June 13, 2011
There was a marked difference between the doom-and-gloom economic discussions of two weeks ago with the conversations that took place last week. Last week’s series of economic indicators tended to stress the positive, particularly when one focuses on future growth in manufacturing.
Last Monday, we released the latest NAM/IndustryWeek Survey of Manufacturers, which found that 86.4 percent of respondents had either a somewhat or very favorable view of the current business climate. This is the highest in five years, and these same individuals had high expectations for future sales, capital spending, employment, and export growth. In addition to new hiring, manufacturers expect to see wages go up an average of 1.8 percent over the next 12 months, with some respondents indicating much higher raises.
International trade is seen as a huge opportunity for future growth in their businesses, with 45 percent of respondents predicting increases in the level of their exports over the next year. Those who foresee higher export sales are also significantly more positive in their view of the current business climate than those who do not. Separate from the survey, the Commerce Department released new trade figures that further confirm the importance of exports to manufacturers' bottom lines. Manufactured goods exports rose 15 percent over the past year -- which is in line with where we need to be if the U.S. is to double exports by 2015.
Adding to the good news of the week was the Federal Reserve Board's Beige Book. While acknowledging the recent slowdown in business activity in nearly every one of its regions, the Fed observed mostly favorable outlooks on the part of manufacturers. Supply disruptions from the earthquake in Japan and rising prices have had a major impact on the manufacturing industry, but in a speech given in Atlanta, Chairman Ben Bernanke noted that "the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers."
By citing favorable expectations, no one should understate the current challenges in manufacturing or in the overall economy. Indeed, the NAM/IndustryWeek survey found that the economy was the largest concern among those who responded. (See the pie chart above.) Others cited the rising cost of raw materials and increased regulatory burdens as their most important concerns.
Given those challenges, it is important for us to continue to focus on ways to spur new economic growth, to open up new markets for our products, and to ensure that we have a business environment that allows our firms to flourish. As I said at the Chicago Council on Global Affairs last week, we need to have competitive tax, trade, and regulatory policies to support job creation and keep manufacturing in America strong and vibrant.
Chad Moutray
Chief Economist
National Association of Manufacturers
GOV'T ADDS 8 CHEMICALS TO CANCER LIST
Today in Manufacturing
Formaldehyde and styrene were among the additions to government's list of chemicals and biological agents that may increase the risk of cancer ... continue
AP: ECONOMISTS AGAINST MORE ACTION FROM FED RESERVE
Today in Manufacturing
Economists surveyed by AP say Federal Reserve shouldn't bother trying to stimulate the economy -- and could actually do damage if it did ... continue
WEST COAST TRUCKERS THREATEN STOPPAGE OVER EMISSION REGS
Quick Manufacturing News
A motor carriers' petition in which companies warn of a general work stoppage at the Port of Oakland has been delivered to Governor Jerry Brown. Local truckers propose a shutdown of all cargo movements at the Port should the California Air Resources Board not be forthcoming with requested relief from the next phase of State emissions controls. Click to continue
PROTECTING INDUSTRIAL WORKERS FROM RADIATION
Quick Manufacturing News
2010 Future Leader in EHS Jason Townsell calls the ALARA (As Low As Reasonably Achievable) principle 'the most simple and effective principle of worker protection from radiation. Click to continue
OBAMA HITS ROAD SEEKING JOBS
Quick Manufacturing News
Political experts say Obama's hopes of winning a second term may depend on a turnaround of the economy, after recent data showed the recovery apparently slowing, with disappointing jobs and manufacturing numbers. Click to continue
BLOG: FULL OF SOUND AND FURY
Quick Manufacturing News
If I were selecting my college classes today, I'd have something a little more practical in mind, especially after the Great Recession ... continue
ANALYSIS: ECONOMY NOT PRODUCING "GREEN JOBS."
Politico
In North Carolina, Obama will "talk once again about the job-creating power of a green economy. The catch? Nearly three years into Obama's presidency, the White House can't point to much solid evidence that significant numbers of Americans are scoring the green jobs the president has been touting." Politico adds that "Obama's Council of Economic Advisers suggests 225,000 clean energy jobs were either created or preserved through the third quarter of 2010 thanks to more than $80 billion in the economic stimulus package. But those are estimates at best."
DOUBLE DIP UNLIKELY ABSENT "SIGNIFICANT" SHOCK
Wall Street Journal
According to the Wall Street Journal, most economists consider a double-dip recession unlikely unless there is a major event that undermines the recovery substantially. Stanford's Bob Hall, chairman of the National Bureau of Economic Research committee of academic economists, says, "The shocks that have pushed us into recession have not been that small. It takes a significant adverse impulse."
FEATURE: MAKING YOUR LOADING DOCK SAFER
Today in Manufacturing
Forklift accidents are a serious reality at the loading dock, and choosing appropriate vehicle restraints to help prevent tragedies can be difficult ... continue
TIMKEN'S MITSUBISHI FORGE-ROLLING LINE WILL BE FIRST IN U.S.
Quick Manufacturing News
The $35 million installation involves is an open-die process that shapes cast billets before they are fully solidified, to improve the internal structural quality of the product and enhance material yield. Click to continue
STATES MUST BE EMPOWERED TO ADDRESS EMERGING NANOTECHNOLOGY ISSUES
Quick Manufacturing News
More information and resources are needed to protect workers, the public and the environment from possible nanomaterial exposures and hazards. Click to continue
GOVERNOR ANNOUNCES MAJOR BUSINESS EXPANSION ADDING 2,700 JOBS
UB Daily
Flanked by company leadership at the Utah Capitol, Governor Gary R. Herbert announced that ITT Corporation will bring more than 2,700 new jobs to Utah over the next 15 years, 500 of which are planned for the near future. “With Utah’s unemployment rate at 7.
View Full Article
MANUFACTURERS TESTIFY ON CAPITOL HILL ABOUT RARE EARTH, CRITICAL MINERALS
NAM Capital Briefing
On June 3, the House Subcommittee on Energy and Materials Resources held a hearing on two bills related to critical minerals, H.R. 2011 and H.R. 1314. Steve Duclos, Chief Scientist and Manager-Materials Sustainability for General Electric (GE), testified on behalf of the NAM. Dr. Duclos focused on the necessity of strengthening a reliable supply chain for U.S. industries. His testimony can be viewed here. He is also testifying today before a Senate Energy and Natural Resources subcommittee. The NAM continues to monitor these and other legislative developments related to the rare earth, critical minerals issued and will continue to provide legislators with important information and insight into the needs of industry.
NAM QUESTIONS EPA INTERFERENCE WITH EXISTING CLEAN WATER ACT PERMITS
NAM Capital Briefing
On June 3, the NAM and 11 other business groups filed an amicus brief urging a federal judge to rule that the EPA does not have the authority to modify previously issued permits under Section 404 of the Clean Water Act. Our brief highlights the dramatic change that the EPA’s action represents, citing a new study showing that the threat that the EPA may modify existing permits distorts the cost-benefit ratio of new investment projects. The study also details effects on bank financing and interest rates, bond ratings, rationed credit, land prices and other harms throughout the economy.
THIRD PHASE OF NAM LITIGATION AGAINST EPA’S GREENHOUSE GAS REGULATIONS ADVANCES
NAM and 66 other parties filed a combined brief in this ongoing litigation, detailing all the key arguments why the EPA’s motor vehicle rule should not trigger the regulation of stationary sources of greenhouse gas emissions. The brief questions the promulgation procedures, effectiveness and enormous costs of stationary source regulations, as well as the absurd consequences that result from the EPA’s discretionary decision. Briefing in the case will conclude on October 31.
SALE OF MANUFACTURING PLANT CREATES LIABILITY FOR PURCHASER
NAM Capital Briefing
Navigating the requirements of the Employee Retirement Income Security Act (ERISA) continues to cause problems for manufacturers. When one company bought a power plant from another, it hired its then-active employees. When the plant closed, the employees sued and won termination benefits. The case is now on appeal, and last week the NAM filed an amicus brief arguing the judge’s unwarranted extension of ERISA’s complex rules will encourage protracted litigation over similar business transactions and will inhibit employer flexibility in restructuring.
NAM CHIEF ECONOMIST DISCUSSES MANUFACTURING’S FUTURE AT CHICAGO COUNCIL ON GLOBAL AFFAIRS
NAM Capital Briefing
On June 9, NAM Chief Economist Chad Moutray joined an expert panel at an event cosponsored by the NAM to discuss manufacturing’s leadership role in the economic recovery and threats to sustained growth. He joined NAM member David Beebe of Navistar, Inc.; William Strauss of the Federal Reserve Bank of Chicago; and Diane Swonk of Mesirow Financial before an audience of 125 corporate executives. Moutray emphasized the need for competitive tax, trade and regulatory policies to support job creation and keep manufacturing in America strong and vibrant. For more on the event, click here.
ALCOA COMPETES AGAINST AIRCRAFT COMPOSITES
Today in Manufacturing
Alcoa developed new alloys and engineering techniques that will give it a chance to compete against non-aluminum parts increasingly used by plane makers ... continue
UNEMPLOYMENT, FOOD PRICES BRING DOWN ECONOMY
Today in Manufacturing
Jobs are scarce and food prices are likely to stay high, according to new data that reinforced evidence of a U.S. economy stuck in a weak patch ... continue
DISSENT WITHIN OPEC MAY ERODE ITS POWER
Today in Manufacturing
OPEC's admission of major dissent within its ranks has left it reeling and its status as the world's oil power-broker tarnished, perhaps beyond repair ... continue
OBAMA HAS NO FEARS OF DOUBLE-DIP RECESSION
Today in Manufacturing
President Obama insisted he's not afraid of the country slipping into a double-dip recession, but said pace of recovery has 'got to accelerate' ... continue
There was a marked difference between the doom-and-gloom economic discussions of two weeks ago with the conversations that took place last week. Last week’s series of economic indicators tended to stress the positive, particularly when one focuses on future growth in manufacturing.
Last Monday, we released the latest NAM/IndustryWeek Survey of Manufacturers, which found that 86.4 percent of respondents had either a somewhat or very favorable view of the current business climate. This is the highest in five years, and these same individuals had high expectations for future sales, capital spending, employment, and export growth. In addition to new hiring, manufacturers expect to see wages go up an average of 1.8 percent over the next 12 months, with some respondents indicating much higher raises.
International trade is seen as a huge opportunity for future growth in their businesses, with 45 percent of respondents predicting increases in the level of their exports over the next year. Those who foresee higher export sales are also significantly more positive in their view of the current business climate than those who do not. Separate from the survey, the Commerce Department released new trade figures that further confirm the importance of exports to manufacturers' bottom lines. Manufactured goods exports rose 15 percent over the past year -- which is in line with where we need to be if the U.S. is to double exports by 2015.
Adding to the good news of the week was the Federal Reserve Board's Beige Book. While acknowledging the recent slowdown in business activity in nearly every one of its regions, the Fed observed mostly favorable outlooks on the part of manufacturers. Supply disruptions from the earthquake in Japan and rising prices have had a major impact on the manufacturing industry, but in a speech given in Atlanta, Chairman Ben Bernanke noted that "the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers."
By citing favorable expectations, no one should understate the current challenges in manufacturing or in the overall economy. Indeed, the NAM/IndustryWeek survey found that the economy was the largest concern among those who responded. (See the pie chart above.) Others cited the rising cost of raw materials and increased regulatory burdens as their most important concerns.
Given those challenges, it is important for us to continue to focus on ways to spur new economic growth, to open up new markets for our products, and to ensure that we have a business environment that allows our firms to flourish. As I said at the Chicago Council on Global Affairs last week, we need to have competitive tax, trade, and regulatory policies to support job creation and keep manufacturing in America strong and vibrant.
Chad Moutray
Chief Economist
National Association of Manufacturers
GOV'T ADDS 8 CHEMICALS TO CANCER LIST
Today in Manufacturing
Formaldehyde and styrene were among the additions to government's list of chemicals and biological agents that may increase the risk of cancer ... continue
AP: ECONOMISTS AGAINST MORE ACTION FROM FED RESERVE
Today in Manufacturing
Economists surveyed by AP say Federal Reserve shouldn't bother trying to stimulate the economy -- and could actually do damage if it did ... continue
WEST COAST TRUCKERS THREATEN STOPPAGE OVER EMISSION REGS
Quick Manufacturing News
A motor carriers' petition in which companies warn of a general work stoppage at the Port of Oakland has been delivered to Governor Jerry Brown. Local truckers propose a shutdown of all cargo movements at the Port should the California Air Resources Board not be forthcoming with requested relief from the next phase of State emissions controls. Click to continue
PROTECTING INDUSTRIAL WORKERS FROM RADIATION
Quick Manufacturing News
2010 Future Leader in EHS Jason Townsell calls the ALARA (As Low As Reasonably Achievable) principle 'the most simple and effective principle of worker protection from radiation. Click to continue
OBAMA HITS ROAD SEEKING JOBS
Quick Manufacturing News
Political experts say Obama's hopes of winning a second term may depend on a turnaround of the economy, after recent data showed the recovery apparently slowing, with disappointing jobs and manufacturing numbers. Click to continue
BLOG: FULL OF SOUND AND FURY
Quick Manufacturing News
If I were selecting my college classes today, I'd have something a little more practical in mind, especially after the Great Recession ... continue
ANALYSIS: ECONOMY NOT PRODUCING "GREEN JOBS."
Politico
In North Carolina, Obama will "talk once again about the job-creating power of a green economy. The catch? Nearly three years into Obama's presidency, the White House can't point to much solid evidence that significant numbers of Americans are scoring the green jobs the president has been touting." Politico adds that "Obama's Council of Economic Advisers suggests 225,000 clean energy jobs were either created or preserved through the third quarter of 2010 thanks to more than $80 billion in the economic stimulus package. But those are estimates at best."
DOUBLE DIP UNLIKELY ABSENT "SIGNIFICANT" SHOCK
Wall Street Journal
According to the Wall Street Journal, most economists consider a double-dip recession unlikely unless there is a major event that undermines the recovery substantially. Stanford's Bob Hall, chairman of the National Bureau of Economic Research committee of academic economists, says, "The shocks that have pushed us into recession have not been that small. It takes a significant adverse impulse."
FEATURE: MAKING YOUR LOADING DOCK SAFER
Today in Manufacturing
Forklift accidents are a serious reality at the loading dock, and choosing appropriate vehicle restraints to help prevent tragedies can be difficult ... continue
TIMKEN'S MITSUBISHI FORGE-ROLLING LINE WILL BE FIRST IN U.S.
Quick Manufacturing News
The $35 million installation involves is an open-die process that shapes cast billets before they are fully solidified, to improve the internal structural quality of the product and enhance material yield. Click to continue
STATES MUST BE EMPOWERED TO ADDRESS EMERGING NANOTECHNOLOGY ISSUES
Quick Manufacturing News
More information and resources are needed to protect workers, the public and the environment from possible nanomaterial exposures and hazards. Click to continue
GOVERNOR ANNOUNCES MAJOR BUSINESS EXPANSION ADDING 2,700 JOBS
UB Daily
Flanked by company leadership at the Utah Capitol, Governor Gary R. Herbert announced that ITT Corporation will bring more than 2,700 new jobs to Utah over the next 15 years, 500 of which are planned for the near future. “With Utah’s unemployment rate at 7.
View Full Article
MANUFACTURERS TESTIFY ON CAPITOL HILL ABOUT RARE EARTH, CRITICAL MINERALS
NAM Capital Briefing
On June 3, the House Subcommittee on Energy and Materials Resources held a hearing on two bills related to critical minerals, H.R. 2011 and H.R. 1314. Steve Duclos, Chief Scientist and Manager-Materials Sustainability for General Electric (GE), testified on behalf of the NAM. Dr. Duclos focused on the necessity of strengthening a reliable supply chain for U.S. industries. His testimony can be viewed here. He is also testifying today before a Senate Energy and Natural Resources subcommittee. The NAM continues to monitor these and other legislative developments related to the rare earth, critical minerals issued and will continue to provide legislators with important information and insight into the needs of industry.
NAM QUESTIONS EPA INTERFERENCE WITH EXISTING CLEAN WATER ACT PERMITS
NAM Capital Briefing
On June 3, the NAM and 11 other business groups filed an amicus brief urging a federal judge to rule that the EPA does not have the authority to modify previously issued permits under Section 404 of the Clean Water Act. Our brief highlights the dramatic change that the EPA’s action represents, citing a new study showing that the threat that the EPA may modify existing permits distorts the cost-benefit ratio of new investment projects. The study also details effects on bank financing and interest rates, bond ratings, rationed credit, land prices and other harms throughout the economy.
THIRD PHASE OF NAM LITIGATION AGAINST EPA’S GREENHOUSE GAS REGULATIONS ADVANCES
NAM and 66 other parties filed a combined brief in this ongoing litigation, detailing all the key arguments why the EPA’s motor vehicle rule should not trigger the regulation of stationary sources of greenhouse gas emissions. The brief questions the promulgation procedures, effectiveness and enormous costs of stationary source regulations, as well as the absurd consequences that result from the EPA’s discretionary decision. Briefing in the case will conclude on October 31.
SALE OF MANUFACTURING PLANT CREATES LIABILITY FOR PURCHASER
NAM Capital Briefing
Navigating the requirements of the Employee Retirement Income Security Act (ERISA) continues to cause problems for manufacturers. When one company bought a power plant from another, it hired its then-active employees. When the plant closed, the employees sued and won termination benefits. The case is now on appeal, and last week the NAM filed an amicus brief arguing the judge’s unwarranted extension of ERISA’s complex rules will encourage protracted litigation over similar business transactions and will inhibit employer flexibility in restructuring.
NAM CHIEF ECONOMIST DISCUSSES MANUFACTURING’S FUTURE AT CHICAGO COUNCIL ON GLOBAL AFFAIRS
NAM Capital Briefing
On June 9, NAM Chief Economist Chad Moutray joined an expert panel at an event cosponsored by the NAM to discuss manufacturing’s leadership role in the economic recovery and threats to sustained growth. He joined NAM member David Beebe of Navistar, Inc.; William Strauss of the Federal Reserve Bank of Chicago; and Diane Swonk of Mesirow Financial before an audience of 125 corporate executives. Moutray emphasized the need for competitive tax, trade and regulatory policies to support job creation and keep manufacturing in America strong and vibrant. For more on the event, click here.
ALCOA COMPETES AGAINST AIRCRAFT COMPOSITES
Today in Manufacturing
Alcoa developed new alloys and engineering techniques that will give it a chance to compete against non-aluminum parts increasingly used by plane makers ... continue
UNEMPLOYMENT, FOOD PRICES BRING DOWN ECONOMY
Today in Manufacturing
Jobs are scarce and food prices are likely to stay high, according to new data that reinforced evidence of a U.S. economy stuck in a weak patch ... continue
DISSENT WITHIN OPEC MAY ERODE ITS POWER
Today in Manufacturing
OPEC's admission of major dissent within its ranks has left it reeling and its status as the world's oil power-broker tarnished, perhaps beyond repair ... continue
OBAMA HAS NO FEARS OF DOUBLE-DIP RECESSION
Today in Manufacturing
President Obama insisted he's not afraid of the country slipping into a double-dip recession, but said pace of recovery has 'got to accelerate' ... continue
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