1. The long-term implication of globalization is equilibrium, which will erode the advantage of offshore outsourcing and enhance the value of local sourcing, manufacturing, and servicing. So far, “free trade” has allowed businesses to exploit inefficiencies in wages and governmental regulations. Eventually, however, there will be growing worldwide demand for competitive wages, environmental protection, and quality of work life. Companies like Upstream 21 that anticipate and prepare for this will prosper.
2. Small local business makes sense. Practices such as lean manufacturing, demand-driven production, and minimization of product lead times and transportation costs lead to superior customer service and stronger financial performance.
3. Upstream 21 is all about long-term value. Building a sense of ownership, commitment, and respect among suppliers, customers, neighbors, employees, and investors is the key to long-term success and sustainability.
4. The day will come when externalized costs—such as the cost of eating into principal through resource depletion, in particular, fossil fuels—will catch up with us, and prices will adjust to reflect scarcity. Smart companies will have already figured out how to operate profitably while internalizing these costs and finding viable alternatives.
5. We believe in accountability, discipline, transparency and integrity and have in place policies and procedures to insure that these are lived and breathed in our Company and in our family of Upstream Companies.
6. We expect to be a “high alpha, low beta” company, focusing on long-term value and resisting the lure of Wall Street and short-term earnings. We have built into our charter, by-laws, articles, compensation structure, and operating agreements covenants that require us to create long-term value rather than short-term gains.