Posts for October 12, 2010

October 12 , 2010

The slightly positive economic news continued last week. Five of the eight major indicators grew, while the pace of two indicators (California manufacturing and chain store sales) slowed. (To see all of last week's reports, see the Latest Economic Reports section below.)

The most important report that came out last week was September's employment report, which showed that the economy shed 95,000 jobs last month -- the fourth consecutive month of job loss. As with prior months, the overall decline was largely due a drop in government employment, thanks in part to temporary Commerce Department workers completing their work conducting the decennial Census (see blue bars in the chart above.)

Meanwhile, the private sector added just 64,000 jobs in September -- the fifth consecutive month of sluggish growth (see brown bars in chart). Employers remain guarded in their outlook and pessimistic with respect to the underlying strength of the recovery. This concern is highlighted by the fact that temporary employment -- which rose by nearly 50,000 in January -- has been edging down -- increasing by less thas 17,000 last month.

Along with anemic private sector job growth, the unemployment rate remained unchanged at an elevated 9.6 percent in September (see black line in chart). While those unemployed for at least half a year fell to 41.7 percent of the total unemployed, down from 46 percent in May, this concerning measure of joblessness remain well above the prior historic cyclical peak of 26 percent set in June 1983.

Falling for a second consecutive month and for the first time since last December -- manufacturing employment edged down by 6,000 in September. While manufacturers overall have added 136,000 jobs to payrolls so far this year, the fact that 99 percent of this increase took place during the first five months of the year shows that the economic recovery is cooling and not gaining steam.

Dave Huether

Chief Economist

National Association of Manufacturers

UMA MEMBER COMPANIES IN THE NEWS:

BLACK DIAMOND'S RITCHIE EXPLAINS 'WHY UTAH?'
By EDCUtah
Black Diamond Equipment Inc. CEO Peter Metcalf likes to say that "Utah works for Black Diamond."
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MITY-LITE NAMES NEW EVP, JOHN DUDASH
Business Wire
OREM, Utah--(BUSINESS WIRE)--Mity-Lite Inc. today announced that John Dudash has joined the company's management team as Executive Vice President of Sales & Marketing.
{read more}

BOEING NEWGEN TANKER WIN WOULD BRING 480 JOBS, $22 MILLION TO UTAH
BOEING
SALT LAKE CITY - The Boeing Company [NYSE: BA] today announced that Utah will benefit from an estimated 480 total jobs and generate an estimated $22 million in annual economic impact if the Boeing NewGen Tanker is selected as the U.S. Air Force's next aerial refueling aircraft.

Boeing submitted its proposal July 9 to replace 179 of the Air Force's 400 Eisenhower-era KC-135 aircraft. The Air Force is expected to award a contract in the fall.

“Boeing is honored to contribute to U.S. national security while creating good-paying aerospace jobs in Utah through the tanker program,” said Mark DeVoss, Supplier Management director, Boeing Tanker Programs. “The NewGen Tanker program will make the United States stronger militarily and economically.”

Utah manufacturers ready to produce critical components on the NewGen Tanker include Parker Hannifin in Ogden and Boeing in Salt Lake City.

Currently, Boeing has 750 employees in Utah and works with nearly 253 suppliers/vendors, delivering a total $283 million in annual economic impact.

The NewGen Tanker is a widebody, multi-mission aircraft based on the proven Boeing 767 commercial airplane and updated with the latest and most advanced technology. Capable of fulfilling the Air Force's needs for transport of fuel, cargo, passengers and patients, the combat-ready NewGen Tanker will meet or exceed the 372 mandatory requirements described in the service's final KC-X Request for Proposal released Feb. 24.

The NewGen Tanker will be made with a low-risk approach to manufacturing that relies on existing Boeing facilities in Washington state and Kansas as well as U.S. suppliers throughout the nation, with decades of experience delivering dependable military tanker and derivative aircraft. Nationwide, the NewGen Tanker program will support approximately 50,000 total U.S. jobs with Boeing and more than 800 suppliers in more than 40 states.

The Boeing NewGen Tanker also will be more cost-effective to own and operate than a larger, heavier tanker. It will save American taxpayers more than $10 billion in fuel costs over its 40-year service life because it burns 24 percent less fuel than the competitor's airplane.

Boeing has been designing, building, modifying and supporting tankers for decades. These include the KC-135 that will be replaced in the KC-X competition, and the KC-10 fleet. The company also has delivered four KC-767Js to the Japan Air Self-Defense Force and is on contract to deliver four KC-767As to the Italian Air Force.

More information on Boeing's NewGen Tanker, including video clips and an interactive tour of the aircraft, is available at http://www.unitedstatestanker.com/. For more information on joining the company's efforts, visit http://www.realamericantankers.com/.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

CONCERNS ARISE ABOUT STRENGTH OF WORLDWIDE ECONOMIC RECOVERY

Quick Manufacturing News
MAPI reports that near-term global growth prospects will be dominated by a halting and uncertain rebound in advanced economies. Click to continue

U.S. MACHINE TOOL SALES TOOK A BREAK IN AUGUST

Quick Manufacturing News
Domestic purchases of machine tools and related equipment and technology fell 5.7% from July to August, from $266.08 million to $246.42 million, according to the AMT/AMTDA U.S. Manufacturing Technology Consumption report. However, the August consumption figure represents an improvement of 88.0% over the August 2009 total ($131.06 million) and brings nationwide year-to-date machine tool consumption to $1,697.27 million, a rise of 62.4% versus the first eight months of 2009. Click to continue

INDIA'S MANUFACTURING OUTPUT GROWTH SLOWS TO 5.9%

Quick Manufacturing News
Last year sector grew 10.6% in August Click to continue

SUCCESSFUL EMPLOYEE DISCIPLINE TRAINING

Logan - October 20, 2010
Roy - October 26, 2010
Orem - October 28, 2010
Managing employee discipline is critically important to every organization’s continued success.

The ability of managers and supervisors to clearly communicate job expectations and fairly enforce work rules and effectively implement employee discipline is essential, but often difficult to accomplish.

This practical course will help managers, supervisors, and human resource professionals successfully manage the discipline process. Experienced Council staff will teach attendees core principles for effective discipline.

Areas of focus include:
Setting meaningful expectations
Understanding why employees fail
Four-step discipline process
Documenting to support employment decisions

Logan: October 20 - Bridgerland Applied Technology College, 1301 N 600 W, Logan, UT
Roy: October 26 - Ogden-Weber Applied Technology College, 1843 W 4000 S, Roy, UT
Orem: October 28 - Mountainland Applied Technology College, 1410 W Business Park Dr., Orem UT

Time: 8:00 - 10:30 AM (registration and continental breakfast from 7:30 - 8:00 a.m.)

Cost: $75 per Council member; $95 per non-member

To register, simply reply to this email with registration information or download the registration form at http://ecutah.org/supervision.pdf.

Certification: This program is approved for 2.25 credit hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute (HRCI).

U.S. OFFSHORE DRILLING BAN TO BE LIFTED

Today in Manufacturing.net
Obama administration is lifting the six-month moratorium on deep water oil drilling in the Gulf of Mexico imposed after the BP oil spill, U.S. officials said ... continue