Shell Oil Products - Competitors

Shell Oil Products Competition

Now Viewing Shell Oil Products's competition in: Municipal Governments (primary)

Recent Developments

Rising Gas Prices Causing Change - Rising gas prices are causing many municipal governments to cut costs. Police in Belmont and Matthews, NC, are parking their cruisers and walking their beats more often. Some utility workers in Charlotte, NC, have gone to four-day work weeks with 10-hour shifts.

Weak Economy Creates Budget Problems - Weakness in the US housing market and economy are leading many US municipalities to raise property tax rates, according to <em>The Wall Street Journal</em>. Municipalities face budget gaps as revenue from sales taxes and fees decline, and raising property taxes helps close those gaps. Spring Valley, NY, approved a 9.7 percent increase in the property tax rate to balance its budget, and the mayor of Memphis has proposed a 17 percent increase in the property tax rate to close a budget gap.

More Municipalities Invest in Broadband - Small US cities that have been bypassed by cable and telecommunication companies are building their own fiber optic communication networks to provide high-speed Internet connections to businesses and residents. Chattanooga, TN, plans to spend $230 million on a fiber network to deliver TV, high-speed Internet, and phone service to some 170,000 customers. Chattanooga officials say that the expenditure is necessary if the city is to remain competitive in the global economy.

Competitive Landscape

The demand for municipal services is driven by population growth and demographics of the local population. Because municipalities must operate with a balanced budget, loss of revenue results in loss of services, usually through job cuts. Municipal government is highly labor-intensive: average annual revenue per employee is about $80,000.

Full Industry Overview For Municipal Governments

Municipal Governments Industry Forecast

from Hoover's/D&B subsidiary First Research

Consumption spending and gross investment by state and local governments in the US are forecast to grow at an annual compounded rate of 4.4 percent between 2007 and 2012.

State and Local Government Spending Growth Flat

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.