Wednesday, May 18, 2011

Posts for May 18, 2011

Michael Frohlich NAM ShopFloor Blog

The National Association of Manufacturers sent a “Key Vote” Letter today to the U.S. Senate expressing support for S. 953, the Offshore Production and Safety Act of 2011. A vote is expected today at 2:30 pm.

From the letter:
S. 953 provides for key safety provision aimed at further ensuring environmental protection and worker safety. The bill also provides for an efficient and responsible response to applications by requiring the Department of Interior to respond to an application within 30 days of receipt. In addition, the legislation will open more areas in the OCS for drilling which will expand the ability to explore and develop our domestic sources of energy more effectively.

Increasing access to domestic sources of reliable energy, both onshore and offshore, is essential to the long-term health of American manufacturing. While investments in new energy sources and efforts to boost efficiency gains play critical roles in meeting our nation’s future energy demands we cannot ignore the critical need to develop and utilize our domestic sources of energy.

NAM Key Votes are determined by an advisory committee of NAM member companies, both large and small. The votes are used to rate a member of Congress’ record on manufacturing-related issues.



Carter Wood - NAM ShopFloor Blog
The Senate handily rejected cloture Tuesday on S. 940, the Close Big Oil Tax Loopholes Act, which, shorn of political slogans, was the legislation to raise taxes on oil and gas development in the United States.

The vote was 52-48, with Democratic Sens. Mark Begich of Alaska, Mary Landrieu of Lousiana and Ben Nelson of Nebraska joining Republicans to block the bill that would do nothing to address gas prices, but would discourage U.S. energy security and global competitiveness. Sen. Susan Collins (R-ME) was the sole Republican to vote for cloture.

Next up once the Senate convenes at 10:30 a.m. this morning, a motion to proceed on legislation sponsored by Senate Republican Leader Mitch McConnell (R-KY) to expand domestic oil and gas production. S. 953, the Offshore Production and Safety Act, mirrors the bill passed by the House last week, H.R. 1299, the Putting the Gulf of Mexico Back to Work Act.

Sen. McConnell summarized the bill on the Senate floor Tuesday: “Our bill would return American offshore production to where it was before this administration locked it up, require Federal bureaucrats to process permits–to make a decision one way or the other: process the permit, make a decision one way or the other–rather than sitting on the permits. And it would improve offshore safety. Our plan not only acknowledges the importance of increasing domestic production, it does something about it, while ensuring environmental safety.”



Carter Wood – NAM ShopFloor Blog

There sure have been a lot of stories lately about the revival of manufacturing in the United States, examining the rise of productivity, investment and employment. Indeed, since the dark days of 2008, manufacturing has led the economic recovery and company leaders are generally optimistic.

Today’s front page of The Washington Post provides an example. The story is “The Rust Belt Shows Some Luster“:

NORTH CANTON, OHIO — More than 1,000 applicants began lining up this week outside a former Hoover vacuum plant here in the hopes of joining a surprising trend in this part of the nation’s manufacturing heartland: new jobs.

Come June, the plant will be churning out EdenPure space heaters, vacuums, air purifiers and other small appliances once made in China. The turnabout for this factory and scores of others across the long-suffering Rust Belt offers vivid evidence of a budding revival in American manufacturing that has been a key driver of the economic recovery.

The nation’s factories have added 250,000 jobs since the beginning of last year — about 13 percent of what was lost during the recent recession — marking the first sustained increase in manufacturing employment since 1997.

The Post provides a counterpoint: The jobs don’t pay as much as they used to, back in the halcyon days of American manufacturing. The photo gallery included with the online package tells the story: “There’s a surprising trend in the long-suffering manufacturing heartland: new jobs. But even so, the hiring reflects another emerging reality of U.S. manufacturing: Jobs don’t pay what they used to.”

Other recent examples of this trend story:
The Economist, May 12, “Moving back to America: The dwindling allure of building factories offshore

Joel Kotkin, Forbes.com (blog), May 9, “Manufacturing Stages a Comeback

Financial Times, May 4, “US set to regain industrial crown

Financial Times, May 1, “America’s ‘rust belt’ states lead recovery

Yes, FT had the same story the Post did today more than two weeks ago, with both papers citing the same economist, Mark Perry of the University of Michigan in Flint (currently a visiting scholar at the American Enterprise Institute). The Post’s story has more detail and local color, though. Nothing wrong with covering the same news.

Still, it makes us nervous to see so many articles pile up about manufacturing’s growing might. It’s a trend story, the conventional wisdom, and it’s journalistic practice to follow up with rebuttals and popping of balloons. In political journalism, you build up a candidate’s reputation and prospects only to tear him down later. When do the backlash stories about manufacturing begin?



Chad Moutray NAM ShopFloor Blog

Much of the economic data over the past couple weeks have shown manufacturing cooling somewhat in April, after strong growth in previous months. Today’s report from the Federal Reserve Board on industrial production mirrors this finding. While total industrial production was unchanged, manufacturing production fell 0.4 percent in April. Year-over-year growth in manufacturing production was 4.6 percent, reflecting the strong increases from previous months.

Prior to this month’s decline, the index had risen for nine consecutive months. Manufacturers’ capacity utilization figures also dropped in April from 74.8 to 74.4. Supply disruptions due to the Japanese earthquake and subsequent tsunami were one of the main reasons for the decline in April. Excluding the auto sector, industrial production actually rose 0.2 percent.

Nondurable goods edged out durables for the month of April, with the former up 0.1 percent and the ladder down 1.0 percent. Among the strongest gainers for the months in manufacturing were textile and product mills (up 2.4 percent), aerospace and miscellaneous transportation (up 1.3 percent), printing and support (up 1.3 percent), and computer and electronic products (up 1.1 percent). The largest monthly declines were in motor parts and vehicles (down 8.9 percent, reflecting parts shortages), petroleum and coal products (down 2.9 percent), electrical equipment, appliances and components (down 2.3 percent), and primary metals (down 1.1 percent).

These findings were similar to the conclusions reached in the new Empire State Manufacturing Survey for May, which was released yesterday by the New York Federal Reserve Bank. It found that businesses continue to expand but at a slower pace. The index of general business conditions fell from 21.7 to 11.9 (with positive numbers indicating growth). New orders and shipments fell for the month, with inventories up.

The survey respondents continue to cite rising input prices such as materials and higher energy costs, with the index for prices paid increasing from 57.7 to 69.9, continuing an ascent that began in November 2010. Meanwhile, the report shows the average employee workweek and number of employees edging higher – a sign that continued growth in the sector is leading to additional hiring. Manufacturers remain cautiously optimistic about growth over the next six months.

Chad Moutray is chief economist, National Association of Manufacturers.




Today in Manufacturing
U.S. Transportation Secretary told a group that the Obama administration wants consumers to be able to get a tax rebate at dealerships when they buy electric cars ... continue




Quick Manufacturing News
U.S. ports followed by Global Port Tracker handled 1.08 million twenty-foot equivalent units (TEUs) in March, a gain of only 0.3% over the same month a year ago. Click to continue



UTAH ADOPTS NEW CRANE SAFETY STANDARD IN CONSTRUCTION
UOSH

The Utah Occupational Safety and Health (UOSH) Division of the Labor Commission adopted 29 CFR 1926.1400-1442, Subpart CC, Cranes and Derricks in Construction, on January 27, 2011.

UOSH will begin enforcing this standard on July 27, 2011. UOSH invites employers to learn more about this new crane safety rule and how to best implement compliance with its requirements. According to OSHA, the final rule will have an impact on approximately 267,000 construction, crane rental, and crane certification establishments, employing 4.8 million workers in the United States. OSHA estimates that 89 crane related fatalities occur every year in construction work in the United States.

Some of the highlights of this new OSHA standard (29 CFR 1926 – Subpart CC) are:

• Preventing electrocution, crushed-by, and struck-by during crane assembly/disassembly – 1403 - 1406; 1412
• New procedures for working near power lines – 1407 – 1411
• Assessment of ground conditions – 1402
• Crane Operator’s qualifications certification – 1427
• Rigger qualifications - 1404
• Signal persons qualifications – 1428

The Utah Occupational Safety and Health (UOSH) invites employers to learn more about workplace safety and health by visiting the OSHA website at www.osha.gov or the NIOSH website atwww.cdc.gov/niosh/ or by calling Utah OSHA at 801.530.6901 (Compliance) or 801.530.6855 (Consultation).

No comments:

Post a Comment