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City Guide - San Francisco - Business | ||
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Business Business Profile: 'Business is booming' is now only a half-truth for San Francisco, following the rollercoaster ride of its dotcom industries. Not so long ago, new media was muscling in on the back of neighbouring Silicon Valley's general success in the computing industry. The dynamic energy of the new kid on the block swamped the bohemian enclave South of Market, known as SoMa or Multimedia Gulch. Former warehouses were quickly converted into trendy office spaces in the area that actually runs north and south of Market Street, from Keary Street to The Embarcadero. The earthquake of 1989 had caused widespread destruction but also opened an opportunity for new business and investment to pour in. Investment in the area doesn't satisfy everyone though. Long-term residents found themselves forced out by skyrocketing rents, but have recently started to fight back, opening a grand debate on city housing and planning. However, the new media companies were soon faced with disillusionment on a grand scale, as faith in dotcoms waned. Many companies found themselves out of business; others rapidly downsized. Last year, more than 22,000 jobs in the industry went and current vacancies number quite literally a handful. Nevertheless, there are some successful dotcoms based in San Francisco, such as CNET Networks, technology and information (website: www.cnet.com) and the search engines Northern Light (www.northernlight.com) and Ask Jeeves (www.ask.com). One company in particular is worth keeping an eye on. Imagine Media (website: www.imaginemedia.com) was set up by Englishman Chris Anderson to provide media services, including a stable of print and on-line computing magazines. The San Francisco firm was ranked number two for revenue growth among publishers with annual revenues over US$75 million, showing a 74.9% revenue increase. It is part of the Future Network, which is undergoing a massive shake-up at the moment to restructure the business, including axing magazines and jobs. Imagine is surviving the crisis fairly well, buoyed by the success of Business 2.0 magazine - although even this has been hit with German, Italian and UK editions sold in April 2001. Nevertheless, it is the thriving tourism industry with its powerful knock-on effects that helps make the city what it is. Each year more than 16 million people pour into San Francisco spending in excess of 6.5 billion Dollars. The industry employs 61,000 people, but the largest private Bay area companies are scattered throughout various industries - Bechtel Group Inc (construction/engineering), Levi Strauss (clothing), New United Motor Manufacturing Inc (car manufacturing), Visa International (financial services), Core-Mark International Inc (distribution) and Wilbur-Ellis Co (agricultural products). After tourism and computing, the city's key industry is finance. San Francisco is the West Coast's main centre of finance, with Montgomery Street often called 'The Wall Street of the West'. More subdued than the tourist trade and less flamboyant than the dotcommers, suited finance workers simply get on with business as millions pour in and out of the city's banking, insurance, brokerages and corporate headquarters daily. The state of California is home to the sixth healthiest economy in the world and San Francisco's extremely low unemployment rate - 3% compared to the national average of 4.2% - is an indication of this prosperity. However, the Transamerica Pyramid, which can be seen from almost any point looming above the city, is perhaps a more appropriate symbol of the economy - standing tall but also a little pear-shaped. Business Etiquette: Visiting businesspeople will enjoy the informal, even colourful, attire worn by most workers in San Francisco - aided by the presence of Levi Strauss in the city. But it would be a mistake to think this reflects a lackadaisical attitude to work. Workers in the many dotcom businesses in the city often start late but work late into the evening. In the Financial District, dress is more formal and working hours are usually more normal. Many employers now have food brought in and their workers find lunch can be just another word for work. Free soft drinks can also be used to entice people to stay in the office, as well as carefully arranged lunch and breakfast meetings. Visitors should bring business cards and women may find that they are never left alone with a male colleague behind closed doors. Fears of sexual harassment charges have promoted a careful stance. This is a young and competitive culture. The prevailing wisdom is that anyone in a firm for more than two years is not good enough to move on. |