Posts for August 24, 2010

UMA MEMBER COMPANIES IN THE NEWS

Community Connection

Scott M. Matheson Award

H. Michael Keller Presented with the Scott M. Matheson Award

Van Cott is pleased to announce that H. Michael Keller has been presented with the Scott M. Matheson Award. The award comes in recognition of Mr. Keller's many years of service to teh cause of law-related education in Utah. Mr. Keller has served on the Board of Utah Law-Related Education (LRE) for over 20 years, and has personally participated in many law-related education activities and services. The efforts of Mr. Keller and others at LRE have benefited countless Utah school children over the years. Van Cott and its attorneys have supported LRE since its inception in 1974.

LRE is a nonprofit Utah corporation dedicated to educating Utah's youth on the rule of law and our legal systems through such law related activities and studies as the Mock Trial Competition, We the People: Project Citizen, Dialogue on Democracy, and Peer Count.

For more information, visit www.lawrelatededucation.org

ANNUAL USANA CONVENTION BRINGS ECONOMIC BOOST TO SALT LAKE CITY
August 24, 2010 – UB Daily
For nearly two decades, thousands of attendees to USANA Health Science’s annual International Convention have brought an injection of economic activity to Salt Lake City. This year, the 18th annual USANA Convention from August 25 through 28 is expected to draw over 6,000 attendees into Utah’s downtown capitol bringing an estimated $6 million to local businesses. With this year’s attendance numbers rivaling those of last year, convention planners at USANA are thrilled that interest in business-related travel is still relevant in challenging economic times.
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ENERGYSOLUTIONS AND EXELON NUCLEAR AGREE ON TARGET DATE FOR THE ZION STATION DECOMMISSIONING
August 24, 2010 - Market Wire
EnergySolutions, Inc. announced today it has reached an agreement to close its transaction with Exelon Nuclear to officially transfer the Zion Station licenses to EnergySolutions for the purpose of beginning the accelerated decommissioning of the Zion Station.
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GOVERNOR HERBERT TO CHAIR NGA ECONOMIC DEVELOPMENT COMMITTEE

August 24, 2010 – Utah Pulse – Jeff Edwards, EDCUtah
Utah Governor Gary R. Herbert has been appointed the new Chairman of the Economic Development and Commerce Committee for the National Governors Association (NGA).
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ADMINISTRATION AIMS TO REINSTATE SUPERFUND TAX

August 24, 2010 – NAM Member Focus

In 1980, the federal government established the Superfund program to clean up the nation’s uncontrolled hazardous waste sites. For the first 15 years of the program, the government imposed the tax on oil companies, chemical companies and other businesses. However, the three-part tax expired in 1995, and Congress has yet to renew it.

Over the past few months, there has been growing interest in reinstating the three-part Superfund tax—which includes a 9.7-centper- barrel duty on crude oil and petroleum products, an excise tax on feedstock chemicals and a tax rate increase on most corporations. The Joint Committee on Taxation estimates the tax would bring in almost $19 billion over the next 10 years.

On June 21, Environmental Protection Agency (EPA) Administrator Lisa Jackson sent a letter to congressional leaders calling for reinstatement of the Superfund tax beginning in 2011 and proposing draft statutory language.

Separately, several members of Congress have introduced bills that would revive the Superfund tax, including Representative Earl Blumenauer (D-OR) (H.R. 564), Senator Frank Lautenberg D-NJ) (S. 3164) and Senator Bill Nelson (D-FL) (S. 3125).

Restoring the Superfund tax would impact U.S. manufacturers of all sizes, with the oil and gas and chemical industries facing an even greater burden. The direct and indirect impacts of the tax would unnecessarily divert manufacturers’ resources away from investment in people, plants and equipment; diminish potential job creation; and weaken our country’s global economic position.

The National Association of Manufacturers (NAM) is working with member companies in the weeks and months ahead to educate members of Congress on the harmful impact the Superfund tax would have on businesses throughout the United States and to urge them to oppose any effort to restore this jobs-killing tax.

Chemical manufacturers would be placed in a particularly difficult position. The chemicals that would be taxed are used in everyday products and processes from plastics to public water treatment. At a time when manufacturers are trying to increase jobs and lead the economic recovery, the Superfund tax would result in more jobs shifting outside the United States where chemical manufacturers are not subject to this tax. Additionally, the tax would diminish profit margins and raise production costs—burdens that ultimately would be passed on to consumers in the United States.

The tax would impact a wide range of manufacturers. Food and medicine producers,
for example, rely significantly on the chemical industry for inputs to their products. These inputs are frequently very expensive or even impossible to replace.

The fact remains that responsible parties have paid for the cleanup of Superfund sites and continue to reimburse the EPA for all of its cleanup costs since the taxes expired 15 years ago. Additionally, the tax will not control the Superfund budget or the pace of EPA activity, which are set and determined by Congress through the appropriations process. Further, federal levels for cleanup spending have remained relatively constant, and the Administration did not request additional funding in its latest budget.

Because of the importance of the issue to all manufacturers, the NAM has formed a joint Superfund task force staffed by the Tax and Domestic Economic Policy and Energy and Resources Policy Departments to spearhead the NAM’s opposition to the Superfund tax. If the Superfund tax is an issue for your organization, please share with the NAM how it will affect your business and your ability to create jobs and compete.

For more information, contact NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman at dcoleman@nam.org or (202) 637-3077.

INVENTED IN UTAH SYMPOSIUM TO TAKE INVENTIONS FROM IDEA TO REALITY

August 24, 2010 - Market Wire
Invented in Utah, a non-profit organization that facilitates a competition focused on helping inventors take their invention from ideas to reality, today announced that the Invented in Utah 2010 Symposium will be August 28 from 8:30 a.m. to 2:00 p.m. at the Miller Free Enterprise Center: 9750 S. 300 W., Sandy, UT 84070.
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MANUFACTURERS UNVEIL BLUEPRINT TO DOUBLE EXPORTS IN FIVE YEARS

August 24, 2010 – NAM Member Focus

In his 2010 State of the Union address, President Obama announced the National Export Initiative (NEI), with the goal of doubling U.S. exports in the next five years. The National Association of Manufacturers (NAM) welcomes this goal and has long been a strong proponent of domestic policies that will boost U.S. competitiveness. Increasing exports will be a source of economic expansion and job growth.

To reach the NEI’s ambitious yet achievable target, the United States needs significant export policy and program changes that will improve market access and level the playing field in an increasingly competitive global marketplace.

To that end, on July 26, the NAM, the American Farm Bureau Federation (AFBF) and the Coalition of Service Industries (CSI) unveiled comprehensive approaches to achieve the Administration’s goal of
doubling U.S. exports by 2014.

The NAM, the AFBF and the CSI, representing virtually all U.S. exports, developed proposals to increase exports in their individual sectors. The Manufacturers’ “Blueprint to Double Exports in Five Years” provides specific actions for Congress and the Administration to take and the detailed recommendations that are essential to reaching this target:
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Enact pending trade agreements with Colombia, Panama and South Korea. Manufacturers believe the most important trade policy shift for doubling exports is an immediate change in the U.S. aversion to concluding market-opening bilateral trade agreements, which have proven beneficial to manufacturers in the United States. For the last two years, the United States has had a manufactured goods trade surplus with its free trade partners. The Administration needs to quickly resolve the outstanding issues with these pending agreements and submit them for congressional approval.
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Pursue new trade agreements. Future trade negotiations must also include greater emphasis on non-tariff barriers, subsidies, raw material export restrictions and other trade-distorting practices. The NAM estimates that a robust program of trade agreements with significant trading partners could generate
as much as an additional $100 billion in U.S. exports by 2014.
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Reduce non-tariff barriers (NTBs). Manufacturers in the United States face complicated, non-transparent NTBs— such as product standards, regulations, labeling requirements, or conformity testing
requirements—which impose unreasonable delays and costs that make U.S. products less competitive. The NAM believes NTBs are a greater trade barrier than tariffs in many markets.
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Improve competitiveness with investments in infrastructure and trade facilitation initiatives. Reliable transportation services and the supporting network infrastructure are essential to ensure manufacturers reach export customers. The Administration also should seek to identify trade facilitation (customs clearance) difficulties and bilateral arrangements to streamline exports.
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Pursue a Doha Round agreement that expands world trade. The NAM supports an effective World Trade Organization (WTO) Doha Round that significantly reduces trade barriers, particularly in the higher tariff advanced developing countries.
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Improve export promotion efforts and financing policies. Efforts to double exports in five years must include a significant increase in export promotion resources dedicated to small and mid-sized enterprises.

A shift in the nature of the support, as well as doubling or tripling of current levels of export promotion funding, is needed. In addition, export financing is an important part of being globally competitive. The principal U.S. export credit agency, the U.S. Export-Import Bank, needs more resources and simplified processes.

Manufactured goods exports represent over 60 percent of total U.S. exports of goods and services. Therefore, the voice and participation of manufacturers is critical to accomplishing the NEI’s objective. While the United States is the world’s largest manufacturer, accounting for about 21 percent of all manufacturing production in the world, U.S. manufacturing on average exports only half of what other major manufacturing economies do (see chart on this page). In fact, the United States ranks last among the world’s 16 major manufacturers in export intensity.

“If drastic changes are not made to double exports, our nation’s manufactured goods exports will fall nearly $300 billion short of the President’s goal in 2014,” said NAM Vice President of International Economic Affairs Frank Vargo. “Our partners and competitors are moving forward negotiating new free trade agreements and enacting other policies to boost exports, and the U.S. is being left behind. America needs to enact policies to make it easier for U.S. companies to reach new markets,” he said. If the United States exported at the world average, U.S. manufactured goods exports would double, eliminating the trade deficit. In addition, the U.S. Commerce Department estimates that accomplishing the NEI’s goal could create 2 million jobs in the United States.

The NAM’s “Blueprint to Double Exports in Five Years” goes hand in hand with the objectives and policies proposed in the NAM’s “Manufacturing Strategy for Jobs and a Competitive America.” Expanding access to foreign markets and increasing export support are essential, but they are not sufficient to transform the United States into an export platform for the world. That requires a highly productive, innovative and competitive manufacturing sector that will only result if America has an effective manufacturing strategy.

The President has recognized the importance of exports in economic growth and job creation. With recent estimates indicating that the growth of the global economy will outpace that of the U.S. economy, expanding U.S. exports is even more vital. Ninety-five percent of the world’s consumers are located overseas, and manufacturers in the United States need the right policies for their products to reach those consumers.

If the policies proposed by the NAM’s Blueprint are implemented, the United States can reach the goal of doubling exports in five years, and manufacturers will become more competitive in the global economy.

UNCERTAINTY COULD RESTRAIN THE PACE OF RECOVERY GOING FORWARD

August 24, 2010 – NAM Member Focus

Since late 1997, the National Association of Manufacturers (NAM) has conducted a quarterly survey to gauge member companies’ business outlook and expectations with respect to sales, employment and other important forward-looking measures of business activity.
The latest survey conducted in the second quarter of 2010 shows that conditions in the manufacturing sector edged up slightly, with the pace of improvement slowing in a number of areas.

The share of NAM member companies with a positive business outlook rose slightly to 74 percent from 70 percent in the first quarter. While this is the highest level of confidence
since the second quarter of 2007—the last quarter of strong growth at the end of the last expansion—the improvement in the second quarter is less than half that of the prior four quarters. This deceleration is consistent with an expectation that the recovery is set to moderate in the near term, with growth from fiscal stimulus and inventory restocking largely in the rear-view mirror.

The survey asked if increased uncertainty about the business outlook is delaying plans to expand employment or capital spending. Eight percent of respondents said “yes” with respect to employment, 8 percent said “yes” with respect to capital spending and 58 percent answered “yes” with respect to both. Only roughly one-quarter (26 percent) responded that uncertainty is not playing a role in these decisions.

The reasons for this uncertainty included: the state of the U.S. economic recovery—46 percent; possible regulatory or legislative changes from Washington—37 percent; and the state of the global economy—17 percent. When asked to provide specifics, the most-cited areas of uncertainty were: tax increases, the cost of health care, a general anti-business climate in Washington and the possibility of additional regulations on businesses in the United States. Similarly, the 12-month outlook with respect to sales only posted a mild improvement in the second quarter. After nearly doubling from 1.6 percent in the fourth quarter of 2009 to 3 percent in the first quarter of 2010, sales expectations edged up to just 3.3 percent in the second quarter—signaling that the manufacturing recovery is likely to continue going forward, but an accelerating growth path is not likely in the year ahead.

This is consistent with other findings of the second-quarter survey, including expectations of positive but mild increases in both capital spending (1.7-percent growth) and employment (1.3-percent growth) in the year ahead.

While overall business conditions for manufacturers continued on an improving path in the second quarter, signs are starting to emerge that the pace of the improvement may moderate in the second half of the year. Manufacturers remain uncertain about the underlying strength of the U.S. recovery and the possible regulatory and legislative changes coming out of Washington. This uncertainty is holding back plans to expand employment and capital.

UOSH JOB POSTING

August 24, 2010 – Utah Occupational Safety and Health

Notice: the following announcement came to UMA from UOSH. If you know anyone who may be interested in this opening, please have them follow the instructions for application.

We have reopened the vacancy announcement for Compliance Safety and Health Officer. I have attached a pdf copy for your convenience. The new application period ends on Wednesday 09/08/10. To apply, please go to the DHRM website at: http://www.dhrm.utah.gov/ and look for current state of Utah jobs openings, sort by agency, the announcement is under Labor Commission, announcement number 21864. If you have questions or need further information,please contact Sharon Reynolds at sreynolds@utah.gov or at (801) 530-6018.

Please notice the following note on the announcement:
ONLY APPLICANTS SELECTED FOR AN INTERVIEW WILL BE CONTACTED. IF YOU ALREADY APPLIED TO JOB ANNOUNCEMENT 21641, YOU DO NOT NEED TO APPLY AGAIN.

If you know individuals interested in a challenging and exciting career with the Utah Occupational Safety and Health Division, please do not hesitate to tell them about this job opportunity and give them the state jobs website address. For more information and questions they can also contact Sharon Reynolds at 530-6018. We look forward to this exciting new hiring experience and to welcome new team members to the compliance program.

Thank you all for your support,

Louis M. Silva
Division Director / OSHA Administrator
State of Utah Labor Commission
Utah Occupational Safety & Health Division - Utah OSHA

UTAH VALLEY SEEING ECONOMIC GAINS

August 24, 2010 - Jeff Edwards, President and CEO, EDCUtah
Last week it was my pleasure to moderate a Utah Business Roundtable where we discussed what contributes to business success in Utah County. The county continues to see economic growth thanks to the transportation projects and improvements that are under way, the landmark development and expansion projects, business relocations, new business growth, a continued sense of community, and a tradition of entrepreneurship.
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For 9:00 a.m. Release
August 19, 2010
Contact: Mark Knold 801-707-0751

UTAH’S EMPLOYMENT SUMMARY: JULY 2010

Utah Labor Market Indicators

July 2010

Employment % Change: 1.5%
Employment # Change: 17,200
Unemployment Rate: 7.2%

United States

Employment Change: 0.0%
Unemployment Rate: 9.5%

Source: U.S. Bureau of Labor Statistics
August 24, 2010 – Utah Department of Workforce Services

Utah’s nonfarm wage and salaried job count for July 2010, as measured by the United States Bureau of Labor Statistics (BLS) through its monthly employer survey, expanded by 1.5 percent over the past 12 months. Approximately 17,200 jobs have been added to the Utah economy since July 2009, raising total wage and salary employment to 1,185,700.

Utah’s other primary indicator of current labor market conditions also generated by BLS, the seasonally adjusted unemployment rate, remained unchanged from last month at 7.2 percent. Last July, the state’s rate was 6.8 percent, a 0.4 percentage-point increase over the past 12 months. Approximately 97,900 Utahns are considered unemployed. The United States unemployment rate was also unchanged from last month at 9.5 percent.

Utah’s economy continues to exhibit signs of an economy in the initial stages of economic recovery. The monthly employment survey is suggesting the Utah economy is adding jobs at a slightly faster pace than the economy is losing jobs. Job orders have picked up as has hiring. Still, initial unemployment claims (a proxy for job losses) consistently running at over 2,000 per week is a level that says the economy is still carrying a burden (claims closer to 1,000 per week are more historically normal). Initial claims had risen as high as 5,000 per week at the beginning of 2009, during the worst of the economic collapse, so job losses have moderated considerably since then. But the ongoing claims levels are still high enough that the wounds inflicted upon the economy during the recession are still not fully healed.

The current job growth may imply otherwise, but the caveats are that the current growth estimate comes from a survey, and there is a good chance that revisions to the data will move this growth estimate backward. Also, the amount of job loss was so severe last year (which is what the current estimates are being compared to), that even if the current rate holds, the growth is more a negative reflection upon the free-falling employment environment of a year ago than a positive reflection upon a hale and hearty economy today.

It is encouraging to report that, for the first time in several years, there are more industries adding jobs over the past 12 months than are losing jobs. Only three industries are showing continued year-over losses—manufacturing, construction, and government. The worst of the recession appears to be behind Utah. Modest signs of rebound are emerging. But with roughly 75,000 jobs having been removed from the Utah economy over the past two years, not just recapturing those jobs but also making up for the economy’s missed potential will translate into a multi-year activity of playing economic catch up.

Construction employment remains down over the past 12 months. The loss has narrowed to only 1,900 positions, and the industry is probably approaching the point where by the end of this year it may not be experiencing any more job loss. This would be welcome news, as employment has fallen a long way in this industry. Since July 2007, one-third of all Utah construction jobs have been eliminated. They are poised to start returning as the Utah economy slowly improves over the next several years, but it may not be a stretch to suggest that it could take another ten years before Utah sees construction employment levels as high as the peak year of 2007.

Manufacturing is another industry hard hit by this recession, and it now stands as the industry with the most job losses over the past 12 months—down 4,100 positions. Across the span of this recession, Utah’s manufacturers have scaled back their employment levels by 20,000 workers.

The trade and transportation sector is one of the growing industries. This is Utah’s largest employment industry, although not the one adding the most new jobs. Yet over the past 12 months, 2,000 new jobs have developed in this sector, most within wholesale trade.

Financial activities have stabilized since the major meltdown that triggered this recession. Around 1,000 new jobs have been added over the past year.

The professional and business services sector added a healthy 5,700 new jobs over the past year. Much of this is in employment services, or in other words, the temporary help arena. The early stages of an economic recovery nearly always produces job gains in this area, as many businesses will first use temporary workers to fill their increase in business. If orders hold, then the transition to permanent employment usually follows.

Education and healthcare remains the strongest employment industry in Utah. Growth of 8,300 jobs over the past 12 months and a growth rate of 5.7 percent are probably overstated, yet this industry has grown throughout this economic downturn and is poised to remain an aggressive grower for years to come.

Growth of 4.4 percent in the leisure and hospitality sector may be another industry whose fortunes are overestimated. But this industry’s performance in 2010 does appear to be an improvement over the jolt this industry took last year when people’s incomes and travel plans shrunk.

Government employment has flat-lined—basically no year-over job growth. It took a while for government budgets to adjust to the recession’s effects, but reduced revenue flows are now quite clear. Government payrolls should show little movement over the next several years.