Posts for May 13, 2011

UMA MEMBER COMPANIES IN THE NEWS:

SETPOINT SYSTEMS SIGNS CONTRACT WITH ATK SMALL CALIBER SYSTEMS
UB Daily

Setpoint Systems, a leader in design and manufacture of custom lean automation solutions and manufacturing equipment announced a new $11.9 million contract with ATK Small Caliber Systems to provide four additional .50-caliber ammunition case manufacturing systems for the Lake City Army Ammunition Plant at Independence, Missouri.
View Full Article

BOEING MAKES ITS CASE AGAINST THE NLRB AT SENATE COMMITTEE HEARING

Quick Manufacturing News
Hundreds of thousands of jobs could be at risk, Boeing's Luttig says. Click to continue

UTAH ADDS MORE WIND TO THE MIX OF ENERGY IT SENDS SOUTHERN CALIFORNIA

David McNew/Getty Images – UAE Weekly Energy Brief
Giant wind turbines are powered by strong prevailing winds on May 13, 2008 near Palm Springs, California.

Southern California utilities have added a new renewable energy source to their portfolios, thanks to a new wind project in Utah.

Milford 2 in Utah will send more than a hundred megawatts of energy to L.A.'s Department of Water and Power, Glendale Water and Power and a joint Southern California agency that both utilities belong to. Milford 2 comes on-line this week, joining its sibling Milford 1 that’s been sending power to the Southland for more than a year.

Together, they’ll produce enough energy to power 64,000 homes. That’s a small fraction of Southern California’s energy needs – but Milford 2 is still a big deal.

It’s near Utah’s coal-fired Intermountain Power Plant, so Milford’s wind power can use the same transmission lines that now deliver coal power to L.A. Milford’s transmission will cost a tenth of what it would if they had to string new power lines.

It’s not clear how long coal and wind will share transmission lines. The LADWP’s contract for coal energy from Utah’s Intermountain Power Plant doesn’t expire for 16 years. But Mayor Antonio Villaraigosa has vowed to end coal-powered electricity in L.A. in nine years.
Download

CONSUMER PRICES RISE IN APRIL

Today in Manufacturing
Labor Department said consumers paid more for gas and food in April, pushing inflation to its highest level in two and a half years ... continue

GM RETAKES TOP SPOT FROM QUAKE-CRIPPLED TOYOTA

Quick Manufacturing News
Regaining the top spot will be a tough slog for Toyota, analysts warned. Click to continue

EMPLOYMENT CONTINUED TO REBOUND IN APRIL, STRONGEST PRIVATE-SECTOR RISE IN MORE THAN FIVE YEARS

Written by Jeff Thredgold, Economist- Manufacturing and Technology eJournal

Overall job gains are still tepid versus average gains in prior U.S. economic recoveries; the stronger data of recent months is most welcomeRead more...

MANUFACTURERS OPPOSED TO ENDING OIL COMPANY TAX BREAKS.

Manufacturing Economy Daily-NAM
In a press release, the National Association of Manufacturers (5/13) reports a statement issued by President and CEO Jay Timmons in the wake of the Senate Finance Committee hearing, "Oil and Gas Tax Incentives and Rising Energy Prices." Timmons said, "This tax increase would be another strike against US manufacturers who already face a competitive disadvantage compared to those in other countries. Congress should not be in the business of picking winners and losers, nor should it single out a specific industry or companies to pay higher taxes as a result of their success." He concluded, "Manufacturers oppose this proposed tax increase and will continue to advocate for a broad-based energy strategy. Achieving energy independence, enhancing our global competitiveness and lowering the cost of energy through increased production is good for manufacturing and the overall US economy."

COMBUSTION SPECIALIST MAKES UTAH US HEADQUARTERS

UB Daily
The cost for a barrel of oil has been on the rise and exploration is still underway for other natural resources. Efficient combustion in obtaining these fossil fuels is more critical than ever and Profire Energy is excited to open their US headquarters in Utah County to help with the procurement for companies in the oil and gas exploration and transportation markets. Profire has purchased an additional 6,500 square feet of office and warehouse space adjacent to their existing location; the combined total of an approx.
View Full Article

FOCUS: ENERGY ISSUES TAKE CENTER STAGE: HOUSE VOTES TO INCREASE ENERGY SUPPLY AND SENATE CONSIDERS ENERGY TAXES

NAM Capital Briefing
The House of Representatives has passed a trio of bills that will help develop U.S. domestic energy resources and encourage manufacturing job growth and competitiveness. The NAM supports this bipartisan approach toward energy policy that expands domestic supplies in an environmentally safe manner and lowers costs for manufacturers, which use nearly one-third of our nation’s energy. Increasing access to domestic sources of reliable energy, both onshore and offshore, is essential to the long-term health of American manufacturing.

Thousands of jobs were lost during the 2010 drilling moratorium. The Putting the Gulf of Mexico Back to Work Act (H.R. 1229) prevents further delays by requiring the federal government to respond quickly and responsibly – within 30 days of receiving a permit application – while putting in place key provisions aimed at further ensuring worker safety and environmental protection. The House passed H.R. 1229 on May 11. Twenty-eight Democrats joined all 235 voting Republicans in support of the bill.

The Restarting American Offshore Leasing Now Act (H.R. 1230) also aims to accelerate the offshore permitting process for the Gulf of Mexico and forces the Department of Interior (DOI) to hold lease sales that were canceled or delayed since the moratorium. Specifically, it directs the DOI to conduct four oil and natural gas lease sales in the Gulf of Mexico and offshore Virginia by June 1, 2012. The House voted in favor of H.R. 1230 on May 5. Thirty-three Democrats supported the bill, as did all but two House Republicans.

H.R. 1231, the Reversing President Obama’s Offshore Moratorium Act, seeks to bolster offshore energy production by requiring future DOI five-year offshore leasing plans to include: 1) lease sales in areas containing the greatest known oil and gas reserves; 2) energy production goals; and 3) when requested by a coastal state’s governor, a lease sale that includes that state’s offshore area.

The NAM designated votes on all three bills as Key Manufacturing Votes for the 112th Congress. Manufacturers need access to reasonably priced energy to be competitive in the global marketplace and preserve high paying jobs here at home. These bills are common-sense policies that do just that, and the NAM is encouraging the Senate to swiftly follow suit.

Meanwhile, some in the Senate are moving forward on President Obama’s plan to raise taxes on the oil and gas industry despite the threat it poses to jobs. The Senate Finance Committee held a hearing on May 12 on “Oil and Gas Tax Incentives and Rising Energy Prices,” where they heard testimony from top executives from major oil companies. In advance of the hearing, the NAM submitted a statement to the committee expressing opposition to tax increases for energy companies, noting that the additional taxes will divert funds away from much-need investments and jobs and also increase the costs of fuel to American energy consumers and manufacturers.

The statement reiterated that the debate over energy policy should not be about imposing new taxes or new costs on the U.S. energy industry but about enhancing America’s energy security.
In a statement issued after the hearing, NAM President and CEO Jay Timmons noted the broader impact of the targeted tax increases: “These tax increases would be another strike against U.S. manufacturers who already face a competitive disadvantage compared to those in other countries. Congress should not be in the business of picking winners and losers, nor should it single out a specific industry or companies to pay higher taxes as a result of their success.

Targeting the oil and gas industry with punitive, discriminatory taxes is not the way to energy security. The U.S. has one of the highest corporate tax rates in the world, and those in the energy industry pay the highest tax rates among all U.S.-based businesses.”

Senate Majority Leader Harry Reid (D-NV) will soon bring to the floor S. 940, the Close Big Oil Tax Loopholes Act. The legislation, sponsored by Sen. Bob Menendez (D-NJ) and cosponsored by 27 Democrats, would impose roughly $21 billion in tax increases on the five largest oil/gas companies and direct the revenues to “deficit reduction.” A final vote on the legislation could occur sometime during the week of May 16.

The NAM continues to advocate for an all-of-the above approach to energy policy that focuses on increasing supply. The United States must expand access to domestic energy by opening additional areas of the country – offshore and onshore – to exploration and development. Reliable energy is critical to U.S. manufacturers who make and supply equipment, services, engines, boats and materials, such as steel and concrete. We must remove the roadblocks and permitting backlogs, resume drilling and start capitalizing on our domestic resources. The most effective way to combat rising energy costs is to enact policies that increase domestic energy production. {Back to top}

NAM CHALLENGES EPA’S BOILER MACT RULE WITH LITIGATION

NAM Capital Briefing
On Monday, May 9, the NAM and 10 other trade associations filed a reconsideration petition on the Boiler MACT suite of rules. The petition urges the Environmental Protection Agency (EPA) to take a second look at portions of the regulations affecting the largest-emitting boilers, smaller-emitting boilers and solid waste incinerators. The NAM remains concerned about many aspects of the rule, including the achievability of new limits, the establishment of emission limits based on limited data and revised definitions that could reclassify boilers as solid waste incineration units. In addition to this reconsideration petition, the NAM and other manufacturing groups also submitted a Petition for Administrative Stay on April 27, which urges the EPA to stop the rule from taking effect while the reconsideration process continues. The stay, if granted, would provide manufacturers with the certainty they need to make business decisions pending the final outcome of the reconsideration.

NAM FILES FIRST BRIEF AGAINST EPA GREENHOUSE GAS RULES

NAM Capital Briefing – Manufacturers in the Courts
On Tuesday, May 10, the NAM filed its first main brief in a federal appeals court challenging certain Environmental Protection Agency (EPA) rules being used to regulate greenhouse gases. The rules, adopted in 1978, 1980 and 2002, are now being used as a part of the agency’s overall effort to regulate greenhouse gases. The Clean Air Act was never intended to control or regulate greenhouse gas emissions. Because there was no indication when they were promulgated that the EPA would use them in this way, the NAM has new grounds to challenge them. This “grounds arising after” litigation is the first of four main cases being briefed over the next seven months. The brief focuses primarily on the timeliness of the lawsuits and on the fact that EPA’s interpretation of the Clean Air Act is unreasonable and creates absurd results. See American Chemistry Council v. EPA (D.C. Cir.). Details: Quentin Riegel, (202) 637-3058.