People Who Make Things Utah Manufacturers Association

January 24, 2012

2012-01-25T21:41:00.000-08:00

“TODAY ON THE HILL”

ONE SMALL STEP TOWARD DEQ IMPROVEMENTS
A day earlier than expected Senator Margaret Dayton moved one of the two UMA initiated bills to address changes to the Department of Environmental Quality was passed from second reading to third reading in the Utah Senate. SB-11, Department of Environmental Quality Boards Adjudicative Proceedings, makes appeals to DEQ permits a “record review” rather than allowing extraneous information to be introduced on an appeal. This process change promises to help streamline the appeals process.

SB-21, Department of Environmental Quality Boards Revisions, also sponsored by Senator Dayton and initiated by UMA, modifies the size, make up and function of the five DEQ boards. This is the culmination of a more than two-year process that has utilized the Lean/Six Sigma principles to address the best way for these policy boards to operate to fairly treat industries required to get operating permits as well as protecting the environment. This bill in on the Second Reading Calendar but will be remain circled for at least one more day to give Senators more time to review this more than 200 page bill.

Both of these bills are very important to UMA member companies that are required to get environmental permits to operate.
Stay Tuned: Tom Bingham

UTAH LABOR COMMISSION OPENS GRANT APPLICATION
Process to Fund Promotion of Workplace Safety
Utah Labor Commission
SALT LAKE CITY, UT–The Utah Labor Commission is requesting applications for grant projects or initiatives demonstrating a commitment to workplace safety. Proposals may include, but are not limited to, development of workshops and training, implementation of specialized safety programs, increasing effort and resources for existing programs, and collaborative workplace safety training between organizations.

The money that supports the Workplace Safety Account is generated from a 0.25% annual assessment on workers’ compensation premiums. The Utah Labor Commission is charged with the task of using these funds to promote workplace safety, which includes awarding a portion of account funds to selected grant applicants. It is anticipated that over $500,000 will be awarded to select grant recipients, and will be distributed among as many qualifying applicants and in monetary amounts the Labor Commission deems appropriate. Entities eligible to apply for a grant include Utah businesses, community-based organizations, Utah non-profits and local associations and educational institutions.

“The Workplace Safety Committee of the Labor Commission has identified key priorities upon which to focus for the upcoming year. The focus is with industries and occupations that have higher incidences of workplace accidents and fatalities such as construction, manufacturing and highway safety, as well as projects that assist Utah employers in breaking down barriers to safer work environments due to language and cultural barriers”, said Utah Labor Commissioner, Sherrie Hayashi. “This is a great opportunity for an employer or other entity to augment its safety program budget and provide additional means to reduce workplace accidents for its employees.”

The Grant Application and all related details outlining the criteria successful applicants must satisfy, as well as the process the Commission shall use to award the funds, is available online at www.laborcommission.utah.gov or by contacting Elena Bensor, Community Relations/Public Information Officer at (801) 530-6918 or elenabensor@utah.gov.

Grant Applications are due Monday, April 9th, 2012 at 5:00 p.m. The grant period will cover up to a 12 month period beginning July 1, 2012 and ending June 30, 2013.

MAKING IT IN AMERICA: STRATEGIC PARTNERSHIPS
Today in Manufacturing
How do you compete in a market space dominated by low-cost imported products with an American made product? ... continue

WTO CHIEF LAMY FORECASTS WEAKER GLOBAL TRADE IN 2012
Quick Manufacturing News
Growth in 2011 will finish 'around 5.6%,' he says, a revision downward from earlier estimates. Click to continue

FIXING THE ECONOMY IN ONE EASY STEP
Quick Manufacturing News
It's time to help the real drivers of job growth – new businesses. Click to continue

January 23, 2012

2012-01-23T20:57:00.000-08:00

January 23, 2012
On Friday, the Bureau of Labor Statistics will release its first estimate of GDP for the fourth quarter of 2011. The consensus of most economists – including myself – is that the year ended with real GDP up 3 percent in the final quarter. If true, this suggests that the economy has begun to rebound from weaknesses earlier in the year, and other data tend to bear out this finding.

Last week, the Federal Reserve Board found that industrial production rose 0.9 percent for manufacturers in December – its fastest pace in one year. Both durable and nondurable goods production rose for the month, reflecting gains that were more broad-based. Much of the growth prior to that point stemmed primarily from durables, as reflected by the 7.1 percent increase in activity in 2011 versus the 0.8 percent gain among nondurables. Overall, these numbers provide some momentum moving into 2012, with many manufacturers optimistic about future activity.

This more positive outlook is reflected in the three most recent regional surveys. Manufacturing activity in California, New York and Pennsylvania improved, with strong gains in durable goods production in California and increased momentum in the Empire State. In the Philadelphia Fed survey, the news was more mixed. While perceptions about the current business environment improved, new orders and shipments eased somewhat. Nonetheless, the Philly results suggest modest growth from last month, and all of these surveys are upbeat regarding future production, employment and capital spending in the coming months.

Other economic reports also provide welcome news. While housing starts were lower in December than in November, strength in the single-family new construction numbers is encouraging, and the longer-term trend has been a gradual shift upward in the still-depressed housing market. Indeed, statistics from the National Association of Home Builders and the National Association of Realtors help to confirm this trend. Meanwhile, prices at both the consumer and wholesale levels have eased in recent months, led largely by lower energy costs. Core inflation remains modest, with prices up around 2 percent since last year.

The Federal Open Market Committee (FOMC) will meet on Tuesday and Wednesday, with the Federal Reserve deciding whether to stimulate economic growth with a new round of quantitative easing or to continue its current policies of maintaining extremely low interest rates for the foreseeable future. With a new makeup of the FOMC, this first meeting of 2012 could be instructive. Reduced inflationary pressures and continued anxieties about Europe might provide a greater impetus for inflationary “doves” on the FOMC, but improvements in the domestic economy might improve the hand of those advocating for no change in strategy. In addition, the Fed plans to roll out a new communications strategy with this announcement by providing more information on its interest rate and other targets.

Beyond GDP and monetary policy, other releases this week include measures of regional manufacturing activity from Richmond and Kansas City. New durable goods figures will also come out on Wednesday. It should shape up to be a fascinating week for gauging the overall strength of the current economy.

Chad Moutray
Chief Economist
National Association of Manufacturers

2012 GENERAL SESSION STARTS WITH A BANG

Not wasting any time, the Utah Legislature wrapped up the formalities and held standing committee hearings in both Houses this afternoon. The mood was one of let’s get to this and get the work done and not waste any time.

Of interest to UMA were several bills worth watching:
SB-39 – Gubernatorial Authority for Higher Education – (Senator Reid) would place authority for higher education governance with the Governor. It passed out of Senate Education Committee this afternoon to the floor of the Senate for consideration. Despite what is being claimed, the Governor is not supporting this measure, according to a conversation I had with the Lt. Governor this morning. UMA is monitoring this and a couple companion bills to SB-39.

HB-28 – Economic Development Task Force – (Rep. Wilson) – Establishes a legislative and private sector task force to study ways to improve economic development in Utah and how to remove impediments to private sector economic development and job creation. UMA is named in this bill as part of task force. The House Workforce Services Standing Committee nearly unanimously approved the measure for debate on the floor of House. UMA is not opposed to the creation of this task force, we wonder if it is redundant considering all the other efforts by the Governor, GOED, EDCUtah and a host of others.

HB-35 – Extension of Recycling Market Development Zone Tax Credits (Rep. Harper) – Extends for 10 years an income tax credit used by entities using recycled metals as an incentive to recycle and create new products from recycled metals. It provides a 5% income tax credit on equipment used to recycle metals. NUCOR Steel is a major user of this tax credit. HB-35 passed the standing committee and was reported to the House calendar on a 9-6 vote.

HOUSING FORECAST REPORT PREDICTS RISING HOME SALES
Utah Business
The Salt Lake Board of REALTORS released its annual 2012 Salt Lake Housing Forecast report, which predicts rising home sales and further price declines. The report, written by James Wood, director of the Bureau of Economic and Business Research, points to clear signs of an economic recovery and housing affordability. In fact, seven in 10 homes sold in Salt Lake County in 2011 were affordable to Utah’s median household income of $57,000.
View Full Article

U.S. ECONOMISTS SEE SMALL 2012 GROWTH PICKUP
Today in Manufacturing
About two-thirds of the economists who participated a recent survey expect the nation's gross domestic product to grow at a rate above 2 percent this year ... continue

NAM'S TIMMONS: MANUFACTURING COST DISADVANTAGE IS NO. 1 ELECTION ISSUE
Quick Manufacturing News
Candidates must lay out plans cut unnecessary regulations and taxes. Click to continue

January 20, 2012

2012-01-23T20:55:00.000-08:00

TIMES ARE HARD, SAY U.S. MANUFACTURERS

SmartBrief on Leadership
Standard Motor Products, one of America's largest aftermarket auto-parts manufacturers, went from catering to thousands of small clients to serving just a few big buyers. That subjects the company to greater competition and forces it to hold down prices with low wages and outsourcing. "The main thing I think about is survival," says CEO Larry Sills. The Atlantic (1/2012)

NCSL RELEASES LETTER TO PRESIDENT AND CONGRESSIONAL LEADERS ON FISCAL PLAN – “GO BIG”
January 17, 2012

RE: FY 2013 Budget Proposal and Budget Resolution

Dear Mr. President, Speaker Boehner and Majority Leader Reid:

The National Conference of State Legislatures (NCSL) recognizes the need for the federal government to reduce its annual deficits and manage its long-term debt. While the savings achieved in the Budget Control Act help to temporarily impede the country’s rising debt, a broader effort is needed to assure America’s fiscal well-being. As the National Commission on Fiscal Responsibility and Reform concluded in its Moment of Truth report: “The problem is real. The solution will be painful. There is no easy way out. Everything must be on the table. And Washington must lead.” We concur wholeheartedly and offer our bipartisan partnership and cooperation in developing and implementing long-term fiscal solutions.

We strongly urge you, President Obama, to include in your FY 2013 proposed federal budget a comprehensive, aggressive and bold plan to address America’s long-term fiscal gap. We respectfully suggest that your plan last year that would have reduced the deficit by $4 trillion is a starting point.

We likewise urge Congressional leadership to pass a budget resolution that adheres to the “go big” principle. Putting America on a sustainable fiscal path is crucial. Many members of Congress have reached that conclusion in their own proposals, letters and statements.

The private sector has also voiced similar sentiments. NCSL believes that the White House and Congress need to examine all possible avenues for deficit reduction, including discretionary spending, entitlement reform and revenue-related options. Both the budget proposal and budget resolution should include an explanation of the potential intergovernmental and fiscal federalism implications of any recommended actions.

As models to achieve comprehensive deficit reduction, we recommend you consider several plans that have garnered widespread support. These proposals - the National Commission on Fiscal Responsibility’s Moment of Truth report and the Bipartisan Policy Center’s Restoring America’s Future report - offer frameworks to put the nation’s debt on a downward trajectory. There are numerous others we have reviewed, including those offered by various members of Congress, that raise key, unavoidable issues.

NCSL understands the difficulties the federal government faces in its efforts to attain fiscal responsibility. We also understand that funding targeted for state and local governments has been and will continue to be reduced. However, our message remains the same – states will struggle if a disproportionate and excessive burden is transferred to us. A list of our priorities, including not imposing new unfunded federal mandates, providing relief from maintenance of effort requirements, and funding for several invaluable infrastructure programs, is attached (letter is copied below). We welcome an opportunity to discuss this fiscal challenge with each of you in the near future.

For additional information, please contact Michael Bird (202-624-8686; michael.bird@ncsl.org) and Jeff Hurley (202-624-7753; jeff.hurley@ncsl.org). Thank you for consideration of this request.

Respectfully,

Senator Stephen R. Morris

President of the Senate, Kansas

President, NCSL

Terie Norelli

House Democratic Leader, New Hampshire

President-Elect, NCSL

Co-Chair, NCSL Deficit Reduction Task Force

Rosie Berger

Member, Wyoming House of Representatives

Co-Chair, NCSL Deficit Reduction Task Force

UTAH LIEUTENANT GOVERNOR BLOG
Legislative Conversation
Posted: 19 Jan 2012 10:02 PM PST

This is an interesting fabricated conversation between the Lt. Governor and a friend about the Legislative process in Utah. It is instructive and informative.

CONTACT PRESIDENT OBAMA TO EXPRESS YOUR DISAPPOINTMENT ON THE KEYSTONE XL PIPELINE!
National Association of Manufacturers
Will you reach out to President Obama to express your disappointment regarding the Keystone XL Pipeline?

The President's rejection of the Keystone XL project is a serious blow to job creation and a major setback to energy security. The decision to say "no" to a project that would create 20,000 manufacturing and construction jobs – with an additional 118,000 indirect jobs – makes absolutely no sense when the U.S. is suffering from high unemployment and a struggling economy. The rejection of the pipeline project is yet another setback to thousands of unemployed Americans and our nation's energy security. For America's future, it's always better to choose sound policy over politics. Instead the Administration followed the political winds and rejected a clear way to create jobs.

The Administration has exhaustively reviewed the environmental impact of the pipeline for more than three years and has definitively concluded that no significant risks stand in the way of constructing the pipeline.

The XL pipeline expansion would have nearly doubled the capacity of the existing Keystone system, transporting approximately 700,000 barrels of crude oil daily. As users of approximately one-third of the energy consumed in this country, manufacturers know too well that access to a reliable energy supply is critical. It is a mistake to turn away from a secure, reliable source of energy from a friendly neighbor.

Please contact the President and express your disappointment in his decision to reject this job-creating pipeline project.

To send a message directly to the President about the Keystone Pipeline, click here.

For More Information, Please Contact:
Chip Yost
Vice President, Energy and Resources Policy
cyost@nam.org
202.637.3175

Note: UMA has expressed disappointment as an association, but it would be good to have a host of companies express their disappointment as well. Thanks for your help.

CHINA'S MANUFACTURING SHRINKS FOR THIRD MONTH
Quick Manufacturing News
Growth is likely to moderate further. Click to continue

SHALE GAS: A RENAISSANCE IN U.S. MANUFACTURING?
Today in Manufacturing
The relatively inexpensive and stable long-term source of natural gas is helping manufacturing companies expand and open more facilities in the U.S. ... continue

WALKING YOUR EMPLOYEES TO HIGHER PRODUCTIVITY
Today in Manufacturing
For most manufacturers, healthcare costs rank second behind salaries as the biggest expense of doing business. That can be changed, however ... continue

January 19, 2012

2012-01-19T22:06:00.000-08:00

UNEMPLOYMENT CLAIMS AT 352,000, FEWEST SINCE 2008

Today in Manufacturing
Labor Department cautioned that volatility at this time of year is common, but suggested the decline is evidence that the job market is strengthening ... continue

CONSUMER PRICES REMAIN FLAT
Today in Manufacturing
Labor Department says consumer prices were unchanged last month, the latest sign that inflation remains tame ... continue

PIPELINE REJECTION ANGERS MANUFACTURING GROUPS
Quick Manufacturing News
Critics of decision say 20,000 jobs at risk. Click to continue

COST OF JOB-RELATED ILLNESSES EXCEEDS COSTS OF ALL CANCERS, DIABETES AND STROKES
Quick Manufacturing News
A new NIOSH-funded study determined that the cost of job-related injuries and illnesses is $250 billion, which is $31 billion more than the cost of all cancers and $76 billion more than the cost of diabetes. The study results beg the question: Is industry and the federal government doing enough to eliminate occupational injuries and illnesses and their associated costs? Click to continue

FED: U.S. MANUFACTURING CLOSED 2011 ON A HIGH NOTE
Quick Manufacturing News
Manufacturing is a bright spot in the Federal Reserve's mostly positive data on U.S. industrial production and capacity utilization for December 2011. However, the outlook for 2012 is muted by the threat of a recession in Europe and a slowdown in China. Click to continue

REPORT: US LOST 28% OF HIGH-TECH MANUFACTURING JOBS
Today in Manufacturing
The National Science Board said that US-based multinational companies created a plethora of R&D jobs in countries like China over the last decade ... continue

NAM CAPITAL BRIEFING 1/19/12
Focus: President Obama Rejects Keystone Pipeline and Thousands of American Jobs
President Obama dealt a major blow to manufacturers, job creation and energy security on Wednesday, January 18, issuing a decision to formally reject the construction of the Keystone XL pipeline.

Before the end of 2011, Congress passed a two-month payroll tax extension that included a provision to force President Obama to make a decision on the Keystone XL pipeline within 60 days. Last week, the NAM and a lengthy list of business groups sent a letter to President Obama urging him to act on the matter.

In a statement, President Obama said his rejection was not based on the pipeline itself but on "the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people."

However, the pipeline has been under review by the federal government since 2008. In fact, the pipeline has been debated, discussed and considered for nearly four years. And regardless of the amount of time needed to consider the pipeline, the jobs argument is clear.

According to TransCanada, which applied for a permit for the pipeline in 2008, the pipeline would create 20,000 jobs immediately—7,000 of which would be specific to manufacturing—and 118,000 jobs indirectly.

These jobs would provide a clear boost to the economy and give more confidence to our nation's employers. "The decision to say no to a project that would create 20,000 manufacturing and construction jobs—with an additional 118,000 indirect jobs—defies logic when the U.S. is suffering from high unemployment and a struggling economy," said NAM President and CEO Jay Timmons. "For America's future, it's always better to choose sound policy over politics. Instead the Administration followed the political winds and rejected a clear way to create jobs."

Timmons also appeared on Fox News following the President's announcement. To watch the video, click here. For more from Timmons, click here.

Manufacturers use one-third of our nation's energy supply, which makes the need for a national energy plan that much more important. Manufacturers need affordable, reliable and secure energy, and the Keystone XL pipeline is the perfect vehicle for that.

TransCanada has also announced that it will reapply for a permit for the pipeline. While the company hoped a new application would be processed in an expedited manner to allow for an in-service date of late 2014, the State Department responded that a new application will trigger a new review process that will not be expedited.

Despite this setback, manufacturers remain committed to advancing the pipeline and will continue to press Congress and the Administration for a green light on this shovel-ready project to create thousands of high-quality American jobs.

OSHA Could Move Forward on Injury and Illness Prevention Programs. Last week, the Occupational Safety and Health Administration (OSHA) released a white paper encouraging businesses to implement Injury and Illness Prevention Programs (I2P2). I2P2 aims to help employers reduce the number and severity of workplace injuries and illnesses. While the white paper does not mandate any program, it does tout the successes of I2P2 programs that have already been implemented in many businesses. There is skepticism, however, that a rule contemplated by OSHA that mandates that every worksite implement an I2P2 program could create a system where any worksite not in perfect compliance would be subject to OSHA citations. OSHA also announced last week that it will convene a Small Business Advocacy Review Panel within the next 60 days to review I2P2. These are strong indications that OSHA is taking steps toward revisiting I2P2 once again, and there will likely be more movement in the coming months. Details: Joe Trauger, (202) 637-3127.

NAM Chair Takes Manufacturing Renaissance to Detroit. In a speech on Thursday, January 12, to the Detroit Economic Club, NAM Chair Mary Andringa praised the strength of the manufacturing industry in bouncing back from the recession and discussed her experiences as president and CEO of Vermeer Corporation, a family-owned business with more than 2,500 employees around the world. "We will not be a healthy country if we don't have good manufacturing jobs," Andringa told the attendees. To achieve that goal, she called for lower corporate taxes and the need for a more highly trained, skilled workforce to serve manufacturing companies. She also highlighted the need to eliminate foreign tariffs and other barriers to sales by U.S. manufacturers abroad. A path to achieving these goals and others is outlined in the NAM's comprehensive blueprint, A Manufacturing Renaissance: Four Goals for Economic Growth. Click here to watch the speech.

NAM President and CEO Thanks Manufacturing Associations for Working Together. On Friday, January 13, NAM President and CEO Jay Timmons delivered a keynote address at the NAM's Council of Manufacturing Associations (CMA) Winter Conference. The CMA comprises more than 240 industry-specific manufacturing trade associations. In his remarks to the association CEOs attending the conference, Timmons stressed the importance of cooperation between manufacturing associations—especially in this critical election year. He also congratulated manufacturing association executives for working together as partners to ensure candidates are promoting manufacturing policy and making a strong manufacturing sector a priority in their plans to strengthen the economy.

January 18, 2012

2012-01-18T21:04:00.000-08:00

WHOLESALE PRICES DECLINED IN DECEMBER

Today in Manufacturing
Labor Department says wholesale prices fell last month because companies paid less for food and energy, evidence that inflation remains tame ... continue

HOW CHINA IS STEALING OUR SECRETS
Today in Manufacturing
The FBI ranks China as one of the greatest potential espionage threats over the next decade and has performed four investigations over the past 20 years ... continue

2012 STARTS ON POSITIVE LOGISTICS NUMBERS
Quick Manufacturing News
Transportation employment increased more than 1.5% year-over-year in December, with rail employment up 3.9% and trucking up 3.2%. Transportation industries added about 50,200 employees in December, accounting for 25.1% of the overall net employment gains added last month. Click to continue

SCHOLARSHIP PROGRAM AIMED AT ADDRESSING SKILLS GAPS IN MANUFACTURING INDUSTRY
University of Phoenix
WASHINGTON D.C. , Jan. 12, 2012— Continuing to develop the next generation of highly- educated and competitive manufacturing workers, The Manufacturing Institute, in conjunction with University of Phoenix, today announced that it will offer 20 full tuition scholarships for an undergraduate or graduate degree at University of Phoenix. The scholarships are part of a continued educational alliance between The Manufacturing Institute and University of Phoenix to help address the educational and skills gaps impacting the manufacturing sector.

According to a recent survey from Deloitte and The Manufacturing Institute, nearly 70 percent of American manufacturing companies have a moderate to severe shortage of available, qualified workers. In addition, the survey found that manufacturing companies cannot fill as many as 600,000 skilled positions—even as unemployment numbers hover at historic levels.

“Partnering with educational institutions like University of Phoenix is critical in addressing the manufacturing skills gap,” said Emily DeRocco, president, The Manufacturing Institute. “Through scholarships, manufacturing relevant degree programs and additional educational pathways, we can align education and training to help meet the needs of employers and job-seekers.”

The Manufacturing Institute and University of Phoenix have collaborated to create a unique program concentration that is aligned with the competencies defined by the industry as essential for successful manufacturing careers. The Bachelor of Science in Management with a concentration in Manufacturing provides students with education that is vital to growth and innovation. The University also offers a multitude of degree programs in business, information technology, human resources as well as sales and marketing that teach the core competencies in demand with leading manufacturers.

“The research and data are clear: our nation’s manufacturers need a more qualified and skilled workforce,” said Dr. Bill Pepicello, president, University of Phoenix. “University of Phoenix is committed to being part of the solution and we look forward to continuing our work with The Manufacturing Institute to develop new and innovative programs to educate our next generation of manufacturing workers.”

The 20 full-tuition scholarships are available for qualified individuals currently employed by a manufacturer, a transitioning employee (within the past year) looking to reenter the manufacturing workforce or an individual considering a career in manufacturing. Community college students graduating with a manufacturing-related associate degree prior to June 13, 2012, or students completing an industry-recognized credential or certification program prior to June 13, 2012, are also eligible. The scholarship covers full tuition and fees for an undergraduate or graduate degree at any of University of Phoenix’s more than 200 locations or online.

This is the second year that The Manufacturing Institute and University of Phoenix have partnered to offer these scholarships. One of last year’s scholarship recipients, Ken Konecki of Sacramento, Calif., is currently pursuing his Master’s in Business Administration (MBA) at University of Phoenix.

“Having an MBA in today’s economy will help increase my competitive edge and put me on the path toward management,” said Konecki. “Manufacturing jobs will continue to play an important role in our economy’s future, and I am thankful for this scholarship that will help expand my knowledge and growth within this sector.”

For more information including scholarship criteria, requirements and deadlines visit:

www.phoenix.edu/mischolarship .

January 17, 2012

2012-01-17T21:25:00.000-08:00

January 17, 2012
In the Beige Book released last week, the Federal Reserve Board observed "modest to moderate" growth in economic activity over the past month. That trend extends to all facets of the domestic economy, with notable improvements in confidence and manufacturing activity in a number of indicators and regions of the country. Respondents to the Manufacturers Alliance for Productivity and Innovation's (MAPI) outlook survey were strongly positive about production, new orders, employment and capital spending (even as there was some easing in MAPI's findings from the past survey). The sector is expected to experience moderate growth this year.

Perhaps because of these measures, businesses and consumers have become more positive, as well. The University of Michigan's Survey of Consumer Sentiment indicated a rebound in confidence to levels seen earlier in the year, with Americans more optimistic about both the current and future outlook. Likewise, the National Federation of Independent Business noted much-improved sentiment among small business owners, and more of these individuals said that the next three months might be a "good time to expand." While these sentiment surveys still have sub-par readings, the improvements of late show a trend that is headed in the right direction.

With that said, not all of the economic news released last week was good. Retail sales in December were disappointing, up just 0.1 percent. Despite much of the hype over larger Christmas sales – particularly around Black Friday and just before the holiday – overall sales growth was weak, and excluding auto sales, retail sales were negative for the month. In addition, the trade deficit widened in November. Global economic weaknesses, particularly in Europe, are having an impact on growth prospects. On Friday, Standard & Poor's downgraded several European countries' debt ratings, with France and Austria losing their AAA rating. Such moves help to reinforce economic anxieties, but they also highlight the reality that Europe's problems are having a real impact. Forty-five percent of the MAPI respondents said that their exports to Europe have been negatively affected by Europe's weaknesses.

When discussing the latest economic trends, there is a split between the U.S. domestic economy and the rest of the world. While U.S. economic activity has seen noticeable improvements recently, weaknesses abound elsewhere. This is particularly true in manufacturing, as seen in this table of world-wide factory activity. The worry – at least among those who closely follow the European crisis – is that those problems will spill over into domestic concerns.

This week, we will gain further insights into the U.S. market, with new industrial production numbers out tomorrow. Some regional production figures from the New York and Philadelphia Federal Reserve Banks and Chapman University (regarding California) also will be released this week. In addition to manufacturing activity, other data highlights for the week include consumer and producer price indices and new housing starts.

Chad Moutray
Chief Economist
National Association of Manufacturers

CHINA'S ECONOMIC GROWTH EBBS TO LOWEST IN 2 YEARS

Today in Manufacturing
The slowdown was in line with government plans to have the booming economic growth come to a 'soft landing' that would avoid global repercussions ... continue

INNOVATION IS AS MUCH CONNECTION AS INVENTION
Today in Manufacturing
Some of the greatest game-changing innovations resulted only when the idea was connected with the capability to pull it off ... continue

OBAMA'S NLRB APPOINTMENTS CHALLENGED
Bloomberg News
The Bloomberg News reported, "President Barack Obama's recess appointment of three members to the National Labor Relations Board was challenged in court by the National Federation of Independent Business, which claims a constitutional violation." The filing "may be the first legal action targeting the White House appointments made without Senate confirmation on Jan. 4 during a brief congressional break. It was made as part of an existing lawsuit in federal court in Washington over a new NLRB rule that requires employers to notify workers of their rights to form a union." The article noted, "The case is National Association of Manufacturers v. National Labor Relations Board, 1:11-cv-1629, US District Court, District of Columbia (Washington)."

NAM PUSHS LAWMAKERS TO ACT QUICKLY TO EXTEND TAX BREAKS THAT EXPIRED LAST YEAR The HillThe Hill’s, "On The Money" blog reported, "Business advocates are hoping Congress, which returns for another session in the coming weeks, will be able to quickly extend a number of tax provisions that expired at the end of" last year. "I'm as hopeful as I can be that Congress will act, that they want to act," Monica McGuire, the senior director for tax policy at the National Association of Manufacturers, told The Hill. "They recognize the impact of these provisions, and that's encouraging."

BUSINESSES BENEFIT IN WASHINGTON WHEN INJURED WORKERS STAY ON THE JOB
Quick Manufacturing News
Employers who help their injured workers stay on the job by creating or providing light-duty jobs for them may be eligible for reimbursement through Washington state's new Stay at Work program. Click to continue

COMPENSATION CHALLENGES IN 2012: FINDING THE RIGHT MIX
Quick Manufacturing News
As companies move away from the economic turmoil of the last few years and further into a recovering economy, they need to refocus on their compensation choices and mix. Moreover, CFOs need to consider how employees view the company's overall value proposition—that is, everything of value the company provides to employees, including nonfinancial reward. Click to continue

A WIN FOR MANUFACTURERS IN THE CALIFORNIA SUPREME COURT
FLAGG Weekly Communications
The California Supreme Court recently decided a case that limits a manufacturer’s liability for products made by other manufacturers. The National Association of Manufacturers had filed an amicus brief in the case.

The Consumer Class Actions and Mass Torts blog has a thorough analysis of the decision. An excerpt from that analysis:

In a decision that harkens back to the fundamental precepts underlying strict liability and the whole concept of product liability, the California Supreme Court reversed. In a series of very quotable passages, the court hewed to the notion that liability must be tied to the product that the manufacturer made, and that manufacturers have no duties to end users that arise from the use of other manufacturers’ products.

With respect to strict liability claims, the court held that there could be no strict liability design claim because the alleged design defect in Crane’s and Warren’s products -- the inclusion of asbestos-containing gaskets -- was not a legal cause of Mr. O’Neil’s injury because these asbestos-containing parts were not on the ship by the time Mr. O’Neil got there. As for the strict liability failure to warn claim, the court held that defendants had no duty to warn of risks arising from other manufacturers’ products, namely other asbestos-containing valves and insulation that the Navy used with Crane’s and Warren’s products.

January 16, 2012

2012-01-16T20:37:00.001-08:00

OBAMA PROMOTES 'INSOURCING,' GOV'T REORGANIZATION
Today in Manufacturing

Obama wants a guarantee from Congress that he could get a vote within 90 days on any idea to consolidate federal agencies, provided it saves money and cuts the government ... continue

PROJECT TO POUR WATER INTO VOLCANO FOR POWER
Today in Manufacturing
Geothermal energy developers plan to pump 24 million gallons of water into the side of a dormant volcano in Oregon to help boost the green energy sector ... continue

MISCALCULATIONS IN MOVING PRODUCTION OVERSEAS
Today in Manufacturing
As much as it may not be appealing to consider moving production overseas, for some of us it might seem like there is little choice ... continue

DROP IN NATURAL GAS PRICES AIDS FAMILIES, BUSINESSES
Today in Manufacturing
A 35 percent collapse in the futures price over the past year has been a boon to manufacturers who power factories and make chemicals and materials with it ... continue

ELECTRIC PLANTS SHIFT FROM COAL TO NATURAL GAS
Today in Manufacturing
The most optimistic projections describe an abundant domestic energy source that will create enormous numbers of jobs and lead to cleaner skies ... continue

WILL RE-SHORING TAKE OFF IN 2012?
Today in Manufacturing
According to a recent survey, 85 percent of manufacturing executives see jobs coming back to America from overseas. Will 2012 finally bring change? ... continue

January 12, 2012

2012-01-12T20:29:00.000-08:00

FED SURVEY SHOWS ECONOMY ENDED 2011 STRONG

Today in Manufacturing
The final weeks of 2011 were among the U.S. economy's strongest as Americans shopped and traveled more, ending the year with a shot of optimism ... continue

UNEMPLOYMENT BENEFIT APPLICATIONS JUMP TO 399,000
Today in Manufacturing
The number of people applying for weekly unemployment benefits spiked, largely because companies let go of thousands of workers after the holiday season ... continue

SURVEY: UTAH EMPLOYERS OPTIMISTIC ABOUT 2012 ECONOMY, BUT INCREASED HIRING STILL QUESTIONABLE
EDCUtah
Utah employers and their counterparts nationwide are slightly more optimistic about the 2012 economy than they were in 2011, but the optimism won't necessarily translate into more jobs. That's according to data just released by The Employers Council in its 2012 Economic Trends Survey.

Utah executives are more gung-ho about the economy than their peers nationally, with 93 percent of the Utah survey respondents expecting the 2012 economy to be about the same or better compared to 2011, and only seven percent feeling it will be worse verses 10 percent nationally who express pessimism. Further, among Utah executives, 70 percent expect the outlook for their own businesses to be more promising in 2012 with increases in sales and/or revenue.

"This is a boost from the 2011 Economic Trend Survey wherein only 64 percent projected increases," says Monica Whalen, president & CEO of The Employers Council, a Salt Lake City-based private, non-profit employer association with over 500 employer-members located throughout the Intermountain West.

Hiring Plans
Despite the optimism, Whalen says 2012 hiring plans among Utah employers are actually down from 2011 and even fall behind the nation. In fact, this year only 33 percent of Utah employers plan to increase staff levels, versus 45 percent in 2011, according to the survey. Whalen says this lags the national projection of 36 percent for 2012. Furthermore, 11 percent of Utah employers plan to reduce staff levels in 2012 compared to six percent nationally.

"This is an increase among Utah executives from the six percent that planned staff level reductions in 2011," she explains.

Whalen says the expectation by some Utah employers that they will not increase hiring is an indication that the businesses are running lean and that they are confident their employees can do more with less. It also may mean the full impact of the recession is hitting Utah a little later than it hit other parts of the country, necessitating some "right-sizing" a bit later than has already been done by other employers in other areas, she adds.

Barriers to Job Creation
The greatest barrier to job creation, according to the survey data from Utah respondents, is the concern about further economic decline (56 percent). The next two greatest response groups said the biggest barriers are excessive government regulations (18 percent) and limited consumer demand (16 percent).

The comprehensive survey included responses from 103 Utah business executives. Forty percent of the respondents were from the manufacturing industry; 62 percent of the respondents were from small businesses with less than 250 employees.

Twenty-nine percent of the Utah respondents said they expect the overall economy to be better in 2012 than it was in 2011; 65 percent said they expect 2012 to be about the same as 2011; seven percent said they expect 2012 to be worse. Comparatively, 15 percent of the respondents said they expect a significant increase in sales/revenue for 2012; 55 percent said they expect a slight increase; 22 percent predict flat sales/revenue; seven percent said they expect a slight decrease.

Cost-Cutting
Regarding plans to hire in 2012, 51 percent of Utah respondents said they had no plans to hire; 35 percent projected they would hire in the first quarter; 41 percent said the second quarter; 29 percent said the third quarter; 21 percent said the fourth quarter.

As for cost-cutting measures, 38 percent of the Utah respondents said they had no cost-cutting measures planned for 2012; 54 percent said they would continue or implement lean/process improvement initiatives; 23percent said they would shift a larger percentage of health care costs to employees; 10 percent said they planned permanent reductions in staff.

The survey was conducted by The Employer Associations of America (EAA), which surveyed 1890 companies: 45 percent were from manufacturing, 10 percent were from Professional and Business Services, six percent were from Health Services, and 39 percent from other industries. The survey also represents all sizes of companies, from 1-99 employees (53 percent), 100-249 employees (25 percent), 250-499 employees (12 percent), 500-999 employees (5 percent), and over 1,000 employees (5 percent). Survey data was collected in October through November of 2011.

OBAMA PROPOSES TAX BREAKS FOR MANUFACTURERS THAT BRING JOBS BACK TO THE US.
New York Times
The New York Times reported, "President Obama said on Wednesday that he would propose tax incentives for companies to bring home manufacturing jobs they had moved overseas, and curtail tax breaks for those that keep relocating jobs abroad. Flanked by executives from the aerospace, chemical and furniture industries - all of whom are building or expanding factories in the United States - Mr. Obama declared that the nation was beginning to see the reversal of a long-term trend toward outsourcing."

U.S. NEEDS TO MAKE AND SELL PRODUCTS THAT SAY 'MADE IN AMERICA' SAYS OBAMA
Quick Manufacturing News
'I don't want the next generation of manufacturing jobs taking root in China or Germany. I want them taking root in Michigan,Ohio,Virginia and North Carolina,' President Obama said. Click to continue

CONVEYOR ORDERS DROP 38% IN NOVEMBER, BUT STILL BETTER THAN 2010
Quick Manufacturing News
The Conveyor Equipment Manufacturers Association's November 2011 Booked Orders Index was 145, down 90 points or 38% from October 2011’s Index of 235. The November index represents an increase of 14% from the November 2010 Index of 127. Click to continue

COMMERCE DEPARTMENT REPORT: MANUFACTURING KEY TO RESTORING U.S. ECONOMIC COMPETIVENESS
Quick Manufacturing News
Roadmap highlights priorities for fostering innovation, including 'significant' federal support for R&D. Click to continue

FLEXIBLE WORKING ENHANCES JOB CONTROL, EMPLOYEE WELL-BEING
Quick Manufacturing News
Don't confuse 'flexible' with 'anything goes.' Flexible working actually is a structured system with vital ground rules. Click to continue

MOVING JOBS OFFSHORE BECOMING 'HARDER TO JUSTIFY'
Quick Manufacturing News
Report says economics and innovation priming comeback for U.S. manufacturing. Click to continue

January 11, 2012

2012-01-11T21:19:00.001-08:00

2011 IW BEST PLANTS WINNERS: THE BEST NEVER REST

Quick Manufacturing News
IndustryWeek's 2011 Best Plants winners pursue operational excellence with a determination that is both endless and relentless. Click to continue

U.S. MACHINE TOOL ORDERS DOWN AGAIN FOR NOVEMBER
Quick Manufacturing News
U.S. manufacturers ordered $430.17 million worth of machine tools and related products. 'Manufacturing technology orders slowed slightly in November, but maintained their sprint toward the 2011 finish line thanks to the bonus depreciation tax incentive,' stated AMTDA president Peter Borden. Click to continue

AN AMERICAN MANUFACTURING MOVEMENT: TALENT
Today in Manufacturing
Congress, states, academia, industry, and national laboratories should renew efforts to expand STEM education ... continue

January 10, 2012

2012-01-10T21:10:00.000-08:00

2012 ECONOMIC TRENDS SURVEY RESULTS

The Employers Council
According to the data in our 2012 Economic Trends Survey, employers nationwide are slightly more optimistic than in 2011. Utah executives are even more gung-ho than their peers nationally, with 93% of Utah business leaders expecting the overall 2012 economy to be about the same or better compared to 2011, and only 7% feeling it will be worse (versus 10% nationally who express pessimism). Among Utah executives, 70% expect the outlook for their own business to be more promising in 2012, with increases in sales/revenue. This is a boost from the 2011 Economic Trends Survey in which only 64% projected increases. Confidence is tempered by 22% of Utah respondents that anticipate flat sales/revenue, and 8% that expect a decrease in sales/revenue.

Hiring plans among Utah employers are down from 2011, and fall behind the nation. This year only 33% of Utah employers – versus 45% in 2011 – plan to increase staff levels. This lags the national projection of 36% for 2012. Furthermore, 11% of Utah employers plan to reduce staff levels, versus 6% of employers nationally. Among Utah executives, this is an increase over the 6% who planned staff level reductions in 2011.

In 2012, we may also see more layoffs in Utah (10% of respondents) as compared to the nation (6% of respondents). As for pay, more Utah executives plan to increase wages in 2012 (65%) than reported such plans in 2011 (56%). And fewer plan to freeze wages in 2012 (11%) as compared to 2011 (21%). This comprehensive survey of nearly 1,900 organizations nationwide included 103 Utah businesses.

The full report is available free to Council members via our Members Only website at http://ecutah.org/member or by contacting Terri at the Council office.

USDA CLOSURES RAISE SAFETY CONCERNS
Today in Manufacturing
USDA will close nearly 260 offices nationwide, a move that won praise for cutting costs but raised concerns about the possible effect on food safety ... continue

January 9, 2012

2012-01-09T20:04:00.000-08:00

January 9, 2012
Manufacturers brought in the new year much as we ended the last one. There are definite improvements in the domestic economy, yet worries about Europe and other headwinds continue to weigh heavily on the minds of many politicians and economists. Concern about sovereign debt levels, for instance, brought the value of the euro down to $1.27, its lowest exchange rate since autumn 2010. (As recently as August 2011, one euro traded for $1.45.) Debt challenges are not unique to Europe; U.S. debt levels have now exceeded 100 percent of our annual GDP – putting an exclamation mark on the budget-cutting debates that will continue into 2012.

Despite these challenges, the U.S. macroeconomy is showing signs of strength. The unemployment rate fell to 8.5 percent in December, its lowest level since February 2009. In addition, 200,000 net new workers were added in the month, with 23,000 of those stemming from manufacturers. It appears that the manufacturing sector has started to rebound from weaknesses observed in the middle of 2011. This is especially the case for the durable goods sectors, which accounted for all of the net job gains in December. Since December 2009, manufacturers have added 334,000 new employees, with the largest increases coming in the transportation, metals, machinery and electronics sectors.

Last week, two indicators were released supporting the view that manufacturing activity has picked up. First, the Census Bureau noted a 1.8 percent rise in new orders for manufactured goods in November. While this is largely the result of a large aerospace order, other sectors also had significant increases. One downside: spending on core capital goods orders fell 1.2 percent, suggesting a deceleration in business investment. However, year-over-year core capital goods orders provide a stronger picture.

Second, the Institute for Supply Management's Purchasing Managers Index rose from 52.7 in November to 53.9 in December. Measures for new orders, production, employment, exports and imports were all higher for the month, suggesting that manufacturing activity has picked up some steam. Sample comments from many of the respondents had an upbeat but cautious tone. At least one survey respondents expressed a conservative approach to hiring and investing over the coming months due to uncertainties and frustrations with European and U.S. fiscal policy.

We will learn more about regional strengths and weaknesses in the economy from the Federal Reserve's Beige Book, which will be released on Wednesday. Other highlights include new data on consumer indebtedness, individual and small business confidence and wholesale and retail sales. In addition, the Commerce Department will report international trade figures on Friday, providing additional insights into a major source of growth for manufacturers – exports.

Chad Moutray
Chief Economist
National Association of Manufacturers

U.S. DEBT IS NOW EQUAL TO ECONOMY

USA Today -- Richard Wolf
January 9, 2012

http://www.usatoday.com/news/washington/story/2012-01-08/debt-equals-economy/52460208/1
WASHINGTON – The soaring national debt has reached a symbolic tipping point: It's now as big as the entire U.S. economy.

The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.

That's roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.

"The 100% mark means that your entire debt is as big as everything you're producing in your country," says Steve Bell of the Bipartisan Policy Center, which has proposed cutting nearly $6 trillion in red ink over 10 years. "Clearly, that can't continue."

Long-term projections suggest the debt will continue to grow faster than the economy, which would have to expand by at least 6% a year to keep pace.

President Obama's 2012 budget shows the debt soaring past $26 trillion a decade from now. Last summer's deficit reduction deal could reduce that to $24 trillion.

Many economists, such as the Brookings Institution's William Gale, say a better measure of the nation's debt is how much the government owes creditors, not counting $4.7 trillion owed to future Social Security recipients and other government beneficiaries. By that measure, the debt is roughly a third less: $10.5 trillion, or nearly 70% the size of the economy.

That is still high by historic standards. The total national debt topped the size of the economy for three years during and after World War II. It dropped to 32.5% of the economy by 1981, then began a steady climb under President Reagan, doubling over the next 12 years. The combination of recession and stimulus spending caused it to soar again under Obama.

Among advanced economies, only Greece, Iceland, Ireland, Italy, Japan and Portugal have debts larger than their economies. Greece, Ireland, Portugal and Italy are at the root of the European debt crisis. The first three needed bailouts from European central banks; Italy's books are monitored by the International Monetary Fund.

The White House and Congress agreed in August to cut about $1 trillion from federal agencies over 10 years. An additional $1.2 trillion in automatic spending cuts looms beginning next year if lawmakers can't agree on a better way to do it.

Economist Mark Zandi of Moody's Analytics says reaching the 100% mark shows "the grave need to address our long-term fiscal problems."

EMPLOYERS MORE OPTIMISTIC ABOUT 2012 ACCORDING TO ECONOMIC TRENDS SURVEY
Utah Pulse
“Employers are more optimistic about 2012. The 2012 Economic Trends Survey shows employers’ optimism both for the overall economy as well as their own business,” according to Monica Whalen, President & CEO of The Employers Council.
full story

THE NEW ADA: GET IN COMPLIANCE
January 26, 2011 Seminar
Utah Employers Council
The EEOC issued new regulations implementing the Americans with Disabilities Act Amendments Act (ADAAA). The ADAAA and these new regulations significantly change the landscape of disability discrimination law! It is now easier for workers to qualify as disabled, demonstrated by the fact that disability discrimination claims have increased nearly 30% over the two years since the ADAAA became effective. Plus, the enforcement focus is on employers: Have they met their nondiscrimination and reasonable accommodation obligations? Learn the latest legal developments and how to apply the rules in real-world situations from prominent attorneys Lois Baar and Cecilia Romero with Holland & Hart. Council professionals will also share helpful practice tips for accommodating people with disabilities. Topics to be covered include:

• Americans with Disabilities Act Amendments Act of 2008
• New EEOC disability regulations
• Expanded definition of disability
• Employer nondiscrimination and reasonable accommodation obligations
• Steps of the interactive process

When: Thursday, January 26, 2012
Time: 8:00 a.m. - 12:00 noon (check-in and full breakfast buffet from 7:30 - 8:00 AM)
Where: Red Lion Hotel, 161 W 600 S, Salt Lake City, UT
Cost: $129 per Council member; $209 per non-member (includes materials and full breakfast buffet)
Call the Council office for information or questions. You can download the registration form at http://ecutah.org/2012springada.pdf. Full refund will be given if cancellation is received one week prior to event. Enrollment is limited to available space.

STEP OUT OF THE SHADOWS, SAYS NUCOR CEO
Quick Manufacturing News
2011 IW Hall of Fame winner Dan DiMicco speaks out. Click to continue

RISING TRANSPORT COSTS UNAVOIDABLE?
Quick Manufacturing News
A year ago, shippers hoped to hold transportation rate increases to the 4-5% range; other industry sources thought rates could rise by 8% or more. As it happened, rates spiked seasonally on the spot market in 2011, followed by steady increases in contract rates. Click to continue

HEALTHY MANUFACTURERS TEND TO EXPORT
Quick Manufacturing News
The majority of executives who reported that their companies have increased their exports said their businesses are thriving. Click to continue

CONGRESS REAUTHORIZES SBIR-STTR PROGRAM
USTAR
After six years with 14 continuing resolutions, Congress passed legislation on December 15, 2011, assuring reauthorization for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grant program for six years.
full story

January 6, 2012

2012-01-09T20:00:00.000-08:00

UNEMPLOYMENT APPLICATIONS FALL AT YEAR'S END

Today in Manufacturing
The four-week average, which smooths fluctuations, fell to 373,250 -- the lowest level since June 2008 ... continue

SCIENTIST: TESTS NEEDED ON GAS DRILLING IMPACT
Today in Manufacturing
One of the government's top scientists says more research is needed to determine the impacts of shale gas drilling on human health and the environment ... continue

RETAILERS REPORT SOLID FINALE TO HOLIDAYS
Today in Manufacturing
Merchants had to mark down coats and other gifts to get shoppers to buy in a challenging economy ... continue

IMPLEMENTING THE PAYROLL TAX EXTENSION
Quick Manufacturing News
With the passage of the bill, employees' Social Security tax withholding will remain at 4.2% through February 2012, after which it will revert to 6.2%. Click to continue

BE PROACTIVE IN 2012 AND GET TO THE NEXT LEVEL
Today in Manufacturing
Manufacturers and distributors must take aggressive steps to impact the nation's economy and strive to actively shape their own destinies in 2012 ... continue

AS SANCTIONS BITE, IRAN FEELS THE PAIN
Today in Manufacturing
In the two days after President Barack Obama approved sanctions targeting Iran's central bank and oil sectors, the value of currency plunged 13 percent ... continue

PRESIDENT OBAMA RECESS-APPOINTS THREE MEMBERS TO NLRB
NAM Capital Briefing
In an unprecedented move on Wednesday, January 4, President Obama recess-appointed three new members to the National Labor Relations Board (NLRB). On Saturday, December 31, Craig Becker’s term expired, leaving the Board with only two members and unable to issue any case decisions or rules. Two of the new members, Sharon Block and Richard Griffin, were both nominated only a few short weeks ago, but the Senate has yet to fully consider these nominees through the normal Senate procedure at the appropriate committee or before the full Senate. Terence Flynn (a Republican nominee) was nominated a year ago to fill the remaining Republican slot on the Board, and while his nomination has been considered over the past year, it has been tied up for other political reasons. Under the Constitution, the President can exercise recess-appointment authority for those individuals who have already been nominated but have yet to be confirmed when Congress is in what is called a “recess” period. There is a question, however, as to whether the Senate was actually in a recess period when the President made these appointments. The NAM will continue to follow this point very closely.

CLOCK STARTS TICKING ON KEYSTONE XL PIPELINE DECISION
NAM Capital Briefing
On Friday, December 23, President Obama signed into law a payroll tax bill—including an NAM-supported provision requiring the State Department to approve the Keystone XL pipeline within 60 days unless the President determines the pipeline would not serve the national interest. While manufacturers welcome Congress’s inclusion of Keystone XL language in the tax package, it is now time for the Administration to approve the pipeline. The project will create 20,000 jobs right away and will create an additional 118,000 jobs over the next several years. It will also provide the United States with a secure and abundant supply of Canadian crude oil. This project is a win-win for both our nation’s energy security and the economy. The NAM will continue to put pressure on the Administration to approve the pipeline in the coming weeks. To read NAM President and CEO Jay Timmons’ New York Times op-ed on the Keystone XL pipeline, click here.

COURT STAYS JOB-KILLING EPA RULE IMPACTING POWER PLANTS
NAM Capital Briefing
On Friday, December 30, the U.S. Court of Appeals for the D.C. Circuit stayed the Cross-State Air Pollution Rule (CSAPR). This action stops the Environmental Protection Agency (EPA) from enforcing the rule until the Court has completed full consideration of the legal challenges against it. The EPA issued the CSAPR in July 2011. The rule replaces the Clean Air Interstate Rule (CAIR) that the D.C. Circuit determined was unlawful in 2008 and would implement a portion of the Clean Air Act that prohibits states from allowing emissions of pollutants in amounts that will contribute significantly to air quality problems in other states. The rule would require power plants in 28 states—including states in the South, Midwest and Mid-Atlantic—to reduce emissions that contribute to ozone and/or fine particle pollution. It also would set up an emissions trading program. Manufacturers are concerned that the CSAPR will raise electricity costs, compromise grid reliability and lead to more job losses. Had the court not granted the stay, the rule would have taken effect on January 1, an extraordinarily short period of time between the finalization of the rule and its implementation. Click here to read the per curiam order granting the stay.

A WORD FROM THE COMMISSIONER
Utah Labor Commission – “On the Job”
As part of Governor Herbert's 2011State of the State address, he directed all members of his cabinet to "...review existing business regulations and determine which should be kept, which should be modified, and which will be eliminated" in order to encourage a regulatory environment which both protects Utahns and does not hamstring business.

As part of this rule review process, the Labor Commission identified that most of its existing rules are appropriate exercises of rule making authority but that many rules can benefit from clarification and simplification while several others are no longer warranted. In all, the Commission identified 18 rules to amend, 4 to repeal, and 1 to add, and 1 needing possible statutory change.

The Commission invites stakeholders to continue to participate in assuring a balanced regulatory environment that protects the health, safety and fairness for Utah's employees while allowing Utah's employers to conduct their business efficiently and effectively.

2012 STATE REPORT CARDS FOR WORKER'S COMPENSATION RELEASED BY WORK LOSS DATA INSTITUTE
Utah Labor Commission – “On the Job”
According to a recent press release by the Work Loss Data Institute (WLDI), a database development Company focused on workplace health and productivity, “Utah performed the best of all the states…” Read an excerpt from their press release below:

December 21, 2011 Encinitas, CA – Work Loss Data Institute (WLDI) announces the release of its 2012 State Report Cards for Workers’ Comp, now with 10 years of data, which is used to track trends and give states a grade and tier ranking based on their performance from 2000-2009.

Forty-three states are covered, plus Puerto Rico, Guam and the Virgin Islands. WLDI’s State Report Cards are based on data from OSHA Forms 300 and 200, which cover all OSHA recordable injuries and illnesses and provide the basis for rating state-by-state workers’ compensation performance.

The report cards help employers, insurers, TPA’s, state governments and consultants answer the questions, “Who is doing well and why?”

Utah performed the best of all the states for 2009 and Arkansas and Minnesota came in a close second and third. All three states received a grade of A+ based on an average of their 2009 scores in the five categories above. West Virginia, New York, Hawaii, Wyoming and Kentucky received failing grades. This is New York’s tenth consecutive year with an F grade.

A summary of each grade for all states is shown on a U.S. Map Showing Grades by State, located at: http://www.worklossdata.com/SRC2012grades.htm.

For the full press release and more information: http://www.worklossdata.com/PR_SRC2012.htm

IF YOU AREN'T MAKING MISTAKES, YOU'RE DOING SOMETHING WRONG
SmartBrief on Leadership
The best business ideas often spring from strategic stumbles, writes Paul Schoemaker. It's essential to tolerate and even encourage mistake-making to create space for serendipity. "Deliberately making errors goes against the human grain," he writes. "But trying too hard to avoid them may be the greatest mistake of all." Inc.com

UNEMPLOYMENT RATE FALLS TO 8.5 PERCENT
Today in Manufacturing
Manufacturing added 23,000 out of the 200,000 jobs in December, capping a six-month stretch in which 100,000 or more jobs were created each month ... continue

WHEN PERFORMANCE LAGS, LOOK TO THE TEAM CULTURE
Today in Manufacturing
An effective team will define specific performance goals, a work-product, a set of challenges to overcome, and milestones to meet ... continue

COMMON SENSE ON COMMON CORE
Lt. Governor Greg Bell’s Blog -- Posted: 05 Jan 2012 04:47 PM PST
The worldwide market has few boundaries. Thus Utah’s businesses and workforce must be able to compete globally. For this reason, the Legislature, employers and parents are demanding that our education system benchmark its objectives against international competitors. They also demand a more rigorous curriculum.

To address these concerns, parents, teachers, school administrators and experts from across the country joined with state leaders to develop a clear set of standards that each state can use as a framework for improving education. In 2009, the Utah State Board of Education and the Governor agreed to join 48 states to produce the Common Core State Standards for mathematics and English-language arts.

Utah joined the Common Core initiative because we want standards to ensure that all students, no matter where they live, are prepared for success. These standards define the knowledge and skills students should have within their K-12 education careers and help ensure that students receive a high quality education consistently, from school to school. They also provide a greater opportunity for teachers and administrators to share experiences and best practices. Common Core Standards are:

• Aligned with college and work expectations
• Include rigorous content
• Informed by top performing countries such as Singapore
• Evidence-based
• Clear, understandable, and consistent
• Build upon the strengths of Utah’s current education standards

Based on misinformation, some legislators and parents have expressed concern about the Common Core being the result of the federal government meddling in Utah’s education policy. The Governor and I believe that the education of Utah’s children is the responsibility of Utah—not the federal government. However, it’s important to understand that the Common Core Standards were not developed by the federal government, nor has the federal government been involved at any step along the process. This is a state-led initiative, and Utah joined without any strings attached. We can opt out at anytime, or we can adapt the standards to fit our needs and values. The fear is that the Common Core will impose on Utah schools the obligation to teach values and lifestyles we don’t agree with. That won’t happen on our watch.

I have read the Common Core. It does not discuss, let alone mandate, any moral or political positions, values or lifestyle considerations. The Common Core, while very comprehensive, simply states milestones for students, for instance, by the end of 3rd grade the student will be able to form and use irregular verbs, or explain equivalent fractions. Common Core Standards are an exhaustive list of skills and competencies. The texts, the lessons, the values, the methods by which teachers convey and help our students develop these competencies will be chosen, as they always have been, by Utah’s schools and parents.

Recently I had a conversation with the founder and CEO of one of the world’s leading IT companies. He told me that in order for Utah to continue to attract more high-paying jobs, we must do better in educating our children. The Utah Common Core standards are a major step along this path.

January 3, 2012

2012-01-03T21:40:00.000-08:00

January 3, 2012

As we bring in a new year, it is clear that the U.S. economy is on a stronger footing than it was just a few months ago. Recent data suggest improvements in a number of manufacturing production indicators, providing some momentum leading into 2012. With that said, there remain some significant headwinds as well, with a weak domestic employment and housing market and continued anxieties in Europe. Real GDP should grow by at least 2.6 percent this year – stronger than the 1.5 percent growth of 2011 – but this rate of growth is still not enough to bring down the unemployment rate in a major way, and businesses and the public remain wary overall (even as they have become more optimistic recently).

Data released last week tended to support this view, showing both progress and mixed news. The Conference Board's Consumer Confidence Index in December jumped to its highest level since April, mirroring similar rises in confidence observed in other surveys. Consumer sentiment, in particular, tends to closely follow pocketbook issues, and Americans have become more positive about their own income and job prospects. Still, these indices remain sub-par overall despite their recent moves upward, reflecting the many economic anxieties that persist in the marketplace.

Manufacturers have also become more optimistic, though different regions are showing varying degrees of positivity. The four regional manufacturing surveys released last week provided mixed updates on production activity for December. The Chicago region remains one of the strongest in the nation, with the ISM-Chicago reflecting strong expansions in manufacturing activity. Respondents to the Dallas, Kansas City and Richmond Federal Reserve Bank surveys were less upbeat, with some reporting modest improvements while others observed a slight contraction. The longer-term view, however, for all of these surveys is upbeat. In looking at the expectations components from these surveys for the next six months, manufacturers nationwide anticipate healthy increases in new orders, production, employment and capital spending.

This week, we should receive similar information from the latest ISM purchasing managers' index data, which will be released this morning. I would anticipate a modest improvement in December from the 52.7 reading of November based on other recent data. In addition, the other major release of the week will be new employment data from the Bureau of Labor Statistics. Last month, many of us were surprised by the drop in unemployment from 9.0 percent to 8.6 percent. Some of this fall was the result of an increase in discouraged workers. Last week, there was an increase in weekly jobless claims, suggesting that at least some of these individuals have come back into the labor force to start looking for jobs. As a result, economists will be closely watching the unemployment rate and nonfarm payroll numbers to gauge whether or not there will be improvements. I expect a slight increase in the unemployment rate with nonfarm and manufacturing jobs increasing modestly for the month.

Chad Moutray
Chief Economist
National Association of Manufacturers

ST. GEORGE COMPANY MANUFACTURES UNCLOGGING SURGICAL DEVICE

Utah Business
Ontium Medical, has selected St. George, UT as the primary location for its new manufacturing site. The manufacturing facility, located in the Ft.
View Full Article

UTAH WORKERS' COMPENSATION RATE INCREASES FOR 2012
Utah Business
Utah small businesses should prepare for workers’ compensation insurance rate increases going into effect after the New Year. The Utah Division of Insurance has ordered an average premium rate increase of 1.5 percent effective January 1, 2012.
View Full Article

UTAH HOME SALES UP FOR SIXTH STRAIGHT MONTH
Utah Business
Utah home sales continued an upward trend in November, rising more than 10 percent compared to last year and marking the sixth straight month of home sales increases, according to a new report from the Utah Association of Realtors. During November, Utah Realtors sold 2,523 homes, townhomes and condominiums versus 2,285 sold last year during the same month. Sales were also up for the year as a whole, rising 8 percent compared to the January-through-November period in 2010.
View Full Article

MANAGING HEALTH CARE REFORM DECISION MAKING
Quick Manufacturing News
The health insurance exchanges are coming on line and companies must make the so called 'pay-or-play' decision in just 24 months. Is it better for the company to continue to offer its employees health insurance (play)? Or is it more advantageous to eliminate health benefits and pay the resulting penalties (pay)? Click to continue

FUELS TAKE TOP US EXPORT SPOT FROM AIRCRAFT
Today in Manufacturing
Just how big of a shift is this? A decade ago, fuel wasn't even among the top 25 exports. And for the last five years, America's top export was aircraft ... continue

WHIRLPOOL ACCUSES LG AND SAMSUNG OF 'DUMPING' WASHERS
Quick Manufacturing News
Whirlpool filed legal action against South Korean rivals LG and Samsung, saying they dumped underpriced washing machines into the U.S. market in violation of trade laws. Click to continue

WIND TOWER MANUFACTURERS SEEK IMPORT RELIEF
Quick Manufacturing News
A coalition of U.S. manufacturers of welded steel towers is alleging in a trade complaint that producers in China and Vietnam are benefiting from their governments' subsidies, allowing them to sell wind towers below cost and undermining the fair market rate. Click to continue

EUROZONE MANUFACTURING STUCK IN REVERSE
Quick Manufacturing News
The Eurozone manufacturing sector was in reverse for the fifth month in a row in December, a key survey showed on Jan. 2. Click to continue

UPTICK IN MANUFACTURING OUTPUT IN INDIA
Quick Manufacturing News
India's factory activity showed its sharpest rise in six months in December, helped by improved demand and growth in new orders for business, according to a new survey. Click to continue

MANUFACTURING GROWS AT FASTEST PACE IN 6 MONTHS
Today in Manufacturing
The Institute for Supply Management says factories hired in December at the fastest pace since June, and should start the new year strongly ... continue

REPORT: EQUIPMENT INVESTMENT TO GROW 9 PCT. IN 2012
Today in Manufacturing
The macro outlook for 2012 is for a slow improvement, with more positive cyclical trends kicking in later in the year ... continue

AUTO INDUSTRY TO POST ANOTHER GOOD SALES YEAR
Today in Manufacturing
After hitting a 30-year low in 2009, U.S. auto sales are poised for a second straight year of growth thanks to pent-up demand ... continue

FACTORIES, BUILDERS BOOST ECONOMY AT END OF YEAR
Today in Manufacturing
Factories hired more workers in December, while U.S. builders spent more in November on single-family homes, apartments and remodeling projects ... continue

December 27, 2011

2011-12-27T21:48:00.000-08:00

10 EXECUTIVES GIVE THEIR PREDICTIONS FOR 2012

SmartBrief on Leadership
The next year will be tough, but will bring opportunities for smart companies in emerging fields, say top executives from a range of industries. Manufacturers of solar-energy products will have to adapt to increased demand but fewer government incentives, and tech-dependent companies will all jockey for the attention of consumers. FastCompany.com

U.S. CONSUMER CONFIDENCE JUMPS
Quick Manufacturing News
The Conference Board's monthly index surged to 64.5 from 55.2 in November, back to the levels of early 2011 after the collective mood soured deeply in the middle of the year. Click to continue

CHINA TO KEEP RARE EARTHS EXPORTS THE SAME IN 2012
Quick Manufacturing News
The government will initially allow exports of 10,546 tons of rare earths in 2012, the ministry said. That amount will be split between 11 companies, including three subsidiaries of industry giant China Minmetals Corp. Click to continue

RETAIL ASSOCIATION TO FEDS: FORGET HARBOR TAX, FIX INFRASTRUCTURE
Quick Manufacturing News
Imposing a tax on U.S.-bound cargo brought into Mexican and Canadian ports could violate international trade laws and would not drive traffic back to U.S. ports, said the National Retail Federation this week in a filing to the Federal Maritime Commission. Click to continue

THE CHAOTIC CONSEQUENCES OF BEING UNETHICAL
Quick Manufacturing News
Much of the financial chaos since 2007 is said to have been based on unethical behavior. How much different would our world be today if we all proactively incorporated ethics into our professional and personal lives? Click to continue

FLAG WEEKLY COMMUNICATION - DECEMBER 27, 2011
Regulation? What about Overcriminalization?
The toll that excessive regulation takes on business is well-known. But a lesser known cost to business is that of federal criminal laws like the Lacey Act.

As a recent column in the Washington Times notes,

The Lacey Act hangs like the sword of Damocles over the heads of American businesses. In addition to the 4,500 or so criminal offenses in federal law, plus as many as 300,000 more contained in federal regulations, businesses are expected to comply with the laws of nearly 200 foreign countries every time they purchase or take possession of any product from a foreign source — whether or not they imported it themselves.

While the Lacey Act has ensnared manufacturers and unwitting businesspeople before, it again rose to prominence this year after federal agents raided Gibson Guitars.

Gibson’s crime, according to an affidavit supporting the search warrant, was the illegal importation of Indian-grown ebony veneers, intended for use as fret boards. A hardwood prized for its appearance and durability, ebony is sustainably raised by certified growers, and Indian law doesn’t bar its harvesting or export. What Indian law does require is that ebony veneers be finished within the country, by local labor, to a thickness of less than 6 millimeters. Gibson’s wood, it happens, was a bit thicker — nearly a full centimeter.

On that basis, U.S. Fish and Wildlife Service agents invaded Gibson’s facilities, bringing its operations to a standstill.

There is legislation to reform the Lacey Act pending in the House of Representatives. The Retailers and Entertainers Lacey Implementation and Enforcement Fairness (H.R. 3210) attempts to bring some certainty to the law. Read a summary from the bill’s sponsor here.

OSHA: What to Expect in 2012
The OSHA Law Update blog previews what’s likely to come from the Occupational Safety and Health Administration (OSHA) next year. Here’s a look into the crystal ball:

• Nationwide Chemical Facilities Process Safety Management National Emphasis Program (Chem NEP
• Follow-up Inspections & Repeat Violations
• Resurrection of Ergonomics Enforcement
• Change in Reporting Requirements
• Globally Harmonized System of Classification and Labeling of Chemicals (GHS)

The blog goes on to discuss each of those issues in detail. Read the whole thing here.

Antitrust: Looking Ahead
The Wall Street Journal reports on one lesson of the scrapped AT&T–T-Mobile merger: “Don’t underestimate the Justice Department’s newfound toughness in policing mergers between rivals.”

As the first term of the Obama administration draws to an end, a clearer pattern of antitrust enforcement is emerging. The Obama Justice Department has been quick to challenge “horizontal” deals—in which a company buys a direct competitor—in industries that are already highly concentrated.

But in deals that aren't between direct rivals—“vertical” deals—it has taken a different approach, allowing deals but imposing legally binding restrictions on the acquirer's ability to use its prize to unfairly harm competitors.

So what does all of this mean going forward?

Investors and businesses may reassess proposed deals in the light of the government's latest success. “It’s clear that the antitrust review process has become much more rigorous,” said Mr. Nigro of Fried Frank. “So on deals that raise material antitrust issues, it's more important now than ever to put together a pretty complete game plan for how you plan to get the deal cleared.”

ABUNDANT OPPORTUNITIES FOR UTAH FIRMS IN VIETNAM – NOW IS THE TIME TO LEARN MORE
Utah World Trade Center
With the upcoming Zions Bank Mountain States Trade Mission to Vietnam in March 2012 – now is the perfect time to learn more about how your company can start doing business or build on existing business in Vietnam’s rapidly expanding market. full story

December 26, 2011

2011-12-27T21:46:00.000-08:00

BRINGING IT BACK HOME: THE RESURGENCE OF U.S. MANUFACTURING

Mfrtech
Gradual Global Equalization, Ultimately Driving Jobs and Manufacturing Back to the U.S
Read more...

AUTO, ENERGY SECTORS TO LEAD STEEL INDUSTRY GROWTH IN 2012
Quick Manufacturing News
Sector not expected to make full recovery until 2013. Click to continue

EPA ISSUES HISTORIC NATIONAL STANDARDS FOR MERCURY POLLUTION FROM POWER PLANTS
Quick Manufacturing News
On Dec. 21 the EPA issued the Mercury and Air Toxics Standards, the first national standards to protect Americans from power plant emissions of mercury and toxic air pollution like arsenic, acid gas, nickel, selenium and cyanide. The standards will slash emissions of these substances by relying on widely available, proven pollution controls that are already in use at more than half of the nation's coal-fired power plants. Click to continue

IWLA SEEKS EXCLUSION FOR 3PLS FROM FDA ACT
Quick Manufacturing News
As FDA writes regulations to implement the Hazard Analysis and Preventive Controls Provisions of the 2011 Food Safety Modernization Act, the International Warehouse Logistics Association (IWLA) is offering a suggestion: officially recognize that many third-party logistics (3PL) warehouse operations do not expose packaged goods to the environment. Click to continue

U.S., MEXICO SEIZE NEARLY $80 MILLION IN COUNTERFEIT GOODS
Quick Manufacturing News
Items include mobile phones, handbags and computer software. Click to continue

CANADA PULLS OUT OF KYOTO PROTOCOL
UAE Weekly Energy Brief
Canada announced on Dec. 12 that it is withdrawing from the Kyoto Protocol, the 1997 treaty to reduce greenhouse gas emissions, citing huge potential fines the country may face for not meeting the emissions standard.

The decision by Prime Minister Stephen Harper's conservative government was not unexpected, since Conservative Party officials have made no secret of their disdain for the treaty, which was negotiated and signed on behalf of Canada by a Liberal Party government in 1997.

Under terms of the treaty, Canada had to give notice of its intention to withdraw by the end of 2011. The country faced billions in fines for not reaching its emissions targets. In his announcement of Canada's withdrawal from the agreement, Environment Minister Peter Kent said, "We are invoking Canada's legal right to formally withdraw from Kyoto."

The day before Canada's announcement, at a United Nations conference in Durban, South Africa, nearly 200 nations voted to renew the treaty -- which will expire at the end of 2012 -- but did not come to agreement on whether its emissions targets will apply equally to all countries. The original agreement required industrialized nations to meet targets for reducing greenhouse gas emissions but did not impose those targets on developing nations, and the United States never ratified the treaty.

In his announcement, Environment Minister Kent said the current agreement does not cover the world's two largest emitters -- the United States and China -- and "therefore, cannot work."

Kent added that Canada would work toward an agreement that would include targets for all countries, including developing nations, such as China and India [Penelope Kern].

TRUCKING HOURS REGULATION WILL HARM SUPPLY CHAINS
Rule Will Cause Delays for Manufacturers and Cost the Economy
NAM
National Association of Manufacturers (NAM) President and CEO Jay Timmons issued this statement on the revised trucking hours of service rule released today by the Department of Transportation (DOT):

“Manufacturers rely heavily on motor carriers for transportation of materials for production and for the delivery of goods to customers. The final trucking hours of service rule will have a negative impact on manufacturers’ supply chains, distribution operations and productivity. The Administration conceded that it lacked evidence to support many of the proposed changes and still moved forward with new requirements that will place more trucks on the road during peak driving times and will fail to improve safety.

Adding these new requirements on top of the already cumbersome regulatory burden facing manufacturers will cost jobs and increase the prices of consumer products. Manufacturers have built their logistical operations based on the current rules and have invested heavily in compliance since their implementation. To change these rules and limit the flexibility of manufacturers without sufficient reasoning is a mistake and will impede the ability of manufacturers to invest, grow and create jobs.

This regulation is another prime example of leaders in Washington creating additional uncertainty for the economy at a time when they should be focused on policies to help get Americans back to work.”

That’s right – it’s time to start thinking about which innovation you will nominate to the 2012 Utah Innovation Awards, presented by Stoel Rives LLP and Utah Technology Council. This is the year to do it! 2012 marks the program’s 10th anniversary! Don’t miss this opportunity to bring worthy recognition to an innovation that is contributing to your company or organization, and that represents ingenuity and creativity.

Nominations will be accepted online at www.stoel.com/utahinnovation beginning Wednesday, January 11, 2012 through Friday, February 17, 2012.

Nominations from all industries, and in all areas of innovation, will be considered including the following:

• Clean Technology and Energy
• Computer Hardware/Electrical Devices
• Consumer Products
• Consumer Software and Web Services
• Enterprise Software and Web-Enabled B2B Solutions • Life Science (Biotech and Medical Device)
• Mechanical Systems/Chemicals/Manufacturing
• Natural Products
• Outdoor Products

Nominations in ALL areas of innovation will be accepted, not just those in the above areas. Categories will be adjusted to adequately reflect the final pool of nominations.

Nominations are evaluated by a Selection Committee comprised of approximately 70 representatives from private industry, government and higher education, many of whom are experts or professionals in the areas represented by the nominations. Up to two finalists and one winner may be selected from each category. Award winners will be announced at an Awards Luncheon this spring.

The awards program is supported by the Association of Corporate Growth-Utah, MountainWest Capital Network, USTAR, Utah Manufacturers Association, Utah Manufacturing Extension Partnership, Wayne Brown Institute and the Women’s Tech Council.

For more information about the awards program, or to access the on-line nomination form, visit www.stoel.com/utahinnovation.

December 21, 2011

2011-12-21T22:15:00.000-08:00

EQUIPMENT FINANCIERS CONFIDENT ABOUT 2012

Quick Manufacturing News
Confidence in the equipment finance market is holding steady and optimism about the year ahead seems stable, according to the December 2011 Monthly Confidence Index for the Equipment Finance Industry, released by The Equipment Leasing & Finance Foundation. Click to continue

GERMAN COMPANY FINDS RARE-EARTHS RESOURCES IN MADAGASCAR
Quick Manufacturing News
Tantalus Rare Earths says early-stage indications are 'encouraging.' Click to continue

CANADIAN OIL MAY GO TO CHINA WITHOUT KEYSTONE PIPELINE
Quick Manufacturing News
'I am very serious about selling our oil off this continent, selling our energy products off to Asia,' Prime Minister Stephen Harper said. 'I think we have to do that.' Click to continue

EDCUTAH OFF TO A GREAT START ON THIS FISCAL YEAR
Since July 1 of this year, the beginning of the State’s fiscal year, EDCUtah has announced 17 project wins that will add 7,852 new jobs and over $1 billion in capital investment in the state. The companies, jobs and capital investment involved are as follows:

Company
New Jobs
Capital Investment

eBay
2,200
$80M

Myers Industries, Inc.
20
$500K

Xlear
75
$10M

Leigh Fibers
65
$5M

Darigold
50
$30M

SAIC
200
TBD

Lifetime Products
142
$41M

Home Depot
650
$8M

ITT Excelis
2,700
$120M

Incomm
90
TBD

Pepperidge Farm - Campbell Soup Company
54
$44M

Sutter Health
250
TBD

WCP Solutions
25
$50

L-3 Communications
500
$13M

Futura Industries
140
$23M

Hexcel
616
$600M

Morgan-Stanley
75
$3M

According to Jeff Edwards, EDCUtah’s President, “Our pipeline is as full as ever. As of November we had 280 open projects, 11 new projects, and 52 site visits. It goes without saying that the past six months have been quite busy and, looking forward, we expect 2012 to be an exceptional year!”

NLRB FINALIZES AMBUSH ELECTION RULE
Joe Trauger – NAM
Early this morning the National Labor Relations Board (NLRB) finalized its ambush election rule, originally proposed in June. A copy of the final rule can be found here. The rule, which the NAM opposes, may effectively shorten the amount of time in which union certification elections take place and could allow votes to occur in as little as 20 days. This is a continuation of dramatic overreach by the NLRB that is harming job creators. The Coalition for a Democratic Workplace, of which the NAM is a leading member, immediately filed a legal challenge to this rule in the federal court in Washington, D.C.

As we anticipated, the final rule, which will go into effect April 30, 2012, is similar to what the Board discussed in a public meeting on November 30. While scaled down from the original rule, the final rule still remains harmful to employers. Specifically, the rule would alter what types of pre-election hearings can be held (such as who is even eligible to vote in the election) and what types of appeals can be filed prior to an election. If certain matters can be discussed only after an election is held, these matters will often become moot, leaving the employer with no voice to be heard prior to the election. The rule also appears to shorten the time between a petition for certification being filed and the election being held. If most pre-election matters will be deferred until after the election, the election itself could take place on a very quick time frame.

We continue to explore all options the NAM has available to stop this attack on workplace election procedures and will notify you of any new information. If you have any questions, please contact me at (202) 637-3127 or Amanda Wood, Director, Human Resources Policy at (202) 637-3128.

Q&A: THE COMPLEXITIES OF RE-SHORING
Today in Manufacturing
In 2011, a lot of people were very optimistic that there was going to be a large influx coming back from off-shore ... continue

SAFETY RESOLUTIONS FOR 2012
UOSH Safety Line
As the new year approaches, it's a good time to reflect on the success of your safety program during the past year. Was safety a top priority for everyone in your organization? Did you manage to meet objectives, or do you perhaps need to make some new resolutions for 2012?

Evaluate Workplace Hazards: Your business may have already assessed the hazards associated with the job and implemented means to either eliminate or mitigate the hazards. However, some additional resolution that you might consider are:

Take a second look at the layout, condition, and housekeeping of work areas.
Examine tools and equipment to make sure they are safe for employees to use.
Review maintenance schedules to make sure they are up to date.
Observe the way employees work and correct unsafe behaviors you observe.
Check to make sure that appropriate personal protective equipment is readily available to all workers and in good working condition.
Identify other or possible new hazards such as potential fire, chemical, electrical, and other hazards throughout your facility and take action to eliminate these risks.
Review your written programs and update as needed.

Emphasize training. Employee training is one of the most important aspect of any successful safety program.

Review OSHA and any other federal, state or local standards for training requirements (many regulations have very specific requirements).
Make sure training sessions are interactive and provide plenty of opportunities for questions and discussion.
Take advantage of available technology to enhance and expand training options
Provide demonstrations and hands-on experience during training sessions
Don't forget to provide training for supervisors and managers (especially when new regulations, policies, equipment, processes,

Encourage Employee Participation. Encourage employees to make suggestions about how to improve workplace safety.

Involve employees in problem-solving when challenging safety and health issues arise.
Rely on safety committees composed of employees from all levels and functions in your organization to identify hazards, investigate accidents, and promote safe work habits among your workforce.

Recognize and reward safe behavior. Finally, don't forget to show your gratitude for the efforts employees, supervisors, and managers are making to create a safer workplace.

Talk up safety at every opportunity. Let employees know that their safety is your top priority this year.
Ask them to join you in making safety their top priority as well.
Some companies like to use recognition and reward programs to reinforce safe behavior and positive safety attitudes

December 20, 2011

2011-12-20T21:55:00.000-08:00

US HOMEBUILDERS LESS GLOOMY DESPITE FEW BUYERS

Today in Manufacturing
Rising interest from would-be buyers is leaving U.S. homebuilders less pessimistic, but tighter lending standards are preventing many new mortgages ... continue

FEDERAL JUDGE ASKS NLRB TO DELAY RULE ON UNION POSTERS
Bloomberg News
Bloomberg reports US District Judge Amy Berman Jackson "asked the National Labor Relations Board to delay enforcing a rule that companies inform employees of their rights to form a union." Judge Jackson "made the request today after hearing from groups led by the National Association of Manufacturers and National Federation of Independent Businesses that challenged the board's power to require union- organizing posters in the workplace." Joe Trauger, vice president for human resources policy at the manufacturers' group, told reporters before oral arguments, "We do not believe the law bears out that they have the authority to require notice postings for all employers."

TRADE GROUP SAYS HOLIDAY SHOPPERS STEP UP BUYING
Today in Manufacturing
After taking a break from a record spending spree, holiday shoppers came out again in force last week, but they're procrastinating more than last year ... continue

EPA'S UNAPPROVED ASBESTOS REMOVAL METHODS MAY PUT WORKERS, PUBLIC AT RISK
Quick Manufacturing News
In a recent report EPA Inspector General Arthur A. Elkins Jr. addressed EPA's authorization of unapproved methods of asbestos removal at its own sites. Elkins called for a halt to these unapproved methods, which may violate OSHA requirements and potentially expose workers to carcinogens, and said the agency should notify any workers or residents who may have been exposed to asbestos as a result. Click to continue

ORAL ARGUMENTS IN NLRB RULE CASE
Flagg Weekly Communications (UMA)
Yesterday, the U.S. District Court for the District of Columbia heard the National Association of Manufacturers’ (NAM) case against the National Labor Relations Board (NLRB). The NAM is challenging the Board’s “posting requirement” regulation, which would force employers to hang a notice informing employees of their rights to unionize and strike. The rule was set to take effect in November, but the NLRB pushed the date to January 31.

You can read the NAM’s brief here and its reply here.

ARE REGULATORY AGENCIES ON THE DEFENSE?
Today in Manufacturing
With advancing harmonization, mutual agreements to share data and a focus on risk-based approaches, regulators may in fact be more on the offense than on the defense ... continue

December 19, 2011

2011-12-19T21:42:00.000-08:00

December 19, 2011

Many of the key economic indicators released last week suggested that the domestic economy continues to improve. In deciding to leave current monetary policies in place (and not pursue additional rounds of quantitative easing at this time), the Federal Reserve noted that "the economy has been expanding moderately" since its last meeting in November.

Businesses are becoming more optimistic as we move into 2012. The just-released NAM/IndustryWeek Survey of Manufacturers found that 80 percent of respondents are either somewhat or very positive about the next year, with sales expected to grow by 4.4 percent. The Manufacturers Alliance for Productivity and Innovation (MAPI) anticipates 3 percent growth in production in 2012, led by higher output in the energy, high-tech, transportation and industrial equipment sectors. These sentiments can also be observed in the regional manufacturing surveys from the New York and Philadelphia Federal Reserve Banks, each of which found businesses in their region expecting improvements in new orders, production, employment and capital spending in the coming months.

With that said, headwinds in the domestic manufacturing economy continue. Manufacturing production fell 0.4 percent in November. The largest driver of this decline was a reduction in motor vehicle production, but even outside of autos, activity slowed. Retail sales in November grew at their slowest pace since June, despite strong Black Friday sales, and the number of manufacturing hires dropped in October. This is a sign that – even with predictions of higher output over the next six months or more – growth in the sector is not immune to the anxieties that exist globally. The NAM and others continue to advocate for pro-growth economic policies from Washington.

One piece of good news is that pricing pressures have eased, mostly due to lower energy costs. Core inflation at the consumer level is up 2.2 percent since November 2010 whereas core producer prices have risen 2.9 percent year over year. Both of these figures have edged higher with each passing month, yet inflationary pressures remain modest in the overall economy, at least for now. Manufacturers anticipate higher costs for next year, according to special questions in both the New York and Philadelphia Fed surveys, with the largest increases emanating from higher benefit and raw material costs.

This week, we will learn more about the current state of the housing market, which remains depressed despite recent improvements in housing starts and sales. In addition, new data on consumer sentiment and personal spending will shed light on Americans' confidence and willingness to purchase as we move into the holiday season. Past data have shown greater consumer optimism and spending, even as individual incomes grew more slowly and the savings rate dropped. We will end the week with a revision to third-quarter GDP figures and the latest on durable goods production.

Chad Moutray
Chief Economist
National Association of Manufacturers

FOUR UTAH CITIES LAND ON TOP

Utah Business
The Milken Institute announced that three of Utah’s large metro cities — Salt Lake City (#6), Provo (#9) and Ogden (#15) — all ranked among the nation’s top 25 locations for business. Among small cities Logan, Utah ranked number one. “This new research by the Milken Institute is further evidence that Utah continues to be the most impressive economy in the country,” said Gov.
View Full Article

PAYROLL TAX BILL PASSES SENATE, HEADED BACK TO HOUSE WITH KEYSTONE PROVISION INTACT
AP
AP reports, "A dispute over a Canada to Texas oil pipeline threatened to complicate efforts in Congress to pass legislation that would avert a New Year's tax increase for millions of Americans and extend government benefits to the unemployed." The AP noted that, "Obama has announced he will delay a decision on the pipeline until after next November's elections, citing a need to study the impact the pipeline would have on sensitive lands in the Midwest state of Nebraska."

UTAH BUSINESS LEADERS FORM PAC TO PROMOTE EDUCTION
Salt Lake Tribune
A group of Utah business leaders have formed a PAC to encourage lawmakers to fund education [Tribune].

AP: EPA RULES THREATEN OLDER POWER PLANTS
Today in Manufacturing
An AP survey found that more than 32 mostly coal-fired power plants in a dozen states will be forced to shut down because of new regulations ... continue

FMA: ECONOMY CAN GROW IF ADDRESSED 'COHERENTLY'
Today in Manufacturing
Dr. Chris Kuehl, economic analyst for the Fabricators & Manufacturers Association, says employment and politics are among the issues needing reform ... continue

R&D A POSITIVE HARBINGER OF INDUSTRY GROWTH
Quick Manufacturing News
Global R&D spending is expected to increase by 3.6% in 2011 to $1.2 trillion, according to a report from Battelle Memorial Institute. Click to continue

MANAGING SELF-INSURED LOSSES UNDER HEALTH CARE REFORM
Quick Manufacturing News
A look at the impact of the Patient Protection and Affordable Care Act is likely to have on the decision whether to purchase stop-loss insurance coverage and, if so, at what level. Click to continue

December 16, 2011

2011-12-16T23:08:00.000-08:00

UNEMPLOYMENT RATE DROP IS A GOOD SIGN
Utah Business
The Dept. of Workforce Services (DWS) announcement of a notable decline in Utah’s unemployment rate prompted a response from Gov. Gary R Herbert.
View Full Article

TALK'S CHEAP
Lt. Governor Greg Bell Blog
It's budget time! Every December the Governor proposes a budget to the the people and the Legislature. The budget reflects a governor's priorities more than any other single act. As you can tell what a company and a family really value by how they spend their money, so it is with governors.
full story

INDIANA MAY BECOME 23RD RIGHT-TO-WORK STATE
Today in Manufacturing
Gov. Daniels wants to make Indiana the 23rd state to ban businesses and unions from requiring workers to pay union dues or other labor fees ... continue

Heavy Metal Is Back: The Best Cities For Industrial Manufacturing
by Joel Kotkin 12/15/2011
For a generation American manufacturing has been widely seen as a “declining sport.” Yet its demise has been largely overplayed. Despite the many jobs this sector has lost in the past generation, manufacturing remains remarkably resilient, with a global market share similar to that of the 1970s.

More recently, the U.S. industrial base has been on a powerful upswing, with employment climbing steadily since 2009. Boosted by productivity gains and higher costs in competitors, including China, U.S. manufacturing exports have grown at their fastest rate since the late 1980s. In 2011 American manufacturing continued to expand, while Germany, Japan and Brazil all weakened in this vital sector.

To determine the best cities for manufacturing my colleague Mark Schill at Praxis Strategy Group measured the 51 largest regions in the country in terms of how they expanded their “heavy metal” sector — think automobiles, farm and energy equipment, aircraft, metal work and machine shops. We averaged absolute growth rate and momentum in 148 heavy metal manufacturing industries over ten-, five-, two-, and one-year time frames.

Our top ranked area, Houston, is one of only four regions that enjoyed net job growth in manufacturing in the past 10 years. This year its heavy manufacturing sector expanded by almost 5%. Houston’s industrial growth is no fluke; over the past year its overall job growth has been about the best among all the nation’s major metros.

Houston’s industrial success owes much to the city’s massive port and booming energy sector, says Bill Gilmer, senior economist at the Federal Reserve office of Dallas. “Houston is about energy — it’s about fabricated metals and machinery,” he says. “It’s oil service supply and petrochemicals. It’s all paced by a high price of oil and new technology that makes it more accessible.”

This shift towards domestic energy augurs well for a huge and economically beneficial shift in America’s longer term economic prospects, he points out. Cheap natural gas, for example, makes petrochemical production in America more competitive than anyone could have imagined a decade ago. Linkages with Mexico in terms of energy as well as autos has made Texas — which is also home to No. 4 ranked San Antonio and No. 15 ranked Dallas — the nation’s primary export super-power, with current shipment 15% to 20% above pre-crisis levels.

The energy and industry connection also can be seen in No. 10 Oklahoma City, where heavy industry has been booming through much of the recession due to its strong fossil fuel industry. This synergy between energy and manufacturing could also spread to other regions, including many not associated with large fossil fuel deposits New finds in the Utica shale in Ohio, for example, could be worth as much as $500 billion; one energy executive called it “the biggest thing to hit Ohio since the plow.”

These gas finds may help ignite the heavy metal revival. As coal-fired plants become more expensive to operate due to concerns over greenhouse gas emissions, the region will have a new, cleaner and potentially less expensive power source.

Already the boom in natural gas has sparked a considerable industrial rebound in parts of eastern Ohio including the building of a new $650 million steel plant for gas pipes in the Youngstown area. Karen Wright, whose Ariel Corporation sells compressors used in gas plants, has added more than 300 positions in the past two years. “There’s a huge amount of drilling throughout the Midwest,” Wright says. “This is a game changer.”

But the industrial rebound is not only about energy. Another critical factor is rising wages in East Asia, including China. Increasingly, American-based manufacturing is in a favored position as a lower-cost producer. Concerns over “knock offs” and lack of patent protection in China may also spark a growing “Made in the USA” trend.

The shift back to U.S. production may be a great sign for many regions. Our No. 3 ranked area, Seattle-Tacoma-Bellevue, is picking up heavy metal jobs associated with the aerospace industry. A growing focus on domestic production for Boeing’s new aircraft could bring even more prosperity to the high-flying region, which also ranked No. 1 on our recent technology industry growth ranking.

If new industrial growth is just another piece of good news in the Pacific Northwest, it’s manna from heaven to the long suffering industrial heartland heavily concentrated in the Great Lakes region, which includes much of Ohio, Michigan, Indiana, Illinois , Wisconsin and Minnesota. Long reviled as the “rust belt” this area now leads in the industrial rebound with over 100,000 new manufacturing jobs in just the past year.

Particularly well positioned is No. 2 ranked Milwaukee, which is home to a wide array of specialized manufacturing firms ranging from machine tools to energy. Over the past year alone the region added almost 3900 heavy metal jobs and has consistently led other Great Lakes communities in job creation.

But Milwaukee is not the only rust belt rebound town. The greater Detroit area, No. 6 on our list, actually added the most heavy metal jobs — more than 12,000 — than any region of the country. The area’s ranking, however, was dragged down by its legacy; greater Detroit still has lost almost 130,000 positions in the past decade.

The heavy metal revival has a long way to go. And we cannot expect it to produce the same kinds of jobs produced in the last century. For example, the new jobs will be more highly skilled; even as the share of the workforce employed in manufacturing has dropped from 20% to roughly half that, high skilled jobs in industry have soared 37%, according to a New York fed study.

Regions seeking strong industrial growth will have to focus more and more on training more skilled workers. Even after years of declining employment and surplus numbers of graduates in the arts and law, manufacturers in heavy industry are running short on skilled workers. Industry expert David Cole predicts there could be demand for 100,000 new workers by 2013. According to Deloitte Touche, 83% of all manufacturers suffer a moderate or severe shortage of skilled production workers.

The resurgence of heavy metal should lead regions, and the federal government, to consider shifting their emphasis toward productive, skilled based training and away from a single-minded focus on the BA or graduate degree. Few regions suffer a shortage of art history or English graduates. This more practical emphasis is particularly critical for the Midwest, which is home to four of the ten highest-ranked industrial engineering schools in the nation.

Even more important: training workers for the assembly lines of tomorrow. These jobs, notes Ariel’s Karen Wright, will require not BA degrees but high degrees of math and mechanical skills that can be apply to expanding companies like hers.

As we enter a new economic era, regions should look beyond the current obsession with “creative” and “information” industries. Instead, they should focus on a resurgent industrial economy — which then can provide a customer base for advertising, graphics and software companies — as a primary driver of economic growth. Turn down those soulful Adele tracks: Heavy metal is back.

The Top Regions for Heavy Metal
Manufacturing Job Growth
Score consists of 10, 5, 2, and 1 year job growth rate and job momentum and 2011 industry concentration.

Rank MSA Name Score

1 Houston-Sugar Land-Baytown, TX 68.5
2 Milwaukee-Waukesha-West Allis, WI 65.6
3 Seattle-Tacoma-Bellevue, WA 64.7
4 San Antonio-New Braunfels, TX 60.7
5 Virginia Beach-Norfolk-Newport News, VA-NC 60.4
6 Detroit-Warren-Livonia, MI 58.2
7 Kansas City, MO-KS 56.3
8 Hartford-West Hartford-East Hartford, CT 56.1
9 Sacramento--Arden-Arcade--Roseville, CA 54.4
10 Oklahoma City, OK 53.3
11 Pittsburgh, PA 53.2
12 Salt Lake City, UT 52.6
13 Richmond, VA 52.0
14 Portland-Vancouver-Hillsboro, OR-WA 51.8
15 Dallas-Fort Worth-Arlington, TX 51.5
16 Cincinnati-Middletown, OH-KY-IN 51.3
17 Cleveland-Elyria-Mentor, OH 51.3
18 San Diego-Carlsbad-San Marcos, CA 50.5
19 Raleigh-Cary, NC 50.1
20 San Jose-Sunnyvale-Santa Clara, CA 48.7
21 Birmingham-Hoover, AL 48.0
22 Minneapolis-St. Paul-Bloomington, MN-WI 47.9
23 Atlanta-Sandy Springs-Marietta, GA 47.6
24 Louisville/Jefferson County, KY-IN 47.3
25 Austin-Round Rock-San Marcos, TX 47.2
26 St. Louis, MO-IL 46.8
27 Orlando-Kissimmee-Sanford, FL 46.7
28 Charlotte-Gastonia-Rock Hill, NC-SC 46.2
29 Denver-Aurora-Broomfield, CO 45.7
30 Boston-Cambridge-Quincy, MA-NH 44.9
31 Chicago-Joliet-Naperville, IL-IN-WI 44.6
32 Washington-Arlington-Alexandria, DC-VA-MD-WV 44.0
33 Memphis, TN-MS-AR 43.9
34 Tampa-St. Petersburg-Clearwater, FL 42.9
35 Indianapolis-Carmel, IN 42.9
36 Providence-New Bedford-Fall River, RI-MA 42.9
37 Rochester, NY 42.3
38 Columbus, OH 42.2
39 Phoenix-Mesa-Glendale, AZ 41.9
40 Jacksonville, FL 41.1
41 Los Angeles-Long Beach-Santa Ana, CA 40.2
42 Miami-Fort Lauderdale-Pompano Beach, FL 40.1
43 Nashville-Davidson--Murfreesboro--Franklin, TN 39.8
44 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 39.1
45 Buffalo-Niagara Falls, NY 38.7
46 Riverside-San Bernardino-Ontario, CA 37.9
47 New Orleans-Metairie-Kenner, LA 35.7
48 Baltimore-Towson, MD 34.3
49 Las Vegas-Paradise, NV 31.0
50 New York-Northern New Jersey-Long Island, NY-NJ-PA 30.1
51 San Francisco-Oakland-Fremont, CA 24.5

Analysis includes job data from 148 six-digit NAICS industry sectors covering Primary Metal Manufacturing (NAICS 331), Fabricated Metal Manufacturing (332), Machinery Manufacturing (333) and Transportation Equipment Manufacturing (336).

Data Source: EMSI Complete Employment, 2011.4

This piece first appeared at Forbes.com.

Joel Kotkin is executive editor of NewGeography.com and is a distinguished presidential fellow in urban futures at Chapman University, and contributing editor to the City Journal in New York. He is author of The City: A Global History. His newest book is The Next Hundred Million: America in 2050, released in February, 2010.

Mark Schill of Praxis Strategy Group perfomed the economic analysis for this piece.

DECEMBER CONTAINER TRAFFIC POINTS UPWARD
Quick Manufacturing News
Import cargo volume at the nation's major retail container ports should be up 0.3% in December compared with the same month last year as retailers head to the finish line of the holiday shopping season, according to the monthly Global Port Tracker report. Click to continue

MAPI: MANUFACTURING REBOUND WILL CONTINUE INTO 2012
Today in Manufacturing
A new report says manufacturing growth will continue to outpace GDP growth, leaving firms with more cash to buy new equipment and expand business ... continue

December 15, 2011

2011-12-15T22:04:00.000-08:00

HOW EMERGING MARKETS DRIVE INNOVATION

SmartBrief on Leadership
Innovation is increasingly driven by the world's emerging markets, writes Deepak Kumar Pelluru of Infosys. Companies use "frugal engineering" techniques to devise affordable products for "bottom of the pyramid" consumers, and, in many cases, take the results to the West for sale as "value for money" products. "This shifts the center of gravity to the emerging markets," Pelluru writes. Forbes (12/14)

UTAH SEES GROWTH IN TECH JOBS
EDCUtah
Utah's aerospace and high-tech manufacturing industry is poised for some significant growth.

(Salt Lake Tribune) (Standard-Examiner)

CHINA TO FOCUS ON GROWTH
Today in Manufacturing
After two years of cooling the economy following the splurge in spending in 2009, China has pledged a more 'pro-active' economic agenda for 2012 ... continue

UNEMPLOYMENT AID APPLICATIONS FALL TO 3-YEAR LOW
Today in Manufacturing
The number of people applying for unemployment benefits dropped to the lowest level since May 2008, which could signal more hiring in early 2012 ... continue

U.S. LAWMAKERS BLAST 'UNJUSTIFIABLE' CHINA TARIFFS
Quick Manufacturing News
Urge Obama administration to 'exercise all available options,' including enforcing rights at the WTO. Click to continue

FLEXIBILITY AT WORK MIGHT HELP IMPROVE EMPLOYEE HEALTH, STUDY SHOWS
Quick Manufacturing News
A new study suggests that employees in flexible work environments get more sleep, have higher energy levels, are less likely to come to work sick and generally boast improved health and well-being. Click to continue

NATIONAL ASSOCIATION OF MANUFACTURERS CAPITALBRIEFING
Shale Gas Resources Could Create 1 Million U.S. Jobs
According to a new report released Wednesday, December 14, by the NAM and professional services firm PwC, the development of shale gas resources could create 1 million jobs, $11.6 billion in cost savings and greater investments in U.S. plants.

“Shale Gas: A Renaissance in US Manufacturing?” outlines how full-scale and robust shale gas development through 2025 could lead to a number of economic benefits, particularly in the manufacturing sector. The report was unveiled during a joint roundtable and media call with NAM President and CEO Jay Timmons and PwC U.S. Industrial Products Leader Bob McCutcheon.

According to PwC’s statement, the production of a stable supply of shale gas would increase demand from the domestic energy market—allowing manufacturing industries to lower feedstock and energy costs, invest in facilities, increase hiring and look to shale gas as a source of growth for their own products. The production of shale gas is vital to this country’s ability to become more energy independent, as well as to creating jobs and boosting our economy.

“Manufacturers and communities throughout the country are beginning to see and recognize the real economic benefits of shale gas,” said Timmons. “Shale gas development is a bright spot in our economy and it has the potential to boost manufacturing employment by 1 million jobs, which are badly needed.”

There are many misconceptions about shale gas, including how much exists in the United States. The fact is that the amount of shale gas in U.S. reserves could make the United States one of the top producers of shale gas in the world—leading to opportunities for the domestic economy, manufacturing and employment.

Greater investment in U.S. manufacturing plants and higher levels of employment can be a boon to the U.S. manufacturing sector. “To achieve these significant outcomes, manufacturing companies must effectively communicate the value that shale gas can create for U.S. workers and communities,” said McCutcheon. To that end, the NAM continues to embrace an “all of the above” approach to energy production. After all, manufacturing accounts for one-third of the energy consumed in the United States.

Effectively communicating the opportunities that shale gas can create for U.S. workers and communities is essential. The November jobs report cited a national unemployment rate of 8.6 percent, and according to a recent study by the Manufacturing Institute and the Manufacturers Alliance for Productivity and Innovation (MAPI), it is 20 percent more expensive to manufacture in America compared to our nine largest trading partners. Shale gas exploration can and will play a pivotal role in putting Americans back to work and restoring economic prosperity. To read the full report, click here.

House Votes to Halt Regulations and Speed Up Permitting. On Tuesday, December 13, the House of Representatives passed a year-end jobs package, including measures to force a decision on the Keystone XL pipeline and address the Environmental Protection Agency’s (EPA) overly burdensome Boiler MACT rules. The bill passed the House by a vote of 234-193. The Boiler MACT provision would: provide the EPA with an additional 15 months to rewrite the rules; give additional time for facilities to comply once the rules are finalized; and direct the EPA to re-issue the rules in a reasonable manner that clarifies that certain materials used for fuel are not considered solid waste under the Non-Hazardous Secondary Materials rule. The Keystone XL provision would expedite the permitting process for the construction of the pipeline—a project that would create more than 20,000 high-wage U.S. manufacturing and construction jobs immediately, as well as $20 billion in investment and 118,000 jobs in the long run. The U.S. economy is struggling to recover; it is important that slow permitting processes and overregulation do not inhibit manufacturers’ ability to grow. The NAM urges the Senate to include the same provisions in its jobs package.

Court to Hear NAM Lawsuit Against NLRB Union Notice Rule. In late August, the National Labor Relations Board (NLRB) issued a final rule requiring all employers who are subject to the National Labor Relations Act to post a notice of employees’ rights to join a union. In September, the NAM filed suit against the NLRB challenging the Board’s authority to issue the rule. The parties to the lawsuit have filed initial and reply briefs, and oral arguments will be heard Monday, December 19, in U.S. District Court in Washington, D.C. The judge is expected to issue her ruling prior to the effective date of the rule, which is now January 31, 2012. This lawsuit is just one aspect of the NAM’s efforts to halt the NLRB’s aggressive agenda.

NLRB Directs Regional Offices to Proceed with Union Notice Rule. On Wednesday, December 14, the NAM sent a letter to the NLRB expressing deep concern over the Board’s December 2 memorandum to its regional offices, which directs these offices to collect information on businesses and to proceed with the “posting requirement” rule. In the letter, the NAM questions why there is no indication from the Board that the rule is currently being challenged in federal court and points out that if the NLRB loses the case, the rule will not go into effect on January 31, 2012. Due to this omission and the direction of the memo, the NAM believes the NLRB is not acting in good faith and will create confusion in the business community.

Join the NAM in Discussing the NLRB and Labor Issues. NAM Vice President for Human Resources Policy Joe Trauger will host a conference call on Tuesday, December 20, to update members on the NAM’s lawsuit against the NLRB and general labor policy issues. The conversation will begin at 2:00 p.m. EST and will focus largely on the developments in the court case, but will also touch on the NLRB actions overall and how the agency's policies will affect manufacturers. To participate in the call, please click here to register by Friday, December 16. After registering, you will receive a pass code to join the discussion.

Potential Further Delay of Final Coal Ash Regulation. The Environmental Protection Agency (EPA) recently announced that it will release a risk analysis of coal ash reuse in products late next year. The analysis will focus on the potential health risks related to coal ash use and could be employed to justify the EPA’s decision to regulate coal ash as hazardous under Subtitle C of the Resource Conservation and Recovery Act (RCRA). This has sparked concern in the coal ash recycling community regarding a further delay in the issuance of a final rule. While industries that recycle and reuse coal ash have continuously expressed concerns over the possibility of the EPA regulating coal ash as hazardous, the uncertainty caused by the ongoing delay is taking a heavy toll on the beneficial use and recycling of coal ash. The regulation of coal ash as a hazardous material would be detrimental to the economic recovery and would inhibit the continued productivity of many businesses that recycle and reuse coal ash. The NAM will continue to monitor any developments on the analysis and the final rule.

NAM Raises Concerns About Mandatory Rotation of Auditors. In a letter to the Public Company Accounting Oversight Board (PCAOB) on Tuesday, December 13, manufacturers raised serious concerns about a mandatory audit rotation requirement proposed by the Board. The NAM noted that there is no evidence that the current system is not working and said that any potential benefits of requiring companies to change auditors are far outweighed by the costs. Manufacturers believe that adequate checks and balances exist in the current system to ensure auditor independence, objectivity and professional skepticism.

NAM President and CEO Says Administration Needs a Long-Term Vision for Growth. NAM President and CEO Jay Timmons attended the Reuters Manufacturing and Transportation Summit in New York on Tuesday, December 13. He shared his insights on the future of manufacturing but cautioned that substantive work on manufacturers’ top policy issues is unlikely in the year ahead. "The next year is really setting the table,” said Timmons. “It is an election year. So there may be a few areas of progress that we can make on the regulatory side, but I think it is really going to be important for the presidential candidates and all the candidates running for federal office to be outlining their comprehensive plan for economic growth." Click here to read more.

SCARCITY IN MANUFACTURING: THE TICKING TIMEBOMB
Today in Manufacturing
Supply chain collaboration will be fundamental in responding to the risks and opportunities posed by the scarcity of minerals and metals ... continue

US FACTORY OUTPUT DECLINED SHARPLY IN NOVEMBER
Today in Manufacturing
U.S. manufacturing output fell in November for the first time in seven months on a decrease in automotive production ... continue

December 14, 2011

2011-12-15T21:58:00.001-08:00

PROTESTERS HALT OPERATIONS AT THREE WESTERN PORTS

Today in Manufacturing
Wall Street protesters' attempts to block gates at some of the West Coast's busiest ports have led to some partial shutdowns ... continue

TOP 10 SMALL BUSINESS PREDICTIONS FOR 2012
Small Biz News That Matters
December truly is the most wonderful time of the year for small business owners. Besides the spurt in shopping activity, it's the time when business pundits provide predictions for next year's trends…

5 INTERNET MARKETING TRENDS FOR SMBS TO WATCH IN 2012
Small Biz News That Matters
In just the blink of an eye it will be 2012. And with that comes the opportunity for us to focus in on the hottest trends of the upcoming New Year, and maybe even those that eluded us in years prior. While you’re putting the finishing touches on your action plan for 2012…

WHITE HOUSE BUSINESS ROUNDTABLE: "WINNING THE FUTURE", FEATURING PETER ROGOFF
Craig Galli – Holland and Hart (UMA Transportation Committee Chairman)
Craig Galli, UMA Transportation Committee Chair, represented UMA at a special White House Business Roundtable meeting last week where Peter Rogoff, Administrator Federal Transit Administration, U.S. Department of Transportation, appeared and outlined the transportation issues ahead in 2012. The following is his report:

• Despite the substantial federal funds direct towards transportation project (highways and transit), there has still been substantial service cuts and transportation and construction related job losses due in part because many states and municipalities could not come up with the matching funds needed to take advantage of the federal funds.

• There will be an FTA initiative to impose greater safety regulations on light rail systems. Notably, UTA has had its share of fatalities in recent years due to transit accidents.

• Both the Senate and House are looking at their 8th short-term funding continuation legislation which imposes a hardship on state DOTs and transit authorities to plan project. But Congress is particularly crippled at this time due to bi-partisan bickering. However, it was noted that there is probably more bi-partisan support for transportation project than other policy initiatives.

• We are looking at a huge transportation funding shortfall in the country. There has been talk about raising gasoline taxes but there is little enthusiasm on either side of the aisle for that so that suggestion is dead.

• It was also noted that even though Utah is the reddist of states and red states are increasingly become anti-government, Utah has done a great job working together with the feds, and government transportation agencies working with MPOs and the business community to move forward with robust transit and highway projects.

THE NEW ADA: GET IN COMPLIANCE
Employers Council
The EEOC earlier this year issued new final regulations implementing the Americans with Disabilities Act Amendments Act (ADAAA). The landscape of disability discrimination law has significantly changed. Come to our January seminar and hear prominent attorneys Lois Baar and Cecilia Romero from Holland & Hart teach participants the latest legal developments and how to apply ADA rules in real-world situations. As an added bonus, the Council’s SPHR professionals will share HR practice tips for accommodating people with disabilities. You will learn how to navigate the new ADA landscape and get your company in compliance. Topics to be covered include:

• ADAAA of 2008
• Final EEOC regulations from May 2011
• Expanded definition of "disability"
• Employer nondiscrimination and reasonable accommodation obligations
• Interactive process steps
• Helpful forms and checklists

The seminar is scheduled for Thursday, January 26, 2012, from 8:00 a.m. to 12:00 noon, at the Red Lion Hotel in Salt Lake City. See the attachment to this week’s newsletter for details and registration information.

RETAIL SALES RISE FOR SIXTH STRAIGHT MONTH
Today in Manufacturing
Americans spent more on autos, furniture and clothing at the start of the crucial holiday shopping season, boosting retail sales for a sixth straight month ... continue

U.S. MACHINE TOOL ORDERS FELL 22% IN OCTOBER
Quick Manufacturing News
Domestic manufacturers' new orders fell to $463.32 million in October from $606.56 million in September, and the trade groups that issue the monthly results cautioned that the sector’s 2012 growth may be slow, too, as tax incentives have pulled some orders into 2011. Click to continue

NAM/IW Q4 SURVEY: MANUFACTURER OPTIMISM SPIKES
Quick Manufacturing News
72% of manufacturers surveyed expect sales to increase in 2012. Click to continue

INDIA'S INDUSTRIAL OUTPUT DECLINES 5.1%
Quick Manufacturing News
Manufacturing production, which accounts for around 75% of the industrial index, declined 6% year-on-year. Click to continue

USMTO: TECHNOLOGY SALES DROPPED IN OCTOBER
Today in Manufacturing
October manufacturing technology orders were down 22.4 percent but ahead by 20.3 percent when compared with the total reported for October 2010 ... continue

NATIONAL LABOR RELATIONS BOARD (NLRB) POLICY UPDATE
NAM
As most Americans are focused on closing out the calendar year, the National Labor Relations Board (NLRB) is racing the clock to enact more jobs-killing regulations before December 31.

Some of their jobs-killing regulations include:
NLRB Ambush Election Rule
In the midst of a House vote on H.R. 3094, the “Workplace Democracy and Fairness Act,” on Wednesday, November 30, the National Labor Relations Board (NLRB) held a public meeting and proposed modifications to its "ambush election" rule. In June, the NLRB issued a proposed rule, which would significantly narrow the time between when a petition is filed for union certification and when a representation election takes place. While at first glance, the Board's new interim solution looks significantly better than the rule it originally proposed in June, it would remain harmful to employers. Among other things, the resolution would alter what types of pre-election hearings can be held and what types of appeals can be filed prior to an election—and it appears to shorten the time between a petition for certification being filed and the election. It is unclear at this time when a final rule will be issued and what the final rule will look like—however, as pointed out in the meeting, there are less than 20 working days left in the year until NLRB member Craig Becker’s term expires (December 31, 2011), so a rule is likely in the coming weeks.

Posting Requirement Lawsuit
In August, the NLRB issued a final rule requiring all employers, subject to the National Labor Relations Act, to post a notice of employees’ right to join a union. The NAM filed comment opposing the proposed rule and continues to push ahead with its lawsuit against the NLRB, challenging this rule. The NAM has submitted its initial and reply briefs with the federal court and additionally, the House Education and Workforce Committee Chairman, John Kline (R-MN), along with 35 other Members of Congress, filed an amicus brief with the court supporting the NAM’s contention the NLRB lacks the authority to issue such a rule. The oral arguments for the case will be held the morning of December 19 at the U.S. District Court in Washington, DC. The NAM anticipates the judge will make her ruling prior to the new effective date of the rule, January 31, 2012.

Boeing Case
Earlier this year, the NLRB’s General Counsel filed a complaint against Boeing for opening a new production facility in South Carolina. Late last week, the International Association of Machinists (IAM) and Boeing announced an agreement to settle their dispute, which was the basis of the NLRB complaint filed against Boeing earlier this year. As part of the agreement, the IAM will drop its complaint against Boeing, but the NAM remains concerned about the precedent set by the acting General Counsel and its implications for manufacturers seeking to expand operations.

Workplace Democracy and Fairness Act—H.R. 3094
On November 30 the House took an important step toward halting the NLRB’s march against job creators by passing the “Workforce Democracy and Fairness Act” by a vote of 235-188. The bill would protect employers and employees from two of the NLRB’s extreme actions—the proposed “ambush election” rule and the NLRB’s Specialty Healthcare decision. H.R. 3094 allows employers sufficient time to prepare for an upcoming union election and ensures that workers have access to all the facts they need to make a fully informed and private decision about union representation—a decision that impacts their job and family. The bill would also undo the Board’s decision in Specialty Healthcare, which allows for the formation of “micro unions,” consisting of as little as two employees within one facility. These recent Board actions would place employers at a significant disadvantage. H.R. 3094 now awaits action in the U.S. Senate.

SURVEY: CEOS FORESEE NO PICKUP IN HIRING
Today in Manufacturing
The Business Roundtable forecasts that the economy will expand 2 percent next year, and CEOs are reluctant to spend ... continue

December 9, 2011

2011-12-13T21:48:00.000-08:00

EPA THEORIZES FRACKING-POLLUTION LINK

Today in Manufacturing
EPA said for the first time that fracking -- a controversial method of improving the productivity of oil and gas wells -- may be to blame for groundwater pollution ... continue

TRADE DEFICIT CONTINUES TO SHRINK
Today in Manufacturing
U.S. trade deficit narrowed in October to its lowest point of the year as Americans bought fewer foreign cars and imported less oil ... continue

SUPPLY CHAIN MANAGERS FACE RESOURCE SHORTAGES
Quick Manufacturing News
The world's growing population, an increase in GDP levels and changing lifestyles are causing consumption levels of renewable and nonrenewable natural resources to rise globally. Click to continue

U.S. MANUFACTURERS GEAR UP FOR SHALE GAS BOOM
Quick Manufacturing News
Studies indicate shale gas poses significant potential for the manufacturing sector. Click to continue

LABOR BOARD DROPS BOEING COMPLAINT
Today in Manufacturing
NLRB officially dropped its high-profile case challenging Boeing's decision to open a nonunion aircraft manufacturing plant in South Carolina ... Continue

December 8, 2011

2011-12-12T21:37:00.000-08:00

UNEMPLOYMENT AID APPLICATIONS DROP TO 9-MONTH LOW

Today in Manufacturing
The Labor Department said weekly applications dropped by 23,000 to a seasonally adjusted 381,000, the lowest since February ... continue

GETTING TO THE ROOT OF HEALTH CARE COSTS
Quick Manufacturing News
The U.S. spends by far the most per person on health care than any other country, according to a new report from the Organization for Economic Cooperation and Development (OECD). The finally tally shows expenditures of $7,960 for the U.S. compared to $3,233 per person for the average OECD country. Click to continue

CONSUMER BORROWING UP IN OCTOBER
AP
"The October increase reflected a 5.3 percent increase in borrowing in the category that includes car and student loans, much of it federally funded. The category that covers credit card purchases rose 0.6 percent, which matched September's gain after a revision. ... Borrowing has increased in 11 of the past 12 months."

Higher Education Commissioner Announces Upcoming Retirement
USHE News Release

Commissioner Sederburg plans to leave the Utah System of Higher Education in 2012

SALT LAKE CITY –Commissioner Bill Sederburg announced today that he intends to retire from his current position as head of the Utah System of Higher Education effective August 8,

2012. He will continue to be involved in higher education issues, both in Utah and at the national level.

“It has been a great honor to be associated with the Utah Higher Education System and its great institutions,” said Commissioner Sederburg. “Utah has been good to me and my family and I hope I have contributed to building a better future for the state’s citizens.”

Since becoming Commissioner, Sederburg has led an aggressive agenda for building support for higher education. He led the charge for the state to establish a goal of having 66% of its adult population have a post secondary education credential by 2020. The Board of Regents, the Governor’s Educational Excellence Commission, Prosperity 2020 and other organizations, endorse the 66% goal. “Last year, Commissioner Sederburg took on my charge to increase, in the next decade, the number of Utahns with postsecondary education,” said Governor Gary

Herbert. “He has been a strong and effective voice on my Educational Excellence
Commission and will be missed.”

“In his time as Commissioner of Higher Education, Bill Sederburg has worked closely with the Board of Regents to make great strides for our state’s colleges and universities,” said Board of Regents Chair David Jordan. “Bill’s work in uniting key groups like the Utah Cluster Acceleration Program and the K-16 Alliance has elevated higher education’s role in promoting economic development in Utah.”

Sederburg also helped facilitate the complex merger between Utah State University and the
College of Eastern Utah and has continually worked with the Utah legislature to maintain quality and access during a period of budget cuts. During his term, enrollment has increased by over 22% while the state budget was reduced by 14%, placing a premium on efficient delivery of educational services.

Sederburg has spent much of his career involved in education. Born and raised in the
Midwest, and after serving as a Michigan State Senator, Sederburg began his path in higher education in 1994 as President of Ferris State University in Michigan. In 2003, he made his way west to take over as the 5th president of Utah Valley State College, where he led the school through its transition to its status as Utah Valley University. In 2008, Sederburg replaced Dr. Richard Kendell as the 7th Commissioner of the Utah System of Higher Education.

During his time as Commissioner, Sederburg has served on the Utah Technology Council Board, UCAT Board of Trustees, Utah Economic Development Corporation, the Commission on Volunteers, the Governor’s Homeland Security Commission and the Governor’s Commission on Excellence in Education. He has also served on several non-profit boards for community organizations including the United Way, Utah Cultural Alliance and Orem Chamber of Commerce.

According to Regent Chair Jordan, a search for a new Commissioner will begin early in 2012 in order to facilitate a smooth transition.

EPA’S REVISED BOILER MACT RULES DO NOT ADDRESS MANUFACTURERS’ CONCERNS
NAM Capital Briefing
On Friday, December 2, the Environmental Protection Agency (EPA) released revised Boiler MACT rules the agency says will ease the cost burden and compliance impact on manufacturers of all sizes. The NAM issued a statement outlining why the agency’s revised rules on emissions from industrial and commercial boilers and process heaters will cost manufacturing jobs.

While the revisions include adjustments that address some of the concerns raised by manufacturers and other affected groups, a host of problems remain unaddressed: overall, the rules maintain an unrealistic compliance time frame, do not solve litigation issues and remain overly burdensome in cost.

“The EPA’s revised Boiler MACT rules will do significant harm to job growth and investment at a critical time in our recovery,” said NAM President and CEO Jay Timmons. “This is yet another example of the EPA pursuing an aggressive agenda that is putting jobs at risk and creating uncertainty throughout the economy. Factoring in regulatory costs currently in place, it is already 20 percent more expensive to manufacture in the United States compared to our major trade partners.”

The EPA’s final proposal is expected by April 2012. Manufacturers across several industry sectors would be impacted by the unaffordable and unachievable suite of Boiler MACT rules, including the chemical, food processing, petroleum refining and forest and paper sectors. The EPA’s originally proposed rules would cost manufacturers around $14 billion and would put 224,000 jobs at risk.

The NAM strongly supports legislation that would provide the agency with an additional 15 months to re-propose the rules and consider a more reasonable approach to setting emissions standards to ensure jobs and economic growth are not jeopardized. Such legislation (H.R. 2250) recently passed the House on a strong bipartisan vote of 275-142, and a companion bill is gaining traction in the Senate (S. 1392). Both H.R. 2250 and S. 1392 would provide regulatory relief to manufacturers by directing the EPA to re-issue boiler emissions standards that are achievable in practice and less burdensome—a goal consistent with President Obama's executive order on improving regulations. The NAM is leading a coalition of over 300 organizations in support of this legislation.

“We strongly encourage the Senate to take a stand for jobs and pass the EPA Regulatory Relief Act as soon as possible,” said Timmons. “America’s job creators can no longer afford to be saddled with costly, burdensome and unrealistic regulations.”

Manufacturers use one-third of our nation’s energy supply. It is imperative to encourage and allow manufacturers to invest in our nation’s future and create jobs. While the employment report for November was better than expected, the economy remains fragile. Manufacturers simply will not be able to hire and train new workers and expand if they have to constantly purchase new equipment to meet the list of ever-changing regulations.

HOUSE-PASSED REGULATORY REFORM WILL HELP SAVE JOBS AND GROW THE ECONOMY
NAM Capital Briefing
Last week, the House of Representatives passed two regulatory reform bills, the Regulatory Flexibility Improvements Act (H.R. 527) and the Regulatory Accountability Act (H.R. 3010), with bipartisan support. The NAM key voted both measures. H.R. 527 passed by a vote of 263-159, with 28 Democrats supporting. It focuses on reducing the cost of regulations on small businesses and would strengthen the 30-year-old Regulatory Flexibility Act, which requires agencies to thoughtfully consider small entities while formulating rules and has saved businesses billions of dollars. H.R. 527 requires expanded public participation, increases transparency and closes the loopholes agencies use to avoid current requirements. H.R. 3010 passed by a vote of 253-167, with 19 Democrats supporting. This comprehensive regulatory reform bill would subject independent regulatory agencies, such as the National Labor Relations Board, to the same regulatory principles as Executive Branch agencies. Among other provisions, the bill would require agencies to consider a rule’s indirect costs and jobs impact and would expand legal tools available to challenge agency determinations. Manufacturers of all sizes are impacted by harmful and unnecessary regulations, but small businesses are disproportionally affected. The Small Business Administration’s Office of Advocacy found that very small manufacturers pay an average of $28,300 in regulatory costs per employee.

LEGISLATION AIMS TO FORCE KEYSTONE XL PIPELINE ISSUE
NAM Capital Briefing
Republicans in both the House and Senate are attempting to use legislation to force the Administration to make a decision on the Keystone XL pipeline. The State Department this fall announced its intent to gather more information and put off final approval or rejection of the project until after the 2012 elections. In response to the Administration’s further delay on the pipeline decision, Sen. Richard Lugar (R-IN) introduced a bill last week that sets a 60-day deadline for the State Department to approve the pipeline based on the current Environmental Impact Statement (EIS)—which will be deemed an adequate review of the situation. There is also a possibility that pending legislation to extend the payroll tax cut will include language to push for a swifter ruling on the Keystone XL pipeline. The NAM supports the legislative push to get the pipeline approved. The project would create 118,000 jobs and would bolster the U.S. economy at a time when we are struggling to rebuild and recover from the worst recession in generations.

NAM URGES 100-PERCENT BONUS DEPRECIATION EXTENSION
NAM Capital Briefing
In a letter to congressional leaders on Wednesday, December 7, the NAM joined eight other associations urging legislative action now to extend the current 100-percent bonus depreciation provision through 2012. Absent congressional action, the provision will decrease to 50 percent on January 1, 2012. At this time of continued economic uncertainty and high unemployment, there is concern that the expiration of 100-percent bonus depreciation will reduce capital investments and the domestic jobs associated with them. This proposal is simply a timing change that would allow taxpayers a benefit now rather than in later years. In addition, bonus depreciation provisions enacted since 2008 have garnered broad, bipartisan support.

SENATORS SPEAK AT NAM ADVANCED MANUFACTURING EVENT
NAM Capital Briefing
NAM members joined representatives from the Departments of Defense and Energy in a packed hearing room on Capitol Hill on Wednesday, December 7, to discuss advanced materials and how they contribute to U.S. manufacturing growth. The honorary host of the event was the bipartisan Senate Science and Technology Caucus. Co-Chairs Lamar Alexander (R-TN) and Mark Udall (D-CO) opened the event and highlighted the importance of technology in manufacturing. The panel of industry and government experts all agreed that our country has embraced manufacturing as critical to economic growth—and that policymakers need to do the same. The overarching message was that leveraging the development of advanced materials in products and processes will benefit our global leadership position by reducing manufacturing and raw material costs.

December 7, 2011

2011-12-07T22:12:00.001-08:00

WHICH REGULATIONS ARE NECESSARY AND PERTINENT?

SL Tribune/ Deseret News
Gov. Gary Herbert wants to ditch a number of Utah's regulations because they're outdated or antiquated [Tribune, Deseret News].

WORKERS LAID OFF DURING THE RECESSION DO NOT POSSESS THE SKILLS THAT WORKERS NEED
San Antonio Express-News
"During the recession, the collective US employer somehow advanced technologically beyond what the workforce is able to provide." Workers "who lost their jobs do not possess the skills employers now require to remain competitive." The Express-News notes that Rey Chavez, the president and CEO of the San Antonio Manufacturers Association, "said the National Association of Manufacturers is talking increasingly about the need for employers to train people on the job instead of waiting for skilled workers to apply."

CHINA'S WORKERS FLEX THEIR MUSCLES AS GROWTH SLOWS
Quick Manufacturing News
Over the past month, thousands of factory workers in China's southern manufacturing heartlands have wrested concessions from employers. Click to continue

NEW POSTERS?. . . NOT SO FAST
The Employers Council
Don’t be misled by other vendors. The new posting requirement for the "Employee Rights Under the National Labor Relations Act" notice has been delayed by the NLRB until January 31, 2012 (from November 14, 2011). Furthermore, legal actions pending against the NLRB claim that the posting requirement is outside the NLRB's authority. Competing motions for summary judgment are scheduled to be heard by the U.S. District Court for the District of Columbia on December 19, 2011. We will keep you informed on the results of the hearing. If the January 31st deadline stands, then please support your Council by ordering your updated combined state-and-federal and federal-only posters from us.

They include the new "Employee Rights Under the National Labor Relations Act" notice from the NLRB.

December 6, 2011

2011-12-06T21:18:00.001-08:00

OLDER WORKERS ENGAGED, COMMITTED AND SATISFIED WITH THEIR JOBS

Quick Manufacturing News
A new research study by the Sloan Center on Aging & Work at Boston College finds that employees 40 years old and older are the most engaged and demonstrate the highest level of organizational commitment, and that those 50 years old and older are the most satisfied with their jobs. Click to continue

INDUSTRY PARTNERSHIP TO STRATEGIZE ON COMPETITIVENESS
Quick Manufacturing News
More than 200 leaders from academia, industry and the federal government will meet at the University of Michigan on December 12 to figure out how to both bring more emerging technologies out of the lab and into the market, and find smarter ways to make current products. The aim is to create high-quality domestic manufacturing jobs and enhance the global competitiveness of the United States. Click to continue

CUTTING DEFICITS HARDER THAN JUST TALKING ABOUT IT
Today in Manufacturing
Combine tax cuts and additional unemployment benefits, and it's excruciating difficult for Congress to cut the red ink, no matter who's in charge ... continue

WATER LEAKS FROM JAPANESE NUKE PLANT
Today in Manufacturing
Japan's crippled nuclear power plant leaked about 45 tons of highly radioactive water from a purification device over the weekend, its operator said ... continue

US FACTORY ORDERS FALL FOR SECOND STRAIGHT MONTH
Today in Manufacturing
Companies decreased their overall orders to U.S. factories by 0.4 percent in October, the second straight month of contraction ... continue

CUTBACKS TO MAKE 'SNAIL MAIL' EVEN SLOWER
Today in Manufacturing
The cash-strapped U.S. Postal Service will eliminate more than 250 processing centers and 30,000 workers, meaning next-day deliveries will be next to impossible ... continue

BALANCING OUR TRADE IS NOT PROTECTIONISM
Today in Manufacturing
The losers in the ongoing policy of financing trade deficits are small and midsize American manufacturers, manufacturing workers, taxpayers, and environmentalists ... continue

SUSTAINABILITY: THE NEW IMPERATIVE FOR THE CFO
Quick Manufacturing News
Business leaders are increasingly recognizing their influential role in rebuilding a shaky global economic model -- through measures ranging from encouraging innovation in their businesses to focusing on the implementation of sustainable business practices. Click to continue

UNCERTAINTY RULES THE DAY THIS HOLIDAY SEASON
Quick Manufacturing News
When LifeWork Search, a recruitment organization specializing in supply chain planning and procurement, polled its network of supply chain professionals about the 2011 holiday season, 52% said demand uncertainty is the top supply chain concern within their organization, almost three times the amount of any other option. Click to continue

REDUCING REGULATION WILL SAVE JOBS SAYS NAM
Quick Manufacturing News
"Many agencies have been using loopholes to avoid regulatory reviews that Congress intended..." Click to continue

Q&A: DEALING WITH 2012'S UNCERTAINTY
Today in Manufacturing
In the long-term, manufacturing in the U.S. is stabilizing, and we may even see a resurgence. People want to bring jobs back to the U.S. ... continue

CHINA BRACES AS EUROPEAN CRISIS STRANGLES EXPORTS
Today in Manufacturing
China's 'shock and awe' style stimulus has kept its booming economy on track, but exports have dropped significantly ... continue

December 5, 2011

2011-12-06T21:16:00.001-08:00

December 5, 2011

Americans received a number of good economic reports last week. On the all-important topic of jobs, the unemployment rate fell to 8.6 percent – its lowest level since March 2009 – with 120,000 net employees hired in the month of November. This unemployment rate was much lower than many analysts had forecast, which could be due in part to an increase in discouraged workers. Nonetheless, much of the employment news was positive. For manufacturers, though, the latest news also suggests that jobs in the sector continue to grow more slowly, with an increase of just 2,000 for the month.

I believe that the manufacturing jobs picture will improve as we move into 2012. A number of areas of activity have improved in recent months, and employment – a lagging indicator – will soon follow. The Federal Reserve Board's Beige Book noted that manufacturers mostly saw increases in new orders, shipments and production, with a few exceptions. This trend also was observed in various regional sentiment surveys, including ones from Chicago and Dallas released last week. Most importantly, these same studies suggest higher confidence over the coming six months, including additional hiring and capital spending.

The Institute for Supply Management reinforced this, with its Purchasing Managers' Index increasing to 52.7 in November. New orders and production were the biggest contributors to this rise, and exports edged higher. The index for employment grew at a slower pace – consistent with the Bureau of Labor Statistics (BLS) data released the next day. At the same time, BLS also revised its estimates for productivity growth for the third quarter of this year. Manufacturers had a 5 percent increase in labor productivity for the quarter, which was twice what the overall economy experienced, and the durable goods sector's productivity jumped by 9.5 percent. This helps to keep unit labor costs in check from a competitive standpoint, but it also suggests that manufacturers will need to increase their hiring if these rates of output and productivity growth continue.

In announcing higher consumer confidence numbers, Lynn Franco of the Conference Board said, "Consumers appear to be entering the holiday season in better spirits…." Indeed, holiday spending to date has been impressive, and it is notable that nearly 50,000 of the net new jobs in the month of November were in the retail sector. (Although this could also suggest some temporary hires.) Workers are more upbeat than in past months, and they are spending. It is also true that this optimism remains a cautious one. Consumer confidence has risen, but it remains low. Moreover, the public is closely following the events in Washington, D.C., and Europe with tremendous anxiety.

This week, we will release the results from the latest NAM/IndustryWeek Survey of Manufacturers. Thank you for taking the time to complete it. In addition, we will receive new export figures from the U.S. Department of Commerce on Friday.

Chad Moutray
Chief Economist
National Association of Manufacturers

December 2, 2011

2011-12-06T21:13:00.001-08:00

OCTOBER HOME SALES CONTINUE UPWARD TREND

UB Daily
Sales of previously-owned homes in Salt Lake County in October rose 34 percent compared to October 2010, according to the Salt Lake Board of REALTORS. In October there were 1,009 home sales (all housing types) compared to 752 home sales in October 2010. October was the fifth consecutive month of year-over-year home sales increases.
View Full Article

GEOENGINEERING COULD SAVE EARTH — OR DESTROY IT
Today in Manufacturing
Should we position "sun shades" over the Earth? There's dozens of ideas to cool the earth, but their side effects are unknown ... continue

UNEMPLOYMENT RATE LOWEST SINCE MARCH 2009
Today in Manufacturing
Unemployment rate fell to its lowest level in over two and a half years, as employers stepped up hiring in response to the slowly improving economy ... continue

HAS US LEARNED THE LESSON OF ENRON?
Today in Manufacturing
Enron's bankruptcy on Dec. 2, 2001, revealed a fraudulent illusion, but it seems both Wall Street and Main Street haven't come to terms with it ... continue

INCORPORATING LESSONS LEARNED
Today in Manufacturing
Get in the habit of updating, real-time, a checklist of 'bite-me' notes directly into your product development roadmap ... continue

A ROSY PICTURE FOR NEAR-TERM MANUFACTURING
Quick Manufacturing News
ISM reports 52.7% increase in Purchasing Managers' Index Click to continue

FORGET EMPLOYEE ENGAGEMENT -- ARE THEY HAPPY?
Quick Manufacturing News
As the economy improves and more companies start hiring, employers need to start paying more attention to the happiness of their employees or they will go elsewhere. Click to continue

DEERE CEO SAM ALLEN ON U.S. MANUFACTURING COMPETITIVENESS
Quick Manufacturing News
The chairman discusses the company's strategies for retaining talent, John Deere's brand recognition around the world, and the current state of U.S. manufacturing competitiveness. Click to continue

INVESTING IN OCCUPATIONAL HEALTH BEST PRACTICES IMPROVES OUTCOMES FOR INJURED WORKERS
Quick Manufacturing News
A new study of occupational health care in Washington state shows that improving medical care for injured workers can dramatically reduce lost work time. Click to continue

CHINA READYING CARBON EMISSION RESTRICTIONS
Today in Manufacturing
Beijing could set absolute caps on its carbon emissions as early as 2020 in a strong effort to reduce its industrial pollution ... continue

EPA BACKS DOWN ON BOILER EMISSIONS RULES
Today in Manufacturing
The agency said it would place emissions limits on the most polluting boilers, while smaller ones could meet the rule through routine tune-ups ... continue

AVOIDING INCIDENTS THROUGH PREVENTION AND PROTECTION
Today in Manufacturing
When an arc flash occurs, an enormous amount of concentrated energy explodes outward from the point of origin ... continue

UNEMPLOYMENT TAX NOTICES ON THEIR WAY TO EMPLOYERS
Tom Bingham, UMA President (UI Advisory Council Member)
Each employer in Utah will be receiving a notice for the Department of Workforce Services, Unemployment Insurance Division, over the next several weeks establishing the UI tax rates for 2012. The letter will look substantially like the one copied below and will explain what the Division has been doing under the direction of the UI Advisory Council, of which the UMA president is a member. We have worked very hard to keep the UI Trust Fund solvent as most state’s funds have lapsed into insolvency. We argued successfully before the Utah Legislature earlier this year to convince them that our effort, both historically and currently, were beginning to show signs of recovering the solvency of the fund. We told the legislative committee that we had a plan in place to resolve the decline in the fund balance and that if our plan did not work we would be back to them to ask them to address additional taxes to ensure solvency. Our plan is working and the fund balance has begun turning around with the triggers historically in place to ensure adequate levels.

While no one likes increases, it is prudent at this point to make this adjustment to continue to move the fund back to acceptable levels to avoid a more serious problem, insolvency.

The letter you will receive explains what is being done for 2012. This is what you can expect to see in the next few weeks:

Dear Employer:

Enclosed is your Unemployment Insurance (UI) Contribution Rate Notice for 2011. Many employers will experience an increase in Contribution (tax) rates this year. With the higher benefit costs associated with the economic downturn, there has been a significant decline in the UI Trust Fund balance over the past two years. The good news is that Utah’s UI Trust Fund remains solvent; however, well over half the states have UI Trust Funds that are currently insolvent and these states are borrowing funds to pay benefits.

It became necessary to increase tax rates including minimum rates for 2011 to increase the reserves necessary to ensure the long-term solvency of the fund. If an employer has not had UI benefit costs charged to its account (during the last four fiscal years), it is entitled to the minimum tax rate known as the “Social Costs” and is the same for all employers. Approximately half of all Utah employers have the minimum UI tax rate of .004 (.4%) for the 2011 rate year. This has increased from .002 (.2%) for the 2010 rate year. While we remain sensitive to any rate increase, the 2011 rate is similar to the 2005 and 2006 minimum rates. Based on our current economic forecasts, the department is hopeful the UI Trust Fund will remain solvent in the coming years. While the new rates will be difficult for many Utah employers, most states have also been required to raise their UI tax rates for similar reasons during this period and Utah employers still have lower average UI tax rates in comparison

An employer’s overall tax rate is based on a statutory formula that factors in several components to insure the solvency of the Trust Fund and to equitably adjust tax rates on employers that are responsible for generating these costs. A significant component of the tax rate is an employer’s past UI benefit charges and taxable payroll for the past four years ending June 30, 2010. The total unemployment benefits paid to your former employees, if any, should agree with the totals found on the Statement of Unemployment Benefit Costs, Form 66, which you receive each quarter. You can also obtain quarterly information of any benefit costs and your taxable wages from our website at http://jobs.utah.gov/ui/employer/login.aspx and logging into your account and going to “Display Benefit Costs” (on the left side of the screen).

The taxable wage base has increased from $28,300 to $28,600 for calendar year 2011. The taxable wage base is the maximum amount upon which contributions are paid on each employee’s wages for the year.

While reviewing your rate notice, please be aware that the Department of Workforce Service is committed to ensuring the Utah UI trust fund remains solvent and all Utah employers are treated equitably and fairly.

November 30, 2011

2011-11-30T21:35:00.001-08:00

BOEING-NLRB LAWSUIT COULD END ON NEW AGREEMENT

Today in Manufacturing
If union members vote to approve the agreement, the union would inform the NLRB that it has no further grievances with Boeing ... continue

FEATURE: HOW TO SPOT A FAKE
Today in Manufacturing
The increased prevalence of counterfeit products only heightens the need for suppliers, distributors, and end users to communicate better ... continue

CHAFFETZ ANNOUNCES SOCIAL SECURITY REFORM PROPOSAL
Rep. Jason Chaffetz e-Update

On Sunday, Congressman Chaffetz sat down with Bruce Lindsay on KSL’s Sunday Edition to talk about his recently announced proposal for Social Security Reform.

Under the Chaffetz proposal, Social Security would achieve permanent annual balance by 2051, achieve actuarial balance for the next 75 years, and avoids tax increases and trust fund insolvency. Future retirees, including today’s very young workers, will have increased certainty regarding their retirement.

Social Security is the largest single item in the federal budget. In fiscal year 2011, the federal government spent $730 billion on Social Security, or 20% of the total $3.6 trillion federal budget. Over the next 75 years, Social Security’s unfunded liability is $6.5 trillion. The proposal set out by Congressman Chaffetz will improve Social Security’s balance over the next 75 years by $7.5 trillion in 2011 present value dollars.

“There is no excuse for allowing Social Security to become insolvent,” said Chaffetz. “The program is unsustainable in its current form. However, this problem is completely within our power to resolve – without tax increases, while protecting retirees. This series of simple steps will make the program solvent and allow younger generations to more accurately anticipate their own retirement needs.”

Chaffetz Immigration Reform Passes House of Representatives
Rep. Jason Chaffetz e-Update

Actively pursuing ways to fix America's legal immigration system, yesterday Congressman Jason Chaffetz' Fairness for High-Skilled Immigrants Act (H.R. 3012) passed the House of Representatives by an overwhelming bipartisan vote of 389 to 15.

This bill eliminates the employment-based per-country cap entirely and helps employers focus on creating jobs and growing our economy. It also raises the family-sponsored per-country cap from 7% to 15% without increasing the net number of visas. Under current law, the total number of family-sponsored and employment-based green cards available to natives of any one country cannot exceed 7% of the total number of green cards available each year. Congressman Chaffetz wrote an op-ed on this legislation which ran in the Deseret News.

"I'm thrilled to see this pro-growth, pro-jobs, and pro-family legislation pass the House of Representatives with bipartisan support," said Chaffetz. "I'm committed to fixing legal immigration and this bill is one step in that important process."

INDIAN GROWTH LOWEST IN TWO YEARS
Quick Manufacturing News
Hit by a string of interest rate hikes and the stumbling world economy, India's economic growth slumped to a two-year-low of 6.9% in the second quarter. Click to continue

EUROPEAN MACHINE TOOL BUILDERS WARN OF SLOWDOWN
Quick Manufacturing News
Two reports suggest sales of machine tools are slowing in the EU. The German Machine Tool Builders' Assn. announced its members' face slower growth than the robust levels of demand that have been recorded through much of this year; and the European Association of the Machine Tool Industries, said 'uncertainty in the financial markets is spreading to the industrial sectors and might influence the growth rates in 2012.' Click to continue

JAPAN FACTORY OUTPUT RISES 2.4% IN OCTOBER
Quick Manufacturing News
The rise beat market expectations and reversed a drop in factory output in September. Click to continue

MANUFACTURERS IN THE COURTS
NAM
NAM moves to end greenhouse gas "public trust" litigation. On October 31, the NAM asked a judge in California to throw out a lawsuit brought by various environmental plaintiffs against the federal government. The environmentalists seek to force 6 percent across-the-board reductions in carbon dioxide emissions every year starting in 2013. The NAM's motion to intervene in this case highlights the dramatic and devastating effects that such judicial intervention would have on manufacturing processes and investments, production and transportation costs, global competitiveness, domestic job creation and the U.S. economy. The NAM offered compelling reasons for the court to dismiss the suit: 1) the case presents political questions that courts are not able to resolve; 2) the plaintiffs lack standing because their injuries are too speculative and not likely to be reduced by the relief sought; 3) the public trust doctrine does not exist under federal law and the claims have been displaced by federal regulation in this area; and 4) the doctrine does not apply to the atmosphere or impose a duty to regulate greenhouse gas emissions. A preliminary hearing is scheduled for November 30. Alec L. v. Jackson (N.D. Cal.).

Environmental challenge to EPA's decision not to reconsider ozone regulation in 2011. Environmental groups are continuing to pressure the EPA to lower existing ozone standards, which are already the subject of an NAM challenge, even further. Earlier this year, President Obama called on the agency to defer reconsideration of the existing rules, which it did. Subsequently, various groups sued. The Ozone NAAQS Litigation Group, of which the NAM is a member, moved to intervene in this litigation to support EPA's decision not to change the existing ozone limits at this time. American Lung Ass'n v. EPA (D.C. Circuit).

Amicus briefs support NAM lawsuit against NLRB. On November 16, House Education and Workforce Committee Chair John Kline (R-MN) and 35 other members of Congress filed an amicus brief in federal court in support of the NAM's lawsuit against the National Labor Relations Board (NLRB). On November 21, the Motor & Equipment Manufacturers Association (MEMA) filed its own brief supporting the litigation. The NAM's suit challenged the NLRB's final rule requiring all employers to post a notice of employees' rights. The congressional brief raises three issues, which support the NAM's contention that the NLRB lacks authority to issue such a rule: 1) Congress has not granted the Board the authority to require a general notice posting by employers; 2) Congress has restricted the Board's authority to hearing facts from parties through a hearing process; and 3) the Board's regulation undermines Congress's efforts to inform workers of rights. In addition, the MEMA brief warns that the NLRB's meddling rule is designed to agitate the existing equilibrium between management and labor. The NAM filed our reply brief on November 22, and a hearing is scheduled for December 19. As a result of the lawsuit, the Board postponed the effective date of the rule to January 31, 2012. A ruling from the judge is expected prior to that date. National Association of Manufacturers v. NLRB (D.D.C.).

LABOR DEPT: SUMMER WORKER PRODUCTIVITY ROSE
Today in Manufacturing
Productivity rose at an annual rate of 2.3 percent in the July-September quarter, less than expected, but labor costs also fell 2.5 percent ... continue

JAPANESE FACTORY OUTPUT RISES
Today in Manufacturing
Japan's factory production rose for the first time in two months as auto and machinery makers expanded output while bracing for global headwinds ... continue

CONTACT YOUR MEMBERS OF CONGRESS AND ASK THEM FOR FEDERAL REGULATORY RELIEF
National Association of Manufacturers
Manufacturers face an extraordinary amount of regulations that have a direct impact on their bottom line. In addition, agencies such as the Environmental Protection Agency (EPA) and the National Labor Relations Board (NLRB) are currently pursuing an aggressive regulatory agenda. These regulatory changes lead to uncertainty and high costs, especially on small businesses.

Congress will soon be considering two important pieces of legislation that will improve the current regulatory system by providing certainty and reducing cost imposed on business. The Regulatory Accountability Act of 2011 (H.R. 3010) would improve federal policies by using sound regulatory principles, ensuring rules are supported by strong and credible evidence and inflicting the least burden possible while still achieving Congressional intent. In addition, the Regulatory Flexibility Improvements Act of 2011 (H.R. 527) would reduce the regulatory cost imposed on small manufacturers by strengthening a 30-year old law, the Regulatory Flexibility Act, that requires agencies to thoughtfully consider the impact of their rules on small entities. Agencies sometimes use loopholes in current law to avoid requirements that they reduce the regulatory cost on small businesses. H.R. 527 closes those loopholes.

Please contact your legislators today and urge them to support H.R. 3010 and H.R. 527. With the current condition of the American economy and continued weakness in job creation, we need legislation that ensures a regulatory system meets its objectives while maintaining the global competitiveness of U.S. manufacturers.

To send a message directly to your member of Congress, click here.

November 29, 2011

2011-11-30T21:33:00.001-08:00

OSHA'S TOP 10 SAFETY VIOLATIONS

The Employers Council
OSHA just announced the top 10 most frequently cited safety standards for fiscal year 2011 based on OSHA worksite inspections during that time period. The list for FY 2011 is almost identical to FY 2010's list. In fact, the same OSHA standards typically occupy the top 10 spots year after year. The most frequently cited standards in FY 2011 were:

1. Scaffolding (Construction)
2. Fall Protection (Construction)
3. Hazard Communication
4. Respiratory Protection
5. Lockout/Tagout
6. Electrical, Wiring Methods
7. Powered Industrial Trucks
8. Ladders (Construction)
9. Electrical, General Requirements
10. Machine Guarding

Employers should take steps to address these and other hazards before a worker suffers a preventable injury or illness – and before an OSHA investigator shows up at the door. Use this extremely helpful link to find the OSHA standards that apply to your business:

http://www.osha.gov/dcsp/compl iance_assistance/quickstarts/index.html

GOVERNOR ENCOURAGED BY LATEST REVENUE FIGURES
UB Daily
The Governor's Office of Planning and Budget (GOPB) released new consensus revenue figures indicating the State anticipates $128 million in new one-time revenue and $280 million in new ongoing revenue. "When you consider what is happening nationally or in other states, the steady drum beat of positive economic news in Utah is certainly encouraging," said Gov. Gary R.
View Full Article

MANUFACTURERS URGE IMPROVEMENT IN MATH, SCIENCE EDUCATION
AP
"Arguing for more urgency, businesses with tens of millions of workers are hoping to prod the nation into improving its math and science education." The AP concedes that although the US "remains a dominant force in innovation, a series of indicators, from academic scores to flagging interest in science careers, spell trouble. The problem is on the radar of the White House, Congress and state leaders, but business leaders say the nation's efforts are piecemeal and lacking a compelling sense of attention." They report that the Business Roundtable, an association of chief executive officers from major US corporations, will lead a campaign to be launched publicly this week. Other prominent members of the effort include the National Association of Manufacturers and TechNet, a network of technology CEOs from leading firms.

REDUCING RE-INJURY AND RETURNING INJURED EMPLOYEES TO WORK
Quick Manufacturing News
Every employer has experienced a workers' compensation claim that at first glance, seemed to be for a minor injury. As months and even years go past, the claim snowballs into full-fledged disability and the employer is left wondering what happened and if anything could have been done to prevent the high workers' comp costs and the loss of quality of life for that employee. Click to continue

NLRB UPDATE
FLAG Weekly Communications (NAM)
The National Labor Relations Board (NLRB) is set to vote on the so-called snap elections rule tomorrow. The rule would shorten the period between the time a union files for an election and the election itself.

The vote comes amid a feuding Board, which is down to three members (one of whom was recess appointed). As the Wall Street Journal noted in an editorial yesterday,

In a letter to House Education and Workforce Chairman John Kline, Mr. Hayes [the lone Republican board member] notes that while nearly 66,000 comments had been received on the original version of the proposed rule, he has been cut out of the loop on any responses to the comments by his fellow commissioners or any modifications made to the final rule that differ from the original draft.

More on the internal divisions at the NLRB here.

U.S.-KOREA FREE TRADE AGREEMENT IMPACTS UTAH
World Trade Center Utah
On October 12, 2011, after more than three years, the United States Congress approved the U.S.-Korea Free Trade Agreement (KORUS FTA). According to Senator Orrin Hatch (R-UT), “The U.S.-Korea free trade agreement, the largest negotiated agreement in over two decades, offers substantial new economic opportunities as well.
Read More »

AMERICAN CONFIDENCE IN ECONOMY RISES
Today in Manufacturing
The Conference Board says its Consumer Confidence Index rose 15 points to 56.0, a drastic change from the recession-low of 40.9 last month ... continue

November 28, 2011

2011-11-28T21:29:00.001-08:00

November 28, 2011

There continues to be a split between domestic manufacturing activity and other economic variables. Much of the talk last week centered on the failure of the so-called Super Committee to tackle the nation's fiscal deficit challenges and Europe's continued financial problems. Rising borrowing costs are pushing many European nations – including some which were once considered "safe" – to grapple with credit and financial issues. Meanwhile, U.S. policymakers must once again attempt to deal with our soaring debt in the midst of a political stalemate and the threat of large cuts to federal spending on the horizon. Both of them will provide significant headwinds to economic growth in the coming months.

The Bureau of Economic Analysis downgraded third-quarter growth from 2.5 percent, as estimated a few weeks ago, to 2.0 percent. The consumer continued to be the largest driver of this growth; however, spending was less than originally estimated. There were also downward revisions for business inventories and investment. Over the course of the last year, the U.S. economy has grown 1.5 percent, which is well below where it should be at this point in the recovery. Nonetheless, the outlook for 2012 is somewhat brighter, with the National Association for Business Economics estimating 2.4 percent growth next year in its most recent survey.

The National Activity Index from the Chicago Fed noted upgrades in many economic indicators – including manufacturing – which have helped to reduce the risk of recession. This observation was based on better-than-expected recent industrial production numbers. In addition, manufacturing activity picked up around the country. The Richmond Federal Reserve Bank's latest survey showed that production has stopped contracting. Moreover, respondents are very optimistic about new orders, shipments, capital expenditures and employment moving into 2012. The Kanas City Fed's survey echoed the upbeat expectations regarding the next six months even as its current numbers indicate slower growth than last month.

Personal income rose at its fastest pace since March, helping to boost the savings rate to 3.5 percent. Spending also grew, albeit at a slower rate than in September, and the University of Michigan observed greater consumer confidence in current and future economic expectations. Rounding out the better news, existing homes sales picked up and most states reported lower unemployment in October. Weaknesses still persist in housing and employment, and it is safe to assume that consumers are cautiously optimistic moving forward.

This week, we will hope to see more improvements in manufacturing employment and production. The Institute for Supply Management will release its purchasing managers' index on Thursday, and the government will detail November employment conditions on Friday. New productivity data should also confirm the tremendous gains made by manufacturers recently. In addition, regional production information from Chicago and Dallas will foreshadow the Federal Reserve Board's Beige Book release on Wednesday.

Chad Moutray
Chief Economist
National Association of Manufacturers

THE DILEMMA OF RECURRING PROBLEMS

Today in Manufacturing
Nightmare scenario: The phone rings and you learn with dread that the problem you thought you had gotten rid of a month ago is back and bigger than ever ... continue

DURABLE GOODS ORDERS DECLINE IN OCTOBER
Bloomberg News
"Orders for durable goods fell in October as demand for aircraft and business equipment cooled, indicating a slowing global economy may temper purchases of US manufactured goods. Bookings for equipment meant to last at least three years declined 0.7 percent, less than forecast, after a 1.5 percent drop the prior month that was more than twice as large as originally reported," according to data released by the Commerce Department.

WINTER DRIVING SAFETY TIPS
by Greg Summerhays—Workers Compensation Fund
Take a few minutes to cover a few basics:
- Get an earlier than usual start and plan for the trip to take longer than normal.
- Clear your entire vehicle of snow. Snow left on the roof and hood can easily end up
on the windshield or rear window, obstructing your view.
- Clear ice off all windows and side mirrors. Clearing just a peephole will get you out of
the driveway faster, but will also obstruct your line of vision.
- Remove snow from your shoes before you get in the car to avoid fogging up the
windows and creating slippery gas and brake pedals.
- Always use your seatbelt and insist any passengers do so as well.

On the Road:
- Slow down. Posted speed limits are meant for ideal (i.e., dry) conditions; adjust your
speed down during slick weather. This is even true for four-wheel drive vehicles.
- Don't talk on your cell phone while driving.
- Leave extra space between you and the vehicle in front of you in case of sudden
stops, black ice, etc. If the vehicle behind is following too closely, change lanes or try
slowing down so they will pass you.
- Try not to make sudden stops or direction changes, such as going across three lanes
of traffic to make that last minute exit.
- Keep your headlights on.
- Pay attention to other drivers and anticipate what they may do. Watch for cars on side
streets that are trying to pull out into traffic.
- Slow down while approaching intersections.
- Keep clear of snowplows, big rigs and other large vehicles, which can suddenly blind
you with snow spray. Never pass a snowplow on the right.
- Do not use cruise control in cold or wet weather. Tapping on your brakes to
disengage can cause you to slip and slide.
- Be alert for ice, especially on bridges and in shaded areas.
- During especially hazardous and treacherous conditions, don't try to drive out of the
storm; seek shelter until the worst passes.

Braking & Skidding:
- At the first sign of brake lights, start slowing down. Try to avoid slamming on the
brakes.
- If you have anti-lock brakes, do not pump them. Keep constant, firm pressure on the
brake pedal until the vehicle comes to a complete stop.
- If you start to skid, take your foot off the pedal and steer in the direction you want to
the vehicle to go. Do not hit the brakes or accelerate.

Chains:
- If highways signs say chains are required you must either stop and put them on, or
turn back.
- Pull completely out of traffic to put on and take off chains. Stopping in a traffic lane not only blocks traffic, it greatly endangers your physical safety.

What to Do if Stranded:
- If your vehicle breaks down, or is stalled or stranded, don't panic.
- Turn on the emergency flashers or set up flares.
- If you're stuck, try straightening the wheels and accelerating slowly. Don't let the tires
spin endlessly; it only helps create a mess. (Consult your owner's manual for the best way to get the vehicle unstuck.)
- Turn the car on occasionally to keep warm. If it is snowing, check the tailpipe every so
often to ensure it is not covered with snow. You may also want to crack a window
slightly to avoid potential carbon monoxide build up.
- Move around once in a while to keep your circulation up.
- If it is snowing or raining, stay with your vehicle unless help is within 100 yards.

Know the Conditions:
Winter weather can change fast and unexpectedly. For the latest updates on road conditions around Utah 24-hours a day:
• Call 511 in Utah,
• Call 866-511-UTAH (8824) outside Utah, or
• Visit http://www.commuterlink.utah.gov/

Greg Summerhays is Director of Public Relations and Community Outreach at Workers Compensation Fund. WCF offers ongoing safety training and UMA members are eligible for a 5% premium discount through a partnership with WCF. Visit www.wcfgroup.com for more information.

COOK COUNTY SUFFERS MANUFACTURING JOBS LOSS
Chicago Sun-Times
According to the Chicago Sun-Times "Cook County lost more than a quarter of its manufacturing jobs between 2000 and 2010, according to a new analysis. Cook lost some 89,100 jobs, more than any other county in the United States except for Los Angeles County, which saw 113,000 jobs disappear." Industrial experts agree US "manufacturing has suffered a toxic mix of recession, ferocious global competition and rising production costs. Some also lay blame on higher taxes and too much government regulation." Chad Moutray, chief economist for the National Association of Manufacturers, said, "Manufacturing combined with construction accounted for the bulk of the jobs that we lost in the recession."

CHINA AIMS TO BECOME AN INNOVATION POWERHOUSE BY 2020
SmartBrief on Leadership
China's leaders want to turn their country into an innovation leader by 2020, but they could have their work cut out for them, says Richard Li-Hua. The country's educational system is based on rote learning rather than critical thinking, and a lack of intellectual-property protection stifles corporate innovation. "The Chinese tradition of deferring to authority is not conducive to innovation either," Li-Hua says. InnovationManagement.se (Sweden)

EUROPE LAUNCHES U.S. BIO-ETHANOL ANTI-DUMPING PROBE
Quick Manufacturing News
If the complaint is upheld, the European Union could decide to impose import duties on U.S. bio-ethanol, as it has done with U.S. and Canadian biodiesel. Click to continue

November 22, 2011

2011-11-22T21:20:00.001-08:00

SEAGATE CEO PREDICTS MAJOR SUPPLY-CHAIN DISRUPTION

SmartBrief on Leadership
Seagate Technology's factories in Thailand escaped the country's devastating floods almost unscathed, says CEO Stephen J. Luczo, but many of its 130-odd suppliers are still underwater. It will take time to find other sources of parts. Bloomberg Businessweek

NAM RETIREMENT SECURITY TASK FORCE UPDATES PENSION BENEFIT ACTIVITIES AND CONCERNS
Carolyn Holmes Lee, Senior Director, Tax Policy, NAM
The NAM over the past several months has worked with an informal coalition of companies, associations and organizations in lobbying the bicameral and bipartisan Congressional leadership as well as Super Committee member offices on the issue of pension plan premiums which were being discussed during the Super Committee's negotiations.

As you may know, the Pension Benefit Guaranty Corporation (PBGC) has proposed that lawmakers raise the premium amount that companies pay to fill what the PBGC calls their long term funding deficit, which we recognize is mostly a result of today’s artificially low interest rates. Our efforts have focused on 3 messages:

1) increases in pension premiums (potentially up to 2x or 3x of what some companies now pay) would be a huge burden for companies and would pull resources away from other priorities;

2) that the PBGC's funding deficit is due to the low interest rates and is not an accurate measure of the actual funding status since rates are artificially low, and;

3) if Congress decides to review the issue of premiums then it should be part of a comprehensive review of PBGC and Congress should also consider a proposal written by the American Benefits Council which would alter the interest rate used to determine funding obligations from the current interest rate to one that looks at historical interest rates - which would smooth out the fluctuations in interest rates and be a more sound and less volatile basis for companies to base their obligations on.

In late October, we also worked with the informal coalition to circulate a sign-on letter to the Hill to our members opposing PBGC premium increases and which also references the need to stabilize pension funding rules and cites the impact of artificially low interest rates on pension plans. We appreciate all those companies and organizations who signed on - in all there were over 85 signatories on the Nov. 2nd letter. That letter can be found here.

The increase in PBGC’s premiums was originally included in the President’s FY12 Budget Proposal this past March and that proposal indicated they were seeking a $16 billion increase in premiums to the PBGC. In April, the NAM joined a number of other associations in sending a letter opposing this proposal to the Chairmen and Ranking Members of the Senate Finance and Health, Education, Labor and Pensions (HELP) Committees. That letter can be found here. The business community also sent another here to the full Congress on the topic in June.

Status: Now that the Super Committee has announced that it will not be able to agree to a deficit reduction package, the immediate threat of increased PBGC premiums has passed. We were particularly concerned in the context of the Super Committee because raising premiums would count as raising revenue for the Treasury and therefore was reportedly considered by some on the Super Committee as a way to raise some revenue as they sought to draft a package.

Outlook: While the immediate threat may have passed, because the PBGC proposal is already part of discussions and it is considered to be something that would raise revenue and thus can be used as an “offset” for other spending, this is likely to be something that we will need to continue to lobby against into the New Year. The NAM will work with our members and other associations to continue to educate policymakers as to the burden of increased premiums, the cause for the funding shortage and the need for funding stabilization. We will continue to look for your support in our efforts and will continue to update members as to our activities and developments.

EQUIPMENT FINANCERS MORE CONFIDENT ABOUT ECONOMY
Quick Manufacturing News
According to the Equipment Leasing & Finance Foundation's November 2011 Confidence Index, confidence in the equipment finance market is 57.4 -- up from the October index of 50.7. Click to continue

FEATURE: REBALANCING GROWTH WITH MORE INVESTMENT
Today in Manufacturing
A report says that investment in businesses will drive economic growth, but companies are still shaky about another recession ... continue

Q&A: THE STATE OF MATERIAL HANDLING TODAY
Today in Manufacturing
Nick Wilson, CEO of Morrison Container Handling Solutions, has seen material handling change drastically since 1971, like speeds increasing four times ... continue

November 21, 2011

2011-11-21T21:25:00.001-08:00

November 21, 2011
Based on a number of indicators last week, the domestic manufacturing economy is starting to get its groove back after a couple of rough months. Industrial production rose 0.7 percent in October – twice what many analysts had anticipated. The increase was fairly broad-based across a number of sectors, with durable goods industries experiencing the largest gains. Moreover, regional surveys of manufacturing activity from the New York and Philadelphia Federal Reserve Banks found that respondents were more optimistic about production and employment growth over the next six months than in prior reports.

Cautious optimism is probably still warranted, however. The Philadelphia Fed survey experienced a slowdown from last month's assessment of overall business activity, with new orders and shipments growing more gradually. Likewise, the Empire State Manufacturing Survey was only barely positive after spending five consecutive months in negative territory. This was an improvement, but mostly in that conditions did not worsen. Moving forward, manufacturers in these regions are significantly more upbeat, but they are also closely watching developments in U.S. budget negotiations and European financial challenges.

The price of oil provided one of the better ironies of the week. On the day that the Bureau of Labor Statistics released data suggesting that inflationary pressures had eased, mostly due to lower energy costs, the price of oil jumped to over $100 a barrel. Volatility in energy prices has had a large sway on both the consumer price index (CPI) and producer price index (PPI) lately, but in the October numbers, both of them fell. Lower food and energy costs were the primary drivers of this decrease, which extended to the crude and intermediate levels. Overall inflationary pressures continue to be modest, however, with the CPI up between 3.5 percent and 4 percent for the year (or 2.1 percent, when energy and food prices are excluded). Nonetheless, pricing pressures remain a top concern for manufacturers, who continue to experience elevated costs that squeeze profits.

In other positive news, the housing sector is beginning to show some gradual signs of improvement. Housing permits jumped significantly in October, and housing starts remained solid (despite a slight drop) on strength in single-family residential construction. While significant hurdles remain in this market, the number of potential buyers is rising. This finding was echoed in the Housing Market Index produced by the National Association of Home Builders and Wells Fargo.

A lot of data will trickle out over the next couple of days. We will continue to hear about increased consumer spending – something that will be tested as retailers gear up for holiday sales after Thanksgiving. On Wednesday, we will get new data on personal income and spending as well as the latest sense of consumer sentiment. Manufacturers will also closely look at October durable goods figures and new regional surveys from the Kansas City and Richmond Federal Reserve Banks. Finally, the Bureau of Economic Analysis will revise its third-quarter GDP numbers, which were earlier estimated to have grown by 2.5 percent.

Chad Moutray
Chief Economist
National Association of Manufacturers

CHINA PROMISES 'LEVEL PLAYING FIELD' FOR CLEAN ENERGY

Today in Manufacturing
Officials from Beijing said that U.S. companies will be able to compete equally for $1.7 trillion in investments in sustainable energy technology ... continue

UN: CONCENTRATIONS OF GREENHOUSE GASES HIT RECORD
Today in Manufacturing
The World Meteorological Organization says concentrations of carbon dioxide up 39 percent since the start of the industrial era in 1750 ... continue

UPS RAISES RATES FOR 2012
Quick Manufacturing News
UPS has released new published rates for 2012, including a net increase of 4.9% for UPS Ground packages and a net increase of 4.9% on all UPS Air services and U.S.-origin international shipments. Click to continue

U.S.-CHINA TRADE TALKS ACHIEVE 'CONCRETE' RESULTS
Quick Manufacturing News
China pledged to create a 'level playing field' for U.S. companies investing in strategic emerging industries and allow foreign automakers to invest in the green-vehicle market without transferring their technology to Chinese enterprises. Click to continue

UNLEASH THE POWER OF RECOGNITION: CREATE A CARROT CULTURE
SEMINAR - Tuesday, December 6, 2011
Employers Council
Unleash the power of employee recognition! In today’s marketplace, where businesses are only as good as the people who work there, imagine the impact if you could use the almighty Carrot to drive employee engagement and boost the bottom line.

This nationally-renowned recognition training has been thoughtfully crafted to give leaders, managers and supervisors the in-depth skills and confidence needed to successfully implement effective recognition strategies. Using basic principles, elite presenter, Joel Bishop of O.C. Tanner, will enable attendees to incorporate daily recognition techniques. Participants will then master the skills needed to integrate informal, day-to-day recognition into their exchanges and conversations with team members through hands-on exercises, lively role-plays and humorous, interactive discussions. Topics to be covered include:

• The value of recognition to an organization　
• How to use day-to-day recognition for greatest effect
• How to appropriately recognize employees
• What to thank employees for and how often to do it
• How to present recognition awards in a powerful way

Participants will also receive a Recognition Toolkit that includes New York Times Bestseller The Carrot Principle™ by Adrian Gostick & Chester Elton, Recognition Training Workbook, and Thank You cards to start appreciating great work.

When: Tuesday, December 6, 2011
Time: 8:00 a.m. - 12:00 noon (check-in and full breakfast buffet from 7:30 - 8:00 AM)
Where: Red Lion Hotel, 161 W 600 S, Salt Lake City, UT
Cost: $129 per Council member; $209 per non-member (includes materials and full breakfast buffet)

Call the Council office or reply to this email with registration information or questions. You can download the registration form at http://ecutah.org/recognition.pdf. Full refund will be given if cancellation is received one week prior to event. Enrollment is limited to available space.

November 18, 2011

2011-11-18T21:07:00.001-08:00

U.S. PACKAGING MACHINERY SHIPMENTS CLIMBED 12%

Quick Manufacturing News
PMMI, a trade association that represents the packaging industry, is reporting a healthy uptick for U.S. packaging machinery shipments. Total shipments in 2010 were $5.5 billion, up 12% from $4.9 billion in 2009. Click to continue

TRADE RESTRUCTURING IN CENTURY'S FIRST DECADE WILL AFFECT INTERNATIONAL ECONOMY IN THE NEXT
Quick Manufacturing News
The Chinese global share of manufactured exports soared from 7% in 2000 to 20% in 2010, while the U.S. share declined from 19% to 13%. The Japanese share dropped from 13% to 9% while the European Union share held steady at 20%. Click to continue

SENATOR TELLS CHINA ITS 'UNFAIR TRADE PRACTICES WILL NOT BE TOLERATED'
Quick Manufacturing News
Sen. Bob Casey: 'For far too long, the U.S. has allowed China to manipulate its currency without consequence and the practice has taken a dramatic toll on Pennsylvania's companies and workers.' Click to continue

AP: ECONOMISTS CONCERNED ABOUT BUDGET CUTS
Today in Manufacturing
A congressional panel is supposed to agree on a deficit-reduction package of at least $1.2 trillion, which has many concerned but not panicking ... continue

MANUFACTURERS SAY TRANSPORTATION BILL WILL CREATE JOBS, ENHANCE COMPETITIVENESS
NAM
Senior Vice President for Policy and Government Relations Aric Newhouse issued a statement on House Speaker John Boehner's (R-OH) announcement of the American Energy and Infrastructure Jobs Act. "Manufacturers support a multi-year surface bill because modern infrastructure is essential to ensuring our global competitiveness. Our nation's transportation infrastructure needs a significant boost in investment from all levels of government to meet the demands of today and tomorrow." Newhouse said, "In order to create a growing manufacturing economy, we must make long-term investments in transportation and infrastructure, reduce regulatory barriers and invest in our energy security."

UTAH NATURAL GAS RATES LOWEST IN U.S.
UAE Weekly Energy Brief
SALT LAKE CITY — Natural gas rates in Utah are the lowest in the continental U.S.
According to data from the U.S. Energy Information Administration, Questar Gas customers pay the lowest rates in the "lower 48" at $8.98 per Mcf (thousand cubic feet).

Colorado and Minnesota had slightly higher rates at just over $9 per thousand cubic feet, while Georgia and Florida had the highest rates at around $20 per thousand cubic feet.

As for how those rates will impact the average household heating bill this winter, barring an unforeseen "deep freeze," heating your home will cost about the same as last year, according to Questar Gas Senior Vice President Craig Wagstaff.

He said the supply of natural gas is plentiful at this time, which should result in generally stable pricing for customers.

"We see bills being very similar to what they were last year," he said. "We don't foresee any substantial increases at this point."

With the abundant supply, "that should carry us through the winter," he added.

In Utah this year, the average residential customer is estimated to pay about $681 annually for natural gas — slightly below the $703 a typical customer paid last year. Natural gas prices were at their lowest in recent history in '09 when the average annual cost was $657. That was contrary to the previous year when natural gas costs peaked at $774 for the average household.

Questar Gas serves about 915,000 customers in Utah, Idaho and Wyoming.

FOCUS: MANUFACTURERS SEE VICTORY WITH REPEAL OF WITHHOLDING TAX
NAM Capital Briefing
Manufacturers reached a substantial victory on Wednesday, November 16, when the House voted 422-0 to pass legislation to repeal a 3 percent withholding tax on government contractors. The legislation (H.R. 674) had already passed both the House and Senate, but it came back to the House for final agreement after some changes were made in the Senate. It now goes to President Obama’s desk for his signature.

The NAM key-voted this legislation, which repeals the 3 percent tax and prevents it from taking effect on January 1, 2013. The tax would have required federal, state and local government agencies to withhold 3 percent of their payments to businesses for goods and services. This would have hit manufacturers particularly hard.

Although the tax was originally created to address a so-called “tax gap” problem among a small number of government contractors, it would have applied to nearly all local, state and federal government contracts. It would have raised the cost of doing business when companies can least afford it.

With 9.1 percent unemployment and a bleak global economic outlook, manufacturers need policies that encourage economic growth and allow employers to expand and hire. Permanent repeal of the provision will begin to restore some certainty for manufacturers, which will improve their ability to create jobs.

“Today’s congressional action is a positive step toward creating the pro-growth environment manufacturers need to invest, create jobs and lead our economy. It is essential that we abolish burdensome tax provisions like these so that all manufacturers may better compete in a global marketplace,” said NAM President and CEO Jay Timmons.

Manufacturers can breathe a sigh of relief with the passage of this important legislation, and the NAM encourages President Obama to sign the bill immediately.

ADMINISTRATION’S KEYSTONE PIPELINE DELAY DENIES JOBS
NAM Capital Briefing
On Thursday, November 10, the Obama Administration and the State Department announced they will further delay the decision whether to grant a permit for the Keystone XL pipeline in order to gather more information on potential environmental impacts and alternative routes for the pipeline. The new timeline for the final decision will be sometime in 2013, ensuring that the issue will not be decided during an election year. The NAM called the Administration’s decision misguided. “It is unacceptable and outrageous that the Obama Administration has made a decision to prevent 118,000 jobs from being created. The Keystone XL pipeline is a shovel-ready project that must be approved,” said NAM President and CEO Jay Timmons. Manufacturers will continue to encourage the President to approve the pipeline to immediately add jobs and encourage economic growth by providing affordable energy for job creators. Click here to read the NAM’s statement.

HOUSE MEMBERS’ AMICUS BRIEF SUPPORTS NAM LAWSUIT AGAINST NLRB
NAM Capital Briefing
On Wednesday, November 16, House Education and Workforce Committee Chair John Kline (R-MN) and 35 other members of Congress filed an amicus brief with the federal court in support of the NAM’s lawsuit against the National Labor Relations Board (NLRB). The NAM filed suit against the NLRB over the Board’s final rule requiring all employers to post a notice of employees’ rights. The congressional brief raises three issues, which support the NAM’s contention that the NLRB lacks authority to issue such a rule: 1) Congress has not granted the Board the authority to require a general notice posting by employers; 2) Congress has restricted the Board’s authority to hearing facts from parties through a hearing process; and 3) the Board’s regulation undermines Congress’s efforts to inform workers of rights. Due to the lawsuit, the effective date of the rule has been postponed to January 31, 2012. The NAM will file a reply brief on Tuesday, November 22, and the hearing is scheduled for December 19.

LEGISLATION COULD PREVENT EPA’S PROPOSED CLEAN WATER GUIDANCE
NAM Capital Briefing
The EPA and the Army Corps of Engineers are again revisiting the definition of “waters of the United States” by looking at the guidance they issued earlier this year as a possible blueprint for a proposed rule. As currently drafted, the guidance expands the EPA’s and the Corps’ jurisdiction over water by bringing additional bodies of water under the purview of the Clean Water Act. This exponential overreach raises a number issues, including confusion about the definition of “waters of the United States,” uncertainty as to when an entity has to file for a permit and substantial increased costs in compliance and permitting. Sens. John Barrasso (R-WY) and Dean Heller (R-NV) have introduced an amendment to the energy and water appropriations bill, which was slated to go to the floor for a vote this week but has been postponed until after the Thanksgiving recess. The amendment would essentially prevent the Corps from using any funds in carrying out the guidance or proposed rulemaking. The NAM has signed on to a coalition letter in support of this amendment and will continue to actively reach out to Senate offices to garner support for the amendment.

HOUSE COMMITTEE ADVANCES TAX FAIRNESS LEGISLATION
NAM Capital Briefing
The House Judiciary Committee favorably reported the Mobile Workforce State Income Tax Simplification Act of 2011 (H.R. 1864) by voice vote on Thursday, November 17. An NAM-supported manager’s amendment was adopted prior to the final vote. The next step is for House floor action to be scheduled. The bipartisan bill, introduced by Reps. Howard Coble (R-NC) and Hank Johnson (D-GA), would establish fair and uniform rules clarifying that states cannot assess income taxes on non-resident employees who temporarily work in a state. If enacted, employees who work out-of-state for 30 days or fewer during a calendar year would not have to file an income tax return, pay income taxes, or seek a refund of tax overpayments from the nonresident state. Also, employers would no longer be required to calculate and remit state income tax withholdings for these short work periods. The NAM recently joined more than 100 companies and associations in signing a letter to the Committee in support of the bill.

IMPROVING PERFORMANCE WITH CAPACITY MANAGEMENT
Today in Manufacturing
Here is how project managers and resource planners can best manage resources to maximize productivity ... continue

COLUMN: RIGHT-TO-WORK LAWS PAY OFF WITH JOBS
Today in Manufacturing
What does the automotive industry's decision to set up shop mean for these right-to-work states? It means jobs and increased tax revenues ... continue

November 17, 2011

2011-11-17T21:33:00.001-08:00

UMA WORKING FOR YOU ON CAPITOL HILL:

Yesterday was interim committee day at the Utah Legislature, the final committee day for this year and before the 2012 General Session. Several bills of interest to UMA were presented to interim committees for their review and approval as “committee bills” to be introduced in the next general session in January 2012. The following dialogue is a review of those bills we expect to address in January.

PANEL ENDORSES CUTS TO JOBLESS PREMIUMS
By TONY SEMERAD - The Salt Lake Tribune
November 16, 2011
Hoping to help Utah employers, lawmakers endorsed a proposal Wednesday that would cut the state’s top unemployment-insurance premium rates starting in 2012.

A measure to slash the rate from 9 percent to 7 percent — or about $590 yearly per employee — passed in a state committee hearing Wednesday and will be considered when the Utah Legislature convenes in January.

The cut is being proposed in tandem with a cap on the minimum rate paid by all employers. Both come in reaction to premiums spiking earlier this year and a widespread outcry from private-sector business owners who saw their insurance costs surge just as a fragile economic recovery began to take hold.

The rate reduction ``is a big help for us,’’ said Richard Thorn, president of the Association of General Contractors, representing nearly 500 Utah companies in the commercial construction sector. ``Is it a big deal? Yeah, we think it is.’’

Thorn predicted the lowered costs could lead to additional hiring by small- and mid-sized construction companies and other industries particularly hard hit by the Great Recession. That view is shared by leaders from some of the state’s largest labor unions as well.

Utah’s jobless insurance system is among the nation’s most aggressive in charging employers for unemployment benefits paid to workers they lay off. The rate reduction advanced Wednesday essentially eases back on that approach by spreading millions of dollars into higher bills for all employers instead of taxing only those who fired workers in the downturn.

Shifting the costs of top ratepayers is expected to push up what all business owners pay, so the plan endorsed Wednesday also would cap those pooled costs, at 0.4 percent.

Between the two rate changes, lawmakers would effectively be slashing up to $30 million annually from revenues coming into the Unemployment Trust Fund, at least through 2013. Only a year ago state managers were warning the fund was headed to bankruptcy under the pressure of record jobless claims.

``We feel much more solid about it now’’ Utah Unemployment Insurance Director Bill Starks said Wednesday of the trust fund. ``We foresee very little danger of going insolvent, especially if the economy keeps chugging along at the pace it is now.’’

Premiums shot up in 2011 through Utah’s automatic formula for rebuilding the trust fund, which sustained heavy losses from historic unemployment starting in August 2008. The state-managed cash reserve fund fell from $855 million to below $310 million in less than two years, leading fund administrators to plan for it going broke, as similar funds have in 32 other states.

The trust fund now holds $388 million, replenished by revenues from higher premiums and a more positive economic picture. Senior fund managers and an advisory committee made up of labor, business and community representatives are both backing the rate caps, partly to make Utah more comparable with those in surrounding states and to remove incentives for employers to dodge the taxes.

The rate cut received unanimous backing by members of the Legislature’s Workforce Services and Community and Economic Development Interim Committee on Wednesday. A draft bill enacting the cut also picked up a House sponsor, Rep. Jeremy Peterson, R-Ogden.

NOTE: UMA President Tom Bingham is an employer representative on the Unemployment Advisory Committee. He said regarding these measures: “We have worked very hard to ensure solvency in the UI Trust Fund and avoid catastrophic adjustments in the UI premiums employers pay. A year ago, we told the interim committee that was suggesting drastic adjustments to the formula that we were prepared to make drastic changes if necessary but we were convinced the trigger mechanisms added many years ago would work and would allow us to avoid insolvency.”

“It now appears we have turned the corner and are rebuilding the trust fund. I am pleased we have been prudent in the past and resisted programs from the Federal Government that would weaken our overall position going forward. Other states, 32 in all have taken the federal bait and are now having to borrow from the Feds to pay claims with no way to repay the loans. Utah is in an enviable position.”

NATURAL RESOURCES, ENERGY AND ENVIORNMENT COMMITTEE APPROVES TWO UMA SPONSORED BILLS AS COMMITTEE BILLS
Two bills, the product of more than a year’s work for the UMA Air Quality Subcommittee of the Environment Committee, the Department of Environmental Quality and Senator Margaret Dayton, were heard in the Natural Resource, Energy and Environment Committee yesterday afternoon and adopted as “Committee Bills” by the committee with just one dissenting vote.

The following is a brief outline of what the bills do and is what was presented to the legislative committee by members of the UMA Air Quality Committee.

ENVIRONMENTAL BOARDS AMENDMENTS
ENVIRONMENTAL BOARDS AMENDMENTS
Air Quality, Water Quality, Solid & Hazardous Waste, Radiation Control and Drinking Water

This is a nearly 200 page bill that restructures the five environmental boards within DEQ. Here is the synopsis of the bill as presented by Jim Holtkamp, chairman of the UMA Air Quality Advisory Committee:

1. The adjudicative function of the various environmental boards, such as permit appeals, would be eliminated. The boards would retain rulemaking, policy and advisory responsibilities. The boards would also retain various certification and grant approval authorities, as applicable.

2. The recommended decision of an administrative law judge who hears a permit appeal or appeal of an administrative enforcement action would be made to the executive director of the Department of Environmental Quality and not to the applicable board. The executive director would be able to call on the Attorney General’s office and other resources to aid her in making a decision. The executive director’s decision would then be appealable to the court of appeals.

3. The number of board members on each of the five boards would be reduced to nine, one of whom would be the executive director (as under current law) and the other eight would be nominated by the executive director and appointed by the governor with the consent of the Senate. The eight appointed members on each board would include one individual who by training and experience is an expert in the subject matters handled by the board; two non-federal government representatives; two representatives from the applicable regulated industry; one representative of a non-governmental organization; one public health representative; and one attorney with expertise in the particular subject matter.

4. Board members would be subject to requirements regarding knowledge and experience, attendance at board meetings, compliance with conflict of interest rules set by the executive director, and residency in the State of Utah.

5. The head of each division is now called the “executive secretary.” That term would be replaced with “director” to reflect better the role of the each of the division directors. Many of the statutory board authorities would be transferred to the directors, especially those that are purely administrative in nature, such as contracting with third parties, etc

6. The boards would no longer have any direct role in permitting. A permit would be issued (or amended, renewed or revoked) by the director.

7. Similarly, the boards would not have anything to do with inspections or enforcement, except that the director would need to get board approval for a settlement of an enforcement action that involves $25,000 or more in civil penalties. Also, the boards would not have independent authority to commence litigation to enforce rules, assess penalties, etc.

The following is the synopsis of the Environmental Permit Review bill proposed by UMA and approved by the committee yesterday. This and the foregoing bill on board structure are a product of the application of Lean/Six Sigma principles to the Department of Environmental Quality and its Divisions.

MANUFACTURERS CALLS ON SUPERCOMMITTEE TO REACH DEAL.

In a press release, the National Association of Manufacturers (11/17) Senior Vice President for Policy and Government Relations Aric Newhouse issued a statement calling on members of the Joint Select Committee on Deficit Reduction to come together before next week's deadline to ensure our nation's economic stability and promote growth by addressing its fiscal woes. "As the November 23 deadline draws near, manufacturers across the country continue to be deeply concerned with our nation's fiscal house and the ramifications of our growing debt on jobs and economic growth. Policymakers have an opportunity to restore confidence and stability to our economy by reforming entitlement programs and creating a tax code that is pro-growth and pro-jobs." Newhouse concluded, "For the sake of jobs and our nation's competitiveness, manufacturers are urging lawmakers on both sides of the aisle to seize this opportunity as the committee enters its final week of negotiations."

U.S. FACTORY OUTPUT RISES AT RECORD RATE

Today in Manufacturing

Federal Reserve said industrial production rose at the fastest rate in three months -- a sign that manufacturing is recovering after slowing this spring ... continue

FARM EXPORTS BOOM AS REST OF ECONOMY STRUGGLES

Today in Manufacturing

Agriculture makes up about 9 percent of U.S. exports, compared with about 80 percent for manufacturing, but data shows farm exports grew much faster ... continue

CONSUMER PRICES DIP AS GAS PRICES FALL
Today in Manufacturing
Consumers paid less for gas, cars and computers, as overall prices dropped and inflation is easing after prices rose sharply this spring ... continue

FED'S STRAUSS SAYS MANUFACTURING EMPLOYMENT DECLINE TIED TO INCREASED PRODUCTIVITY
Quick Manufacturing News
Senior Federal Reserve economist likens industrial shifts to past agricultural trends in the United States. Click to continue

5 WAYS TO ADDRESS NEW CHALLENGES IN RISK MANAGEMENT
Quick Manufacturing News
Confronted with the recent financial crisis and emerging regulations of the U.S. Dodd-Frank Act, companies are facing a thickening regulatory web that is increasing the risks and costs associated with compliance. Click to continue

JAY TIMMONS QUOTE CHOSEN AS THE ATLANTIC'S "EXPERT QUOTE OF THE WEEK."
The Atlantic
The Atlantic published as its quote of the week the following: "From Jay Timmons, President and CEO of the National Association of Manufacturers, at the 'Innovation and America's Future' Forum on November 10: 'Young people today need to discover--and their parents need to discover-- that the manufacturing of today is not their grandfather's manufacturing. It's exciting, it's new, it's clean ... it's sexy ... and it's all about the future. And when they are looking at a potential career ... what kid doesn't want to be associated with that?'"

FORECASTERS EXPECT ONLY MODERATE U.S. GROWTH IN 2012-13
Today in Manufacturing
Economy should grow moderately over the next two years, generating just enough jobs to slowly reduce unemployment, University of Michigan economists say ... continue

November 15, 2011

2011-11-15T21:07:00.001-08:00

LAWMAKERS SCRUTINIZE US FOREIGN AID TO CHINA

Today in Manufacturing
The House subcommittee is examining assistance in clean energy technology that some claim is tantamount to subsidies for the Chinese government ... continue

RETAIL SALES RISE FOR 5TH STRAIGHT MONTH
Today in Manufacturing
The fifth straight monthly gain in retail sales suggests the economy maintained solid growth at the start of the fourth quarter ... continue

QATAR WANTS TO LINK GAS PRICES WITH OIL
Today in Manufacturing
Qatar's ruler says gas-producing nations should seek a pricing system linked to oil markets as a way to promote greater use of the fuel ... continue

SEPTEMBER MACHINE TOOL ORDERS ROSE NEARLY 23%
Quick Manufacturing News
The latest monthly sales totals were the second-highest in the past 15 years, but high sales volumes may indicate manufacturers' wariness over scheduled changes in IRS depreciation rules. Click to continue

HOUSE-SENATE NEGOTIATORS UNVEIL SPENDING BILL
Today in Manufacturing
The approximately $182 billion measure would fund day-to-day operations at numerous agencies and keep the government running until Dec. 16 ... continue

USMTO: TECHNOLOGY SALES SOAR OVER 2010
Today in Manufacturing
September manufacturing technology orders totaled $606.56 million, the second highest number in 15 years of tracking the industry ... continue

COMPANIES PAID LESS IN OCTOBER FOR ENERGY, AUTOS
Today in Manufacturing
Lowered wholesales prices mean consumers will have more buying power, potentially boosting consumer spending heading into the holiday season ... continue

November 14, 2011

2011-11-14T21:32:00.001-08:00

November 14, 2011

Change was afoot in Europe last week, as both the Greek and Italian governments had leadership changes. Two economists – Mario Monti in Italy and Lucas Papademos in Greece – are in the process of setting up new governments as the premiers of their respective nations. The tasks before them are monumental, and it is clear that Europe's challenges are far from over. Fears of recession on the continent persist, with many commentators suggesting that Europe is already in a recession. Nonetheless, worries of a larger financial collapse eased by week's end – a sign that markets were mollified by these political changes, at least for the time being.

Fears of a recession in the United States also lessened in the past few weeks. On Friday, the Wall Street Journal reported that economists in its survey cut the chance of a recession from 1 in 3 in September to 1 in 4 today. Improved optimism was also observed for consumers by the University of Michigan and Thomson Reuters and for small business owners by the National Federation of Independent Business. While respondents continue to cite concerns about the economy and sentiment indices remain subpar overall, sentiment is moving in the right direction. In addition, the Census Bureau observed higher wholesale sales and a lower trade deficit in September, with manufactured goods exports up 15 percent over the past year.

Many of the indicators released last week were mixed. On the employment front, the Bureau of Labor Statistics said that job openings were up over the past year, with 10,000 new job postings in manufacturing in September (of which 9,000 were in the durable goods sectors). Yet, net hiring among manufacturers was negative for the month, with 7,000 more separations than hires. Job creation continues to be a challenge.

Perhaps reflecting economic uncertainties, the Federal Reserve reported that lending demand for commercial and industrial loans was lower in October, reversing gains in demand observed in past surveys. On the other hand, consumer debt rose, particularly for nonrevolving credit accounts such as auto and student loans. Recent data also indicated a falling savings rate – which could hinder consumer spending growth moving forward.

This week, we will receive new data on industrial production as regional measures of manufacturing activity from Federal Reserve Banks in New York and Philadelphia. Given recent data, each of these should continue to see improvement. Meanwhile, the Bureau of Labor Statistics will note price changes at the consumer and producer level for October. While inflationary pressures have eased since the spring, manufacturers continue to cite elevated raw material prices as a major concern, especially as producer prices for manufacturers' final goods have risen 9 percent over the past year. Finally, new housing starts data will give us a sense of whether last month's improvements in residential construction activity were short-lived or the beginning of an upward trend.

Chad Moutray
Chief Economist
National Association of Manufacturers

SEPTEMBER TRADE DEFICIT NARROWS

Today in Manufacturing
U.S. trade deficit fell to the lowest point this year as foreign sales of American-made autos, airplanes and heavy machinery pushed exports to an all-time high ... continue

HOW TO CONFRONT THE TALENT CRISIS IN MANUFACTURING
Quick Manufacturing News
The manufacturing skills gap is reaching threat levels. While manufacturers recognize the importance of recruiting and developing talent, many continue to depend on outdated, informal approaches for finding talent, developing skills, and improving performance. Click to continue

MANUFACTURERS: ADMINISTRATION’S DRILLING PLAN MISSES OPPORTUNITIES FOR JOB CREATION
NAM Capital Briefing
On Tuesday, November 8, the Department of Interior announced its proposed five-year plan for oil and gas leasing on the Outer Continental Shelf (OCS). The new plan makes available several lease sales in the central and western Gulf of Mexico and includes two new sales in the eastern Gulf. The plan also will open two sales in the Arctic off the coast of Alaska.

This approach is a good step toward opening more leases to drilling and exploration, but it does not go far enough.

Manufacturers use one-third of our nation’s energy supply, which makes energy access vital to their ability to compete. In addition, it is 20 percent more expensive to manufacture in the United States compared to our major trade partners.

In a press release announcing the plan, Interior Secretary Ken Salazar said, “Expanding safe and responsible oil and gas production from the OCS is a key component of our comprehensive energy strategy to grow America’s energy economy, and will help us continue to reduce our dependence on foreign oil and create jobs here at home.”

With 9 percent unemployment, the NAM believes the government should look at all avenues to grow jobs and boost investment—that includes opening additional areas for leases.

The Interior Department’s plan does not come close to maximizing our nation’s full potential in terms of OCS oil and gas reserves. Allowing these reserves to be tapped would create thousands of jobs and aid our struggling economy. Manufacturers urge the Interior Department to include potential lease sales in the Mid- and South Atlantic, which were included in the previous five-year plan. Manufacturers also would like to see a more robust plan that would include additional lease sales in the Eastern Gulf of Mexico, Atlantic or Pacific.

This plan does not reflect the energy needs we have as a country.

“The recovery is struggling to gain traction and jobs are badly needed; now is not the time to limit our options and tie our hands when it comes to access to affordable energy. Less than 4 percent of the OCS is currently under lease. Secretary Salazar’s proposed five-year plan is profoundly disappointing,” said NAM Vice President for Energy and Resources Policy Chip Yost.

The drilling proposal comes as manufacturers await a decision from the Administration on the Keystone XL pipeline—a project that will provide manufacturers access to affordable energy and will create as many as 20,000 jobs during its construction. Further, the Perryman Report estimates that the project will create an additional 118,000 indirect jobs.

On Monday, November 7, it was reported that President Obama may delay the decision on the pipeline until late 2012, after the elections. The State Department had set a deadline of year’s end to determine whether the pipeline is in the national interest. The Keystone XL, which would run from Canada to the Texas Gulf Coast, needs a permit from the State Department because it crosses a national border.

Manufacturers are looking to Washington for policies that will help them grow and compete. OCS drilling and the Keystone XL pipeline are real tools in working toward economic security, job creation and prosperity. Click here to view the full report from the Department of Interior, and here for the NAM’s statement on the Keystone XL delay.

SENATE TAKES UP RESOLUTION TO NULLIFY UTILITY REGULATIONS.
NAM Capital Briefing
On Wednesday, November 9, the NAM key-voted a resolution to disapprove the Environmental Protection Agency’s (EPA) Cross-State Air Pollution Rule (CSAPR). A Senate vote is expected on Thursday, November 10. Issued on July 7, 2011, the CSAPR sets stringent emission limits for 27 states and calls on both states and affected facilities to comply with the new rules by January 1, 2012. Manufacturers are concerned that the new rules will trigger higher energy prices, compromise grid reliability and lead to more job losses, threatening global competitiveness. S.J. Res. 27, introduced by Sen. Rand Paul (R-KY), would provide manufacturers and utilities with the regulatory certainty necessary to create jobs and lead our economic recovery.

SENATE PANEL CLEARS TWO-YEAR TRANSPORTATION PROPOSAL.
NAM Capital Briefing
On Wednesday, November 9, the Senate Committee on Environment and Public Works unanimously approved a two-year surface transportation reauthorization proposal. The Moving Ahead for Progress in the 21st Century Act (MAP-21, S. 1813) would allocate funds at current levels—$85.3 billion over two years—for surface transportation construction and maintenance projects. The Senate still must find $12 billion not covered by the Highway Trust Fund, and the Senate Committees on Finance, Banking and Commerce must each approve certain provisions of the proposal within their jurisdictions before the bill is eligible for consideration by the full Senate. The bill would create a new core program, the National Highway Performance Program, by consolidating several current programs charged with federal highway and bridge construction and maintenance. Overall, the bill would consolidate the number of federal surface transportation programs from about 90 down to less than 30. The proposal also emphasizes improved freight movement through the creation of a new program called the National Freight Network Program. Under the program, the Department of Transportation would be required to establish a primary freight network and develop a National Freight Strategic Plan.

MORE THAN ONE THOUSAND ORGANIZATIONS SIGN ON TO SUPPORT TAX EXTENDERS
NAM Capital Briefing
The NAM served a key role in sending a Broad Tax Extenders Group letter to Congress on Wednesday, November 9. The letter was signed by more than 1,500 businesses, associations, community development organizations and non-profit organizations. The tax extenders important to manufacturers include the Controlled Foreign Corporation (CFC) look through rules, deferral for active financing and the research and development (R&D) tax credit. If tax extenders are important to your company, the NAM urges you to send the letter to your members of Congress with a message about the positive impact associated with extending these temporary tax provisions before they expire. While many in Congress focus on much-needed tax reform, the letter makes a strong case for why these extenders cannot wait until lawmakers agree on how to revamp the tax code.

APPLICATIONS FOR UNEMPLOYMENT AID DROP TO 390,000
Today in Manufacturing
The number of people who applied for unemployment benefits last week fell to the lowest level since April... continue

PEAK SEASON HAS ALREADY PEAKED
Quick Manufacturing News
With most holiday season merchandise already on its way to store shelves, import cargo volume at the nation's major retail container ports has started to decline for the fall, and November is forecast at 1.9% below the same month last year, according to the monthly Global Port Tracker report from the National Retail Federation and Hackett Associates. Click to continue

A RENAISSANCE FOR MEXICAN MANUFACTURING?
Today in Manufacturing
Mexico is not far from breaking out as one of the key trading nations in the world, and there's much to gain from our cooperation ... continue

CONCERN OF ANOTHER RECESSION LESSENED BY RECENT DATA ON US MANUFACTURING
Bloomberg News
Bloomberg News reports, "Machinery stocks may outperform the market through the end of the year as new orders rebound, helping to defy concerns about another US recession." US "manufacturers booked $32.6 billion in new orders for machinery equipment in September, the most since July 2008, according to data from the Census Bureau released Oct. 26. The Standard & Poor's Supercomposite Machinery Index, which includes Caterpillar Inc. (CAT) and Deere & Co. (DE), has gained 26 percent since Oct. 3, while the S&P 500 has risen 13 percent." Ann Duignan, an analyst at JPMorgan Chase & Co., said that "there's 'no evidence' of a collapse in North American manufacturing as shipments still are growing."

EXPERTS CONCERNED BY DECLINE IN YOUNG AMERICANS MANUAL SKILLS
Dayton (OH) Daily News
According to the Dayton Daily News, "Young Americans are spending more time with electronic media and fewer hours working with their hands, according to several studies, possibly leaving them out of the running for well-paying, high-skilled jobs in the future." Experts believe that "the declining number of young people who are capable of working with their hands could create a shortage of skilled workers to replace an aging workforce in the US manufacturing industry. Some 2.7 million manufacturing employees are age 55 or older and likely to leave the labor force over the next 10 years, according to the National Association of Manufacturers."

FEATURE: THE SECRET TO A QUALITY PROCESS
Today in Manufacturing
Since mankind first began to craft tools or goods, we have faced the ever-present conundrum of balancing speed of execution with quality ... continue

REGULATIONS, CORPORATE TAXES 'STRANGLING' U.S. MANUFACTURING
Quick Manufacturing News
A forthcoming national manufacturing strategy developed by the Council on Competitiveness will urge Washington to address policies that 'are very unfriendly to 21st-century manufacturing in America,' council CEO says. Click to continue

ROBOTS CREATING JOBS FOR HUMANS
Quick Manufacturing News
One million industrial robots currently in operation have been directly responsible for the creation of close to three million jobs, a recent study concluded. Click to continue

JAPAN'S ECONOMY RISES OUT OF EARTHQUAKE SLUMP
Today in Manufacturing
The world's No. 3 economy expanded at an annualized rate of 6 percent in the July-September period, the first growth in four quarters ... continue

IMPLEMENTING A SUCCESSFUL QUALITY MANAGEMENT SYSTEM
Today in Manufacturing
All businesses need a Quality Management System, but many do not have one, and if they do, it may not be managed very well ... continue

US COMPANIES ARE FEELING IMPACT OF EUROPEAN CRISIS
Today in Manufacturing
Worries that Europe's crisis could worsen and spread are spooking investors and consumers just as the holiday shopping season nears ... continue

November 9, 2011

2011-11-09T21:09:00.000-08:00

CONVEYOR ORDERS SHOW RECENT SURGE

Quick Manufacturing News
The Conveyor Equipment Manufacturers Association reported that its September 2011 Booked Orders Index was 218, up 56 points or 35% from August 2011's Index of 162. The September index represents an increase of 35% from the September 2010 Index of 161. Click to continue

KEY U.S. SENATORS WARN CHINA ON MILITARY PARTS
Quick Manufacturing News
Beijing tolerates 'brazenly open market' for counterfeit electronics, lawmakers charge. Click to continue

MOBILE DATA TRAFFIC TO GROW TENFOLD BY 2016, ERICSSON STUDY SHOWS
Quick Manufacturing News
Video will drive surge in Internet use. Click to continue

OFFICIALS: FAKE WEAPONS PARTS A 'TICKING TIME BOMB'
Today in Manufacturing
A Senate committee's investigation found about 1,800 cases of suspect counterfeit electronics being sold to the Pentagon for weapons systems, helicopters and aircraft ... continue

ITT EXELIS CORPORATION ANNOUNCES IT WILL EXPAND COMPOSITE ENGINEERING FACILITY IN SALT LAKE CITY
EDCUtah
EDCUtah recently announced that ITT Exelis will significantly expand their composites engineering facility in the Fiber Sciences Building near the Salt Lake International Airport in Salt Lake City. ITT Exelis is to be the new name of an independent publicly traded company spun off from the ITT Corp. (NYSE: ITT) aerospace and defense business unit following the completion of a previously announced separation plan, company officials announced. ITT Exelis will add more than 2,700 jobs over the next 15 years to the 400 employees currently in Utah. The company will invest over $120 million in facilities and equipment to bring the aviation composites facility into operation.

A NEW GREENHOUSE GAS FRONTIER
FLAG Weekly Communications - NAM
The NAM recently sought to intervene in a case (Alec L. v. Jackson) brought by environmental groups against the Environmental Protection Agency and the Departments of Defense, Agriculture and Commerce.

The lawsuit seeks to have the courts force the government to reduce greenhouse gas emissions—specifically to implement measures that would reduce carbon emissions by no less than 6 percent annually. The groups have also filed similar lawsuits in the states.

The environmental groups’ strategy is a novel one. They are relying on the “public trust” theory, which “allege[s] that the federal government and each state’s government has an independent ‘public trust’ obligation to protect the state or entire nation’s atmosphere from global climate changes.” For more on the case and the legal theory, see this paper from the Washington Legal Foundation entitled “Lawsuit Roulette: Pursuit Of The ‘Children’s Trust’ Climate Change Litigation.”

The NAM has filed a motion to dismiss, as has the government. Arguments on those motions are scheduled for December 15, though that could change on November 30 when the court considers the government’s motion to move the case from the Northern District of California to Washington, D.C.

Also of note, FLAG readers may be interested in the following comments on the subject of climate change from the Archbishop of Sydney, Australia. The full remarks are available here.

THE NEW TOBACCO
FLAG Weekly Communications - NAM
Is junk food the next tobacco? A recent article in Bloomberg suggests it might be exactly that.

If fatty foods and snacks and drinks sweetened with sugar and high fructose corn syrup are proven to be addictive, food companies may face the most drawn-out consumer safety battle since the anti-smoking movement took on the tobacco industry a generation ago.

The article highlights recent research on junk food, including a study of rats for which sweets were a near constant presence.

Other groups of rats that had access to the sweets and fatty foods for 18 to 23 hours per day became obese, Paul Kenny, the Scripps scientist heading the study wrote in the journal Nature Neuroscience. The results produced the same brain pattern that occurs with escalating intake of cocaine, he wrote.

“To see food do the same thing was mind-boggling,” Kenny later said in an interview.

The food industry says voluntary industry action is the way to fight obesity, but there’s no doubt that regulators and some lawyers are salivating at the implications of this new “food addiction” research.

RISE ABOVE THE FRAY
Employers Council
Studies show that workplace conflicts take up to 42% of a typical manager's time! Disagreements, disputes, and honest differences are normal. But, if you find yourself dreading a meeting with your employee, apply the following tips to turn discouraging disagreements into

productive ideas:
• Listen with an open mind.
• Do not be defensive.
• By the tone of your voice and your body language, show interest in hearing the other person's ideas.
• Stay calm.
• Approach the communications with interest and enthusiasm.
• Do not focus on the employee as part of the problem, but guide them in finding a solution.
• Be open to other ideas and perspectives (perhaps you misunderstood the ideas that caused the tension or conflict).
• Be a peacemaker.
• Consider the meeting an opportunity to bring out creativity.

How you approach the conflict can be helpful in turning two competing ideas into a winning solution!

NATIONWIDE CALL FOR EXTENSION OF CRITICAL TAX PROVISIONS
More than 1,500 Companies and Organizations Urge Congress to Prevent Expiration of Key Pro-Jobs Tax Provisions
NAM
WASHINGTON— Today, more than 1,500 companies and organizations urged all members of Congress to pass legislation to extend critical tax provisions before they expire at the end of 2011. Dozens of tax provisions—frequently called “tax extenders”—that benefit businesses, individuals, community development organizations and non-profit organizations are set to expire at the end of 2011. The provisions are important to U.S. jobs and the broader economy. “The lack of timely congressional action to extend these provisions would inject more instability and uncertainty into the economy and further weaken confidence in the employment marketplace,” the companies and groups said in a letter to all members of Congress.

The group said the extension of the expiring provisions should not be delayed until policymakers complete work on comprehensive tax reform. “Even though Congress has begun to consider tax reform proposals, a wide-ranging group of taxpayers is making decisions right now related to current law which will have an immediate impact on the economy,” the letter stated. “While we are hopeful that the tax reform debate results in policy that is fair, efficient, and encourages economic growth, it is critical that the current tax system provide certainty in the interim.” Several signatories of the letter spoke to the importance of specific “tax extender” provisions. “Innovation has always been the cornerstone of our company.

The R&D tax credit supports our efforts to develop new technology critical to helping our business grow, create jobs and innovate,” said Stewart McMillan, president of Task Force Tips, a manufacturer of fire hose nozzles in Valparaiso, Indiana. “Firefighters are better able to protect the communities they serve thanks to our products and we want to continue to expand with cutting edge technology. Extending the R&D tax credit will help us accomplish this goal by providing certainty in an uncertain economy.”

“I am a small business owner that operates thirty franchise restaurants with over 700 employees in Michigan. Restaurant buildings are not like other buildings as they have a limited useful life due to the heavy wear and tear caused by simply being a restaurant,” said Joyce Lunsford of St. Joseph, Michigan, who benefits from the 15-year cost recovery for restaurant buildings. “I need certainty in the tax code. Extending this tax provision now is a common sense way to allow restaurant entrepreneurs to build new restaurants while creating new jobs.” Tax incentives like the New Markets Tax Credit (NMTC) have been credited with stimulating economic development in struggling communities. "Given our fragile economy, we need Congress to extend vital expiring tax provisions so that hundreds of community development projects representing thousands of jobs can be preserved,” said Terri Ludwig, President and CEO of Enterprise Community Partners, Inc. "Enterprise strongly encourages Congress to act before the end of the year to save critical community revitalization projects, many of which are located in distressed urban areas and rural communities across the country."

The NMTC, credited with creating jobs in communities with high rates of poverty and unemployment, has generated $40 billion in private investment since 2003, $5 billion invested in just the last 12 months.

According to Annie Donovan, President of the NMTC Coalition Board and COO of NCB Capital Impact, “Our NMTC investments in urban and rural communities across the country have created some 3,500 new permanent jobs, 2,200 construction jobs, 1,015,000 square feet of community facilities space, 3,750 new school seats for low-income children, 100 units of workforce housing, and generated 198,000 annual patient visits for medically underserved individuals. The NMTC has made a significant contribution to the economic recovery efforts low income communities and we cannot afford to lose it.”

The text of the letter with signatories is available at Broad Tax Extenders Group letter to Congress

WHOLESALE COMPANIES CUT INVENTORIES AMID SALES BUMP
Today in Manufacturing
Inventories at the wholesale level fell 0.1 percent, the first decline since December 2009 in the effort to rebuild stockpiles... continue

THE TRUTH AND NOTHING BUT THE TRUTH
Today in Manufacturing
Small companies tend to be less aware of the need to establish strong internal controls geared toward preventing fraud ... continue

November 7, 2011

2011-11-08T21:35:00.000-08:00

KAYSVILLE MAN TO HEAD UMA BOARD

A Kaysville man has been elected as chairman of the board of directors of the Utah Manufacturers Association.

Dean Clark was elected to head the UMA board, in results made public on Saturday night during a yearly banquet of the manufacturing group. He will begin his term of office, effective Jan. 1, 2012. Clark works as chief financial officer for Martin Door Manufacturing and has served as treasurer on the board, prior to the recent election.

James Alspaugh of Kimberly Clark was elected first vice president and Mark Sucahn of Malt-O-Meal was elected second vice chairman. Mike May of May Foundry & Machine Company was elected secretary/treasurer.

New members elected to the board include: Craig Trewet of The Boeing Company; Dave Smith of Nucor Steel;, George Frioux of Merit Medical; Brad Shafer of Rocky Mountain Power; Colin McMullin of IM Flash; Brian Bowers of Might-Lite; Matthew Cook of Moroni Feed Company; Roger Howard of Circle Four Farms; , VP Business Development - Merit Medical Brad Shafer, Government Affairs - Rocky Mountain Power Colin McMullin, Legal Counsel - IM Flash Brian Bowers, COO - Mity-Lite Matthew Cook, CEO, Moroni Feed Company Roger Howard, of Circle Four Farms; Dave Angerbauer of Energy Solutions and Mark Murdock of Chevron.

UTAH MANUFACTURERS ASSOCIATION RECOGNIZES MITY-LITE AS 2011 MANUFACTURER OF THE YEAR
Utah Pulse
The Utah Manufacturers Association, one of Utah’s longest running trade organizations, recognized Mity-Lite of Orem as the 2011 Manufacturer of the Year. The UMA made the announcement at its 106th Annual Awards and Installation Banquet, Saturday, Nov. 5, at Little America Hotel in Salt Lake City.

The banquet, attended by 700, serves as the most important event of the year for Utah’s 4,400 manufacturers, and Manufacturer of the Year is the most highly sought-after award for the industry in the state. Mity-Lite Durable Lightweight Furniture Systems was recognized for its outstanding contribution to Utah’s economy, exceptional operational performance, economic achievement, workplace safety, community and state involvement and commitment to the principles of America’s free enterprise system.

According to UMA President Thomas E. Bingham, Mity-Lite, founded in 1987 by Greg Wilson, found initial success by creating a lighter-weight ABS plastic table that became a staple for customers in hospitality, religious and public assembly settings. However, in 2008 the recession challenged Mity-Lite’s market leadership when customer demand dropped by almost 40 percent year-over-year in its busiest season. In response, Mity-Lite’s management team, led by CEO Randy Hales, established a plan to grow market share by introducing innovative products and streamlining operations.

“The results of that plan were amazing,” said Bingham. “In the throes of a recession, when many others were pulling back, Mity-Lite released five innovative new products within a year to expand its offerings. This bold move increased Mity-Lite’s revenue stream by 16 percent.”

Bingham said the outstanding company also used a team approach to improve operations. This effort reduced product lead times from 12 weeks during its busiest season to best-in-class lead times. Mighty-Lite also improved its factory schedule completion, shipping accuracy and on-time delivery, and increased labor productivity more than 100 percent. Because of the resulting cost savings in labor, employees have shared in the company’s success through increased wages and incentives.

Mity-Lite’s continued improvement in operations has enabled them to win bids away from competitors in Asia. The company’s ability to keep manufacturing jobs and vendors in Utah means Mity-Lite is directly contributing more than $10 million to Orem’s economy, an additional $9.7 million to other vendors in Utah and an additional $8.5 million to out-of-state vendors.

“We congratulate Mity-Lite and our 11 other finalists for their contributions to the economic wellbeing of the communities in which they serve and our state as a whole,” added Bingham. “They are excellent examples of manufacturing companies that build Utah’s economy and benefit its residents by creating useful products that make our lives better.”

Finalists for the Manufacturer of the Year included:
§ Barnes Aerospace, Ogden
§ Campbell Scientific, Inc., Logan
§ Futura Industries, Clearfield
§ Kaddas Enterprises, Salt Lake City
§ L3 Communications Systems-West, Salt Lake City
§ Ophir-Spiricon, LLC, North Logan
§ Petersen Incorporated, Ogden
§ Smead Manufacturing, Cedar City
§ Syracuse Casting, Tooele
§ USANA Health Services, Salt Lake City
§ Westinghouse Western Zirconium, Ogden

Read more: Utah Pulse - Utah Manufacturers Association Recognizes Mity Lite as 2011 Manufacturer of the Year

November 7, 2011

Financial issues in Europe continue to dominate economic headlines. Doubts about the new agreement for dealing with the European debt crisis began to emerge recently, and these were exacerbated by the possibility of putting Greek austerity measures out for a referendum. This was later pulled back, but uncertainties remain regarding solutions to the crisis. Much of the focus of the Group of 20 leaders meeting in Cannes, France, was on how to effectively put together a rescue plan to forestall a larger economic catastrophe.

Closer to home, the Federal Reserve Board made two announcements. First, it lowered economic growth estimates for the rest of 2011 through 2014, bringing them in line with other forecasts. The Fed now expects for real GDP to grow between 1.6 and 1.7 percent this year, with 2.5 to 2.9 percent growth next year. Second, it expects the unemployment rate to fall to 8.5 to 8.7 percent by the end of 2012. With that said, its Federal Open Market Committee statement was more optimistic than past ones, indicating that "economic growth strengthened somewhat in the third quarter." While noting some continued weaknesses, the Fed focused on several areas where there have been some improved indicators in the past month. As to policy, the Fed made no changes from its previously-stated intentions of keeping interest rates low.

Meanwhile, the Bureau of Labor Statistics released reports on employment and productivity. The rate of unemployment fell to 9.0 percent, and manufacturers added 5,000 net new jobs in October, yet there were only 80,000 new nonfarm payroll workers for the month. This suggests a continued slow pace for job growth. On the plus side, it was nice to see positive manufacturing numbers again after two months of declines. This growth was led by the durable goods sector, which also experienced significant increases in labor productivity for the third quarter. Manufacturing productivity jumped 5.4 percent (which was higher than the 3.1 percent growth experienced by all nonfarm businesses), with durable goods labor productivity rising 9.9 percent. These productivity gains mostly came from increased output in the sector, a sign that we are rebounding from recent weaknesses.

These numbers were supported by other indicators. The Dallas Federal Reserve Bank survey reported improvements in manufacturing activity, with the pace of new orders, employment and capital spending picking up. Likewise, the Institute for Supply Management's (ISM) latest report found that new orders stopped contracting and started expanding again. While the ISM Purchasing Managers Index noted several areas where growth had slowed, including production and export sales, the turnaround in new orders is hopefully a harbinger of future activity.

This week, we will receive new data on international trade, with export sales helping to drive much of the growth in manufacturing over the past couple of years. In addition, there will be new sentiment surveys from consumers and small businesses, two keys groups to follow for glimpses of stronger economic growth.

Chad Moutray
Chief Economist
National Association of Manufacturers

CHINA IMPORTS TO EQUAL EXPORTS OVER FIVE YEARS
Quick Manufacturing News
Imports are expected to reach $10 trillion. Click to continue

COOKING UP AN INJURY AND ILLNESS PREVENTION PROGRAM
Quick Manufacturing News
At the 2011 National Safety Council Congress and Expo, two risk management consultants discussed California's injury and illness prevention program and how safety professionals can prepare for a federal I2P2 program. Click to continue

EMPLOYEES AVOIDING ALTERNATIVE WORKPLACE ARRANGEMENTS
Quick Manufacturing News
Nearly half of the organizations surveyed said that 10% or less of their workforces regularly work remotely and just 3% of the companies surveyed report that more than half of their employees use alternative work strategies. Click to continue

PAYING FOR POTENTIAL PAYS OFF IN WICHITA FALLS
Quick Manufacturing News
A creative approach to incentive financing is helping the city rebuild its manufacturing base. Click to continue

HAS CONTINUOUS IMPROVEMENT MET ITS ROI MATCH?
Today in Manufacturing
Many manufacturers, particularly those who are achieving sub-par returns, have an idea that continuous improvement is simply a philosophy change, and not a capital investment ... continue

Mity-Lite receives 2011 Manufacturer of the Year Award

2011-11-07T09:04:00.000-08:00

Utah Pulse

The Utah Manufacturers Association, one of Utah’s longest running trade organizations, recognized Mity-Lite of Orem as the 2011 Manufacturer of the Year. The UMA made the announcement at its 106th Annual Awards and Installation Banquet, Saturday, Nov. 5, at Little America Hotel in Salt Lake City.

The banquet, attended by 700, serves as the most important event of the year for Utah’s 4,400 manufacturers, and Manufacturer of the Year is the most highly sought-after award for the industry in the state. Mity-Lite Durable Lightweight Furniture Systems was recognized for its outstanding contribution to Utah’s economy, exceptional operational performance, economic achievement, workplace safety, community and state involvement and commitment to the principles of America’s free enterprise system.

According to UMA President Thomas E. Bingham, Mity-Lite, founded in 1987 by Greg Wilson, found initial success by creating a lighter-weight ABS plastic table that became a staple for customers in hospitality, religious and public assembly settings. However, in 2008 the recession challenged Mity-Lite’s market leadership when customer demand dropped by almost 40 percent year-over-year in its busiest season. In response, Mity-Lite’s management team, led by CEO Randy Hales, established a plan to grow market share by introducing innovative products and streamlining operations.

“The results of that plan were amazing,” said Bingham. “In the throes of a recession, when many others were pulling back, Mity-Lite released five innovative new products within a year to expand its offerings. This bold move increased Mity-Lite’s revenue stream by 16 percent.”

Bingham said the outstanding company also used a team approach to improve operations. This effort reduced product lead times from 12 weeks during its busiest season to best-in-class lead times. Mighty-Lite also improved its factory schedule completion, shipping accuracy and on-time delivery, and increased labor productivity more than 100 percent. Because of the resulting cost savings in labor, employees have shared in the company’s success through increased wages and incentives.

Mity-Lite’s continued improvement in operations has enabled them to win bids away from competitors in Asia. The company’s ability to keep manufacturing jobs and vendors in Utah means Mity-Lite is directly contributing more than $10 million to Orem’s economy, an additional $9.7 million to other vendors in Utah and an additional $8.5 million to out-of-state vendors.

“We congratulate Mity-Lite and our 11 other finalists for their contributions to the economic wellbeing of the communities in which they serve and our state as a whole,” added Bingham. “They are excellent examples of manufacturing companies that build Utah’s economy and benefit its residents by creating useful products that make our lives better.”

Finalists for the Manufacturer of the Year included:

§ Barnes Aerospace, Ogden

§ Campbell Scientific, Inc., Logan

§ Futura Industries, Clearfield

§ Kaddas Enterprises, Salt Lake City

§ L3 Communications Systems-West, Salt Lake City

§ Ophir-Spiricon, LLC, North Logan

§ Petersen Incorporated, Ogden

§ Smead Manufacturing, Cedar City

§ Syracuse Casting, Tooele

§ USANA Health Services, Salt Lake City

§ Westinghouse Western Zirconium, Ogden

November 4, 2011

2011-11-04T21:14:00.001-07:00

106th ANNUAL UMA AWARDS AND INSTALLATION BANQUET THIS SATURDAY EVENING

The largest annual gathering of manufacturers in Utah will convene at the Little America Hotel Saturday night, November 5. In addition to honoring retiring UMA board members, the affair will feature announcement of new board and officers and the “2011 Manufacturer of the Year”. Governor Herbert will be in attendance and will address manufactures briefly after dinner.

Attendance is gearing up to be a capacity crowd. The Utah Products Boxes are all assembled and ready to be distributed to banquet attendees. This outstanding collection of Utah products has become a most anticipated tradition at the Annual UMA Awards and Installation Banquet.

MANUFACTURERS WANT A NEW TYPE OF WORKER
Today in Manufacturing
Who will create the training programs to teach workers the advanced skills, and where will the money come from ... continue

OSHA'S TOP 10 CITATION LIST HIGHLIGHTS FALL PROTECTION, HAZCOM VIOLATIONS
Quick Manufacturing News
For FY 2011, fall protection, scaffolding and hazcom topped the list. Click to continue

THE GLOBAL SKILLS GAP: THE BIGGEST, MOST OBSCURE RISK
Quick Manufacturing News
In 10 years, there could be at least 20 million vacant U.S. jobs unless the current education-to-employment system undergoes significant changes, predicts Anthony Carnevale of the Georgetown University Center on Education and the Workforce. Click to continue

November 2, 2011

2011-11-02T22:12:00.001-07:00

NEW STATE EFFORT TO BRING GREATER COLLABORATION IN RESEARCH, INNOVATION, AND COMPETITION

Utah Pulse
EPSCoR to drive targeted partnerships and increased research and development in Utah
full story

URQUHART LOOKS FOR HIGHER EDUCATION REFORMS
Utah Policy Newsletter
Utah’s colleges and universities are doing an overall good job, but tuition has become too expensive and not enough kids who start college finish with a degree, says state Sen. Steve Urquhart.
full story

November 1, 2011

2011-11-01T21:38:00.000-07:00

DEQ'S EMERGENCY RESPONSE EYES EFFICIENCIES

Utah DEQ Newsletter
The Division of Environmental Response and Remediation (DERR) is engaging in a fast-paced effort to scrutinize its response to emergencies by joining other Divisions and Offices within the Department of Environmental Quality (DEQ) to utilize "Lean Six Sigma" to better protect Utah's health and environment.

Over the past year Amanda Smith, executive director of DEQ, working with her management team, has used Lean improvement methods to assess Radiation Control, Air Quality and Finance to dramatically improve the quality, transparency, and speed of their processes.

"Lean government enables environmental agencies, like DEQ, to work more effectively and efficiently by eliminating waste in government processes," Smith said. "We expect to be more efficient in how we do business with the result of higher quality work and more responsive to our customers."

Throughout time DERR has made modifications to the way it notifies agencies and the public when such incidents like chemicals are released into the environment. But it may not be perfect.

"We can make it better," said Brent Everett, director of DERR. "We have an outstanding group of people who can bring valuable ideas to the table and create a plan that improves what we do."

Everett is part of the management team that met with business consultant Steve Avery to define the scope of the project. The team decided to focus on evaluating the current "Emergency Incident Notification Process" and its protocols that DERR has managed since the 1990s. Currently, upon notification of an incident involving chemical or other releases to the environment, DERR's duty officers compile a report to notify responding agencies, the first step in clean up and remediation.

"Coordination and communications is absolutely critical," said Brad Johnson, deputy director of DEQ. "Poor coordination and communication significantly hampers our ability to properly respond to an incident."

Last year's major crude oil spills—Chevron-related pipeline releases into Red Butte Creek and clandestine dumping into Strawberry River—have heightened the public's awareness of these incidents so the project team decided to take a hard look at ways to improve agency coordination and public notification.

"The Lean Six Sigma is a business improvement process that doesn't try to fix something that isn't broken but allows us to take it apart, examine it to see what we can do to make it better," said Avery, executive vice president of Business Process Improvement with Promontory Management Group.

For three days (Oct. 31-Nov. 2) the project team, which comprised of DEQ staff and industry representatives, engaged in a marathon session, called a "Kaizen" event - which means - "to take apart and make good." The team then will spend the next few months mapping out a plan to make improvements that will be implemented by March 1, 2012.

"It's an ambitious undertaking but that's what Lean Six Sigma is all about—streamlining the process to make it more efficient and effective," Avery said.

UTAH WORKPLACE FATALITIES FALL AGAIN IN 2010
Utah Labor Commission UOSH Safetyline
According to the Bureau of Labor Statistics the number of work‐related fatalities in Utah decreased in 2010 by six from 2009. In fact, the 42 fatalities in 2010 was the lowest total in a 19 year history. Highway accidents were the most frequent type of workplace fatality in 2010, accounting for seven deaths; down 14 from 2009.

Fatalities due to falls to a lower level rose to six from four in 2009 and made up 14percent of all fatalities. Work fatalities resulting from being struck by an object or equipment were responsible for five workers deaths in 2010.

Some characteristics about Utah fatalities include:
• Males accounted for 35 out of 42 fatalities at 83%. Female deaths increased from three in 2009 to seven in 2010.
• Workers 25‐54 years old ‐ the prime working age group accounted for 26 or 62% of the fatalities. The age group 24‐34 increased 50% from 2009 making up 33% of the accidents.
• The construction sector had the largest number of fatalities (seven). Falls accounted for three of those deaths. Local government followed with five.
• Transportation and material moving occupations had the highest number of workplace fatalities (11), with heavy and tractor‐ trailer truck drivers accounting for four of these deaths.
• Workers in construction and extraction occupations had the second highest fatality count at ten.
• Exposures to harmful substances increased from zero to four and fire and explosion deaths decreased from six to zero.

ECONOMISTS: CHINA NEEDS TO SLOW GROWTH GRADUALLY
Today in Manufacturing
China's high-flying economy is starting to lose altitude, but a nose-dive could hurt the world economy significantly, economists say ... continue

STOCKOUTS PREFERRED TO FAT INVENTORIES?
Quick Manufacturing News
Businesses' preference for leaner inventory structures delayed the start of this year's peak shipping season, reports BMO Capital Markets in its latest market report. The late-arriving peak matches industry forecasts that a pickup in rail business wouldn’t begin until September, instead of the usual August, as companies make do with leaner inventory. Click to continue

UNLOCKING THE FULL POTENTIAL OF SHARED SERVICES
Quick Manufacturing News
With shared services now shifting onto the plate of the CFO, it is receiving increased focus. But as many organizations are enjoying the initial benefits of shared services, many more have only scratched the surface of what is possible, according to a new report from Deloitte. Click to continue

WHITE HOUSE ORDERS REVIEW OF ENERGY LOANS
Quick Manufacturing News
Review based on failure of Solyndra that resulted in taxpayers stuck with $535 million loan. Click to continue

October 31, 2011

2011-10-31T21:30:00.000-07:00

October 31, 2011

Economy-watchers had many reasons for optimism last week. Global equities rose significantly after European leaders announced a new agreement for dealing with their debt crisis. Time will show whether or not this plan is enough to forestall a larger financial crisis. Implementation will be difficult, and debt-to-GDP ratios remain unbearably high for many of these nations. At least for now, markets have been encouraged by the overall agreement, despite the obvious challenges that lie ahead.

Meanwhile, the U.S. economy is showing signs of renewed strength. Real GDP grew 2.5 percent in the third quarter, which was in line with overall expectations and a significant improvement from the first half of the year. Personal spending, business investment and exports helped to lift these numbers, with consumption alone contributing 1.7 percent of the 2.5 percent growth in GDP. Durable goods spending rebounded from its tough second-quarter by contributing another 0.3 percentage points to the final number.

Consumers, though, are increasing their spending at a time when their incomes are not keeping up the same pace. Personal income rose just 0.1 percent in September, but personal spending grew by 0.6 percent. As a result, Americans have had to dip into their savings to make many of their purchases, with the U.S. savings rate falling to 3.6 percent. This could limit consumption growth in the months ahead unless income growth picks up.

It is notable that increased spending is taking place at a time when consumers remain so pessimistic. Two sentiment surveys last week focused on this: one from the Conference Board and another from the University of Michigan and Thomson Reuters. While they tended to move in opposite directions, both of them noted concerns about the larger economy relative to a few months ago. The Conference Board one fell to a level not seen since the recession, with pocketbook issues of income and employment being the primary drivers.

For manufacturers, several economic indicators observed a pickup in production activity. While the overall durable goods orders for September fell by 0.8 percent, this was largely due to volatility in the transportation sector. Outside of transportation, there was a relatively broad-based increase in new orders that signifies a rebound from the supply-chain and other challenges since the spring months. Likewise, the Kansas City Federal Reserve’s survey observed a modest pickup in manufacturing activity. East coast manufacturers, such as the ones who responded to the Richmond Fed’s survey, bucked this trend, observing continued contractions in new orders, shipments and employment. Yet, these same individuals paint a more optimistic assessment of the next six months – a positive sign.

This week, we will get an even better sense of whether that optimism is well-placed. Tomorrow, the Institute for Supply Management will release its latest Purchasing Managers Index, which should show some continued improvement in production activity, and the Federal Reserve will announce whether or not it will attempt new stimulative measures on Wednesday. We will also get new employment numbers from the Bureau of Labor Statistics on Friday. In addition, there will be new data on regional manufacturing from Chicago and Dallas, construction, factory orders and productivity. .

Chad Moutray
Chief Economist
National Association of Manufacturers

REPORT: FOOD INDUSTRY SELF-REGULATES ON SAFETY

Today in Manufacturing
Thousands of ingredients that go into food have been classified as safe by private industry alone, according to the Pew Health Group ... continue

A RECESSION IS A GREAT TIME TO LAUNCH A NEW PRODUCT
Today in Manufacturing
A recession has a funny way of showing people that some things are broken, and sends some looking for
solutions ... continue

ARE WE FREE TRADING AWAY OUR FUTURE?
Today in Manufacturing
We have slipped from being the number one exporting nation in the world to number three, and have been running trade deficits for many years ... continue

FEATURE STORY: CUSTOMIZED TRAINING KEEPS UTAH'S WORKFORCE UP TO SPEED WITH BUSINESS NEEDS, AIDS ECONOMIC GROWTH
EDCUtah
During fiscal year 2011 more than 16,000 employees from 1,173 Utah businesses received specialized workforce training through an increasingly popular program called "Custom Fit," which leverages state funds to encourage business expansion.

Such training has become an essential tool for Utah businesses to find and retain the talent they need to sustain their growth.

The Utah College of Applied Technology (UCAT) is the primary source of Custom Fit Training. It administers the program through eight UCAT campuses, Snow College and Utah State University Eastern formerly the College of Eastern Utah). Together, the 10 providers served 1,044 businesses during FY 2011, according to a UCAT report released this week. Salt Lake Community College (SLCC) also administers Custom Fit Training funds and reports that during FY 2011 it served 129 businesses with Custom Fit Training.

Investing in Workforce Development
Recognizing that workforce development is essential to maintain and grow Utah's economy, the state legislature created the visionary Custom Fit Training program 25 years ago. Today Custom Fit is a mainstay in helping Utah businesses remain relevant and competitive in the global marketplace. Further, because of the regional scope of the applied technology colleges and coverage by Snow College, USU Eastern and SLCC, businesses across the entire state have the opportunity to engage their workers in Custom Fit Training.

Melanie Hall, marketing manager for SLCC's School of Professional and Economic Development, and Shannon Strickland, manager of Custom Fit Training and Short Term Intensive Training at SLCC, call Custom Fit "Utah's best kept secret" because so many businesses are surprised when they learn that it is available. Truth be told, the secret is out. Custom Fit Training is so popular among Utah businesses there is never enough money in the program to meet the growing demand for training. In FY 2011 UCAT received a little more than $2.8 million in Custom Fit Training funds, which it divided among the eight applied technology colleges, Snow College and USU Eastern. The 10 schools then raised an additional $1.6 million in company contributions, for a total of $4.4 million expended on Custom Fit Training. (Salt Lake Community College also received Custom Fit Training funds, which it administered separately from the funds appropriated to UCAT.) Generally, a business seeking Custom Fit Training is expected to pay 40% to 50% of the cost, while the remainder is paid through the Custom Fit funds allocated to the schools.

Because of the increasing demand, UCAT President Robert Brems says he will petition the 2012 legislature to increase the amount of money it appropriates to the Custom Fit program. "The demand has been so high, many of our institutions have already committed their entire allotment of FY 2012 Custom Fit money and we are only about four months into the year," he explains. Demand is also skyrocketing for Custom Fit training through SLCC. Strickland says SLCC assisted 66 companies and over 800 students in the first quarter of this fiscal year.

Customized Training
Brems says the Custom Fit program is unique because the schools are able to customize the training they provide to meet the specific needs of the businesses they serve. Generally, the first step for the school is to complete a needs analysis, through which it identifies what training the business needs and how to coordinate the training effort.

"This is going to the employer and figuring out exactly what training the employer's workforce needs on a short term basis. Custom Fit is especially beneficial during the down economy, when funds are tight and training dollars might be allocated elsewhere by a business," he adds.

SLCC recently used Custom Fit Training to customize an existing electronics technician certification program in the School of Applied Technology to meet the workforce needs of L-3 Communications West. SLCC and L-3 are working together to create a "University of Manufacturing" that could one day turn into a standalone program offered by the school. SLCC has assisted many other Utah businesses with their workforce training needs as well.

Training in Action
In Ogden, Alanna Posell, trainer for Cornerstone Nutritional Labs, says Custom Fit training through the Ogden-Weber Applied Technology College enabled the company to broaden the type of training courses it is able to provide. "Using the Custom Fit program saves Cornerstone money, which allows us to provide more training to our employees," she says.

Meanwhile, the Dixie Applied Technology College in St. George was able to assist Blue Bunny Ice Cream with a Custom Fit program wherein 58 employees received a combined 1,063 hours of lean manufacturing training. Custom Fit funds paid for $28,759 of the training, while Blue Bunny paid $14,380.

In Tremonton, the Bridgerland Applied Technology College used Custom Fit funds to tailor the ATC's Fire and Rescue Services Program and train more than 40 Procter & Gamble employees in fire safety skills and incident command techniques. The employees received a combined 1,352 hours of training at a cost of $17,713. Procter & Gamble paid $6,640 for that training, while Custom Fit funds paid $11,073.

The requirements to qualify for Custom Fit Training are not stringent. Generally, the business must be a for-profit company and the workers to receive training must be employees of the company. Further, the business must be prepared to pay between 40%-50% of the training cost. The exact cost and requirements of the training program are usually negotiated between the school providing the training and the business.

EDCUtah President & CEO Jeff Edwards notes that Custom Fit training is not only important for keeping the state's workforce skills up to speed with the hiring needs of local businesses, but also for recruiting new businesses to the state. "Having higher education institutions that are nimble enough to quickly customize training for the needs of incoming businesses is a major factor in our business recruitment success," he explains.

MEET OCCUPY WALL STREET'S ANARCHIST-IN-CHIEF
Bloomberrg/Business Week
Occupy Wall Street's s anarchic philosophy opposes hierarchical leadership, but David Graeber is arguably the chief the group claims not to have. Graeber, a former Yale professor, specializes in facilitating "general assemblies" -- essentially management meetings at which thousands of protesters seek a consensus on their goals and strategies. "If you’re really dedicated to this stuff, things can happen very quickly," Graeber says. Bloomberg Businessweek

CONSUMER SPENDING JUMPS IN SEPTEMBER
Today in Manufacturing
Americans spent in September at three times the pace of the previous month, even though their incomes barely budged ... continue

EQUIPMENT FINANCING MAINTAINS GROWTH
Quick Manufacturing News
Overall new business volume for the equipment finance sector in September was $7.1 billion, up 25% from volume of $5.7 billion in the same period in 2010, according to the Equipment Leasing and Finance Association. Click to continue

STUDY: JAPAN RADIATION HIGHER THAN ESTIMATED
Today in Manufacturing
Fukushima nuclear disaster released twice as much of a radioactive substance into the atmosphere as Japanese authorities estimated ... continue

STRONG PACE FOR UTAH JOBS
Utah Business
Utah’s current job creation pace ranks among the nation’s most impressive, according to the Autumn 2011 issue of Zions Bank’s Insight—Economic News of Utah and the Nation. The Utah economy added nearly 35,000 net additional jobs during the most recent 12-month period, a growth pace of 2.9 percent.
View Full Article

THIRD QUARTER HOME SALES AT HIGH
Utah Business
Sales of previously-owned single-family homes in Salt Lake County in the third quarter reached its highest point in four years, according to the Salt Lake Board of REALTORS. The number of single-family homes sold in Salt Lake County in the July-August-September period totaled 2,603 sales, the highest number of homes sold in a third quarter since 2007, when 2,693 homes were sold. The most recent quarter showed a 33 percent increase in home sales compared to 1,953 sales in last year’s third quarter.
View Full Article

INDUSTRIAL MARKET FLATTENING, OFFICE VACANCY DECREASING
Utah Business
New reports from Commerce Real Estate Solutions confirm some of the reasons why Utah has fared better than the rest of the nation in the last year. Many indicators within the four real estate sectors—office, industrial, retail and investment—are positive signs the recovery is strengthening in the Greater Salt Lake Area. Over the past year, Utah has added over 30,000 jobs or approximately a 2.
View Full Article

MANAGING SAFETY: THREE STEPS TO BUILD CHARACTER IN SAFETY
Quick Manufacturing News
You can measure safety character by observing how people make decisions. Every decision to take unnecessary risk is preceded by a series of ill-advised choices. Click to continue

NAM’S LAW SUIT AGAINST NLRB
The NAM’s law suit challenging the National Labor Relations Board’s employee-rights posting requirement continues to gain momentum. This month, the NLRB agreed to postpone the effective date of the regulation by 2½ months to January 31, 2012. This will give the judge additional time to consider the merits of our suit and prevent unnecessary compliance expenses and concerns. Since our suit was filed, seven other organizations have joined or filed similar suits.

TAXATION AND THE COURTS
Manufacturers in the Court - NAM
NAM supports eligibility of supplies for R&D tax credit. A federal tax court judge has thrown a monkey wrench into determining what costs may be included as "qualified research expenses" eligible for the research and development (R&D) tax credit when companies undertake manufacturing process improvements. His 2009 decision is now on appeal to the Second Circuit, and the NAM filed an amicus brief underscoring why supply costs are legitimate research expenses for process improvements. Whether such supplies wind up as salable products is not relevant to their eligibility for tax-favored treatment, as they are critical to the process and denying them would discourage experimentation and encourage economic waste. Union Carbide Corp. v. Commissioner (2d Cir.).

NAM OPPOSES PROPOSED OSHA RULE FOR INJURIES, AMPUTATIONS.
The Hill
"Trade groups are urging the Occupational Safety and Health Administration (OSHA) to abandon a proposed regulation that would require employers to report workplace injuries within eight hours and amputations within 24." It "would require employers "to report to OSHA, within eight hours, all work-related fatalities and all work-related in-patient hospitalizations; and within 24 hours, all work-related amputations," and would update which employers were exempt from this requirement," OSHA said in its proposal. The "National Association of Manufacturers and other employer associations say the requirement would be a nuisance and a job-killer."

October 27, 2011

2011-10-27T19:59:00.000-07:00

ECONOMY GREW 2.5 PCT. IN Q3 AS CONSUMERS REBOUND

Today in Manufacturing
While 2.5 percent growth might be enough to ease recession fears among economists, it's far below what's needed to lower painfully high unemployment ... continue

FEATURE: GENERATION Y
Today in Manufacturing
The opportunities that digital technologies provide are forcing businesses and marketers to rethink strategies for successful product development and manufacturing ... continue

CLAIMS FOR UNEMPLOYMENT AID DIP BUT REMAIN HIGH
Today in Manufacturing
Despite the recent declines, applications are stuck above 400,000, where they have been for all but two weeks since March ... continue

U.S. MANUFACTURERS SEE SALES GROWTH AHEAD, BUT UNCERTAIN ABOUT ECONOMY
Quick Manufacturing News
PwC survey shows 75% expect their companies to grow over the next year. Click to continue

CONSUMERS READY TO SPEND ON TECH
Quick Manufacturing News
Consumer confidence in technology reached its highest level of the year in October, according to the latest data release from the Consumer Electronics Association. Click to continue

CRUDE OIL DROPS MORE THAN THREE PERCENT ON LARGER-THAN-EXPECTED SUPPLY GAINS
Bloomberg News
According to the Bloomberg News crude oil prices "dropped the most in more than three weeks after a government report showed a larger-than- projected gain in US stockpiles and amid concern that European debt-crisis talks are stalling." Crude oil for December delivery lost $2.97, or 3.2 percent, to settle at $90.20 a barrel on the New York Mercantile Exchange, the contract's biggest drop since Sept. 30. Futures fell after the Energy Information Administration said that crude inventories rose by 4.74 million barrels to 337.6 million last week, which is "more than triple the gain estimated by analysts surveyed by Bloomberg News."

SEPTEMBER DURABLE GOODS ORDER ROSE IN US
Bloomberg News
"Orders for US durable goods other than transportation gear rose in September by the most in six months, indicating manufacturing will help sustain an economy hobbled by 9.1 percent unemployment. Demand for goods meant to last at least three years, excluding airplanes and automobiles, climbed 1.7 percent, according to figures from the Commerce Department."

MANUFACTURERS URGE HOUSE TO REPEAL WITHHOLDING TAX
National Association of Manufacturers
Senior Vice President for Policy and Government Relations Aric Newhouse issued a statement in support of passage of HR 674, legislation to repeal the provision that requires federal, state and local government agencies to withhold three percent of their payments to businesses for goods and services. "The House has the opportunity to halt the ill-advised 3 percent withholding requirement that threatens jobs, competitiveness and investment for manufacturers. By essentially forcing companies to make an interest-free loan to the government, this requirement would increase the cost of doing business for thousands of manufacturers, leading to the loss of much-needed cash flow for business operations and job creation at a time when it is important to put Americans back to work."

Newhouse said, "Permanent repeal of this provision will begin to restore confidence and certainty for manufacturers, which is critical for economic growth, job creation, and the ability to compete in the global marketplace. We urge all members of the House to vote to defend jobs and pass this bill. It's critical to all manufacturers that we lift the tax burden from job creators so that they may invest in themselves and continue to lead the American economy."

MANUFACTURERS ENCOURAGED BY HOUSE TAX WRITERS' PLAN TO REFORM INTERNATIONAL TAX SYSTEM
National Association of Manufacturers
Vice President for Tax and Domestic Economic Policy Dorothy Coleman issued a statement in response to House Ways and Means Committee Chairman Dave Camp's (R-MI) release of a draft proposal to set up a territorial tax system. "The NAM has long called for tax reform that moves America to a territorial tax system like those used by other industrialized countries. Reducing taxation on the foreign income of US-based businesses is a building block of the NAM blueprint for creating a dynamic environment that supports job creation and economic growth here in America."

Coleman said, "We look forward to reviewing the proposal with our members and providing input to the committee on a proposal that will allow worldwide American companies to be more competitive. If US companies cannot compete abroad, where 95 percent of the world's consumers are located, the US economy will suffer from the loss of both foreign markets and domestic jobs that support foreign operations."

October 26, 2011

2011-10-26T21:16:00.000-07:00

ECONOMIC OPTIMISM IN UTAH OUTPERFORMS THE NATIONAL AVERAGE

Utah Business
In October, on a seasonally adjusted basis, the Zions Bank Utah Consumer Attitude Index (CAI) decreased to 68.1, a decrease of 2.5 points compared to September 2011.

View Full Article

DEFENSE, AEROSPACE INDUSTRIES: US WILL LOSE ONE MILLION JOBS IF AUTOMATIC CUTS ARE ENACTED
Bloomberg News
"The defense and aerospace industries are warning that the US will lose 1 million jobs and $59.4 billion in wages and salaries tied to...their businesses if Congress' supercommittee fails and automatic cuts are imposed." According to the article, this report from the Aerospace Industries Association will be the basis for its lobbying campaign. This "analysis lumped together the impact of the $450 billion in cuts already planned plus the additional $500 billion that may be imposed. The report didn't break out the incremental impact of the two elements, according to a summary of the findings."

U.S. GOODS ORDERS DROP
Quick Manufacturing News
However, excluding the aeronautics-dominated transportation sector, new orders rose 1.7% in the month. Click to continue

RETAIL TRAFFIC STILL SLOW, BUT SHOULD PICK UP SOMEWHAT THIS MONTH
Quick Manufacturing News
Import cargo volume at the nation's major retail container ports is expected to increase 2.6% in October over the same month last year and should reach its highest level of the year as retailers stock up for the holiday season. Click to continue

U.S. STEEL PRODUCERS BRACE FOR TOUGH YEAR AHEAD AS RAW MATERIALS PRICES, CAPACITY INCREASE
Quick Manufacturing News
Companies report improved results in the third quarter but expect higher costs and lower margins. Click to continue

HOW AMERICA CAN FIGHT BACK AGAINST LOW-COST LABOR IN CHINA
Quick Manufacturing News
The Harada Method promises to create workers who are masters of their positions and champions of continuous improvement -- at little to no cost. Click to continue

CHIEF HOUSE TAX WRITER UNVEILS TERRITORIAL TAX SYSTEM: UPDATE AND ACTION ITEM
Dorothy Coleman, NAM
As part of the House Ways and Means Committee's overall effort on tax reform, Chairman Dave Camp (R-MI) today released a draft, revenue-neutral proposal that would reform the international tax system by moving from a worldwide to a territorial tax system. In particular, the proposal would:

• Generally exempt 95 percent of foreign-source income from U.S. tax, lowering the effective U.S. tax rate on most foreign dividends to 1.25% ;

• Include anti-deferral rules ("subpart F") to immediately and fully tax domestic companies on the passive income of foreign companies;

• Include "thin capitalization" rules to prevent U.S. companies from borrowing heavily in the United States to finance income from overseas operations and

• Limit income shifting to prevent U.S. companies from avoiding U.S. tax by transferring highly valuable intangible property to foreign companies that pay little or no tax; and

• Continue to provide foreign tax credits to mitigate double taxation of non-exempt foreign income – such as passive income and royalties.

Under transition rules in the proposal, pre-effective date, tax-deferred foreign earnings of would be taxed once at a low tax rate (similar to a repatriation holiday). U.S. companies could pay this tax over eight years, and these earnings could then be brought back to the United States under the exemption system.

In a press release, Chairman Camp said that today's draft was part of the Committee's broader effort on comprehensive tax reform that would lower the top tax rates for individuals and companies to 25 percent. Rep. Camp also said that the Committee will unveil base-broadening measures to replace the revenue from reducing the corporate tax rate at a later date.

Committee Resources:

Please click here for additional information about the proposal, including a copy of the discussion draft, a section by section analysis, and a summary of the proposal.

October 25, 2011

2011-10-25T21:23:00.000-07:00

ECONOMIST RAISES QUESTIONS OVER EPA REGULATIONS.

Manufacturing Economy Daily (NAM Briefing)
In a posting for the "Congress Blog" in The Hill (10/24), Margo Thorning, senior vice president and chief economist of the American Council for Capital Formation, said the EPA "faced scrutiny on Capitol Hill again this week over the high costs of its record number of environmental regulations. During a hearing of the House Oversight and Government Reform Subcommittee, the agency's air chief denied consequences of the Clean Air Act on jobs and the economy and argued that her agency's rules relating to automobiles and fuel economy actually creates jobs and support small businesses." Thorning said that there is no dispute on the issue of reasonable pollution and environmental rules for improving clean air quality but in a situation of sustained weakness of the US economy and high unemployment rate, "a careful examination of actual economic and health benefits from these regulations are greater than the costs."

In another posting for the "Congress Blog" for the The Hill (10/24), Bernard L. Weinstein, Associate Director Of The Maguire Energy Institute And An Adjunct Professor Of Business Economics In the Cox School Of Business At Southern Methodist University, wrote that the EPA "has proposed two new air quality rules that pose substantial threats to both employment and the competitiveness of US manufacturers." He wrote that the Utility Maximum Achievable Control Technology Rule "would be the most expensive direct rule in EPA history," which the EPA itself expects would result in costs of $11 billion a year on the US economy. Weinstein said that with unemployment remaining stagnant at more than nine percent, the best bet for the US lies in expanding its industrial sector, "with its strong export orientation."

THERE'S MORE TO LEAN THAN TEXTBOOK RECIPES
Today in Manufacturing
Two very important elements of successful execution of the Lean methodology are often overlooked and left out of most Lean training ... continue

INDIA LOOKS TO FACTORIES TO CREATE 100 MILLION JOBS
Quick Manufacturing News
With its new National Manufacturing Policy, the government hopes to cut the regulatory burden around companies, create 'manufacturing zones' on unused infertile land and promote 'green' technologies. Click to continue

WHAT TO DO WHEN OSHA VISITS
Quick Manufacturing News
Maintaining a good OSHA record is more important than ever, as OSHA citations can be as much as $70,000 for a single repeat or willful violation. Click to continue

LAWYERS V. SMALL BUSINESSES
FLAG Communications
What is the top concern for small-business owners? According to a recent Gallup poll, “complying with government regulations” topped the list, ahead of consumer confidence, lack of demand and lack of available credit, among others.

One group, however, stands to benefit as businesses try to get a handle on all the regulations they have to deal with: lawyers. As the Wall Street Journal Law Blog highlights in “Regulation: The Legal Economy’s Best Friend?”:

Legal chieftains at U.S. companies say the long reach of state and federal regulators, even more than the still struggling economy, will be the top factor that draws businesses into court battles in the next year.

“Stricter regulation” will be the number one driver of increased litigation according to general counsels and other corporate law officials surveyed by Fulbright & Jaworski.

In the report released Tuesday, 30% of respondents pointed to regulation for why they expect the number of legal disputes to increase, topping the 26% who said “company growth” would cause lawsuits and 21% that pointed to the “poor economy.”

The survey noted above is available here.

REPEAL PRE-EMPLOYMENT INQUIRY GUIDE?
Employers Council
Interestingly, the Utah Labor Commission, Antidiscrimination and Labor Division, is proposing
repeal of Rule R606-2, "Pre-Employment Inquiry Guide." The rule contains legal guidelines for both discriminatory and nondiscriminatory pre-employment inquiries. Repeal is being proposed because the rule merely restates principles derived from state and federal case law and other sources; is intended to be informational rather than directive; and the subject matter is more properly disseminated through educational materials rather than by rule.

The rule's date of enactment or last substantive amendment was 1994. The repeal will likely be effective on November 21st.

October 24, 2011

2011-10-24T20:18:00.000-07:00

October 24, 2011

While challenges persist, much of the economic news last week was hopeful. The Federal Reserve Board's Beige Book, which was released last Wednesday, cited improving conditions for manufacturers across various regions, with some exceptions for specific sectors. Nonetheless, it went on to say that "many Districts described the pace of growth as `modest' or `slight' and contacts generally noted weaker or less certain outlooks for business conditions." Given that recent statements from the Fed have focused on the weaker-than-expected economic conditions, it is nice to be able to discuss growth for a change.

Other data seemed to back this up. The Conference Board's Index of Leading Indicators rose for the fifth straight month, and manufacturing production rose 0.4 percent in September. Third-quarter industrial production in the sector was impressive, with much of this growth in the durable goods sector, especially for motor vehicles, aerospace, machinery and electronics. As a sign of this growth, overall capacity utilization is nearly 15 percent higher today than it was in June 2009, which was the official end of the recession. Sentiment surveys have begun to show a changed psyche, as well. The closely-watched Philadelphia Federal Reserve Bank's manufacturing survey shifted from a decidedly downbeat contraction in activity in August and September to modest growth in October. Likewise, the respondents to this survey remain (cautiously) optimistic for the next six months.

Even among persistent worries, there are glimmers of potential optimism. In New York, the Empire State Manufacturing Survey showed that its businesses remain anxious about current conditions, with its general business index showing contracting activity overall. Yet the respondents to this survey indicated higher levels of new orders, shipments and employment – an encouraging sign that these numbers might turn around in coming months. Likewise, the housing sector continues to be a drag on economic activity, with falling existing home sales and still-depressed measures overall. Nonetheless, housing starts jumped significantly from 572,000 in August to 658,000 new homes in September (at annual rates), largely on an uptick in multi-family construction.

Pricing pressures, which have been a problem for manufacturers for much of the past year, refuse to go away. Both the Consumer Price Index and the Producer Price Index rose in September, largely on higher energy and food costs. Manufacturing costs have risen almost 9 percent year-over-year, and while some "easing" has taken place in recent months, these prices remain highly elevated. Core inflation, which excludes food and energy prices, currently stands at 2.5 percent. This has been slowly rising since the beginning of 2011, yet it remains modest overall.

This week, we will receive the advanced estimate on third-quarter growth in the economy. Real GDP is expected to have grown around 2 percent--an improvement over the 0.4 percent and 1.3 percent growth rates from the first two quarters of the year, but still sluggish. Higher industrial production numbers should provide a positive contribution to this number. In addition, we will learn about manufacturing activity in Kansas City and Richmond, and new numbers for personal income and consumer confidence will be released. In short, the economy will once again be a major focus this week.

Chad Moutray
Chief Economist
National Association of Manufacturers

OCCUPATIONAL INJURIES, ILLNESSES DECLINE OVERALL IN 2010 BUT INCREASE IN MANUFACTURING SECTOR

Quick Manufacturing News
While Secretary of Labor Hilda Solis said she was 'encouraged' by the decline of nonfatal occupational injuries and illnesses reported in 2010, she stressed that the 3.1 million recorded cases remains too high, particularly as reflected in the health care and social assistance industries. The manufacturing sector was the only industry to record an increase in injury and illness rates in 2010. Click to continue

RE: WHAT'S THE ROLE OF TECHNOLOGY IN CONTINUOUS IMPROVEMENT?
Industry Week Forum – Quick Manufacturing News
"Yes, Continuous Improvement does not involve expensive technology, but it does involve cheap technology..." Click to continue

REBATE PROGRAM FOR SOLAR & WIND ENERGY SYSTEMS EXPANDED
Utah Business
In the first 55 days since the Utah Office of Energy Development (OED) launched the Utah Renewable Energy Rebate Program (URER) on Aug. 22 more than $830,000 have been allocated, leveraging $4.6 million dollars of economic activity through 139 projects in communities from Logan to St.

View Full Article

UMA PRESIDENT MEETS TODAY TO PRESENT OPTIMIZING AND STREAMLINING COUNCIL REPORT TO GOVERNOR HERBERT
This evening the Optimizing and Streamlining Commission will meet with Governor Herbert to officially present the results of the five-month study and review.

On March 22, 2011, Governor Gary R. Herbert signed into law House Bill 280, State Agency Realignment (Harper) and established the Advisory Council on Optimizing and Streamlining State Government. The Council consisted of nineteen stake holders, legislators, and business community members. Its task was to consider ways to reduce administrative costs, incorporate best business models, and streamline services to improve the efficiency and reduce the cost of state government. This report contains 25 recommendations and observations the Council considers to be of the highest potential impact.

Members of the Council include:

Val Oveson, Chair

Tom Bingham, Co-Chair

Jenny Wilson, Co-Chair

David Hart, Co-Chair

Rep. Patrice Arent

Brad Bertoch

Kristen Cox

Brent Gardner

Clark Harms

Randy Harmsen

Rep. Wayne Harper

Carlos Linares

Tammie Lucero

Michelle McOmber

Taylor Oldroyd

Randy Parker

Tyler Ploeger, CPA

Sen. Stuart Reid

Lincoln Shurtz

The report and its 26 key recommendations were presented to the Government Operations Interim Committee of the Legislature last week with Tom Bingham and Jenny Wilson presenting.

Bingham told the Legislative committee that “This is just the beginning of what is a very worthwhile effort to make State Government more efficient.” He suggested that “There is much more that can be done to further this effort through the implementation of continuous improvement principles, like that being done by Workforce Services, DEQ and the Labor Commission, if the legislature and the Governor’s office focuses on these and other recommendations with the various State agencies.”

OBAMA SIGNS 3 TRADE DEALS, BIGGEST SINCE NAFTA
Today in Manufacturing
The deals with South Korea, Colombia, and Panama could be worth billions to American exporters ... continue

FEATURE: EDUCATING TOMORROW'S SUPPLY CHAIN LEADERS
Today in Manufacturing
There is a surge of interest among college students in what used to not even be a curriculum offering at many institutions -- supply chain management ... continue

SURVEY: ECONOMISTS MORE BLEAK ABOUT ECONOMY
Today in Manufacturing
Nearly 85 percent of economic experts surveyed expect the economy to grow at a meager 2 percent or less over the next 12 months ... continue

MANUFACTURING BECOMING YOUNGER, MORE SKILLED
St. Cloud Times
According to the St. Cloud Times, "Manufacturers face an aging workforce, the trades increasingly require higher education and many young people also have relatively weak interest in manufacturing jobs." Also, manufacturing "battles a reputation for low-paying work involving dull and repetitive tasks. Altering that image could be the main hurdle to US companies competing in the world market." The Times noted, "According to the National Association of Manufacturers, average compensation for a manufacturing job in Minnesota in 2009 was above the state's average for nonfarm work."

CANADA'S OIL SANDS AT HEART OF KEYSTONE DEBATE
Omaha-World Herald
"Critics say the environmental costs of stripping away the fragile forestlands and the extensive processing needed to turn oil sands into bitumen ... are too high," new technologies are being developed that could reduce the environmental impact of oil sands extraction. "At the end of the day, oil and gas will be a big part of our energy future. At least in our lifetimes," said Travis Davies of the Canadian Association of Petroleum Producers, who defended the need to bring Canada's oil sands to the US via the pipeline.

JAPAN EXPORTS RISE FOR SECOND MONTH
Today in Manufacturing
Exports rose for second straight month, showing recovery is underway from the tsunami disaster even as manufacturers face a strong yen and weak global economy ... continue

FEATURE: GETTING TECHNICAL
Today in Manufacturing
As product lines continue to expand, companies are working hard to train their workforce to be able to provide increasingly technical know-how ... continue

October 21, 2011

2011-10-22T21:55:00.000-07:00

CAN WE HANDLE THE TRUTH?

Posted: 20 Oct 2011 03:05 PM PDT

Lt. Governor Greg Bell’s Blog

“The single biggest threat to our national security is our debt.” -Admiral Michael E. Mullin, Chairman, U. S. Joint Chiefs of Staff.¹

As I’ve spoken to a few groups lately, I’ve emphasized the threat to our liberty and security the budget deficit poses, and that balancing the federal budget will require Americans to sacrifice. People invariably nod their heads in agreement. One group was particularly exercised about the federal government not controlling the budget. I suggested to them that the main problem is the unsustainable growth of the entitlement programs Social Security (SS), Medicare and Medicaid. I asked them if they were willing to take a cut in their benefit. Their vehement response was, NO!

So are Americans truly ready to balance the federal budget? Late last year, the Simpson-Bowles Commission² released its recommendations to get the budget under control. Sen. Alan Simpson, speaking in Salt Lake City this summer, said the Commission was quickly dubbed the “Cat Food Commission” for recommending modest changes to future, not current SS benefits, such as increasing the retirement age to 67 in 2037, 68 in 2050± and 69 in 2075±. Those affected by the 2075 change are now five years old and younger. This will hardly require that beneficiaries resort to eating cat food.

2011 is the first time ever that SS will pay out more than it took in.³ Left unchanged, SS will go bust. Anyone who reads a newspaper must be aware of this indisputable reality. The good news is that the Simpson-Bowles Commission said SS can be saved—with fairly minor changes and without affecting current payees. The bad news is that it’s not politically possible to even discuss the problem. Just ask the “Cat Food Commission”.

When faced with cancer, we expect the doctor to level with us about our chances of survival and the risks of treatment. We don’t want our accountants to hide the real numbers from us, or our mechanics to tell us our brake pads are just fine when they aren’t. We demand the facts so we can make informed decisions. Oddly, however, we won’t let our elected officials speak the truth. We want it sugar-coated, to postpone judgment day, to procrastinate the reckoning. Apparently, we want politicians who will enable our fantasy.

Living in denial is one thing; it’s quite another to acknowledge a major problem but refuse to address it. The debt ceiling stand-off this summer brought to the fore the balanced budget amendment to the Constitution. A recent poll showed a whopping 72% of Americans favor the amendment. However, that support sinks to 31% if the amendment would require, “…major spending cuts to entitlement programs like Medicare and Social Security.” It’s frightening that less than a third of our countrymen are willing to make personal sacrifices to rescue this nation from grave financial peril.

We must admit the truth…and the consequences of the truth. Let us agree not to disqualify politicians for telling us the truth. Let’s judge the candidates by how candidly they describe our challenges and by the realistic solutions they propose. Then we’ll have solid reasons to vote for or against them…because we’ll come much closer to knowing what they really think and what they’ll really try to do. I’d sure love to know that before I vote.

REPORT: FOOD LABELS NEED ENERGY STAR-LIKE RATINGS
Today in Manufacturing
The Institute of Medicine says a rating symbol on the front of every product could help hurried shoppers go home with the healthiest foods ... continue

AP-GFK POLL: PUBLIC DOWN ON ECONOMY
Today in Manufacturing
In a new high, 43 percent describe the nation's economy as "very poor" despite also saying the economy has recently improved ... continue

EPA TO REGULATE FRACKING WASTEWATER DISPOSAL
Today in Manufacturing
Regulators will develop national standards for the disposal of polluted wastewaters generated by a drilling technique known as hydraulic fracturing ... continue

STUDY: THREE MILLION JOBS COULD RETURN TO THE U.S. FROM CHINA
Quick Manufacturing News
But Mexico could prove to be a lower-cost alternative to the United States as a production center. Click to continue

SAFETY CULTURE CHANGE REDUCES LOST-TIME ACCIDENTS BY 50 PERCENT
BIC News
Beyond the all-important goal of protecting people, first-class safety performance is a clear indication of good, reliable processes within a company. Studies prove safe operations produce better quality and enable.....

Author: BIC Magazine bicnews@bicalliance.com

TALK OF MERCURY BAN CONCERNS SCIENTISTS
Today in Manufacturing
Scientists say that despite being toxic, the chemical is still heavily used in medicinal vaccines and its ban would be dangerous to public health ... continue

October 20, 2011

2011-10-22T21:53:00.000-07:00

CALIF. POISED TO FINALIZE 'CAP-AND-TRADE' PLAN

Today in Manufacturing
Starting in 2013, the plan places emissions allowances on power plants and other of the worst polluting facilities ... continue

UNEMPLOYMENT APPLICATIONS DIP, BUT STILL ELEVATED
Today in Manufacturing
Weekly applications dropped by 6,000 to a seasonally adjusted 403,000, but need to fall consistently below 375,000 to signal sustainable job growth ... continue

CHINA RARE EARTHS SUPPLIER SUSPENDS PRODUCTION
Today in Manufacturing
China's biggest producer of rare earths is suspending production for one month in hopes of boosting slumping prices of the exotic minerals ... continue

MANUFACTURING TAKES CENTER STAGE IN PRESIDENTIAL CAMPAIGN AS REPUBLICAN CANDIDATES GATHER AT NAM FORUM
Candidates Meet in Iowa to Discuss Issues Critical to Manufacturing and Job Creation

National Association of Manufacturers

The National Association of Manufacturers (NAM) and its Board Chair Mary Andringa will host a forum for the Republican presidential candidates on November 1, 2011, at the Vermeer Corporation headquarters in Pella, Iowa. To date, the candidates participating in the forum, moderated by Iowa Gov. Terry Branstad and PBS Nightly Business Report Co-Anchor and Managing Editor Tom Hudson, are Rep. Michele Bachmann (R-MN), former House Speaker Newt Gingrich (R-GA), Rep. Ron Paul (R-TX), Texas Gov. Rick Perry (R-TX) and former Sen. Rick Santorum (R-PA). The forum will begin at 10:00 a.m. CDT and end at 11:30 a.m. CDT.

“Manufacturing will continue to play a critical role in our economic recovery, and every candidate for this office recognizes the importance of job creation, so they need to hear directly from manufacturers,” said Vermeer Corporation President and CEO Mary Andringa, who also serves as chair of the NAM Board. “The issues important to manufacturers and their employees in Iowa and throughout the nation will play a central role in the 2012 presidential election. We are thrilled that these candidates seeking our nation’s highest office are joining us for a discussion on the challenges manufacturers face each day.”

“The policies coming from Washington impact manufacturers on a daily basis and underscore our need for pro-growth policies to boost our economy and create jobs,” said NAM President and CEO Jay Timmons. “We are very pleased that Rep. Bachmann, former Speaker Gingrich, Rep. Paul, Gov. Perry and former Sen. Santorum will be joining manufacturers at the forum to discuss the issues that impact their businesses and how to move forward to a stronger, more vibrant future.”

Iowa Public Television will broadcast the forum, making it available for national broadcast and online streaming.

The NAM has laid out a comprehensive blueprint to keep manufacturing in the United States competitive, entitled A Manufacturing Renaissance: Four Goals for Economic Growth. The policies laid out in this new roadmap will be the basis for the discussion at the forum.

WORLD'S LARGEST PRODUCER OF RARE EARTHS HALTS OUTPUT AS PRICES FALL
Quick Manufacturing News
The move marks the second time in as many months that Baotou has sought to boost rare earth prices. Click to continue

BOOSTING PRODUCTIVITY: TECHNOLOGY OR STRATEGIC HIRING?
Quick Manufacturing News
Companies are finding that attracting and retaining the types of employees with the critical skills necessary to boost productivity remains a challenge. Click to continue

FOOD INDUSTRY REPORTS BENEFITS OF TRACK-AND-TRACE TECHNOLOGY
Quick Manufacturing News
On the two-year anniversary of the Initiative's launch, GS1 US says the industry has now passed the halfway mark on the way to a 75% voluntary adoption of GS1 standards by 2015. Click to continue

SURVIVAL STRATEGIES FOR THE 'NEXT GENERATION OF MANUFACTURING'
Quick Manufacturing News
Process improvement, talent management, customer-focused innovation and global engagement will be among the keys to competitiveness, study concludes. Click to continue

FED: REGIONAL BANKS SAW GROWTH IN MANUFACTURING
Today in Manufacturing
The Federal Reserve's 12 regional bank districts all grew in September and early October, helped by strength in car sales and manufacturing ... continue

FEATURE: BRINGING TABLET 'MAGIC' TO MANUFACTURING
Today in Manufacturing
Tablets are small enough to be mobile, powerful enough to chew through ever-increasing amounts of data, and are making big strides in manufacturing ... continue

FOCUS: NAM HOSTS INAUGURAL ECONOMIC FORUM ON THE OUTLOOK FOR MANUFACTURING
NAM Capital Briefing
Amid renewed reports of the fragile state of the economy and dismal job numbers, the NAM hosted the first-ever Economic Forum in Washington, D.C., on Thursday, October 19. The event brought together a diverse group of 40 economic leaders to discuss the outlook for the manufacturing industry and how companies can adapt to changing market conditions.

NAM President and CEO Jay Timmons introduced the day’s events. “Our mission is to build and sustain a strong manufacturing sector in this country,” said Timmons. “To achieve our goals, we push for policies that will allow manufacturers to invest in their businesses, reach new markets abroad and create jobs.”

NAM Chief Economist Chad Moutray moderated a panel entitled, “Economic Outlook for Manufacturers in 2012.” Joining Moutray was Owens Corning Chief Economist Emil Berendt; National Electrical Manufacturers Association Director of Economics Timothy Gill; and Manufacturers Alliance/MAPI Chief Economist Dan Meckstroth. The panelists’ concerns largely focused on the chance that a stagnant housing market, political gridlock in Washington and economic instability in Europe could push the United States back into a recession.

Economic weaknesses continue to hamper job creation, with the level of hiring nearly unchanged for the last two years.

Keynote speaker Mark Doms, chief economist at the U.S. Department of Commerce, discussed the Administration’s perspective on key economic issues and the manufacturing sector. He echoed the concerns of the earlier panelists and warned that our economic future is tied with that of Europe. “Europe…is the greatest risk we face,” said Doms.

But it wasn’t all negative. “Manufacturing became more productive and efficient during the recovery,” said Doms, who believes this trend and optimism will continue. One recurring theme throughout the discussions was that manufacturing has and will continue to lead the economic recovery.

Doms also addressed the housing issue. On Thursday, October 13, the Census Bureau reported that housing starts rose significantly, from 572,000 in August to 658,000 in September. The bulk of this gain came from multi-family unit starts, which rose from 154,000 to 233,000 for the month. Completions rose 2.1 percent for the month to 647,000 homes.

These numbers provide a welcome respite in a sector that has struggled mightily over the past few years. Housing starts have been unable to consistently break and maintain the psychological barrier of 600,000 homes, so this strong movement is positive for the homebuilding outlook and the overall economy.

Other panels focused on the manufacturing opportunities created by trade; adapting to economic challenges such as supply disruptions and debt downgrades; and managing the impacts of taxes and regulation.

With manufacturing playing such an important role in economic growth, the NAM Economic Forum provided a platform for senior-level economists at member companies and associations to discuss issues that are pertinent to manufacturers.

In his closing remarks, Moutray noted that the day’s events were “a good start” to an ongoing dialogue with the manufacturing economic community. He added, “These discussions allow us to learn more about each other’s forecasts, our sector’s ability to stay flexible and compete on the global stage.”

MANUFACTURERS LAUNCH FOUR-POINT PLAN FOR GROWTH
NAM Capital Briefing
At the NAM’s Fall Board of Directors Meeting last week, NAM President and CEO Jay Timmons unveiled A Manufacturing Renaissance: Four Goals for Economic Growth, a blueprint to help policymakers increase investment in our economy, boost trade, strengthen the workforce and drive innovation. A Manufacturing Renaissance is a competitiveness strategy to help our nation’s manufacturing sector remain strong. It focuses on four goals that our nation’s leaders can rally around: 1) the United States will be the best place in the world to manufacture and to attract foreign direct investment; 2) the United States will expand access to global markets to enable manufacturers to reach the 95 percent of consumers who live outside our borders; 3) manufacturers in the United States will have the workforce that the 21st-century economy requires; and 4) manufacturers in the United States will be the world’s leading innovators. To read A Manufacturing Renaissance, click here.

TELL YOUR SENATOR TO SUPPORT BOILER MACT RELIEF TO SAVE JOBS
NAM Capital Briefing
On Thursday, October 13, the House passed the EPA Regulatory Relief Act of 2011 (H.R. 2250) by a vote of 275-142. The legislation delays the Environmental Protection Agency’s (EPA) suite of Boiler MACT rules, which would put 230,000 jobs at risk, according to some estimates. Passage of H.R. 2250 is a victory for the manufacturing community and a step toward the development of achievable standards. The NAM key voted the measure on October 5. The Senate companion legislation (S. 1392) currently has 37 bipartisan cosponsors, and the NAM strongly supports passage. To contact your lawmakers in the Senate, click here.

MANUFACTURERS SPEAK OUT AGAINST COAL ASH RULE
NAM Capital Briefing
Last week, the House passed the NAM-supported Coal Residuals Reuse and Management Act (H.R. 2273) by a vote of 267-144. This bill addresses the regulatory uncertainty the EPA has created by proposing to regulate coal ash as a hazardous material under Subtitle C or as a non-hazardous material under Subtitle D of the Resources Conservation and Recovery Act. Regulating coal ash as a hazardous material will increase the cost of energy, negatively impact nearly 300,000 jobs and drive coal ash to landfills. There are now plans to introduce a companion bill in the Senate. The EPA published a Notice of Data Availability (NODA) in the Federal Register on Wednesday, October 12, requesting comments on the following issue areas related to its proposed coal ash rule: 1) chemical constituent data from coal combustion residuals; 2) facility and waste management unit data; 3) information on additional alleged damage cases; 4) adequacy of state programs; and 5) beneficial use. The NAM will file comments by the EPA’s November 14 deadline. The NODA can be found here.

DEADLINE EXTENDED TO SIGN BROAD TAX EXTENDERS GROUP LETTER TO CONGRESS
NAM Capital Briefing
Please join the NAM in signing a letter from the Broad Tax Extenders Group urging Congress to extend temporary tax provisions called “tax extenders,” which are set to expire at year-end. Three tax extenders of equal importance to many NAM members are the controlled foreign corporation (CFC) look-through rules, deferral for active financing and the research and development (R&D) tax credit. As it did last year, the NAM is collecting names for this broad group letter that will be sent to all members of Congress on plain stationery. The deadline to sign the letter is Friday, November 4.

PRESIDENT TO SIGN JOB-CREATING TRADE AGREEMENTS THIS WEEK
NAM Capital Briefing
President Obama will sign the free trade agreements with Colombia, Panama and South Korea in a White House ceremony on Friday, October 21. Congress passed the agreements last week, along with Trade Adjustment Assistance. Additional work must be undertaken, however, before American exporters can begin to take advantage of the removal of tariff and non-tariff barriers in these markets. The agreements must be fully implemented—which often requires our trading partners to make changes to their domestic legal framework and can require their legislatures to pass new laws. The U.S. Trade Representative and other U.S. trade-related agencies have pledged to work as quickly as possible on implementation of the trade agreements once they are signed so that manufacturers in America can begin to truly expand their exports to these newly opened markets. Now is the time for NAM member companies to begin setting the foundation for new export opportunities in these markets. The NAM will be working closely with the U.S. Commerce Department and other agencies to ensure that their resources are targeted to help American companies increase their exports.

NAM SMM BOARD MEMBERS CAUTIOUSLY OPTIMISTIC ABOUT THE FUTURE
NAM Capital Briefing
An informal survey of the NAM’s small and medium-sized manufacturers (SMM) identified the issues that are most important to their businesses and ability to create jobs. In a report to the NAM Fall Board of Directors Meeting last week, SMM Chair Kellie Johnson indicated that their top legislative concerns are: burdensome and unnecessary regulations; the National Labor Relations Board’s proposed rules; fundamental reform of the tax code; health care reform implementation; and health care costs. Many attendees also identified finding and hiring highly skilled and qualified workers as a serious issue. The polling indicated a cautious optimism about business activity: 54 percent reported that business has increased over the last year, 33 percent said business has been about the same and 13 percent said business has decreased in the previous 12 months. When asked to forecast for the next year, 56 percent expected business to increase, 41 percent expected business to remain about the same and only 3 percent felt that business would decrease in the coming year.

NAM CHAIR ADDRESSES IOWA MANUFACTURERS
NAM Capital Briefing
NAM Board Chair Mary Andringa addressed the Iowa Association of Business and Industry in Des Moines, Iowa, on Tuesday, October 18. Andringa is president and CEO of Vermeer Corporation in Pella, Iowa. She discussed with approximately 125 business and association leaders the role of manufacturing in Iowa and the importance of the NAM in helping to advance manufacturing in the United States. Click here for highlights from Mary’s presentation.

October 18, 2011

2011-10-18T21:39:00.000-07:00

US INDUSTRIAL PRODUCTION INCREASES IN SEPTEMBER

Bloomberg News
"Industrial production in the US advanced in September on growing demand for automobiles and computers after stalling the prior month, a sign manufacturers are contributing to growth. Output at factories, mines and utilities increased 0.2 percent."

NATURAL GAS FALLS ON CONCERNS STOCKPILES MORE THAN ADEQUATE TO MEET DEMAND
Bloomberg News
Bloomberg reported today that natural gas prices "dropped for the first time in three days in New York on speculation that stockpiles will approach a record before winter heating demand reduces inventories."

Natural gas for November delivery lost 1.5 cents, or 0.4 percent, to settle at $3.688 per million British thermal units on the New York Mercantile Exchange. Futures fell "as an Energy Department report last week showed that US stockpiles climbed by 112 billion cubic feet in the week ended Oct. 7, more than a five- year average gain of 72 billion. Supplies may rise to 3.77 trillion at the end of October, according to the department, near a record 3.84 trillion last November, Bloomberg data show."

MANUFACTURING OUTPUT UP 4% IN SEPTEMBER
Quick Manufacturing News
Industrial production increased 0.2% in September after having been unchanged in August. Click to continue

SHORTAGE OF SKILLED WORKERS TAKING ITS TOLL ON U.S. MANUFACTURERS
Quick Manufacturing News
The skills gap is making it harder for companies to grow, innovate and boost productivity, survey finds. Click to continue

DOW WANTS TO BOLSTER TRADITIONAL ENGINEERING EDUCATION
Quick Manufacturing News
Commits $25 million annually toward ensuring a 'vital pipeline of talent and research is available to fuel the discoveries and solutions of tomorrow.' Click to continue

STEVE JOBS LEAVES A LEGACY FOR MANUFACTURING
Today in Manufacturing
I think manufacturers should reflect on what Jobs did with what he had, how grateful we should be that he didn't wait for someone to follow ... continue

US HOMEBUILDERS LESS PESSIMISTIC, BUT STILL MISERABLE
Today in Manufacturing
An index of builder sentiment this month rose from 14 to 18, while any reading below 50 indicates negative sentiment about the housing market ... continue

October 17, 2011

2011-10-17T21:36:00.000-07:00

October 17, 2011

This morning, the Federal Reserve Board will release new figures on industrial production. We will also get a sense this week of whether or not manufacturing activity has improved in various regions across the country, from the Beige Book on Wednesday and the announcement of new data in the New York and Philadelphia Federal Reserve Bank regions. Recent indicators have suggested greater strength in the Midwest and Western regions, with the mid-Atlantic area struggling. It will be interesting to see if East Coast facilities are starting to rebound from the weaknesses of the past two months.

In addition to production, we will also learn about inflationary pressures in the economy with the release of data on the producer price index on Tuesday and the consumer price index on Wednesday. Manufacturers continue to struggle with elevated prices, particularly for raw materials, even as they have benefited from more recent easing of energy costs. Producer prices for manufacturers were up nearly 9 percent over the 12 months from August 2010 to August 2011, and many sentiment surveys suggest that the industry anticipates a continuation of these pricing pressures over the coming months.

The data released last week provided a combination of both good and not-so-good news. The Manufacturers Alliance/MAPI survey of manufacturers provided a mostly upbeat assessment of the current and future environment for the industry. While the data were virtually unchanged from the previous quarter, they indicated relatively strong growth for manufacturers on a number of fronts. This survey is more optimistic than many others, but it does highlight some deterioration over the course of the past year.

Sentiment surveys of consumers and small businesses, on the other hand, show that these groups continue to have a high degree of economic anxiety. This has undoubtedly impacted economic activity, providing a headwind for growth. Real exports declined somewhat in August, and while retail sales were up in September (largely on strong automotive sales), other indicators have suggested that at least part of the increase in spending recently has been accomplished by digging into savings. Americans are concerned about high unemployment, stagnant income growth and diminished home and equity values. In addition, they are cautiously watching the events in Europe and the wrangling over possible tax and spending cuts in Washington.

It is against this backdrop that the NAM released "A Manufacturing Renaissance: Four Goals to Economic Growth" last week. It focuses on policy solutions that will help U.S. manufacturers better compete in a global marketplace. Given the importance of manufacturing over the past two years in contributing to the economy and to net employment, these goals should be well-timed to garner significant attention and discussion.

Chad

Chief Economist

National Association of Manufacturers

MANAGING COMMON OUTSOURCING TRANSITION PITFALLS

Quick Manufacturing News
According to a 2011 survey by HfS Research and the London School of Economics Outsourcing Unit, 78% of enterprises cited the disruption to business as an important factor when making the decision not to outsource. Click to continue

WHY ARE U.S. MANUFACTURERS PAYING 20% MORE IN COSTS THAN REST OF THE WORLD?

Quick Manufacturing News

MAPI, Manufacturing Institute study shows that health care and corporate taxes are to blame. Click to continue

FACTORY OUTPUT CONTINUES TO RISE

Today in Manufacturing

Federal Reserve said factory output rose for a third straight month in September, a sign the U.S. economy is growing slowly ... continue

RIO TINTO SELLING 13 ALUMINUM UNITS

Today in Manufacturing

Rio Tinto will sell 13 of its aluminum units including refineries and smelters as the world's second biggest miner seeks to streamline its Alcan business ... continue

DEMOCRATIC AMENDMENTS TO EPA BILL REJECTED BY THE HOUSE

The Hill

The Hill’s "Floor Action Action" blog posted this report: "the House on Friday afternoon rejected five Democratic amendments to a bill giving states the right to set up coal ash regulations and implement those regulations on their own." The Hill said the bill is aimed at overruling pending EPA "rules on coal ash that Republicans say would impose drastic compliance costs." According to the Republicans, "their bill is needed because the EPA's pending rules treat coal ash as a hazardous substance, despite past findings to the contrary."

October 11, 2011

2011-10-13T21:37:00.000-07:00

MANUFACTURING IN CHINA AND VIETNAM: A PERSPECTIVE

Today in Manufacturing
China once was a low-cost but low-quality market, but times have changed. Vietnam is now undergoing the same transformation ... continue

USMTO: MANUFACTURING STUMBLES BUT ISN'T DOWN
Today in Manufacturing
Manufacturing technology sales dropped 9.4 percent from July to August, but yearly data still shows strong growth over 2010 ... continue

OBAMA, JOBS COUNCIL URGE ACTION ON JOBS
Today in Manufacturing
Obama is pressing for passage of his full $447 billion jobs package in the face of certain congressional defeat ... continue

U.S. MACHINE TOOL SALES OFF 9.4% IN AUGUST
Quick Manufacturing News
Despite a monthly decline, the market segment’s year-to-date total for new orders is $3,439.21 million, 101% ahead of the January-August 2010 result. Click to continue

WORKPLACE INSPECTIONS IMPROVE SAFETY, SAVE MONEY
Quick Manufacturing News
A decade's worth of inspection data in Washington suggests that a visit from the Department of Labor & Industries can be good not just for workplace safety, but also for a company’s bottom line. Click to continue

SENATE TO VOTE ON CHINESE CURRENCY SANCTIONS
Today in Manufacturing
A bipartisan majority that supports the legislation says forcing China to appreciate its currency could put large numbers of Americans back to work ... continue

IMMIGRATION COMPLIANCE SEMINAR
The Employers Council
Immigration and Customs Enforcement (ICE) is stepping up worksite enforcement of federal immigration laws. According to ICE, their Form I-9 inspections are one of the most powerful tools to ensure that businesses comply with the law. Every employer, regardless of size or industry, may be targeted for an ICE inspection. In addition, Utah has joined a number of states exploring bold solutions to immigration challenges by passing state laws directly impacting employers. In our upcoming seminar, Immigration Compliance: Trends and Challenges, Council staff attorneys will provide key insight and offer practical guidance on how to make sure your company is in compliance with both federal and state immigration laws. Topics to be covered include:

• Form I-9 Administration – common mistakes and best practices

• Current ICE workforce enforcement trends

• Handling no-match letters from the Social Security Administration

• Utah state requirements – latest updates & outlook

Join us on November 17, 2011, from 8:00 a.m. - 12:00 noon, at the Radisson Hotel in Salt Lake City for this up to-the-minute seminar. It will keep you abreast of the fast moving developments. For details and registration information, see the attachment to this week’s newsletter.

COMPANY PERKS MAKE COMEBACK
The Employers Council
According to a survey from career firm Challenger, Gray & Christmas, nearly 60% of companies that were recently forced to eliminate employee perks have brought back some or all of them. One-quarter of these companies even plan to introduce new benefits. The perks include everything from salary bonuses to extra vacation time and more flexible schedules. Much of the reason for the turnaround has to do with a growing concern among businesses that, as the economy continues to improve, their best talent may look for work elsewhere. Of the 100 HR executives who were surveyed, 42% were increasingly concerned about losing their top talent to competing companies. They admit that the single-most effective perk for retaining talent is performance bonuses. Given the increasing eagerness to lock in the best employees, more companies could be forced to roll out bonuses this year. As effective as extra cash may be, however, Challenger argues that there are plenty of other cost-efficient perks that companies can and should rely on to attract and maintain the best workers. Simply providing free meals in the morning, or offering employees the option to telecommute once a week, costs the company relatively little, but could pay huge dividends in worker satisfaction.

October 10, 2011

2011-10-10T22:31:00.001-07:00

SUPPLY CHAIN VISIBILITY IS SEEN AS KEY TO ECONOMIC RECOVERY

Quick Manufacturing News
Large global manufacturers are setting their sights on top-line growth over the next two years, focusing on new products, strategic acquisitions and alliances, innovation and increasing production capacity in high-growth markets. Click to continue

WHOLESALE INVENTORIES INCREASED 0.4 PERCENT IN AUGUST.
Associated Press
"Wholesale businesses increased their stockpiles of autos, computer equipment and heavy machinery in August; boosting inventories for a 20th straight month as their sales rose at the fastest pace in five months. The combination of rising sales and inventories should be a good sign for future factory output."

SENATE AND HOUSE EXPECTED TO PASS THREE TRADE AGREEMENTS ON WEDNESDAY
The Hill Blog
The Hill carried a blog “On the Money” today where Erik Wasson writes that "careful maneuvering by President Obama, his pro-business chief of staff William Daley and trade representative Ron Kirk" mean Wednesday's votes in the House and Senate will likely approve trade agreements with Panama, Colombia, and South Korea. The bills, stalled since 2007, have been reworked by Obama, who "renegotiated the automotive provisions in the Korea deal, and worked to improve Panama's labor and tax laws so these deals enjoy the most Democratic support." Still, the Colombia agreement is less popular, and House Minority Leader Nancy Pelosi has blocked it in the past. And, the AFL-CIO disapproves of all three agreements.

Super-Committee in Deadlock
Associated Press
Reports today from the AP claim, "the 12-member deficit-cutting panel established under last summer's budget and debt deal appears no closer to a breakthrough than when talks began last month." Panel members have not commented on their progress but "lawmakers, aides and lobbyists" are doubtful "that the panel will be able to meet its assigned goal of at least $1.2 trillion in deficit savings over the next 10 years."

October 7, 2011

2011-10-10T22:28:00.000-07:00

GOVERNING FROM THE BOTTOM UP IS GOOD…BUT IT’S HARD
Utah Lieutenant Governor Blog -- Posted: 06 Oct 2011 06:00 PM PDT

Education is by far Utah’s biggest budget item. What function of state government touches more citizens day by day than education? And what is more important to our state’s future than educating our citizens? Education is not optional: it’s a responsibility given us by the Utah Constitution. Although Utah has ranked last in the nation in per-pupil spending since 1988, we’ve still maintained a pretty good system. However, we have hit some speed bumps of late:

 Sharp increase in English-language learners, Utah’s fastest growing population

 Growing number of economically disadvantaged children

 Great Recession has reduced revenue

 Utah Foundation’s research shows Utah has declined in “effort” in education funding for more than a decade¹

 Utah’s public schools are growing by nearly 14,000 students a year

 Large class sizes hinder effective teaching, especially in early elementary grades

 Contentious fight over vouchers fostered distrust, most notably, amongst educators and legislators.

Governor Herbert envisioned bringing the education partisans together. In early 2010, he convened his Excellence in Education Commission. Governor Herbert has chaired almost every minute of our four-hour “EdEx” meetings. EdEx is a large group—35 members—which might seem unwieldy from the outside. It includes UEA, Parents for Choice, principals, PTA, school boards, superintendents, state school board, business people, charter school representatives, higher education, and six legislators. But this broad-based group has produced very solid progress—no abstract studies, action items only. EdEx agreed on eight initiatives last year, each with a price tag attached, such as optional all-day kindergarten for disadvantaged students, which has proven to be highly effective. The Legislature passed and funded all eight measures. EdEx has been so successful Gov. Herbert has continued it indefinitely. EdEx has effectively become the clearinghouse for all things innovative in our educational system.

Some have complained that Governor Herbert’s bottom-up approach, which seeks consensus on reform, is slow, cumbersome, and difficult. They argue the Governor should “lead” by putting forth his proposals, seeking the votes, and getting it passed. The problem is that the Legislature’s success in creating fundamental change in the school system from the top down has been marginal. Utah’s public education system embraces 576,000 students, 1,084 schools, 41 school districts, 25,600 teachers, one-room schools to high schools with over 2,000 students, and is spread over 84,000 square miles. Big and bulky, with many “captains” at the wheel, the education ship is very hard to turn. Real improvement, especially in a system this big and complex, only comes when the affected parties have a say in their future.

It would be much easier for Governor Herbert to try to legislate his priorities, and he would get a lot more headlines. However, by involving all interested parties, the Governor’s EdEx has created cooperation and good will, aired the mounting challenges our educators face, pushed innovation, and is building consensus around Utah’s educational priorities. We need dramatic improvement in our education system to prepare Utah’s students to live and work in this fast-paced, ever-changing, and globally competitive world. EdEx will help significantly to achieve that improvement.

The bottom-up approach to governing is hard, messy and time-consuming. But it’s the best way to achieve real and lasting progress.

LONG-TERM UNEMPLOYMENT BECOMING A REALITY
Today in Manufacturing
Nearly one-third of the unemployed -- nearly 4.5 million people -- have had no job for a year or more. That's a record high ... continue

WHEN PRICES RISE, DO YOU HAVE TO PASS IT ON?
Today in Manufacturing
When thinking about procurement strategies to deal with the volatility and rapidly rising price of commodities, there are many considerations ... continue

OBAMA: JOBS PACKAGE AN 'INSURANCE' AGAINST RECESSION
Today in Manufacturing
The embattled president said he had learned that he got nowhere by trying to find a middle ground in the huge partisan divide ... continue

ECONOMY ADDS 103K JOBS, UNEMPLOYMENT STAYS
Today in Manufacturing
Despite a modest burst of hiring in September, the national unemployment rate stayed at 9.1 percent for the third straight month ... continue

SENATE POSTPONES CHINA CURRENCY VOTE
Today in Manufacturing
Vote to impose sanctions on China for its unfair currency practices was put off, delayed by the partisan divisions that have come to characterize this Congress ... continue

HOUSE DEMANDS 'A RESPONSIBLE REGULATORY ENVIRONMENT'
Quick Manufacturing News
Rep. John Kline (R, Minn.) made it clear that Congress believes the fewer regulations coming out of OSHA the better, even if it means putting a stop to the proposed Injury and Illness Prevention Program standard, halting the addition of a column for musculoskeletal disorders on the OSHA 300 Log and offering no new regulatory action on silica or fall protection for roofers. Click to continue

NISSAN TO PUMP $1.5 BILLION INTO ITS FIRST BRAZIL FACTORY
Quick Manufacturing News
Company aims to increase market share in Brazil from 1.5% to 5% by 2016. Click to continue

US WANTS INFO ON CHINA, INDIA SUBSIDIES
Quick Manufacturing News
China has 200 subsidy programs that it hasn't notified the WTO about and India has 50. Click to continue

EPA ROLLS BACK AIR RULE, GIVES TEXAS LEEWAY
Today in Manufacturing
The proposed fix to the cross-state pollution rule would allow 10 states, especially Texas, to emit more smog-causing pollution than had initially been permitted ... continue

A PICTURE IS WORTH A THOUSAND WORDS
Today in Manufacturing
Manufacturing operation instructions are a lifeline to success. Successful instructions need to be succinct, accurate, and easy to understand ... continue

LOGISTICS LEADERS OPTIMISTIC ABOUT LONG-TERM GROWTH
Today in Manufacturing
The 18th Annual Survey of Third-Party Logistics Providers revealed logistics companies experienced improved economic conditions in 2010... continue

October 6, 2011

2011-10-06T21:41:00.000-07:00

RETAILERS SEE SOLID GAINS IN SEPTEMBER

Today in Manufacturing
Retailers are reporting strong revenue gains for September, capping a solid back-to-school shopping season ... continue

MORE SOUGHT UNEMPLOYMENT AID LAST WEEK
Today in Manufacturing
The number of people who applied for unemployment benefits rose by 6,000 the last week in September, a sign that the job market remains weak ... continue

THE ART OF CUTTING COSTS, WHILE GROWING REVENUES
Quick Manufacturing News
A recent study of executives found that while they expected their company to grow at a rate equal to or significantly greater than most economic growth forecasts, they have embarked on a renewed focus on cost-cutting. Click to continue

GOVERNOR HERBERT: "LET'S SEE IF WE CAN HIRE 100,000 NEW PEOPLE OVER THE NEXT 1,000 DAYS."

On September 20, Governor Gary Herbert announced a plan to accelerate support of the private sector in creating 100,000 new jobs in 1,000 days. The plan focuses recruiting new companies to the state, reducing taxes on business expansion, increasing access to capital for small and startup businesses, doubling Utah exports in the next five years, and more.

Click here for more information

AFTER FOUR YEARS, HOUSE TO VOTE ON FREE TRADE AGREEMENTS
NAM Capital Briefing
President Obama sent the pending free trade agreements (FTAs) with Colombia, Panama and South Korea to Congress on Monday, October 3. The House Ways and Means Committee marked up the legislation this week, and the full House will vote on each of the three agreements on October 12. The three agreements are protected by Trade Promotion Authority (TPA), so they cannot be amended. Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) have both indicated that they plan to move the three FTAs quickly once the House approves the agreements. The House will also vote next week on extending some Trade Adjustment Assistance (TAA) programs, which the Senate passed in the last week of September and the Administration has made contingent upon transmission of the FTAs. The NAM is a strong supporter of the three FTAs and TAA and continues to work with member companies to ensure Congress votes to pass all four bills. Click here to read NAM President and CEO Jay Timmons' Politico op-ed on the pending agreements.

NLRB DELAYS POSTING REQUIREMENT RULE FOLLOWING NAM LAWSUIT
NAM Capital Briefing
On Wednesday, October 5, during a status conference in the U.S. District Court for the District of Columbia, the National Labor Relations Board (NLRB) announced it would voluntarily delay implementation of its "posting requirement" rule until January 31, 2012. This announcement follows the NAM's lawsuit on the rule. On September 8, the NAM was the first to file suit against the NLRB, arguing that requiring all employers to post a notice of employees' rights to unionize is outside the Board's authority under the National Labor Relations Act and is in violation of the Administrative Procedure Act. The rule was slated to go into effect on November 14. The decision to delay gives the Court time to adjudicate the complaint filed by the NAM. The Court also set December 19 for a hearing on summary judgment motions. A decision will be rendered before the new effective date of January 31.

HOUSE BILL DEFENDS EMPLOYERS' RIGHTS
NAM Capital Briefing
On Wednesday, October 5, House Education and Workforce Committee Chairman John Kline (R-MN) introduced the Workforce Democracy and Fairness Act (H.R. 3094), addressing the NLRB's proposed rule on ambush elections and the agency's decision in the Specialty Healthcare case. The legislation guarantees an employer's ability to participate in a fair union election process by establishing a 14-day timeframe for an employer to prepare a case to be heard by the NLRB. It also ensures employees are able to make fully informed decisions by providing that no union election will be held in less than 35 days; re-establishes decades of law by reinstating the standard by which employees vote in union elections; prevents the possibility of several "micro-unions" at one facility; and allows employees to choose the type of personal contact information that is provided to a union.

MANUFACTURERS FILE PETITION ON EPA'S CROSS-STATE AIR POLLUTION RULE
NAM Capital Briefing
On Wednesday, October 5, the NAM petitioned the Environmental Protection Agency (EPA) to reconsider and administratively stay the Cross-State Air Pollution Rule (CSAPR), which requires power plants in 27 states to reduce emissions of sulfur dioxide and nitrous oxide. The EPA estimates that the final rule will cost close to $2.4 billion annually, and some utilities have already indicated they will close certain facilities because of the rule's strict emissions limits. Manufacturers are concerned that this rule will raise energy costs and compromise grid reliability, causing additional uncertainty and potential job losses in a tough economy. To prevent significant harm to the manufacturing sector, the NAM is arguing that the EPA should immediately stay and reconsider the rule.

TAX RATE ON CAPITAL GAINS AND DIVIDENDS SHOULD BE PERMANENT
NAM Capital Briefing
On Wednesday, October 5, manufacturers sent a letter to Sen. Mike Crapo (R-ID) and Rep. Peter Roskam (R-IL) thanking them for introducing legislation to make the current 15-percent tax rate on capital gains and dividends permanent (S. 1647/H.R. 3091). Keeping these rates low is critical. Corporate profits in the U.S. are already subject to double taxation—first under the corporate income tax and again under the individual income tax system when the profits are received. Reducing these taxes to 15 percent has helped mitigate this double burden. Without congressional action in 2013, the tax on capital gains is set to increase from 15 percent to 20 percent and the maximum tax rate on dividends will escalate from 15 percent to 39.6 percent. Numerous studies have demonstrated that higher tax rates result in reduced investment and capital formation and that the burden of higher taxes largely falls on workers through lower wages. The NAM has strongly supported the 15-percent rate for both capital gains and dividends and calls upon Congress to consider these bills to make this current tax treatment permanent.

SENATORS URGED TO COSPONSOR R&D CREDIT BILL
NAM Capital Briefing
The R&D Credit Coalition leadership, including the NAM, signed a letter sent Tuesday, October 4, urging senators to cosponsor the bipartisan Greater Research Opportunities with Tax Help (GROWTH) Act (S. 1577), which would simplify, strengthen and make permanent the research and development (R&D) credit. The bill would repeal the regular credit formula, strengthen the alternative simplified credit formula to 20 percent from its current 14 percent rate and make it permanent. A similar bill, H.R. 942, was introduced by Reps. Kevin Brady (R-TX) and John Larson (D-CT) earlier this year.

NAM OPPOSES EPA COMPLIANCE ORDER
NAM Capital Briefing
Several federal courts have denied manufacturers and landowners the right to challenge Environmental Protection Agency (EPA) environmental compliance orders in court. The Supreme Court will soon decide whether such unreviewable orders violate due process and Administrative Procedure Act requirements. The NAM filed an amicus brief Monday, October 3, in the Sackett case, arguing that this power essentially coerces alleged violators into compliance and immediately deprives them of substantial property rights. In addition, requiring the EPA to provide a pre-enforcement hearing is a minimal cost to protect constitutional rights.

October 5, 2011

2011-10-06T21:38:00.001-07:00

NLRB ANNOUNCES PULL BACK ON POSTING REQUIREMENTS

NAM
Today, during a status conference in the U.S. District Court for D.C., the NLRB announced it will voluntarily delay implementation of the posting requirement rule until January 31, 2012. The rule was slated to go into effect on November 14, 2011. The decision to delay was made in response to the suit filed by the NAM against the NLRB.

In addition, the Court has set the date for a hearing on summary judgment motions for December 19th with a decision being rendered before the new effective date of January 31, 2012.

On September 8th, the NAM was the first to file suit against the NLRB arguing that requiring all employers to post a notice of employee rights to unionize is outside the Board’s authority under the National Labor Relations Act and is in violation of the Administrative Procedure Act.

AMID EUROPE'S DOOM AND GLOOM, U.S. MANUFACTURING PERSEVERES
Quick Manufacturing News
September purchasing managers index marks 'a return to growth after contracting in August for the first time since May of 2009.' Click to continue

MAINTAINING THE INTEGRITY OF A WORKPLACE SAFETY COMMITTEE
Quick Manufacturing News
Encouraging worker involvement in company safety committees sometimes can be a challenge. Even so, to create a workplace that fosters employee engagement, morale and safety, workers must have a voice. Click to continue

EMPLOYEE MISCLASSIFICATION
Compliance and education efforts - 11 state agency leaders sign memorandums of understanding
By: Sherrie Hayashi, Commissioner; Utah Labor Commission

On September 19, 2011, I had an opportunity to travel to Washington D.C. to meet with the U.S. Secretary of Labor, Hilda Solis and other state Labor Commissioners.

The US Dept. of Labor, Wage & Hour Division hosted a ceremony where agreements were signed with the Utah Labor Commission, eight other states and the Internal Revenue Service, to share information in our efforts to address the issue of misclassification of workers who should be classified as employees. Two other states will also be signing similar memorandums of understanding.

Misclassifying workers allows companies to avoid paying workers compensation insurance, unemployment insurance, and state and federal taxes. It also creates a mechanism where workers may not be protected by laws that under normal circumstances protect workers, such as occupational safety and health laws, minimum wage and overtime laws, and antidiscrimination laws. It also creates an unfair economic disadvantage for those employers who strive to comply with labor laws, but cannot compete with companies who benefit from misclassifying their employees in order to avoid paying taxes and worker’s compensation premiums.

Particularly in this difficult economy, the partnership between these agencies will ensure a unified approach to providing the necessary support for those businesses committed to abiding by the law, and will continue to enforce protections for workers to be treated fairly and to be safe in their work environment.

The Memorandum of Understanding with the U.S. Department of Labor enhances the State of Utah’s existing work to address the misclassification of workers. During the 2011 legislative session, Sen. Karen Mayne sponsored SB11, creating the Workers Classification Coordinated Enforcement Council. The Council, led by the Labor Commission, is a cooperative effort between the Utah Tax Commission, the Office of the Attorney General, Department of Commerce, and the Department of Workforce Services/Unemployment Insurance Division.