versions of Lockheed's wide-bodied L-1011 Tristar would carry cargo between the United States, Western Europe and the Middle East for, a two-year experimental period with government subsidies, Total cost for development, production and delivery of the four aircraft plus spares was estimated at approximately $650 million. ABC Offers $337 Million For Macmillan Securities AMERICAN Broadcasting. Cos.

is offering to buy Macmillan Inc. for securities valued at about $337 million, the publishing firm says, apparently scuttling a Mattel Inc. bid Macmillan tentatively accepted Aug. 30. Macmillan said ABC proposed merger discussions and it had agreed, to talk.

ABC still is studying Macmillan as a takeover prospect but meanwhile has offered securities valued at $25 each for all Macmillan Mattel, the Hawthorne, toy maker that has diversified into publishing, had offered cash and securities, valued at $24.50 a share for each Macmillan share in a bid worth about $329 million. Macmillan and Mattel said two weeks ago that they had agreed in principle to merger terms but that the deal still was subject to final approval by directors, shareholders and regulatory authorities. 'Changing Times' Seeks Ads TIMES ARE changing at Changing Times magazine. The monthly consumer publication announced it is -accepting advertising for the first time since its founding in 1947. Ads will make their debut in the March 1980 Issue.

Austin H. Kiplinger, chairman and editor of the publications group founded 33 years ago with his father, Willard M. Kiplinger, said the acceptance of advertising represented an "economic decision" for Changing Timed that also should result In a "brighter" magazine. Money Supply Up Sharply THE NATION'S money supply grew sharply in the first week of September despite record interest rates aimed at reducing borrowing, the Federal Reserve reports. The Fed said Ml, the basic money supply Including cash and funds in- checking accounts, rose $2.7 billion to a seasonally adjusted average of $376.9 billion in the week ended Sept.

5. It was during that week the Fed pushed Its target on federal funds overnight loans of reserves made by one bank to another to a record 11 percent. 4 Firms Win MX Contracts THE AIR FORCE has awarded $978.4 million, in contracts to begin full-scale development of the new MX mobile Intercontinental ballistic missile. The contracts were assigned to four major companies less than a week after President Carter approved a. plan to deploy 200 of the giant missiles on wheeled transporters among 4,600 blast-resistant shelters in the deserts of Utah and Nevada.

The entire system will cost about $33 billion, according to current Defense Department estimates. Martin Marietta Corp. received a $321.5 million contract for MX assembly, tests and other work, Including design, planning, analyses and checkout. Rockwell International Corp, was given two contracts totaling $452.2 million for development of the MX guidance and control system flight computer and other components, as well as development of the fourth rocket engine stage. Aerojet General Corp.

was awarded a $129.4 'million contract for development work on the second propulsion stage. Hercules Inc. received a $75.3 million contract for design and development of the third propulsion stage. Richard Carr The Awim latcd Prcsi DETROIT Rebate-fueled Chrysler Corp. set a car and truck sales record in early September, helping to push domestic auto sales 15 percent ahead of the same period a year ago.

Continuing the rebound which began in July, the five U.S. manufacturers delivered 155,467 cars in the period against 135,091 in the first 10 days of September 1978, according to company reports. Chrysler's sales rose 51 percent, with the models for which buyers got a $400 factory check soaring 67 percent above the 1978 period. General Motors Corp. Jumped 37 percent, Ford Motor Co.

was off 26 percent; American Motors Corp. fell an estimated 16 percent and Volkswagen Manufacturing which was just cranking up last year, rose 270 percent. Counting trucks and imports from its Japanese affiliate, Chrysler sold 35,594 vehicles in the period, 3.2 percent ahead of the 1977 record of 34,476. The rebates, said Gar Laux, Chrysler's executive vice president for marketing and sales, were provoking "heavy traffic at our dealerships." Lee A. Iacocca, Chrysler's president, said the company's factory Inventories had been cut from 80,000 cars and trucks on July 1 to 25,000 at a cost of $92 million in foregone profits from the beginning of rebates Aug.

18. Charter Co. Decision In The Bahamas Due Monday United Press International NASSAU. The Bahamas The Texas International Bids For Trans World And Gets A Rebuff The Associated I'rcsi NEW YORK Texas International Airlines, which stunned the, airline world and made $46 million by trying to take over National' Airlines, Is interested In an even bigger carrier Trans World Airlines. Texas International, a Houston-based regional carrier, said it began talks with Trans World TWA's parent company, but that Trans World "Indicated no desire to explore further Texas International's Interest and no additional discussions are currently planned." Trans World confirmed the statement, with Chairman Edwin Smart saying the company had "no interest" In selling the airline.

Despite Trans World's rebuff, Texas International said it purchased an unspecified amount of Trans World stock. It refused to say whether it will try to take over Trans World. Trans World stock, which rose $2,125 Wednesday, added another $3,875 to close yesterday at $25 In New York Stock Exchange trading. Texas International rose 37.5 cents to $11,375 In American Stock Exchange trading. Trans World owns Hilton International, a hotel chain, and Canteen a food service company, as well as the airline, and has agreed to buy Century 21, a real estate concern.

But Texas International said It was Interested only In the airline. Texas International Is a midget in comparison to TWA. It flew 1.6 billion revenue-passenger miles last year, far less than the 27 billion flown by TWA, the nation's third-largest airline. Last year Texas International began an effort to take over National Airlines, which Is nearly three-times as large as Texas International. The move' set off a bidding contest, with Texas International eventually agreeing to sell Its 24.5 percent Interest In National to Pan American World Airways for $108 million, a $46 million profit.

Trans World Corp. earned $86.6 million, or $4.54 a share, In 1978, with the airline earning $35.1 million before taxes. In the first six months of this year, Trans World earned $11 million, or 28 cents a share, despite a loss of $1.2 million by the airline, whose largest profits usually come In the summer. Judge Rules Women Rejected For Jobs By Western Electric May Seek Damages Tbe Associated Proi NEWARK, N.J. The women who applied for Jobs but were never hired by Western Electric Co.

may submit claims for monetary damages for sex discrimination by the telephone maker, a federal judge has ruled. S. District Judge Herbert J. Stern yesterday rejected a motion by Western Electric to throw out the damage claims by the 338 unsuccessful women job applicants. Stern already has ruled that Western Electric "systematically denied women the employment opportunities It afforded men In the areas of hiring, promotion and participating in training programs." Stern made the ruling In a class action suit brought by a woman who was fired by Western Electric In the early 1970s.

Western Electric is a manufacturing unit of American Telephone Telegraph Co. After determining the firm was guilty of sex discrimination, Stern started a lengthy second phase of the suit, allowing other women to file discrimination cluims. In addition to the the non-hired applicants, about 1,700 former and present workers at Western Electrlc'i Kearny, N.J., plant have filed damage claims agulns the firm. "We must remember," Stern said In his decision, "(here has been a finding of liability In favor of these women and against Western. All they need to show Is that they applied for a job at Western and were never hired." The burden then shifts to Western to prove that the women are not entitled to damages, Stern said.

He cautioned that many of the women, most of them factory workers, do not understand the legal complications Involved with the seven-year-old lawsuit. I Nassau Supreme Court, wrapping up two days of hearings, said yesterday It will decide Monday whether Charter Co. should be allowed to operate a major refinery In Freeport, The Bahamas, now In liquidation proceedings. The ruling will determine the success of a major gamble by Charter, a Jacksonville conglomerate that bought the defunct Carey Energy owned by New York Gov. Hugh Carey's brother, Edward, on May 1.

i Carey owned 65 percent of the refinery, Standard Oil of California the other 35 percent. A decision In favor of Charter would make the company a major oil refiner. If Charter wins Its case, Socal has agreed to exercise Its option to buy another 15 percent of the Freeport refinery which would make the California firm and Charter equal partners In the facility. Charter lawyers told the court 97 percent of Carey Energy's $480 million outstanding debt on the refinery, assumed In the purchase, has been paid or will be paid by Sept. 21, the date Charter wants to begin operating the 500,000 barrel-a-day facility at Freeport, te world's fifth largest..