Posts for March 3, 2011

BUFFETT SAYS ECONOMY IS STILL IMPROVING

Today in Manufacturing
Billionaire Warren Buffett says the U.S. economy continues to improve and doesn't need as much government help as it is currently getting ... continue

FEBRUARY RETAIL SALES RISE

Today in Manufacturing
Retail sales rose in categories ranging from clothing to furniture, despite winter storms and rising gas prices, according to MasterCard Advisors' SpendingPulse ... continue

UTAH MANUFACTURERS FACING CHALLENGES IN STRIDE

UB Daily
At a Utah Business manufacturing roundtable discussion held Wednesday, March 2, industry experts said while manufacturers in Utah have been facing a lot of challenges—commodity price increases, foreign competition, and finding an educated workforce—they also have a lot of unique advantages. Like its strong, experienced leadership, innovative companies and the fact they’re doing business in Utah, a state with a collaborative environment that doubled its exports in the past five years, and according to Gov. Herbert plans to double again in the next five years.
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OGDEN-WEBER ATC AWARDED GRANT

UB Daily
The U.S. Department of Labor has awarded the Ogden-Weber Applied Technology College a grant in the amount of $1,095,000 for implementation of the YouthBuild program in Weber County.
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PRODUCTIVITY UP IN 4TH QUARTER

Today in Manufacturing
Productivity grew in the final quarter of 2010 at the fastest pace in nine months, but economists expect a significant slowdown in the growth rate in 2011 ... continue

UNEMPLOYMENT AID REQUESTS FALL TO NEAR LOW

Today in Manufacturing
The number of people requesting unemployment benefits last week plunged to a nearly three-year low, suggesting companies will increase the pace of hiring this year ... continue

SAVE MONEY BY REPORTING WORKPLACE INJURIES EARLY

by Greg Summerhays- Workers Compensation Fund
You’ve heard it over and over again—report claims as soon as possible to lower claims costs, but do you put this adage into action? The International Association of Industrial Accident Boards and Commissions (IAIABC) confirmed that the faster the claims process is started, the lower the workers’ compensation costs. When there was a delay in reporting, there were higher medical costs, higher rates of attorney involvement and litigation, and disputes over causation, and longer periods of disability than normal for a particular injury.

In their research, IAIABC discovered there was little difference in claims cost with claims reported within a few days of the injury. However, after seven days, claims costs began to escalate and when reporting was delayed 29 or more days, the claims costs were about 45 percent higher.

In a separate analysis, The Hartford examined 30,000 claims in three categories—back injuries, carpal tunnel syndrome and other nerve disorders, which accounted for two-thirds of all lost-time workers’ compensation claims. They discovered the claims filed five or more days after an injury cost an average of 15 percent more than similar claims filed within 48 hours.

In a review of 78,000 claims, Kemper Insurance discovered that injuries reported within 10 days cost an average of $12,082. Injuries reported between 11 and 20 days cost $15,582, and those reported between 21 and 30 days cost $17,920—an increase of 48 percent than those reported in 10 days or less.

In 2010 the average number of days that it took WCF policyholders to report claims was approximately 26 days. According to the research done by Kemper Insurance these WCF policyholders saw a 48 percent increase in their claims costs simply for late reporting.

Taking the following measures can help in reporting claims earlier and lowering your claims costs.

Educate your employees on how to report an accident. Establish a written company policy that includes the individual’s name in your company who receives accident reports.

Don’t ignore a claim, even if you think it is questionable. Report all incidents that require any medical treatment to your workers’ compensation carrier. The law requires all employers to file a First Report of Injury. If you dispute a claim, report it anyway along with a letter outlining your concerns. It will allow your carrier to manage a claim without accepting liability until a thorough investigation has occurred.

Establish a relationship with a company physician and clinic. Occupational Medical Centers, serve as excellent company doctor choices. Be sure to notify your employees of your choice.

Stay involved with your claims. Keep in contact with your injured employee. Address your employee’s questions or concerns about returning to work.

Provide modified duty as soon as possible. The sooner an employee returns to work, the easier it is to manage the medical costs. Often, they see the doctor and therapists less frequently. There is also a therapeutic value to being at work, following a regular schedule, and seeing friends and associates. It increases communication, is an effective way to handle a difficult claim, decreases potential for fraud, and controls benefits.

Work closely with you adjuster. He or she will become familiar with your company and will help coordinate your workers’ compensation needs, including providing loss runs, analyzing trends, offering suggestions, and helping you set up programs such as modified duty and a company doctor.

In these tough economic times employers must find ways to cut expenses. Reporting claims on time will help reduce claims costs and in turn reduce workers compensation insurance premiums.

Greg Summerhays is Director of Public Relations 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.

ALCOA BUYS OUT PARTNER'S SHARE OF NEW PROCESS

Today in Manufacturing
Aluminum producer Alcoa Inc. said on Thursday that it will buy out a partner's stake in technology used for an experimental method for making aluminum ... continue

NAM Urges Interior Department to Accelerate Drilling Permits

NAM Capital Briefing
On Monday, February 28, the Department of Interior (DOI) approved its first deepwater drilling permit for the Gulf of Mexico since the offshore drilling moratorium was lifted four months ago. The Administration’s moratorium—initially put in place in May 2010—halted drilling activity in waters deeper than 500 feet, costing thousands of jobs and setting back the path to U.S. energy independence.

The NAM believes the DOI took a positive step forward in issuing this permit, but there is a long way to go to put the permitting process back on track. More than a dozen other companies are awaiting review and approval of their own permits. To maintain their leases and rigs, companies are paying approximately $500,000 or more per day so that they can immediately return to operation once the permits are approved. The NAM is urging the Administration to issue permits and bring more clarity to the regulatory process so that we can begin to create jobs.
Some lawmakers also have called on the DOI to approve more applications to ease the economic impact of the prolonged shutdown. Interior Secretary Ken Salazar testified before the Senate Energy and Natural Resources Committee on Wednesday, March 2, regarding his agency’s 2012 budget request. He also faced questions regarding the delay in approving permits and resuming drilling in the Gulf.

While unemployment remains high, the United States cannot afford more permitting delays or more lost jobs. Every day the rigs remain idle, thousands of jobs are at risk in the Gulf Coast and throughout the nation and the harmful economic effects of the slow permitting process continue.
The U.S. oil industry supports 9.2 million American jobs. Of those, 170,000 are located in the Gulf region and are related to offshore oil exploration. Many of those jobs are performed by men and women who make and supply equipment, services, engines, boats and machinery and materials. Companies must be allowed to drill responsibly in the Gulf and bring jobs back to the region.

Progress also is essential to our economic growth. The demand for oil and natural gas is rising. We need these fuels for transportation and for the manufacturing industry.

NAM-SUPPORTED 1099 REPEAL PASSES HOUSE

NAM Capital Briefing
The House passed H.R. 4, the Small Business Paperwork Mandate Elimination Act, on March 3 by a vote of 314 to 112. H.R. 4 repeals the burdensome 1099 reporting requirements that were included in last year’s new health care law and scheduled to go into effect in 2012. The NAM key voted in favor of H.R. 4, which fully repeals the provision with the revenue offset of requiring greater repayment of improper, taxpayer-funded subsidies included in the health care law. Last month, the Senate passed by an overwhelming vote an amendment offered by Sen. Stabenow (D-MI) that would repeal 1099 with spending cut offsets to be determined by the Administration, as part of the Federal Aviation Administration (FAA) reauthorization bill (S. 223). The next step is for the House and Senate to resolve their differences about the revenue offset for repealing 1099 and to determine whether to advance a final compromise as a stand-alone bill such as H.R. 4 or as part of other legislation likely to be approved by both chambers. The Administration issued a statement on March 1 supporting 1099 repeal but objecting to the House-passed bill revenue offset. The NAM continues to urge Congress and the President to act quickly and avoid further delays that harm business.

HEALTH CARE UPDATE

NAM Capital Briefing
President Obama announced at the National Governors Association meeting in Washington on February 28 that he supports legislation introduced by Sens. Wyden (D-OR) and Scott Brown (R-MA) to allow states to opt out of the mandates and requirements of the Patient Protection and Affordable Care Act in 2014 if the states can demonstrate the ability to meet the coverage goals of the Act through other means. The law currently allows states to opt out under similar conditions, but not until 2017. The NAM is monitoring various pieces of legislation to ensure that the waivers do not weaken ERISA pre-emption if implemented.

EPA EXTENDS DEADLINE FOR THE GREENHOUSE GAS REPORTING REQUIREMENTS

NAM Capital Briefing
The Environmental Protection Agency (EPA) announced this week that it would extend the reporting deadline for its Greenhouse Gas (GHG) Reporting Program. The initial deadline had been March 31, but the EPA granted the extension in order to fix some problems with the electronic reporting platform. While the Agency has yet to confirm the new deadline, we expect it will be late summer of 2011. Additional information is available on the EPA website here.

HIGHWAY AND TRANSIT PROGRAMS EXTENDED

NAM Capital Briefing
H.R. 662, the Surface Transportation Extension Act of 2011, which extends highway and transit programs until September 30, passed the House of Representatives yesterday by a vote of 421-4. The measure aims to prevent a shutdown of federal highway and transit programs on Friday, March 4, and offers a seven-month window for the House and Senate to complete a multi-year surface transportation authorization. The legislation must pass the Senate and receive a signature from the President on or before the March 4 deadline to avoid closure of the Federal Highway and Federal Transit Administrations. For manufacturers in the transportation supply chain, this extension is critical to avoid a work stoppage of federally sponsored highway and transit projects across the country and provide a level of funding certainty to the states during the upcoming construction season.