Disruption of Business Likely in 1999CHICAGO (December 15, 1997) ...The Millennium Investment Corporation, a Chicago-based financial firm, focused on identifying investment opportunities presented by the impact of the Year 2000 date change, is predicting a global recession beginning in the second half of 1999. The economic problems will be triggered by failure to bring computer systems into compliance with the date change from 1999 to 2000.
"Our analysis shows there are not enough man-hours available to evaluate, test and implement compliance by the Year 2000," said Dennis Grabow, founder and CEO of The Millennium Investment Corporation, speaking at a seminar on Year 2000 financial issues held in Chicago. "Even if a particular location is brought into compliance, the disruptions in other dependent but non-compliant supplier and customer facilities can slow or even shut down production in the compliant facility."
"Millennium believes there will be a global disruption of business and, with it, a significant transfer of wealth from the shareholders of vulnerable enterprises to those who have completed or are near compliance and are able to increase market share and/or implement industry consolidation strategies." Grabow emphasized that "A disruption in the flow of goods around the globe has the potential of causing an economic recession in every industrial country."
"Our current situation analysis of bringing the industrialized nations' computers into compliance with the Year 2000 date change indicates that those firms which have been late getting started on the required process of remediation and testing will simply not be able to acquire the necessary programming and analysis resources to be fully successful on 1/1/2000," said Don Estes, Systems Compliance Consultant to The Millennium Investment Corporation. "In addition, many firms will not have completed testing to current best practice standards, introducing additional uncertainty in the operating systems."
The often overlooked challenge is that of bringing into compliance the millions of embedded systems found in manufacturing and processing facilities. "Approximately one-tenth of all microprocessors handle date and time information and the overwhelming task is locating and then testing them. We estimate that the embedded system challenge will consume 80% of the time and costs expended to bring a manufacturing and/or continuous process facility into compliance," according to David Hall, Managing Director, Embedded Systems of The Millennium Investment Corporation.
During the seminar, the Millennium Investment Corporation shared with area business and municipal leaders, regulators, and representatives of foreign governments, two new investment models, The Millennium Investment Paradigm Into The 21st.Century, MIP>21, and the Wealth Transfer Timeline, based upon a firm's achieving century date change ("CDC") compliance. Over the next few years, the strategy and solutions to achieve Year 2000 compliance will be a significant predictor of economic performance of most companies and governments. "Because achieving compliance is a dynamic and evolving issue, the ability to track and analyze data relative to the CDC is critical for developing sound investment strategies and preserving our clients' wealth," said Grabow.
The Millennium Investment Corporation is a private, Chicago-based firm providing institutions, corporations and high net-worth individuals with investment strategies based on the implications of the Year 2000. Their offices are located in Suite 1900, 310 South Michigan Ave., Chicago, IL 60604. The may be reached at (312) 347-5990 or via e-mail at firstname.lastname@example.org.
Messers Grabow, Estes and Hall can be made available for interview.
Call Allyson Stinchfield at (312) 541-8787.
The Wealth Transfer Timeline and MIP>21 are service marks
of The Millennium Investment Corporation, Chicago, Il.