A 56.8% Increase in Sales After 9/11
It was September 17, 2001 in the United States. The Twin Towers had only been standing for a year and another 7 people lost their lives that day to an act of terrorism in New York. Before that day, only three companies feared doing business with the United States: Saudi Arabia, China, and Iraq. But after 9/11 even countries like North Korea were afraid to do business with America. This was largely due to the numerous security checks put in place by the US government after 9/11. Security checks have reportedly helped increase sales by 56%.
Beginning in December of 2001, the CBP began to require 100% inspection of all incoming shipments. The President was eager to reassure the American people that security was improved so, in January of 2002, he signed an executive order that required several companies to report any lost, stolen or missing devices or equipment from their supply chain. The US government also began using EDI (Electronic Data Interchange) with private businesses. This allowed for secure data exchange between the US government and private companies. In addition, the Department of Defense took charge and enacted a controlled materials program which included unique serial numbers on critical defense material from nuclear energy to petrochemicals. This meant that no one could buy a product without legitimate documentation demonstrating ownership and origin. The Department of Homeland Security began to issue new regulations that affected private business in the United States.
The increased security has had a major impact on boosting sales for many companies. For example, Motorola Mobility was able to secure $60 million in government contracts after an appeal for help from the Transportation Security Agency (TSA). BlackBerrys and laptops have also been utilized by various agencies over the last several years. And in May of 2010, TSA reported that they now use more than 11,000 edibles and beverages each day as part of a new program called "Smell-o-Vision". They have also allowed passengers to board planes with cameras, laptops, iPads and smartphones without being searched. Many airports have been equipped with tablets that allow travelers to do everything from fill out their boarding pass to retrieving their luggage from the cargo hold.
This has caused a number of private companies to develop new products, and in turn, boost sales. E-commerce companies are constantly developing new ways to secure their data. For example, PayPal was able to develop a payment system that allowed them access to the secure server of Swiss Bank UBS because they had an account in every country of the world. This allows users to log on and pay in any country at any time as long as they have a valid PayPal account and $0 balance in their account (which can be done within seconds). This meant that travelers from all over the world could pay for flights, food, and lodging in foreign cities without ever being charged a foreign transaction fee.
But security is not the only reason why sales have increased since 9/11. The USA Patriot Act was created in the aftermath of 9/11 to give the US more power when it came to fighting terrorism. This has opened doors for many domestic companies that were hesitant about working with the US government out of fear that they would lose their privacy as a result. For example, after 9/11 Microsoft agreed to allow administrative requests to be sent through local law enforcement agencies rather than directly through Microsoft headquarters. This allowed the FBI to search through their emails and documents without having to go through a series of high-level checks.
This has not only helped create jobs but also helped boost sales for many companies. Apple, for example, sold $1 million in the first hour after 9/11. The FBI announced that it was buying $30 billion in computers from Cisco Systems and $27 billion from Microsoft by 2011. General Dynamics was awarded a contract with the US Army worth $200 billion over the next 30 years after 9/11. In May of 2010, a judge ruled that AT&T had to release documents that would help lawyers work on a lawsuit involving 25 deaths after 9/11. This meant that the US government could now have complete access to all of AT&T's records, emails, and phone calls with no time limits.
And these are just a few examples of how sales have increased since 9/11. In the first year alone, companies saw a 68% increase in equipment sales and a 56% increase in electronics sales. Furthermore, this has opened doors for international travel. According to US Customs and Border Protection (CBP), Americans are traveling more than ever before after 9/11. They also reported that nearly 5 million citizens came back into the country from visiting abroad in one year's time. In a 2008 study, the US Department of Commerce reported that companies can expect to increase expenses for security and inventory management after 9/11.
Luckily for all of the companies that have been gaining from such great security, no one has suffered from being vigilant enough to prevent 9/11 from occurring. The government has continued to provide a secure environment while keeping things as open as possible to make sure that information is safe, secure and free. And all of this has allowed our economy to thrive in the past decade and will continue to do so in the future.
Sources: "World Trade Center Coverage." CNN. Cable News Network, 13 Sept. 2001. Web. 10 Nov. 2011.
http://www.cnn.com/SPECIALS/2001/,html>.
"9/11 Timeline: The Tragic Events of September 11, 2001." WGBH Educational Foundation, PBS and New York Times Television Co., 15 Sept. 2001. Web. 11 Nov 2011 http://www.pbs.org/wgbh/americaatthecrossroads/chapters/9-11-timeline/.
"United States of America v AT&T Corp. – Top Stories." Top Stories from CNN. Cable News Network, 6 Mar. 2010. Web. 8 Nov. 2011 http://topics.cnn.com/topics/united_states_of_america_vs_at%27%27t_corp>.
"USA Patriot Act." US Department of Justice: Criminal Division and the Office of Intelligence Policy and Review, 27 Oct. 2001 Web<http://www.usdoj.
Conclusion
9/11 was a major turning point in the history of our nation. It changed everything from the way we view foreign relations to the way we travel. Not only that, but it also changed many businesses, creating an environment where it is more secure and safe to do business. The events surrounding 9/11 have had a major impact on our economy and will continue to do so in the next 10 years and beyond.
Bibliography
"September 11 Attacks." CNN Interactive. Cable News Network. Web 14 Nov 2011 http://www.cnn.com/SPECIALS/2001/.html>. "USA Patriot Act." US Department of Justice: Criminal Division and the Office of Intelligence Policy and Review, 27 Oct.