November 29, 2010
A clear majority of the major indicators that came out last week (five of eight) improved. (To see all of last week's reports, see the Latest Economic Reports section below.)
The Commerce Department's second estimate of third-quarter GDP growth showed that the economy grew a little faster in the three months ending in September (2.5 percent) compared to the initial estimate made the prior month (2 percent).
Two of the three negative reports last week involved the housing market. This shows that momentum remains negative six months after the end of the homebuyer tax credit in April.
Two of the three major reports on manufacturing were positive last month. The advanced report for durable goods orders in October was negative, and the decline was exceptionally large (see the section below for details).
It is important to note, however, that this series is very volatile. Looking at the data in a slightly more long-term view (the 12-month change in the black line in the chart above as well as the three-month change (annual rate) in the red and green bars) shows that positive momentum for demand for big-ticket items continues, though at a slower pace than earlier in the year.
For the three months ending in October, new orders for nondefense capital goods rose at an annual rate of 9.4 percent. Over the 12 months ending in October, orders were up by 15 percent. While the pace of orders is not as high as it was earlier in the year, it remains strong - showing that companies continue to have enough confidence in the recovery to expand investment plans, which is a positive sign going forward.
Dave Huether
Chief Economist
National Association of Manufacturers
Quick Manufacturing News
Revenue in the United States for commercial warehousing will reach $50 billion this year. Contract and public warehousing combined are expected to exceed 2008 revenues by 2% after declining in 2009. The contract and public commercial warehousing market now constitutes 45% of the total U.S. market. Click to continue
Today in Manufacturing
The bill, which has stalled in that chamber for more than a year, would give the FDA authority to order a recall of tainted products ... continue
Today in Manufacturing
Retailers are unsure how much people will spend before Christmas in a bumpy economy and consumers grapple with a 9.6 percent unemployment rate .... continue
Today in Manufacturing
Report released Monday said increasing urbanization and global industrialization should push shares higher for companies associated with coal mining industry ... continue
OSHA: TOP 10 SAFETY VIOLATIONS
Employers Council
OSHA has announced the top 10 most frequently cited safety standards during fiscal year 2010 (Oct. 1, 2009 to Sept. 30, 2010), based on worksite inspections by OSHA during that time period. OSHA publishes this list about commonly cited standards so that employers can take
steps to find and fix these and other recognized hazards before OSHA shows up at the employer's door. The most frequently cited standards are:
1. Scaffolding;
2. Fall protection;
3. Hazard communication;
4. Respiratory protection;
5. Ladders;
6. Lockout/tagout;
7. Electrical, wiring methods;
8. Powered industrial trucks;
9. Electrical, general requirements; and
10. Machine guarding.
Today in Manufacturing
Emerging Markets Direct report shows China ranked number one in crude steel production again in 2009, sharing 46.3 percent of the world's total ... continue
Quick Manufacturing News
Owners of small- and mid-sized businesses in the United States are feeling optimistic, citing increased hiring and profit growth among key 2011 business predictions. Click to continue
EPA REGULATION OF OZONE
Manufacturers in the Courts - NAM
Upcoming action from EPA threatens further overregulation.
The last EPA regulation of ozone emissions under the Clean Air Act in 2008 resulted in lawsuits from business and environmental groups, including the NAM. The case has been held in abeyance since early in the Obama Administration, but EPA proposed revisions to the rule this year, and is expected to complete its process by the end of the year. The NAM filed comments in March, and is preparing for further litigation if needed once EPA issues its final regulation. See Mississippi v. EPA (D.C. Cir.).
GOVERNMENT USE OF CONTINGENT FEE LAWYERS
Manufacturers in the Courts - NAM
NAM asks Supreme Court to review state litigation practice.
The California Supreme Court recently ruled that local governments may use contingency fee lawyers to bring product liability cases as long as the ultimate authority for the litigation remains with those governments. This is a highly contentious issue, and manufacturers are very concerned about the misuse of government power to prosecute damaging lawsuits using outside lawyers with a financial interest in the outcome. The NAM and other groups urged the U.S. Supreme Court on Nov. 24 to review the California ruling's impact on due process rights. Government's use of contingency fee lawyers has provoked public outrage, and has so far affected many industries, including tobacco, firearms, lead paint, poultry and pharmaceuticals. See Atlantic Richfield Co. v. County of Santa Clara (S. Ct.).
LABOR LAW
Manufacturers in the Courts - NAM
Supreme Court considers broadening anti-retaliation remedies.
The Court will hear arguments on Dec. 7 over broadening the anti-retaliation provision in Title VII of the Civil Rights Act to include "friends and family" of a worker who complains about discrimination in the workplace. On October 29, the NAM filed an amicus brief arguing that the statute is clear on its face and protects only those who personally "opposed" a discriminatory employment practice or personally "made a charge, testified, assisted, or participated" in a Title VII proceeding. A rule that permits wide-ranging third-party retaliation claims would put employers in the untenable position of having to speculate about possible relationships an employee may have that could give rise to potential liability each time they contemplate disciplinary action against that employee. See Thompson v. North American Stainless LP (S. Ct.).
NAM files amicus brief on "card check" cases at the NLRB.
On November 1, the NAM filed an amicus brief on behalf of 42 manufacturing organizations with the National Labor Relations Board in response to the Board's request for advice on a pending case. The question: should employees have 45 days after their employer recognizes a union based on card-check authorizations to file a petition to decertify the union or to support an election petition from another union. Our amicus brief argues that this important 45-day window should not be eliminated. Individual free choice regarding whether to be represented at all by a third party is a necessary precondition to any collective negotiation, and card-check union certification is far inferior to a secret ballot election. See In re Rite Aid Store #6473 (NLRB).
NAM questions EEOC enforcement tactics.
The NAM and other groups filed an amicus brief Nov. 10 urging the Eighth Circuit to overturn a trial court ruling that authorized the EEOC to enforce an administrative subpoena that was not based on a valid charge of discrimination, and that broadly sought information that was not relevant to the charging party's claims. A single employee's complaint about sexual harassment and retaliation does not support the EEOC's broadening of the case to a charge of class-wide discrimination, without a "clear and concise statement of the facts" constituting the alleged violation, according to our brief. Otherwise, EEOC would be able to conduct an open-ended audit of all of the company's employment practices, in violation of statutory language designed to prevent the exercise of unconstrained investigative authority. See EEOC v. Schwan's Home Service (8th Cir.).
Quick Manufacturing News
The outlook for spending on transportation equipment is for robust 60.3% growth in 2010, 22.7% in 2011, and 23.1% in 2012. Click to continue
Quick Manufacturing News
The Equal Employment Opportunity Commission heard testimony that age discrimination is causing the nation's older workers to have a difficult time maintaining and finding new employment, a problem exacerbated by the downturn in the economy. Click to continue
The Equal Employment Opportunity Commission heard testimony that age discrimination is causing the nation's older workers to have a difficult time maintaining and finding new employment, a problem exacerbated by the downturn in the economy. Click to continue
Today in Manufacturing
Unemployment benefits help drive the economy because the jobless tend to spend every dollar they get, pumping cash into businesses ... continue
Unemployment benefits help drive the economy because the jobless tend to spend every dollar they get, pumping cash into businesses ... continue
Today in Manufacturing
Report offered some comfort to retailers during the holiday shopping season, but shoppers remain downbeat as they grapple with high unemployment ... continue
Report offered some comfort to retailers during the holiday shopping season, but shoppers remain downbeat as they grapple with high unemployment ... continue
Today in Manufacturing
Senate has passed legislation to make food safer in wake of deadly E. coli and salmonella outbreaks, potentially giving government broad new powers ... continue
Senate has passed legislation to make food safer in wake of deadly E. coli and salmonella outbreaks, potentially giving government broad new powers ... continue
New York Times
According to the New York Times, "The Senate on Monday failed to repeal an unpopular element of the health care overhaul even though Democrats and Republicans agreed it needed to be jettisoned to prevent businesses from being saddled with undue tax paperwork."
This is a typical wrangle for contentious issues, especially in a “lame duck” session of Congress. The Senate failed twice to pass an already agreed upon measure to eliminate an egregious provision of the Obama Healthcare package that places very heavy burdens on small and mid-sized manufacturers.
According to the New York Times, "The Senate on Monday failed to repeal an unpopular element of the health care overhaul even though Democrats and Republicans agreed it needed to be jettisoned to prevent businesses from being saddled with undue tax paperwork."
This is a typical wrangle for contentious issues, especially in a “lame duck” session of Congress. The Senate failed twice to pass an already agreed upon measure to eliminate an egregious provision of the Obama Healthcare package that places very heavy burdens on small and mid-sized manufacturers.
PREVENTING REPETITIVE TRAUMA DISORDERS
By Greg Summerhays – Workers Compensation Fund
When contemplating the possible effects of repetitive trauma disorders (RTDs), consider ergonomics. Ergonomics is the study of proper work designs and environments for human characteristics. Researchers are constantly striving to learn more about human limitations and capabilities. This information is being used in workstations, tool and equipment development, and work task applications.
When contemplating the possible effects of repetitive trauma disorders (RTDs), consider ergonomics. Ergonomics is the study of proper work designs and environments for human characteristics. Researchers are constantly striving to learn more about human limitations and capabilities. This information is being used in workstations, tool and equipment development, and work task applications.
While there is no evidence that following the guidelines presented here will eliminate the development of cumulative trauma symptoms in susceptible people, there are indications that the probability of their occurrence will be reduced. General and specific guidelines are given for the prevention and management of repetitive trauma disorders in the workplace.
General Guidelines:
• Engineer products to allow machinery to do highly repetitive tasks; leave more variable tasks to human operators.
• Spread the load over as many muscle groups as possible to avoid over-loading the smaller muscle groups.
• Design tasks to permit gripping with the fingers and palm instead of pinching.
• Avoid extreme flexion or extension of the wrist. Design work surface heights, orientations, and reach length to permit the joints to remain as close a possible to their neutral positions for maximum muscle strength. Keep forces low during rotation or flexion of the joint. Use power assists if forces are high. Avoid repetitive gripping actions.
• Provide fixtures to hold parts during assembly so that awkward holding postures can be minimized.
• Provide a variety of tasks over a work shift, if possible.
• Minimize time or pace pressures.
• Give people time to break into a new repetitive task.
Specific Design Guidelines:
• Keep the work surface height low enough to permit the operator to work with elbows to the side and wrists near their neutral position. Avoid sharp edges on workplace parts bins that may irritate the wrists when the parts are procured.
• Keep reaches within 20 in. of the front of the work surface so the elbow is not fully extended when forces are applied.
• Keep motions within 20 to 30 degrees of the wrist’s neutral point.
• Avoid operations that require more than 90 degrees of rotation around the wrist.
• Avoid gripping requirements in repetitive operations that spread the fingers and thumb apart more than 2.5 in. Cylindrical grips should not exceed a diameter of 2 in. with 1.5 in. as the preferable diameter. Hand tools that produce vibrations, require wide grip spans, or repetitively abrade the wrist area during use are of particular concern.
• For continuous, highly repetitive operations, design a five-minute break for another activity into each hour.
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