Posts for July 12, 2010

July 12 , 2010

Despite the fact that most of last week's economic reports were positive, with four out of five improving, this latest news does not rebut the substantial evidence that the economic recovery is on a decelerating path. (To read all of last week's indicators, see the Latest Economic Reports section below.)

Following the decline in the June manufacturing report released the prior week, last week's Institute for Supply Management (ISM) nonmanufacturing business report showed that general business conditions also moderated in June. The June decline was led by decreases in both imports and exports, as well as production, new orders and inventories. The most worrisome sign was in the employment component, which after improving during the December-March period, declined for the second time in the past three months and fell back below the growth threshold level of 50 to 49.7.

Most of the positive reports last week (global economic indicators, weekly jobless claims and chain store sales) were minor improvements. In the case of chain store sales -- a useful measure of the health of the American consumer -- the slight upturn in June only moderated a significant slowdown that has taken place in recent months.

As the chart above shows, after surging earlier in the year due in part to federal stimulus programs that either expired or will expire soon, chain store sales fell 5 percent in the three months ending in June (see red and green bars in the chart above), a decline sharper than any three-month period during the 2007-2009 recession. Despite the fact that sales are up 3 percent over the past year (see black line in the chart), there is clear evidence that consumer spending on goods, which rose at an annual rate of 6.3 percent in the first quarter of 2010, is on track to decelerate significantly in the second quarter.

Dave Huether

Chief Economist

National Association of Manufacturers

BOEING, OTHERS TO STUDY USING BIOFUELS FOR JETS

July 12, 2010 – Late Wire from Manufacturing.net
Major airports in the Pacific Northwest are joining Boeing, Alaska Airlines and Washington State University to study how biomass sources might produce aviation fuel ... continue

EPA PROPOSES CONFIDENTIALITY RULES FOR GREENHOUSE GAS EMISSION REPORTS

July 12, 2010 – Holland and Hart by Christopher L. Colclasure
On July 7, 2010, the Environmental Protection Agency (EPA) published its Proposed Confidentiality Determinations for Data Required Under the Mandatory Greenhouse Gas Reporting Rule. The Proposed Confidentiality Determinations would place the information that is submitted to EPA under the Greenhouse Gas Reporting Program (GHGRP) into 22 data categories, and would determine in advance whether to publicly release each of the data categories. All information in a releasable data category would be posted online automatically, without any case-by-case determinations. Confidential information would be released in aggregate format. EPA will accept comments on the proposed rule until September 7, 2010.

Under the GHGRP (40 C.F.R. Part 98), EPA will receive GHG reports from facilities in certain listed source categories (i.e., industry groups) such as stationary fuel combustion sources, electricity generation, and suppliers of petroleum products, among others. The GHGRP covers source categories that directly emit GHGs (direct emitters) and source categories that supply fossil fuels or industrial GHGs (suppliers). The Proposed Confidentiality Determinations would apply to all existing and proposed GHGRP source categories, but would not apply to GHG reporting by motor vehicle or engine manufacturers.
click here to read the full article

E-VERIFY POSTERS ALERT!

July 12, 2010 – Employers Council

We have been diligently working with the Department of Homeland Security (DHS) to resolve issues with the availability of the E-Verify posters. Contrary to prior information, poster vendors are not authorized by DHS to sell the required posters. E-Verify posters are only legitimately available via free downloaded. This can be done one of two ways:

· If you are an active E-Verify user, you can log into your account and follow the steps listed below to locate the E-verify posters / notices:

1) Click on “View Essential Resources” under the My Resources menu.
2) Click on “E-Verify Essentials.”
3) You will find 2 E-Verify posters. Each is available in English and Spanish.
4) Open each and print.

· If you are not an active E-Verify user, click here to obtain the posters/notices. Previous problems with the link have now been resolved through the Council's intervention.

If you have any questions or need additional assistance, please contact the Council.

FIGHT TO EXTEND JOBLESS BENEFITS CONTINUES

July 12, 2010 – Today in Manufacturing.net
Now that it has been shorn of all the extras, the bill could win final passage soon, but not soon enough for 2 million people whose checks have been cut off in a five-month impasse... continue

MANUFACTURING TECHNOLOGY CONSUMPTION CONTINUES RISE

July 12, 2010 – Late Wire from Manufacturing.net
U.S. manufacturing technology consumption totaled $178.34 million in May, up 58.6 percent from a year earlier, according to two industry trade groups ... continue

OBAMA WANTS INCREASE IN CLEAN ENERGY TAX CREDITS

July 12, 2010 – Late Wire from Manufacturing.net
President told an audience at the University of Nevada that a $5 billion increase in clean energy manufacturing tax credits could generate nearly 40,000 jobs ... continue

EDITORIAL: OLD SCHOOL VS NEW SCHOOL

July 12, 2010 – Late Wire from Manufacturing.net
When workers get comfortable with the way things are run, they meet any change -- even when it’s necessary -- with vehement opposition ... continue

UAW'S KING, JESSE JACKSON URGE U.S. JOB CREATION

July 12, 2010 – Today in Manufacturing.net
United Auto Workers president Bob King and Rev. Jesse Jackson kicking off new campaign in Detroit focusing on job creation, manufacturing, workers' rights and peace ... continue

CLIMATE: WHITE HOUSE REVIEWING STATES' READINESS FOR CO2 REGULATIONS

July 12, 2010 – Holland and Hart
Gabriel Nelson, E&E reporter

Shifting its attention to the logistics of putting U.S. EPA's climate regulations in place, the White House Office of Management and Budget is reviewing a pair of proposals that seek to determine whether states can comply.

The two proposed rules, which have not yet been published, were received yesterday by OMB's Office of Information and Regulatory Affairs, according to a database that tracks White House review of regulations.

One proposal would examine whether state and local agencies have the authority to extend permitting programs to newly designated pollutants such as greenhouse gases. According to a summary of EPA's proposed rule, some states might need their own lawmakers to act before regulating carbon dioxide at power plants and other major stationary sources.

Many states have laws that automatically update when EPA adds a substance to its list of pollutants. "However, some states' regulations are inadequate, because, for example, they identify the pollutants addressed under their programs by listing the individual pollutants by name," the summary says. In such a situation, EPA would "require that states revise their regulations as necessary to correct the inadequacies" and "promulgate federal plans where necessary to ensure coverage" of greenhouse gases until EPA can approve the state laws.

Regulators in Arkansas and Montana have predicted that they will have a hard time meeting deadlines for compliance with the greenhouse gas regulations. Both states may need to amend their own laws in order to comply with EPA's tailoring rule, which limits the new greenhouse gas regulations to the largest stationary sources.

Amending state laws can be a lengthy process, involving public comment and legislative action.
"We hope that they will give us sufficient time to comply," said Teresa Marks, director of the Arkansas Department of Environmental Quality, in a recent interview. "We feel like the local government really is the best regulatory authority to know how we can handle our air planning in our state."

EPA intends to give states more time to comply with the rules if necessary, Assistant Administrator Gina McCarthy said recently. "But clearly, legislatures have the authority to meet, they have the authority to make changes," she said, "and we'll work with the states to see what needs to be done both in regulation and in the law, so that we can make sure we're aligned on this" (Greenwire, June 2).

States have started discussing the issues with EPA, but it is too early in the process to know how they will respond, said Bill Becker, executive director of the National Association of Clean Air Agencies.

The first proposal is scheduled to be released as a proposed rule next month, according to EPA's regulatory agenda.

The second proposal sent to OMB yesterday seeks to guarantee authority for federal implementation plans that could replace state programs if the states are unable to meet federal requirements by the deadlines.

WHOLESALE INVENTORIES RISE, SALES DECLINE

July 12, 2010 – Today in Manufacturing.net
Commerce Department says inventories held by wholesalers rose 0.5 percent in May but sales dropped by 0.3 percent, the first decline for sales since March of 2009... continue