The Latino/Hispanic Community

The Latino/Hispanic Community Michel Leidermann November 6, 2008

Most Frequent Misconceptions • Statistics you hear are estimates and projections based on 2000 Census data • Latino are creating the latest social, cultural and economic revolution in U.S. • Latino’s economy is growing at 8.2% annual compound rate • Latino purchasing power is projected to reach $1 trillion by 2010

Terms Describing The Latino/Hispanic Population • Hispano or Hispanico come from Hispania, the Roman name for the Iberian Peninsula • Latino is shortening of Latinoamerican or persons from Latin America • Terms Latinoand Hispanic are interchangeable • Latinoor Hispanicrefers to an origin or ethnicity, a certain communality culture – NOT A RACE

Size Of Latino Population – Depends On Who You Ask • Census Bureau reports Latino population reached 45.5 million in July, 2007 and is 16% of the total population • Is presently largest minority group in country • Census Bureau projects by 2050, Latinos will be 133 million or 30% of Americans • Average U.S. female has 1.9 children while Latinas have 2.3

Who Are They? • Spaniards first settled in southwest U.S. in 1500s • Mexicans and Spaniards have lived in U.S. since before Mayflower arrived • Latinos represent • 64% of U.S. mainland Latino population are of Mexican heritage • 50.5% of U.S. overall population growth since 2000 • Growth that is a product of natural births minus deaths rather than of new migration

Latino Households • 9.9 million family households in U.S. • 67% married couples • 62% have children 18 years or younger • Pew Hispanic Center found in Arkansas • Average age of Latino resident is 25 • Earn a median annual salary of $18,111 • 45% own homes • Latino students are 7% of ALL public school children • Latino women accounted for 8% of all births in state

Health Status For Latinos • 34.1% of Latinos had no health insurance in 2006 • Community faces significant health care challenges and disparities • Factors such as lack of health insurance or low cost services, language and cultural barriers, and without access to preventive medicine

Where Do Most Latinos Live? • 16 states have at least ½ million Latino residents • In 17 states Latinos are the largest minority group

Arkansas Latino Population (July 2007) • Arkansas total population 2,834,800 • Arkansas Latino Census 150,270 • Real estimated number 195,000 (July 2007)

Northwest Arkansas 47% or 71,450 – Real Estimated 93,000 • Benton 28,700 • Washington 25,650 • Sebastian (Ft. Smith) 13,200 • Carroll (Eureka Springs) 3,900

Central Arkansas 16% or 25,250 – Real Estimated 33,000 • Pulaski 15,100 • Faulkner 2,900 • Saline 2,150 • Garland 3,500

Southwest Arkansas 8% or 11,820 – Real Estimated 16,000 • Sevier (DeQueen) 4,620 • Hempstead (Hope) 3,100 • Yell 4,100 NOTE: Latino presence in rural areas is rapidly increasing

Latino percentage of the population in each county in Arkansas as of 2005. All statistics are U.S. Census Bureau figures. Map created by Mike Keckhaver

What Is The Educational Status of Latinos? • 60% of 25 years and older have at least a high school education • 3.3 million 18 and older have a bachelor’s degree • 11% of all college students are Latino • 19% of all elementary and high school students combined, are Latino • By 2020 there will be an estimated 10 million college age Latinos

What Is The Educational Status of Latinos? • According to AR Dept. of Education in school year 2006-07 represented • 38% of students in Springdale School District • 37% of students in Rogers School District • 22.4% of students in Fort Smith School District

Do Spanish-Speaking People Speak English? • Most people who speak a language other than English at home speak English "very well“ • 34 million or 12 % of U.S. residents 5+ years, speak Spanish at home • Arkansas has 465,000 students in public schools and • 36,450 language-minority students or LMS, and • 26,003 limited English proficiency students or LEP • 84 languages other than English are spoken in Arkansas homes with school-age children

Do Most Latinos Work? • 68% of 16+ years work • Savvy employers aware of future worker shortage already recruiting Latinos • 1/3 of the 2.6 million jobs created in 2005 were filled by Latinos

Economic Status of Latinos • Pew Hispanic Center reports in Arkansas • Latino and black median annual salary $18,111 • White median annual salary $24,149

Economic Status of Latinos • 2008 Current Population Survey for nation income • Non-Hispanic white household $54,920 • Latino household $38,679 • Black household lowest median $33,916 • Asian households highest median $66,103

Are Latinos Opening More Businesses? • HispanTelligence estimates at least 2.2 million Latino-owned businesses in 2008 and projects 3.2 billion by 2012 • 43% of Latino-owned firms work in areas of • Construction • Administrative and support • Waste management and remediation services • Personal services • Repair and maintenance • In Arkansas, small businesses serve families that followed the initial immigration wave

Do Latino Participate In Civic Activities? • Citizenship • Large increasing numbers of immigrant are becoming citizens • Despite Mexicans historically low rates of naturalization • 1220,000 attained citizenship in 2007

Do Latino Participate In Civic Activities? • Voting • 7.6 million Latinos voted in 2004 – an increase of 27% over 2000 election numbers • 47% of Latino citizens voted • Between 9 up to 12 million Latino citizens are expected to vote Nov. 4, 2008

Do Latino Participate In Civic Activities? • Service for Country • 1.1 million+ Armed Forces are Latino veterans • Top 2 countries of origin for foreign-born military personnel are Philippines and Mexico • In 2006, 13% of all serving were of Latino origin • Latinos represent • 15% Marine Corps • 6% Air Force • 14% Navy

What is Acculturation Vs. Assimilation? • Latinos tend to “adopt and adapt” without shedding their traditions and values • Latinos find that the English language ads are less effective than Spanish ads • Names • The first name is followed by the father’s last name, which is followed by the mother’s last name • Family • Latinos tend to view the family as a primary source of support • Important decisions are made by the whole family

What is Acculturation Vs. Assimilation? • Communication and Social Interaction • Latinos place utmost value on individuals as opposed to institutions • Even in a professional situation, many expect personal interaction • Latinos characteristics are warm, friendly, and affectionate relationships • Many are very loud and outspoken in expressing pain and happiness • Many NOT raised in the US, may avoid direct eye contact • Many may understand English better than they can speak it • Time Orientation • Time and punctuality may be flexible • MAÑANA !!! • Time is money????

What About Immigration? • Immigration is fundamentally an economic issue and as such, legislators and government should focus on the realistic labor needs of the U.S. and to the actual economic contributions of the immigrants and pass a reform of the obsolete and cumbersome present system. • Undocumented Immigrants Are Not on the welfare wagon • In Arkansas prenatal care for mothers based on the premise that prevention is less expensive than treating illnesses • If all undocumented workers were to be deported in a short period of time, the negative economic impact would be astounding • Double the number of H-2A and H-2B Visas • Mexico Canada Seasonal Agricultural Workers Program (SAWP) • Families are severely impacted by immigration raids

Arkansas Latino History and Population • Hispanic immigration in Arkansas began with the expedition of Spanish navigator and conquistador Hernando de Soto in 1496 • In rural northeast Arkansas, Mexican farmers picked cotton in the early 1950s • Job opportunities attracted Latinos from neighboring states willing to perform grueling, low-paying jobs • 25,390 Cubans passed through Fort Chaffee in a 2-year period called “Marielitos,” in 1980 • Northwest Arkansas is home to approximately half of the state’s Latinos • In larger cities, Latinos are moving up the economic scale, hold better jobs, own homes, and are business entrepreneurs and managers

Arkansas Latino History and Population • Growing Latino population (5%-6%), has created significant political, economic, and social modifications • Most immigrants are more concerned with basic needs • jobs • education • healthcare • Mexico and other Latin American countries accounted for 67% of the state's immigrants • The manufacturing industry employs 42% of immigrants • An aging native-born population and the approaching retirement will raise the demand for foreign-born workers. • Immigrants and their children have a small but positive net fiscal effect on the state budget in 2004 of $19 million

Speaking The Latino’s Language • It takes years to learn, and even more years to master a foreign language, especially in the written form • Many people who claim to speak another language are not fluent in its written form, lack vocabulary, and ignore syntax, nuances and variations • Another assumption is that translation software will do the job but put out junk • Literal translations can change the context of a message and even render a sentence impossible to understand • Need to TRANSCREATE: send the message regardless of the wording

Spanglish Is Becoming The Way To Communicate For Many Latinos In The U.S. ENGLISH SPANGLISH Market Marqueta Carpet Carpeta Factory Factoria Lunch Lonche Truck Troca To park Parquear To check Chequear

Anglicisms Can Be The Most Dangerous And Spanish Words May Have A Totally Different Meaning

Economic Impact of Immigrants in Arkansas • Immigrants had an estimated total after-tax income of $2.7 billion in 2004 • Immigrant workers contribute substantially to the economic output of the state and to the cost-competitiveness of key industries • Impact of immigrant spending could increase to $5.2 billion (in 2004 constant dollars) by 2010 • Spending could generate as many as 84,700 spin-off jobs, contributing $303 million to state and local taxes

Latinos Financial Issues • “Unbanked Latinos” • Financial industry has recognized that Latinos are a huge market and seek creative approaches • Lending institutions realize that Latinos demonstrate financial responsibility • Personal income after taxes will rise to $1 trillion in 2010

Latinos Financial Issues • In Arkansas, 45% of Latinos own homes • 52% of U.S. Latinos are online • Is the economic slowdown affecting the Latino market? • The Latino consumer market represents the collective buying power of 45.5 million people, or roughly 16% of the entire U.S. population • Latino households are also larger, with more kids and teens, segments that drive spending under all economic conditions.

Communicating With Latinos • AdvertisingResearch shows that Latinos consume every type of media, they seem to have a special attraction to television and radio Television • 49% of Latinos watch Spanish language programming during prime time hours • Radio The most unique aspect of Spanish-language radio stations is that Latinos often listens to the radio all day.

Communicating With Latinos • Print Latino newspapers are an inseparable part of the local community and transmit locals news in Spanish that otherwise are only available in English • Event Marketing Events create excitement, reinforce image, and allow you to hand-deliver your marketing message face-to-face with your target audience

How To Capture The Loyalty Of The Latino Market • Culturally relevant marketing plans will become increasingly critical • US is no longer a melting pot – It is a salad of races, cultures and languages • The biggest mistake that a company can make is to view the Latino market as homogeneous • It is imperative for marketers to reanalyze and adopt new strategies • You need to understand the diversity, culture, and values according to the community’s different subgroups • Companies must be genuine in their desire to market to Latinos

How To Capture The Loyalty Of The Latino Market • Loyalty depends on whether the company is perceived as having a vested interest in the community and can be trusted • The University of Georgia's Selig Center for Economic Growth projects that Latinos' spending power will rise from $490 billion in 2000 to $1 trillion in 2010 • Many banks accept the matricula consular only as a secondary form of identification • The IRS issues individual taxpayer identification numbers (ITIN) to undocumented workers and others without Social Security • Banks are hiring bilingual Spanish speakers. print literature and signs in many branches

How To Capture The Loyalty Of The Latino Market • A Latino marketing program • Latinos have historically eluded financial institutions for various reasons including fear, ignorance and accessibility • Poor penetration of the Latino market is not isolated to a single industry • The level of acculturation generally determines the language they prefer (English or Spanish) to do businesses

Selection Of Products And Services • Targeting the Latino market require more than a handful of translated marketing materials • For an effective marketing program to take shape, it requires commitment from the highest level of management

PanAmerican Consulting, Inc.MICHEL LEIDERMANNPresident Expertise in Latino issues:- Strategic Marketing & Advertising. - Cross cultural training.- Commercial scripts and voiceovers.- Interpretations, Translations & Transcreations: Health, Technical, & Legal; Documents, brochures and manuals. (Spanish - Portuguese - French) hotelmpl@aol.com - michel@arktimes.comTel: (501) 868-4235 - Mobile: (501) 993-3572

The Latino/Hispanic Community