Connect and Collaborate - Angela Williams

The Colorado Business Roundtable is dedicated to promoting sound public policy that benefits Colorado businesses and thereby the economy. As a part of that mission we build relationships with our state legislators in an effort to work together to move our state forward. That's why we bring you in-depth interviews with legislators like Angela Williams. Williams represents Colorado 7th District, recently won re-election and was selected by her colleagues to serve as Caucus Chair. She serves on the Business, Labor, Economic and Workforce Development Committee, as well as the House Services Committee to name only two.

An entrepreneur and business owner herself, Williams brings a first-hand perspective of the needs of business to the legislature. In our Connect and Collaborate interview, we discuss some proposed legislation and it's impact on business, as well as after-election appointments that point to a rise in female leadership positions.

Join us for the full conversation Saturday at 1:00 PM on KNUS 710 –  Please let us know what you think of our program, either by commenting here or on Facebook at Connect & Collaborate with ICOSA or join the discussion on Twitter @ICOSAMagazine.

2015 Colorado Business Economic Outlook

This week, Colorado University's Dr. Richard Wobbekind presented the 2015 Colorado Business Economic Outlook. The Colorado Business Economic Outlook is the longest-running sector-level forecast of the Colorado economy. The forecast analyzes the changes in industry sectors during the past year and looks at the events and activities that will shape changes in population and employment, and in the overall economy for the upcoming year.

"Not only is the state's economy solidly in positive territory, but it is ranking in the top five nationally for population growth, employment growth, wage and salary growth and personal income growth,"  says Wobbekind.

Colorado can expect to add 61,300 jobs in 2015. In-migration continues to boost the state's population, while unemployment is falling. The report covers a wide variety, including Agriculture, Natural Resources and Mining, Construction, Manufacturing, Trade, Transportation, and Utilities, Information, Financial Activities, Professional and Business Services, Education and Health Services, Leisure and Hospitality, Government, and International Trade.

"With a skilled workforce, a high-tech, diversified economy, relatively low cost of doing business, global economic access and exceptional quality of life, Colorado is poised for both short- and long-term economic growth," Wobbekind said.

Check out the full report below or by clicking here.

A Cultural Question: Can A Two By Four Equal A 2 By 4?

Culture In International Trade

SIMPLE INSTRUCTIONS, RIGHT?

A company in Minnesota manufactured ranching equipment and received an order from a buyer in Japan. They ordered steel corral fences and swinging gates to enclose domesticated animals in pens.

The company shipped the goods along with assembly instructions for the fences. The instructions specified that the gate would swing most efficiently by positioning the gate on a two by four placed flat on the ground. When properly adjusted to this height, the gate would clear the ground.

INSTRUCTIONS COMPLICATED BY CULTURAL UNAWARENESS

Confused, the Japanese buyer fired a message stating, “We don’t understand a two by four.”

When the company prepared their reply, “It is a piece of lumber, two inches by four inches,” they grasped the difficulty of their answer. First, the Japanese use the metric system. Second, a two by four measures approximately one and one-half inches by three and three-eighths inches. After trying their best to clarify these instructions, they replied to the Japanese customer.

A few days later the Japanese buyer inquired again, “Thank you for your explanation of a two by four. Do we place the two by four on the ground on the two side or the four side?”

ADAPTING INSTRUCTIONS FOR OTHER CULTURES

The manufacturer learned a quick lesson that their products and instructions required revisions for adaptation to their foreign markets. Many similar embarrassing anecdotes have made material for books because U.S. companies failed to properly research markets before accepting orders and using words or phrases that assume a new meaning in another language.

Connect & Collaborate - Learning Builds Business

This week we bring you a new edition of Pro-Business Colorado with our guest host, Dave Tabor of the Colorado Association of Commerce and Industry (CACI). We have two guests to discuss preparing students for jobs in technology, and bringing seasoned professionals together to support one another in business. Our first guest is Allan Short, Executive Director of Lincoln College of Technology. The Lincoln College of Technology in Denver is considered their flagship school, the most advanced in the country if not worldwide to train the work force in technical trades to launch their careers. They focus primarily on teaching the skills that get their students jobs. Lincoln College of Technology maintains programs for jobs that are available in the workforce. Welding, automotive painting, diesel.  Graduate about 200 students a year, most of which have jobs upon graduation.   They work especially with military combat veterans, supporting them in training for new careers.

Tune in to hear Al Short's perspective on workforce training and meeting the needs of industry.

Pat Maley, Vistage Chair,  joins us in the second half hour, to discuss the Denver Chief Executive Vistage Group. Vistage is a peer-to-peer advisory group for CEOs, that encourage and advise one another, share expertise, and sometimes provide confidential help in a crisis.  Listen in to hear more about the Vistage peer groups and visit www.Vistage.com to learn more.

 Listen Saturday at 1:00 PM on KNUS 710 –  Please let us know what you think of our program, either by commenting here or on Facebook at Connect & Collaborate with ICOSA or join the discussion on Twitter @ICOSAMagazine.

ULA & Lockheed Martin Launch Orion Spacecraft

Lockheed Martin and the United Launch Alliance, in partnership with NASA, have successfully launched the new Orion spacecraft today. It's the first of its kind --designed to be capable of deep space travel. History is being made right now as this mission marks a new record on the frontier of human spaceflight, nearly 15 times higher than the International Space Station

This system is undergoing some extreme tests today in the hopes that Orion could one day take astronauts to Mars.

After two orbits around the Earth, Orion will actually accelerate before reentry and splashing down in the Pacific Ocean.  This is to simulate the high speeds it would face if returning from further out in space. One aim is to test the heat shields, among other systems.

To keep up with the mission, check out NASA's livestream 

The Two Most Important Business Words You’ve Never Heard

These two obscure words just might help you and your business more than anything else you’ve ever learned.

For years we have shared that anyone can be successful with just a few things: 1) Speed of execution--get enough information and take the risk to get moving quickly, 2) Be the bulldog--never give up. In shorthand, get moving and stay moving.

There are two words that go along with these that I personally have found more important, trans-formative, and practical than any other two words in business. They are two of the 1,000 most obscure words in the English language, and I think they ought to be on the tip of our tongues every day:

Conation.

Oxford's in-the-box definition: The mental faculty of purpose, desire, or will to perform an action; volition. A better in-the-trenches definition, which John McCormack used in his wonderful book Self-Made in America (where I found the word 10 years ago): "The will to succeed that shows up in single-minded pursuit of a goal." Or in other words, "Get out of my way; I have somewhere I need to be."

Conative people don't even have to say that. You see them coming and you just step aside. They're the ones who move on an idea while others are studying it. They understand that planning never creates movement, but movement creates the plan. They know clearly where they want to end up, and will do whatever they have to between here and there to make it happen. For the conative person, the process is completely negotiable, but the end result is never negotiable.

A stream is a great example of conation--running relentlessly to the ocean and willing to do whatever it has to do to get there.

In his book, Shift, Peter Arnel described how he went from a weight of 406 pounds to 150 pounds. First, he decided to. Second, and much more important, he said, that from that moment on, he saw the world through the eyes of a 150-pound man, and made all of his decisions accordingly. That's conation. How do you know you want something? You're already doing it.

We use a shorthand definition with four key elements--Committed Movement in a Purposeful Direction. 1) Purpose is the long-term goal, 2) Commitment is recognizing the costs and moving ahead anyway, 3) Direction is figuring out the next one thing to do to accomplish the Purpose, and 4) Movement is the key to whether I actually want to reach the objective. Which leads us to the second-most important business word you've never heard.

Velleity.

Oxford calls it: A wish or inclination not strong enough to lead to action. Our in-the-trenches definition: The desire, with no intention of doing anything.

"Wouldn't it be great if…?” “Someday I’m going to…” “I sure hope that…” It’s all just velleity. You can have a great Purpose, chant at your vision board all day to demonstrate Commitment, and know exactly what one thing you’ll do next to establish your Direction. But until you have Movement, it’s all just wishful thinking.

Doing vs. Knowing

The way we’ve been taught to learn is unfortunately cognitive, not conative. But the education system is wrong. We do not think our way to a new way of acting. We act our way to a new way of thinking. Want to change something in your life? Do something different. Otherwise it’s just a bunch of velleity.

Just once my mother had to say to me, “Chuck, there is no such thing as an excuse, there aren’t even reasons, there are only priorities.” She never had to say it again. It describes the difference between conation and velleity perfectly. The conative person figures out what is important and does that first.

It affects us in the big picture even more than in day-to-day tasks. Visionaries are conative, dreamers are velletious. A visionary is already doing what they desire (conation), and a dreamer is talking about how nice it would if… (velleity). Dreamer's talk, visionaries walk.

You get what you intend, not what you hope for. If we stop hoping to build a great business and decide we want it bad enough, we have a much better shot at getting there.

Conate.

article as seen on Inc.com

I Can Sell Anything, Anywhere As An EMC

Export Trading Company, ETC

THE ROLE(S) OF AN EMC AND ETC

Shortly after her retirement as Chief Financial Officer of a small exporting company, Marilyn attended a workshop designed for training start-up Export Trading Companies (ETC) and Export Management Companies (EMC). Knowing she had recently retired, I asked her why she attended and what she hoped to learn. She said she planned to start her own EMC. In the United States, the terms “ETC” and “EMC,” familiar terms for some time, usually designate small companies that specialize in the international sale of goods. Large ETC and EMC companies exist in Japan and other countries. For purposes of this lesson, we will treat ETCs and EMCs as one and the same. Although technically different, the differences between the two have blurred and merged to the point where little or no distinction exists. A large manufacturing company may contract an ETC/EMC to function as their international department. Their level of involvement, agreed to in advance, could include marketing, sales, logistics, payment, servicing, etc., on a commission basis or they may take title to the goods and make a profit marking up the unit price.

"I CAN SELL ANYTHING, ANYWHERE!"

When I asked this former CFO what products she planned to export and to which markets, she hesitated, “I haven't decided – whatever comes along. I know I can sell anything, anywhere!” How successful can she become? Based on my personal observation, international traders become successful when they have developed an expertise in one or both of two areas: (a) knowledge of a product or service, or (b) experience in a market. With proficiency in at least one of the two, an entrepreneurial trader can develop know-how as needed in the other. With no expertise in either one, the ability to penetrate any foreign market virtually eliminates the possibility for success. Not surprisingly, several years have passed and I have not seen her again, so I assume she never started her business.

WHAT MAKES AN EMC OR ETC SUCCESSFUL?

On the other hand, a number of small ETC/EMC companies succeed because they stay focused in their area of specialty, either a country(ies) or a product(s). Wisely, they build on previous experience, usually gained while working for a manufacturing company. They have learned to stay away from chasing deals that may cost considerable time and money, and stick to what they do well. Some of them grow and provide employment for others, while others prefer to stay small and pursue opportunities they can manage within their well-established niche.

Nimble Named #1 Sales Intelligence High Performer and #2 in Customer Satisfaction

Press Release

Nimble Only CRM Vendor Named High Performer and Tops in Customer Satisfaction for Both Sales Intelligence and Customer Relationship Management G2 Crowd Grid

SANTA MONICA, Calif.–(BUSINESS WIRE)–December 4, 2014–

Nimble, the pioneer in social relationship management, has been named a Sales Intelligence High Performer by G2 Crowd, a leading source of business technology reviews. This follows G2 Crowd’s recent review criteria for CRM where Nimble was rated #1 CRM in Customer Satisfaction and as a High Performer with a satisfaction score of 98, the highest in CRM.

The G2 Crowd Sales Intelligence Grid, is a comprehensive report on Sales Intelligence vendors based on customer reviews. Nimble has been ranked the #1 High Performer and #2 in Customer Satisfaction with 96% of users rating it 4 or 5 stars ahead of LinkedIn, InsideView, Data.com, Hoover’s and D&B.

“The G2 Crowd rankings are a strong third-party validation of the high value Nimble provides for its users,” said Jon Ferrara, CEO of Nimble. “Our vision of Customer Engagement powered by Relationship Intelligence is supported by the fact that Nimble is the only CRM vendor named in both the Sales Intelligence and Customer Relationship Management G2 Crowd categories.”

Nimble Uniquely Blends Social Sales CRM with Relationship IQ

“Though Nimble has been marketed mainly as a CRM tool, many users also state they utilize it for sales intelligence,” said Tim Handorf, President G2 Crowd. “Nimble users praised its functionality to consolidate all of their contact related email communications and social conversations in one place. A few users also mentioned using Nimble for lead generation based on social interactions with their company.”

Nimble has pioneered smart social customer relationship management by blending traditional CRM with Social Sales Relationship Intelligence to enable business professionals to effectively engage social customers. It can be used as a company’s Smart Social CRM or add tremendous value to existing sales and marketing products with the Nimble Smart Contacts App.

“Nimble Changed our Idea of What a CRM Should Do,” - Tom Marsh

“Social integration of all my conversations into one smart social relationship platform helps me engage my contacts on the networks that they prefer,” said Tom Marsh, President of ai-one, Inc. “Nimble’s setup was extremely easy and I was productive in a matter of hours, in stark contrast to the conventional CRM, SugarCRM we had used. We were looking at MS CRM and Salesforce but found Nimble could handle everything we needed.”

Resources

Read more details on – Nimble Blog

See how Nimble works – Nimble Demo Video

About Nimble, Inc. – Nimble has re-imagined customer relationship management by pioneering the world’s first Intelligent Relationship platform. It auto-magically pulls contact profiles, email conversations and social signals into one simple place so you can effectively engage them everywhere you work.

Nimble combines the power of traditional CRM, intelligent relationship management, and social media into a powerful web-based social selling solution. For more information, visit www.nimble.com. Nimble can also be found on Facebook, Twitter, LinkedIn and YouTube.

About G2 Crowd, Inc. – G2 Crowd is business software reviews and ratings to drive better purchasing decisions. Technology buyers, investors, and analysts use the site to compare and select the best software based on peer reviews and synthesized social data. For more information, go to G2Crowd.com.

Nimble Inc. Michaela Prouzova, 310-929-5921 [email protected]

Oil Rises After Reaching 5-Year Low

Oil prices rose to reach levels above $72 a barrel, recovering from a five-year low reached last week. After a surprising decision from the Organization of Petroleum Exporting Countries (OPEC) to not cut production despite a global excess of supply, investors have been looking for a new price floor. Oil lost more than 12 percent since OPEC's decision last Thursday.

U.S. crude and Brent have also been falling over a wider period of time (five months in a row) marking oil's longest downward streak since 2008.

Brent hit a low of $67.53 a barrel, the lowest since October 2009, before rising to $72.98 a barrel Monday.

According to Reuters, "The market is still very much in panic mode," said Energy Aspects' chief oil analyst Amrita Sen. "Once we get over the panic, Brent prices will probably stabilise at around $65-80 a barrel in the short term."

"We can expect such volatility in the near future given the market had overshot to the downside," Sen said.

The supply growth has been mainly fueled by America's shale oil revolution, though other projects worldwide have also contributed to production growth.  Many of these projects were launched with high-oil prices in mind, so the important shakeout happening will have different impacts depending on producers' operating costs per barrel.

Bloomberg says Russia, the world's largest producer, can no longer rely on the same oil revenues to rescue an economy suffering from European and U.S. sanctions. Iran, also reeling from similar sanctions, will need to reduce subsidies that have partly insulated its growing population. Nigeria, fighting an Islamic insurgency, and Venezuela, crippled by failing political and economic policies, also rank among the biggest losers from the OPEC decision last week to let the force of the market determine what some experts say will be the first free-fall in decades.

Oil has dropped 37 percent this year and, in theory, production can continue to flow until prices fall below the day-to-day costs at existing wells. Stevens said some U.S. shale producers may break even at $40 a barrel or less. The International Energy Agency estimates most drilling in the Bakken formation -- the shale producers that OPEC seeks to drive out of business -- return cash at $42 a barrel.

"Right now we're seeing a price shock coming out of the meeting and it will be a couple of weeks until we see where the price really falls," said Yergin. Officials "have to figure out where the new price range is, and that's the drama that's going to play out in the weeks ahead."

To be sure, not all oil producers are suffering. The International Monetary Fund in October assessed the oil price different governments needed to balance their budgets. At one end were Kuwait, Qatar and the United Arab Emirates, which can break even with oil at about $70 a barrel. At the other extreme: Iran needs $136, and Venezuela and Nigeria $120. Russia can manage at $101 a barrel, the IMF said.

Only time will tell if today's rebound marks the reaching of a new price floor, or if it is merely a temporary stop on the way further down.

For some further reading that some technical traders are reading this week: http://www.zerohedge.com/news/2014-12-01/oil-price-decline-pictures

2015 Banff Mountain Film Festival World Tour

If you love outdoor adventure, ever-more-extreme sports, and that wonderful feeling of rushing adrenaline, Christmas has come early! The Banff Mountain World Film Festival has just released their new trailer for the 2014/2015 world tour. Every year, the submissions keep reaching higher levels as passionate filmmakers come together to share the stories of the world's top outdoor athletes perform in that almost-magical flow state. Check it out!

Schedule For Showings here in Colorado:

For information about venues, tickets and films to be shown, please contact the host organizations listed below.

Frequently Asked Questions

ASPEN

March 3, 4, 2015 Ute Mountaineer 970-925-2849

BOULDER

February 24, 25, 2015

The Access Fund 303-545-6772 [email protected]

BRECKENRIDGE

February 21, 2015 Breckenridge Outdoor Education Center (BOEC) 970-453-6422 www.boec.org

COLORADO SPRINGS

February 28, 2015 Mountain Chalet 719-633-0732 [email protected]

CRESTED BUTTE

March 6, 7, 2015 Crested Butte Search & Rescue 970-275-0691 [email protected]

DENVER

February 26, 27, 2015 Colorado Mountain Club

DURANGO

March 14, 2015 Rocky Mountain Wild & San Juan Citizens Alliance 970-259-3583

FORT COLLINS

February 20, 21, 2015 Colorado State University 970-491-7305 [email protected]

Connect & Collaborate - Export Credit Insight

One of the most common concerns for some small businesses looking to take their services or products overseas, is determining when and how they will get paid. This is where export credit terms come into play. It can be a complicated process to extend credit to foreign customers, that's why we have invited some of the professionals in to explain it to us and to you!

Roy Becker of Roy Becker Seminars is our co-host for this week's program, he's an expert at negotiating INCOTERMS and has, at the ready, a number of professionals who know the details of lending and collecting payment overseas. One such person is our guest, Robina Peanh, Regional Manager at Meridian Finance Group. Together, we discuss how easy it can be to start exporting to grow your business.

"There have been companies that have started off very small and grown tremendously. With export credit insurance policies, a small business that started at less than $1 million has grown to almost $100 million." ~Robina Peanh

If the fear of complication has held you or your business back, listen in for more information and learn which professionals can help you move forward.

Listen Saturday at 1:00 PM on 710 KNUS –  Please let us know what you think of our program, either by commenting here or on Facebook at Connect & Collaborate with ICOSA or join the discussion on Twitter @ICOSAMagazine.

U.S. Economic Growth Higher than Expected

U.S. Economy Grows with Exports and Spending

The world’s largest economy grew faster in the third quarter than initially estimated, making this the strongest six months in a decade. The Bureau of Economic Analysis is now reporting that third quarter GDP growth was actually 3.9 percent annualized --- up 40 basis points from the "advance" estimate published last month.

The BEA cites positive contributions from net exports (total exports less imports) as an important factor in the revision. Real exports of goods and services increased 4.9 percent in the third quarter while real imports of goods and services decreased 0.7 percent.

Consumer spending, accounting for nearly 70 percent of the economy, grew at a 2.2 percent annualized rate in the third quarter compared with the previous advance estimate of 1.8 percent. While the Conference Board's consumer confidence index fell to 88.7 this month from an October reading of 94.1, October 2014 was the strongest seen since October 2007.

The weekly Bloomberg Consumer Comfort Index rose to the highest level since December 2007 as Americans grew more upbeat about the state of the economy, their financial well-being and the buying climate.

“The data today really bode well for 2015,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, who projected consumer spending would be revised up. “Businesses have a pretty good reading on consumer demand for their goods and services. They would not be ordering additional equipment if they did not think the consumer was going to be there down the road for them.”

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BEA's national, international, regional, and industry estimates; the Survey of Current Business;

and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting

the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

*     *     *     *     *

Next release -- December 23, 2014 at 8:30 A.M. EST for:

Gross Domestic Product: Third Quarter 2014 (Third Estimate)

Corporate Profits: Third Quarter 2014 (Revised Estimate)

Turning Old TV Frequencies into Free Super-WiFi

Old television frequencies are becoming increasingly available around the world as broadcasting continues switching from analog to digital transmission technologies. Governments are, for the most part, auctioning these spectrums off to mobile phone network operators. However, these frequency bands would be better utilized in creating publicly accessible, long-range WiFi networks --- according to a new study from Germany's Karlsruhe Institute of Technology (KIT). While this conclusion is contradictory to conventional thinking, it is certainly worth further consideration since one of the world's most prestigious research and educational institutions says it is

1.) technically achievable

&

2.) beneficial to economic growth.

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Utilizing the lower frequency ranges would give this new “super WiFi” a much wider range than existing WiFi frequencies are capable of attaining.

“Implementation of our approach would have far-reaching consequences,” says Arnd Weber of the Institute for Technology Assessment and Systems Analysis (ITAS) at KIT.

“Individuals, institutions and companies would be far less dependent on expensive mobile communications networks in conducting their digital communication. This would be of great economic benefit.”

As internet service providers and wireless network operators fight for ever-increasing monopoly power over American consumers, maybe a surprising alternative such as this will start spreading. Suddenly, embracing net neutrality and even Title II classification might not sound so crazy to corporate industry incumbents like Comcast and Verizon.

Since U.S. mobile data rates are already among the most expensive in the world, why should we expect that to change if we sell the rights to these additional frequencies? The free-to-air television frequencies are currently considered a public good --- perhaps we can adapt them into a more modern and more valuable public good: free basic internet access.

What if America's interstate highways all became privately owned toll roads? Would the benefit to the toll operators charging for road access outweigh the economic burden imposed on individual citizens and businesses? Probably not, a great number of people would argue. While obviously not a perfect analogy, the picture might help illustrate the infrastructure system that powers and supports the American way of life.

While there are clearly compelling social arguments about why free internet access is an important factor in creating equal opportunities for citizens - education, employment, freedom of speech, etc. - those points, unfortunately, may be hard to measure and justify to people predisposed to the status quo.

Instead, let's stick with rational economic theory to conclude for now. Most modern growth models all seem to agree that economies are primarily powered by productivity growth - innovation and the spreading of new ideas. Unnecessary scarcity of internet access would be a costly mistake in the long run.

It's not a simple subject, though the outcomes are important, so it is certainly worth exploring all available options.

Hagel Stepping Down as U.S. Defense Chief

U.S. Defense Secretary Chuck Hagel is stepping down from his post after 21 months in office amid tension with the White House over policy and how it’s presented to the public, officials said.

Possible replacements include former Deputy Defense Secretary Ashton Carter, Michele Flournoy, a former undersecretary of defense, and Senator Jack Reed, a Rhode Island Democrat and West Point graduate. The nominee to replace Hagel won’t be named today, said a White House official who asked for anonymity to discuss a personnel matter.

Hagel, 68, a former Republican senator from Nebraska, is leaving the administration under mutual agreement after a series of meetings in the past few weeks, said a defense official, who spoke on condition of anonymity to talk about personnel matters.

Hagel was confirmed by the Senate in February of last year after a contentious process that saw many of his former Republican colleagues line up against him.

“On paper, Hagel looked perfect for the job -- a war hero, a former Senator, a successful entrepreneur,” said Loren Thompson of the Lexington Institute in Arlington, Virginia. “But his confirmation hearings did not go well, and his temperament proved ill-suited to such a politically sensitive job.”

Reshaping Forces

Hagel’s time at the Pentagon has been focused on the reshaping of the U.S. armed forces in the face of budget cuts. He’s been in the spotlight recently because the rise of Islamic State in the Iraq and Syria has forced the U.S. military to re-engage in the Middle East.

Defense officials said Hagel had been marginalized in the administration. One defense official said Hagel had stopped speaking up at White House meetings because White House aides with less experience in military affairs than the wounded Vietnam War veteran often ignored what he said.

Instead, he took to phoning the president after returning to his Pentagon office to shoot down what he considered bad ideas.

Hagel’s Clashes

Senior members of Obama’s national security team, often considered insular by Defense and State Department officials, clashed with Hagel over U.S. strategy in Syria and in countering the Islamic State. His public appearances, where he at times appeared out of step with the White House, also raised concerns, according to one official, who spoke on condition of anonymity to talk about internal discussions.

Hagel chafed at the centralized White House control of public statements and messaging, which aides said made it more difficult for him to articulate his thoughts, officials close to the defense secretary said.

According to administration officials, Hagel began speaking with Obama in October about leaving the administration, given the typical post-midterms transition.

Hagel’s departure was first reported by the New York Times.

Hagel, a decorated Vietnam war veteran, was picked by Obama to replace Leon Panetta in 2013 as the Pentagon’s leaders. The choice was criticized by Hagel’s fellow Republicans over his past opposition to unilateral sanctions against Iran, his comments about the influence of what he once called “the Jewish lobby,” and his opposition to the 2007 U.S. troop surge in Iraq. Hagel faced an onslaught of criticisms from Republicans at his confirmation hearing.

War Critic

While Hagel as Senator supported the resolution authorizing the war in Afghanistan in 2001, he became critical of the prolonged U.S. counterinsurgency effort and the troop surge there.

In choosing a Republican as defense secretary, Obama followed in the path of Democratic President Bill Clinton, who picked Republican Senator William Cohen of Maine for the job in his second term. Through much of Obama’s first term, he keptGeorge W. Bush’s defense secretary, Robert Gates, in the job.

Hagel’s nomination marked only the third time that a Cabinet nominee required 60 votes to overcome a filibuster on the Senate floor, according to Betty Koed, the chamber’s associate historian.

They were President Ronald Reagan’s 1987 pick for Commerce Secretary, C. William Verity, and President George W. Bush’s 2006 choice of Dirk Kempthorne to be Interior Secretary. Both overcame the higher vote threshold to win confirmation.

Under a Senate rules change earlier this year led by Senate Majority Leader Harry Reid, it takes only a majority of senators -- rather than 60 -- to confirm all executive and judicial nominees, except for those to the Supreme Court.

Senator Mitch McConnell of Kentucky, who will become majority leader when Republicans take over control of the chamber in January, has criticized the rules change, though hasn’t said whether he will seek to reverse it.

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“Chuck has helped transition our military and bolstered” U.S. standing around the world, President Obama says at the White House.

• Obama says Hagel understands military like few others; “he’s been in the dirt and he’s been in the mud”
• Says Hagel had devoted himself to military for decades
• • “You’ve always given it to me straight and for that I will always be grateful,” Obama says to Hagel
• Hagel says leading Defense Dept is “greatest privilege of my life” and is proud of accomplishments
• Calls him an “exemplary” defense secretary
• Hagel stepping down from his post after 21 months in office amid tension with the White House over policy and how it’s presented to the public, officials said

“The President needs to realize that the real source of his current failures on national security more often lie with his administration’s misguided policies and the role played by his White House in devising and implementing them,” Sen. John McCain says in statement.

• McCain: “Excessive micro-management” from White House makes defense secretary job more difficult
• McCain says he and Chuck Hagel have “often seen eye to eye on our biggest national security challenges,” citing Syria, Afghanistan, Islamic State, rising China, sequestration
• NOTE: McCain poised to be Senate Armed Services Cmte chairman in January; ran against Obama for president in 2008

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This update was brought to you with intelligence by Bloomberg Government

Connect & Collaborate - Construction Defects

There is a great debate in Colorado, between builders and the people who buy homes. After a number of cases where poorly constructed condominium complexes caused a flurry of construction defect lawsuits, an unfortunate chain reaction was set off. Builders felt forced to insure themselves against potential claims, which in turn drives up the cost of homes.

Lakewood Mayor, Bob Murphy has been leading the charge to resolve the dilemma which he sees as a housing issue. Murphy says the future of attainable housing is at stake while contractors continue to build rental units, rather than owner-occupied housing, which would allow various socio-economic groups to build equity. He says there needs to decent condo option in the $150,000 - $250,000 price range, for college graduates to buy their first homes, and for retirees to downsize from the larger houses where they raised their families.

Another particular concern is the need for housing surrounding the new and future light rail stations. These are ideal areas for a variety of housing, and would be best suited if both rental and owner occupied homes were mixed together.

Join us for a frank discussion with Mayor Bob Murphy about the controversial measure, passed by the city of Lakewood, making it more difficult for homeowners to sue builders over such defects.

Listen Saturday at 1:00 PM on KNUS 710 –  Please let us know what you think of our program, either by commenting here or on Facebook at Connect & Collaborate with ICOSA or join the discussion on Twitter @ICOSAMagazine.

Congress Should Support Trade Authority

President Obama should be able to secure renewal of fast-track negotiating authority for trade agreements in spite of clashes over his immigration policy, says, Commerce Secretary Penny Pritzker.

• “I think they are two separate issues; the reason it will pass is because the trade agreements are really important” for “continued economic growth in the United States,” Pritzker says, speaking from Global Entrepreneur Summit in Marrakesh, Morocco
• “There is enormous support on the Hill”

U.S. Trade Representative Michael Froman also said this week that he still hopes for bipartisan support in Congress on granting the White House the authority to fast track trade deals but added the timing was up to lawmakers. Some experts say trading partners will not put up their best offers if Congress can later pick apart the deal and that the lack of TPA is slowing down Pacific trade talks. However, some trade negotiations with limited scopes are still taking place and major deals are being announced, such as the recent Information Technology Agreement.

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What They’re Saying: Breakthrough in Negotiations of the WTO Information Technology Agreement (ITA)

11/14/2014 - 10:00am

“Last night, we reached a breakthrough in our ongoing efforts to expand the Information Technology Agreement. This is a WTO agreement that eliminates tariffs on high-tech products among 54 economies, including the U.S. and China… This is encouraging news not just for the U.S.-China trade relationship, it shows that the U.S. and China work together to both advance our bilateral economic agenda, but also to support the multilateral trading system.” -U.S. Trade Representative Michael Froman

Following the 2014 Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting, President Obama and United States Trade Representative Michael Froman announced a major breakthrough in negotiations with China to expand the scope of goods covered by the World Trade Organization (WTO) Information Technology Agreement (ITA). The ITA will eliminate tariffs on information technology products, and the bilateral agreement between the U.S. and China will allow for the resumption and swift conclusion of negotiations for the first major tariff-cutting deal at the WTO in 17 years. A successful ITA expansion would allow for an increase in Made-in-USA exports to growing markets without the imposition of burdensome tariffs, and would support tens of thousands of good-paying U.S. manufacturing and technology jobs. To learn more about how the ITA will support economic growth at home and abroad, please click here.

Below are reactions to the announcement:

• Senator Ron Wyden (D-OR), Senate Finance Committee Chairman: “The original Information Technology Agreement helped grow companies big and small in Oregon by eliminating overseas tariffs on high-tech products almost two decades ago,” Wyden said. "Today's news of an agreement with China will pave the way for a successful ITA expansion deal, which means more good-paying jobs by opening global markets to Oregon manufacturers and exporters of advanced semiconductors, high tech medical equipment and other products.” [11/11/2014]

• Senator Orrin Hatch (R-UT), Ranking Member of the Senate Finance Committee: “After more than a year of stalled negotiations, the Administration’s progress with China to zero-out tariffs on information technology products, like medical devices, is welcome news. Expansion of the Information Technology Agreement would be a big win for American manufacturers, including many in my home state of Utah, who would then be able to increase their global footprint on cutting-edge technologies. Given the recent progress achieved on international trade policy at APEC, it is imperative the President now work with Congress in a bipartisan way to help pass Trade Promotion Authority. Renewal of this job-creating initiative will empower our nation to negotiate a high-quality Trans-Pacific Partnership trade agreement that will grow the economy, benefit the American people and achieve the goals of Congress.” [11/11/2014]

• Linda Dempsey, Vice President of International Economic Affairs, National Association of Manufacturers (NAM): “Expanding the agreement to include ‘new technologies is critical not just for manufacturers of this equipment but for all the manufacturers that consume these technologies to make them more productive and globally competitive. The NAM applauds the administration's leadership and persistence in moving these negotiations forward and looks forward to the conclusion and implementation of an expanded ITA as quickly as possible’.” [11/11/2014]

• Myron Brilliant, Executive Vice President and Head of International Affairs, U.S. Chamber of Commerce: “With economic growth disappointing in many countries, news of a breakthrough in the ITA negotiations is more than welcome. The ITA has been one of the most successful trade pacts in history, spurring growth and innovation across a host of cutting-edge industries. With so many new products created since the ITA was concluded two decades ago, expanding the agreement’s coverage is imperative. With trade in tech goods surpassing $4 trillion annually, the commercial significance of these negotiations is obvious. As stated in our goals coming into Beijing, a deal on the ITA is key to the success of China’s APEC year. We congratulate the U.S. and Chinese officials who have pushed these negotiations through a difficult stage and, hopefully, brought success within reach.”  [11/10/2014]

• Gregory Gilligan, Chairman, American Chamber of Commerce in China: “This latest breakthrough – combined with the deal announced the previous day on extending the validity of visas for businesspeople, students and tourists – demonstrates how cooperation can create long-term benefits to the business interests of both countries.” [11/11/2014]

• John Frisbie: President, U.S.-China Business Council: “Making a positive breakthrough on the ITA this week sets the tone for more ambitious agreements that are in discussion.” [11/11/2014]

• Bruce Mehlman, Executive Director, Technology CEO Council (TCC): “This agreement represents a major breakthrough in global trade for the high tech sector. The information technology sector has changed dramatically in the 17 years since the ITA first went into effect. By updating the product scope and eliminating tariffs on more than 200 new products, a new and expanded ITA will support thousands of new manufacturing and technology jobs here in the U.S. and infuse billions of dollars in revenue to the global economy. We applaud the persistent efforts of President Obama and his Administration, including U.S. Trade Representative Michael Froman, as well as the Departments of Treasury and Commerce to move this agreement forward and keep ITA expansion as a top economic priority. We look forward to the swift completion of the final ITA agreement as soon as possible.”  [11/11/2014]

• Gary Shapiro, President and CEO, Consumer Electronics Association (CEA): “It took hard work, and compromise on all sides, but today's breakthrough announcement from Beijing on the ITA marks a major path forward. President Obama, Ambassadors Froman and Punke, and their team at USTR have worked tirelessly over the past week to find a way forward. We commend them, Chinese hosts of APEC and leadership in Beijing for reaching a mutually acceptable path forward to continuing, and swiftly concluding, ITA discussions in Geneva. Today's breakthrough offers not only a strong deliverable for APEC leaders, but also a chance to advance the success of the World Trade Organization itself." [11/11/2014]

• Gregg Melinson, Senior Vice President for Corporate Affairs, Hewlett Packard (HP): "The Information Technology Agreement (ITA) is an extremely significant trade pact for the high-tech sector, and we applaud the announcement of a deal which will expand product coverage and eliminate burdensome tariffs. This move will support and grow jobs throughout our industry, and we applaud the USTR and President Obama for driving this important trade expansion in Beijing this week." [11/11/2014]

• Fred Humphries, Vice President of U.S. Government Affairs, Microsoft: “Microsoft welcomes the news from the APEC Leader’s meeting on the expansion of the Information Technology Agreement (ITA).  This is a significant and important development for China and the United States.  Microsoft will continue to work in support of ITA expansion as final negotiations are concluded in Geneva.” [11/11/2014]

• Brian Toohey, President and CEO, The Semiconductor Industry Association (SIA): "The ITA has played a central role in helping the U.S. semiconductor industry drive innovation, create jobs, lower consumer prices and connect communities throughout the world. Today's agreement between the U.S. and China to expand the ITA is a hard-fought victory for the U.S. semiconductor industry and a big win for the U.S. economy and consumers around the world. We look forward to all ITA countries finalizing a deal as soon as possible."[11/11/2014]

• Rich Templeton, Chairman, President, and CEO, Texas Instruments (TI): “Lowering barriers to trade advances innovation and growth for our companies but more importantly can expand the global economy. We see this as a true win-win for the participating countries and a needed boost for rules-based trade under the WTO. President Obama and Ambassador Froman deserve a great deal of credit for achieving this important breakthrough.” [11/11/2014]

• Jeff Campbell, CISCO: “The agreement between the United States and China to expand the scope of the Information Technology Agreement represents a major breakthrough in the global trade agenda. This agreement is expected to eliminate duties on over 200 information and communications technology (ICT) product categories, representing approximately $1 trillion in annual global ICT sales. Now that the U.S. and China have reached agreement, we hope negotiators will resume talks early next month at the World Trade Organization in Geneva to expand the bilateral agreement to include more nations.  In doing so, this will help expand access to affordable technology, which will help improve standards of living and economic development around the world.”  [11/11/2014]

• Senator Chris Dodd, Chairman and CEO, Motion Picture Association of America (MPAA): “MPAA commends the United States and China for reaching a crucial agreement on expanded product coverage in the negotiations to update the Information Technology Agreement (ITA). Once concluded, this agreement will encourage the growth of the U.S. and global motion picture industries by eliminating costly tariffs -- some as high as 30% -- on a wide range of digital and optical media and storage devices used in worldwide motion picture production, editing, distribution, and exhibition. MPAA is grateful for the hard work and leadership of President Obama, U.S. Trade Representative Michael Froman and the USTR team, who have worked tirelessly to narrow the differences with China to reach an understanding which will lead to a commercially significant agreement. MPAA also applauds China for contributing to the resumption of negotiations. We encourage all ITA participants to seize the momentum created by this agreement to resume and rapidly conclude the negotiations." [11/11/2014]

• Steve Mollenkopf, CEO, Qualcomm: “I am very pleased that dialogue between the United States and China has resulted in a breakthrough understanding that will give a much needed boost to negotiations to expand the product coverage of the WTO Information Technology Agreement. Modernizing the list of products that will receive duty-free treatment under an expanded ITA will generate significant benefits for the information technology industries and consumers globally. In particular, the inclusion in the ITA product landscape of MCO semiconductors will catalyze new innovations, investment, jobs, global trade flows and consumer choice. Qualcomm encourages all WTO members to build upon this momentum and conclude ITA expansion negotiations at the earliest opportunity this year. I applaud United States Trade Representative Michael Froman and Chinese Minister of Commerce Gao Hucheng, and their teams, for their hard work and leadership.” [11/11/2014]

• Intel: “We applaud the work that the United States Trade Representative (USTR) has done at the Asia-Pacific Economic Cooperation (APEC) to support America’s technology industry. The breakthrough bilateral agreement between the United States and China to expand product coverage of the Information Technology Agreement (ITA) enables the swift conclusion of a deal at the WTO that will cut tariffs on an estimated $1 trillion in annual global sales of information and communications  technology (ICT) products.  An expanded ITA will be a major win for the global information economy and ICT consumers around the world.  Fair and open trade creates job growth, increases innovation and strengthens the global economy.” [11/11/2014]

• Telecommunications Industry Association (TIA): “The Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high-tech communications networks, today commended the White House and the Office of the U.S. Trade Representative for their leadership in breaking the impasse to resume the negotiations to expand the World Trade Organization (WTO) Information Technology Agreement (ITA)… The breakthrough to resume the negotiations to expand the Information Technology Agreement would not have been possible without the tremendous amount of hard work by the White House and the Office of the U.S. Trade Representative over the past year. It has been 17 years since the original ITA was concluded, and TIA is very pleased to see that the ITA expansion negotiations are back on track.” [11/11/2014]

• Advances Medical Technology Association (AdvaMed): "AdvaMed strongly supports expansion of the ITA and we are pleased to see the agreement reached by the leadership of China and the US.  We hope that this will lead to continuation of a robust negotiation and swift passage of an expanded agreement. The ITA has the potential to reduce tariffs for several innovative medical technologies, benefitting manufacturers in the US, China and other countries.  Even more importantly, the agreement will lower healthcare costs and increase patient access to life-saving and life-enhancing technologies." [11/11/2014]

• BSA / The Software Alliance: " ‘Updating the ITA to better account for these advances will remove tariffs on hundreds of billions of dollars’ worth of additional goods,’ BSA CEO Victoria Espinel said by email in response to a query.” Reuters: U.S. tech, software industry cheers China IT trade deal progress [11/11/2014]

• Information Technology & Innovation Foundation: "Among the likely winners would be U.S. makers of semiconductors, medical products such as MRI and CT machines, and software and video game developers, said Stephen Ezell, senior analyst at the Information Technology & Innovation Foundation think tank. ‘It’s a win-win trade agreement that will benefit information and communications technology manufacturers and services firms across the Americas, Europe, and Asia, while also benefiting all consumers globally and raising global GDP by as much as $190 billion annually,’ he said by email.” Reuters: U.S. tech, software industry cheers China IT trade deal progress [11/11/2014]

• Japan Electronics and Information Technology Industries Association: “The Japan Electronics and Information Technology Industries Association, an industry body whose 280 members include Sony Corp. , Panasonic Corp. , Sharp Corp. and Toshiba Corp. , welcomed the deal. “We were waiting for this since the discussion between China and the U.S. stopped last November,” the group said. ‘If the discussion reopens in Geneva and the tariff elimination is expanded, it would be positive for the JEITA and Japan’s IT and electronics industry.’” Wall Street Journal: Global tech firms stand to gain from tariff drop [11/11/2014]

• Information Technology Industry Council (ITIC): “‘This is particularly important for economies without credit cards,’ said John Neuffer, senior vice president for global policy at the Information Technology Industry Council in Washington. ‘They can go to the local kiosk and buy cards’ that let them download software.” Wall Street Journal: Global tech firms stand to gain from tariff drop [11/11/2014]

• Micron: “Mark Durcan, Micron’s chief executive, said the new agreement ‘will certainly benefit all of us who conduct business and manufacture on a global basis, and we commend all the parties involved in reaching this milestone.’” Wall Street Journal: Global tech firms stand to gain from tariff drop [11/11/2014]

• U.S. Chamber of Commerce: “The Chamber has worked over the past two years to build support for an ambitious expansion of the ITA. We’ve traveled to Geneva repeatedly to meet with negotiators from dozens of countries, and we’ve raised it as an issue in missions to foreign capitals (especially Beijing, as Chinese officials had been reluctant to eliminate many tariffs). The Chamber was one of 82 top business groups from dozens of developed and developing countries that in September issued a statement calling for action…The Chamber has said repeatedly that a deal on the ITA is key to the success of China’s APEC year, and so it is. It’s also a big win for the U.S.-China relationship, with benefits for consumers and industries worldwide. We congratulate U.S. Trade Representative Michael Froman, Deputy U.S. Trade Representative Michael Punke, as well as the Chinese officials who have pushed these negotiations through a difficult stage and, hopefully, brought success within reach.” U.S. Chamber of Commerce: Trade Pact to Slash Taxes on $1 Trillion in Goods [11/11/2014]

• Information Technology Industry Council (ITI): “ITI applauds the sustained effort by President Obama and his team at USTR for their unrelenting efforts to achieve this deal and break the logjam…With this bilateral deal to expand product scope, a number of important goods will now be included in the final round of talks, such as next-generation semiconductors called MCOs, a range of medical equipment, a wide array of sophisticated measuring devices, and point-of-sale cards to download software and games. These additional product lines will add significant commercial value to the overall agreement.” Information Technology Industry Council: Breakthrough Achieved on Information Technology Agreement: Next Stop, Geneva [11/11/2014]

Senate Blocks Measure Reining in Surveillance

Senate defeats motion to proceed to NSA surveillance overhaul bill (S. 2685) Nov. 18 (BNA) -- Senate Republicans blocked legislation to rein in U.S. government surveillance activities, citing national security concerns.

A cloture motion defeated late Nov. 18 would have cleared the way for Senate consideration of the USA FREEDOM Act of 2014 (S. 2685), a bill limiting the government's collection of business records, among other provisions.

The motion was rejected 58-42, with 41 Republicans voting “no.” At least 60 “yes” votes were needed.

The Senate was under pressure from privacy advocates and a coalition of technology industry giants, including Facebook Inc. and Google Inc., to move forward on this issue. American technology businesses are standing to lose billions unless something is done to genuinely reform the system and to improve international public perception. (The Information Technology and Innovation Foundation has estimated the cloud computing industry could suffer $22 - 34 billion in loses over the next three years)

‘Worst Possible Time,' says McConnell

Senate Minority Leader Mitch McConnell (R-Ky.) announced his opposition to the bill earlier in the day, saying that the measure would weaken the nation's ability to combat terrorism at a critical time. “This is the worst possible time to be tying our hands behind our backs,” McConnell said, citing the rise of the terrorist group known as Islamic State.

Republican Sens. Ted Cruz (Texas), Mike Lee (Utah), Dean Heller (Nev.) and Lisa Murkowski (Alaska) crossed party lines, joining Democrats to support the cloture motion. Democrat Bill Nelson (Fla.) voted against the motion.

Global Finance, Communications, and Trade - Lunch with Garry Kasparov, World Chess Champion

During this live event, you will be hearing from Mr. Garry Kasparov, former World Chess Champion and outspoken critic of Russian President Vladimir Putin. Mr. Kasparov will be speaking from 11:30 to 1:30 on Saturday, November 15, 2014, at the Iliff School of Theology’s Great Hall. Mr. Kasparov is known across the globe for his concerns about freedom and human rights in Russia. His brief trip to America in November includes keynote speaking engagements in New York (to honor the 25th anniversary of the fall of the Berlin Wall) and at the Business Alliance’s November 14th Wyoming Forum in Cheyenne.

Kasparov will be discussing his thoughts on how global finance, communications and trade influence political and economic boundaries. He will also contemplate how non-state organizations such as ISIS threaten the current world order, juxtaposed with the Russian state’s economic threats against Europe, which risk economic and political stability in the region.

Connect & Collaborate - Always Improving

Collaboration is all about helping one another become better, to do better. In this week's edition of Pro-Business Colorado, with co-host Dave Tabor of CACI, we talk with two businesses that help their clients improve. Doug Rhoda, President and CEO of Wolf Robotics located in Fort Collins, Colorado. Wolf Robotics is an innovative partner for a number of large manufacturing companies. By designing and building robotic equipment, Wolf is helping to move industrial jobs back to the United States.  Wolf's technology also helps improve quality standards as well as safety. Tune in to hear the details.

Linhart PR handles the reputations of some big name clients, like Southwest Airlines, Crocs, Chipotle and Johns Manville. When it comes to companies that are already doing well, Sharon Linhart puts the emphasis on improving their image and their outreach. Join us at 1:00 Saturday, to hear examples of creating a hometown feel for an out-of-state company, and the importance of social media in managing reputations.

Listen Saturday at 1:00 PM on KNUS 710 –  Please let us know what you think of our program, either by commenting here or on Facebook at Connect & Collaborate with ICOSA or join the discussion on Twitter @ICOSAMagazine.

Gasoline is Cheap Temporarily, Energy Independence is Forever

The price of gas is going up. I guarantee it. The price being below $3 per gallon is a temporary “feel good” blip. Ten years of data shows that fuel prices takes dips and always bounce back. If you drive an electric-powered Nissan Leaf, or a Tesla, you probably personally don’t care if gasoline sinks below $3 per gallon. The reason is that you made a fuel choice to break free of oil. Mind you, an electric car is not fuel free. You are increasing your electric bill to charge your car, but it is less than gas. Electricity, by and large, is about $1 a gallon.

Time and again, we declare that we have a goal of energy independence but then we lose the courage to follow through because Saudi Arabia sucks us back in by temporarily reducing the price of gas. But remember, it is just that – temporary.

We are still paying much more for gasoline than in 1999. In fact, transportation is one area where we have not created efficiencies and driven down the consumer cost with choice. Compare transportation to long-distance calling. Today, we expect to make a long distance call for free, or close to free. In 1999, it was reported that AT&T it was cutting its long distance to $5.95 per month for access and 7 cents per minute. A gallon of gas in 1999 was $1.30.

In communications technology, we now have choice with mobile phones, Skype, IP phones, traditional landlines and more. Choice has driven costs down.

With autos, we have very little fuel choice. And fuel choice can actually fuel our economy.

Fuel Choice Technology is 20-Years Old

However, the sad truth is that the technologies necessary to achieve true fuel choice have been around for 20 years, but we seem incapable of deploying them at scale. Six years after the Pickens Plan, our pathway to a natural gas trucking fleet still seems a decade away. How is it that we seem to have lost the ability to actually plan and implement this transition at scale? Figuring out how to achieve this represents the largest wealth creation opportunity of our time.

Generally, these technologies fall into two categories: alternative fuels and efficiency technologies. Alternative fuels make fuel choice possible with flex-fuel technologies. An example today can be seen with the heavy truck-maker Peterbilt. The company is already building about 33 percent of its new trucks equipped to run on natural gas.

For existing trucks, duel-fuel upgrades replace about 55 percent of diesel fuel consumption with lower-cost domestic natural gas. The cost of these upgrades is less than $30,000, generating a payback in about 18 months. More than 280,000 trucks could be retrofitted by 2018—but probably won’t be. Together, both approaches (retrofitting and building new trucks) would save about 14 billion gallons of diesel fuel.

The Government Has To Step In To Drive Fuel Choice

Other alternative fuels can also be scaled up profitably. The reason: we have invested 30 years of research to develop these alternative fuels, and conventional fuels like diesel are still above $3.40 per gallon. Fuel choices like methanol, hydrogen, ethane, electricity, and other renewable fuels are cheaper. However, the Government has not systematically put a plan in place to give American’s access to these fuels at local refueling stations. In fact, the Government regulations in place today make it difficult to add these fuel choices.

Just like with solar and wind energy, getting the existing alternative fuels to scale requires mandates like the U.S. Renewable Fuels Standard. That requires gas stations to have a particular percentage of their fuels be renewable. Today, that standard needs to be updated to an "open fuels standard" to include non-biofuels like electricity, natural gas and hydrogen. Expediting availability of these fuels is not only possible, but also necessary to meet our goals to eliminate our dependence on foreign oil by 2025.

In addition to alternative fuels, vehicle efficiency technologies offer another off-the-oil-ramp towards energy independence. With only one out of every seven gallons of gas being used to move the car forward, it is time to stop waging war in the Middle East and start the war against vehicle inefficiency (more on that later).

Pushing The Extra Mile

Fuel efficiency and enhancement technologies, including improved engine design and aerodynamics for heavy trucks, can push us the extra mile. One exciting fuel enhancement technology is NanoVit. The nano particulate (i.e. very small), amorphous, formless powder interfaces between small moving surfaces to provide protection against extreme pressure, thereby reducing friction, decreasing wear, and increasing the life of components. Combustion engines that use this type of fuel enhancement could save up to 29 percent of the fuel burned.

Another way to make vehicles more efficient is by simply making them lighter. Following the oil-crisis in the 1970’s, average fuel efficiencies more than doubled. However, that increase has been nearly offset now that more people drive heavier cars like SUVs. Carbon fiber and aluminum offer a means of increasing fuel efficiency through a 50 to 70 percent weight reduction compared to existing car materials.

BMW has been a trailblazer in commercializing carbon fiber. In 2013, it built a $100 million manufacturing facility outside of Spokane, WA and is now tripling the plant’s production. BMW aims to make carbon fiber as cheap as aluminum by reducing the price by a factor of ten. Through the use of carbon fiber, BMW’s sleek i3 electric car weighs 20 percent less than the Nissan Leaf allowing it to accelerate from zero to 60 up to four seconds faster than the Leaf.

The technologies to conserve and displace oil save money, yet not enough people are willing to invest upfront to eliminate oil—even if the savings pay off the up-front investment within a few years. It is time to use financial innovation to cost-effectively deploy the technological innovations we already paid to discover.

It's time we had a choice.

Protecting The Right Priorities

Since 1976, we may have had the wrong priorities.

A study at Princeton University estimated that the U.S. spent $6.8 trillion dollars from 1976 to 2007—three percent of its total GDP—defending oil shipments in the Persian Gulf. If the U.S. government hadn’t spent that money defending Middle Eastern seaways and instead invested far less than the average $225 billion per year at home, we would be oil independent.

With a little courage, imagine what we could have done with the $6.8 trillion we spent in the Persian Gulf because of our oil dependence. Now that we have cost-effective alternatives, there is no reason why we have to make that mistake again. When we look back from 2045, we should see a fuel-choice economy that Americans built—not more warships and tankers in the Middle East.

Photo: Mark Weiss/Getty Images Chart: Ten-year USA average gas price: GasBuddy.com