Post for May 17, 2010

May 17, 2010

Last week's economic news was positive nearly across the board, with five of the six major economic reports improving. (To read all of last week's indicators, see the Latest Economic Reports section below.)

The sole deteriorating indicator last week was the March international trade report, which showed a widening trade deficit. However, an increase in the price of petroleum inputs was a significant factor, and after adjusting for inflation, real exports and imports of goods both increased at an annual rate of just over 12 percent in the first quarter. As a result, when the Commerce Department releases its revised report on GDP growth at the end of this month, the trade component will improve. The advance report released last month estimated export growth at just 7 percent and import growth at 9 percent.

The most important report that came out last week was Friday's industrial production report, which showed that for the third time in the first four months of 2010, manufacturing production increased by 1.1 percent (see green bars in the chart above).

While this growth rate is impressive, equally important is the fact 17 of the 19 major manufacturing industries increased production last month. This is up from 16 in March and nine in April. This shows the manufacturing recovery is becoming durable, strong and widespread.

Still, it is important to note that manufacturing has a long way to go to return to its previous production peak set in December 2007 (see black line in the chart above). After falling nearly 17 percent by June 2009, the recovery to date has made up just 40 percent of the loss. If the current pace of the recovery continues, manufacturing production will not reach its prior peak until late 2011.

Dave Huether

Chief Economist

National Association of Manufacturers

MANUFACTURING “U” EXPANDING IN UTAH

May 17, 2010 – Rob Brems, UCAT President

The following is an update sent by Rob Brems, UCAT President, on the progress of the Manufacturing U program offered on some UCAT campuses in Utah.

While in St. George this past week I was given a copy of the attached article which appeared in the nationwide Viracon Reflections newsletter in February, 2010. It does a nice job describing Manufacturing U, a partnership program led by Dixie Applied Technology College (DXATC), Dixie State College (DSC), Viracon and a consortium of several additional Southern Utah Manufacturers. Beginning in April, 2010 Tooele Applied Technology College (TATC) and with collaboration from Utah State University - Tooele Branch Campus (USU-Tooele) more than a dozen Energy Solutions and Carlisle SynTec employees joined Manufacturing U using a Tandberg video classroom link originating from St. George. It is anticipated that another dozen or so students served through Southwest Applied Technology College (SWATC) will join the program in September, 2010.

In talking with the students in St. George and Tooele last Thursday, there is palpable excitement among the students finishing the final DXATC-delivered module and are now beginning to take DSC courses in preparation for completing their associate degrees. There is equal excitement among the new students just joining the program. At least three original-cohort students anticipate being awarded DSC associate of applied science degrees before the end of the calendar year. Most indicate plans to continue their Manufacturing U program through to at least a bachelors degree level.

To view the complete article that was featured in the nationwide Viracon Reflections newsletter in February, 2010, click the following link Manufacturing U

UTAH.GOV SELECTED WINNER OF 2010 GOVERNMENT CUSTOMER SUPPORT EXCELLENCE AWARD

May 17, 2010 - Business Wire

Utah's official website and its customer support team were recently honored with the 2010 Government Customer Support Excellence Award in the category of Technical Excellence Utah.gov's 3rd GCS Excellence Award
{read more}

EPA RELEASES TAILORING RULE

May 17, 2010 - by James A. Holtkamp – Holland and Hart

On May 13, 2010, the Environmental Protection Agency (EPA) released the final Prevention of Significant Deterioration (PSD) Tailoring Rule, which will govern permitting of major stationary sources of greenhouse gas (GHG) emissions. The Tailoring Rule is the latest in a series of EPA rulemaking actions under the Clean Air Act designed to regulate GHGs, including the Mandatory GHG Reporting Standard (40 CFR Part 98, 74 Fed. Reg. 56260 (Oct. 30, 2009)), the Endangerment Finding for Greenhouse Gases (74 Fed. Reg. 66496 (Dec. 15, 2009)), the Light-Duty Vehicle GHG Standards ( 75 Fed. Reg. 25324 (May 7, 2010)), and the decision on Reconsideration of the Johnson Memorandum (75 Fed. Reg. 17004 (Apr. 2, 2010)).
Although the Clean Air Act explicitly provides that the threshold for major source PSD review is 100 tons per year if the source is in a category listed in the statute or 250 tons per year if it is not, to apply the 100/250 tons per year threshold to GHGs would, by EPA’s own estimation, increase the number of sources subject to the PSD program by 140 times, and the number of sources subject to the Clean Air Act Title V Operating Permit program by 400 times. Given the very severe regulatory and economic consequences of such a result (which would entail regulating, among other things, many office buildings, schools, residential complexes, restaurants, and other commercial buildings), EPA is significantly increasing the thresholds for PSD review of GHG sources, and is phasing in the applicability of the PSD program to various sources depending on the timing of their PSD permits and the amount of GHG emissions.

click here to read the full article

CHINA, U.S. BATTLE OVER CLEAN ENERGY SALES

May 17, 2010 – Today in Manufacturing.net
U.S. leaders want China's clean energy boom to drive technology exports, but Beijing wants to create its own suppliers and is limiting access to its market... continue

FOOD COMPANIES TO SHED 1.5 TRILLION CALORIES

May 17, 2010 – LateWire from Manufacturing.net
Several of the nation's largest food companies say they will take 1.5 trillion calories out of their products by 2015 in an effort to reduce childhood obesity ... continue

OIL PRICES FALL 20 PERCENT IN TWO WEEKS

May 17, 2010 – LateWire from Manufacturing.net
Crude prices have fallen about 20 percent in two weeks as investors worry that a debt crisis in Europe could spread to the U.S. and hurt the global recovery ... continue