TREND WATCH : <i> A roundup of business developments spotted by other publications. </i> - Los Angeles Times
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TREND WATCH : <i> A roundup of business developments spotted by other publications. </i>

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<i> Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management</i>

‘Temp’ Shakeout Expected: The temporary-help industry has hit a plateau that insiders believe will turn into a slump that will hurt smaller, regional firms. The biggest problem is low unemployment and stiff competition for skilled “temps.” Industry watchers believe a shakeout will occur in the next few years, with larger firms such as Manpower and Kelly branching into other businesses to survive. These services might include employee leasing and permanent placements. In addition, the biggest firms have already established training programs and solid client bases that will see them through the dearth of temp talent. But based on the aging of the population, it is likely that the shortage will continue for years. Milwaukee Business Journal

New Car Loans: The five-year car loan has been endangered by a high delinquency rate. Delinquencies, which are up to 2.7% at commercial banks from 1.64% in 1984, are blamed on lenders’ acceptance of marginally qualified borrowers. Lenders believe that the five-year loan, which withholds equity from buyers for about three years, means that buyers have less to lose if they default. In addition, lenders say the longer-term loan is partly to blame for the slump in auto sales. Midway into their loans, buyers have little equity and therefore less money for a down payment on a new car. In response, lenders are making the five-year deal as unattractive as possible, widening the difference in interest rates and telling dealers to push for shorter terms. Newsday

Replacing Paper: Two Colorado women have begun selling reusable grocery bags made of 100% cotton canvas. The bags cost about $9 each, are expected to last five years and usually come with a grocery store’s logo silk-screened on the side. With the bag, the sellers include the following information: A family of four uses 500 grocery bags a year; most bags are made of virgin paper, and even biodegradable plastics put toxins in the air and soil. Although the venture in Colorado is small, others around the country are catching on. Rocky Mountain News

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Upscale Tupperware: Premark’s Tupperware goes tableware in the United Kingdom with the Exclusive Collection. The tableware is made of Ultra Clear, a plastic that is “almost like glass.” To further update its image, Premark will no longer call its Tupperware saleswomen “ladies” but “demonstrators.” A coincidental marketing boost for Premark is the display at London’s Victoria & Albert Museum that features Tupperware in “The Plastics Age: From Modernity to Post Modernity.” Marketing

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