Posts for June 20, 2011

UMA MEMBERS IN THE NEWS:

IM Flash Technologies to Add 200 Jobs in Facility Expansion
Growth at Lehi, Utah plant strengthens Utah technology economic cluster

The Governor and the Board of the Governor’s Office of Economic Development (GOED) announced today that IM Flash Technologies plans to expand its operations in Lehi, Utah. As part of the expansion, the NAND flash memory joint venture between Micron Technology and Intel Corporation plans to add 200 new highly paid jobs and expand production capacity at its semiconductor fabrication facility.

“IM Flash is an innovative global technology leader in NAND flash memory. Its Utah plant was first to market with IM Flash’s leading-edge technology, and the company continues to evolve its product line ahead of its competitors,” said Utah Governor Gary R. Herbert. “The technology industry that the Governor’s Office of Economic Development has targeted as a key economic indicator has shown incredible staying power by bringing long-term growth to the State, and it is showing continued signs of strength.”

IM Flash plans to add the 200 new employee positions starting in 2012 while maintaining its current staff levels of more than 1,400 employees. During the last five years, the company has paid out more than $532 million in wages and expects to pay an additional $1.4 billion in new state wages the next 10 years.

“IM Flash is a great success story in Utah for establishing a worldwide lead in memory technology and manufacturing capability since its inception just five years ago” said Keyvan Esfarjani, co-executive officer of IM Flash. “The success of IM Flash is enabled by a talented work force pool, investment commitment by Intel and Micron, as well as a very responsive state government in Utah in areas of taxation, regulation and infrastructure. This collective support has helped the company thrive and compete globally.”

New State tax revenue from the facility expansion is expected to exceed $153 million over a 10- year period, the major portion of which will go as new taxes for the Utah education fund. GOED voted in a special session to approve a post-performance, single taxpayer economic development tax incentive of $45.9 million as a post-performance EDTIF tax credit. The incentive will represent 30 percent of new state revenue collected over 10 years.

“The IM Flash success story over the past few years demonstrates that Utah has the innovation and productive workforce that can create great companies,” said Spencer Eccles, executive director of the Governor’s Office of Economic Development. “Today’s news demonstrates that Utah has the business friendly environment that can give companies enough confidence to invest in long-term growth.”

IM Flash Technologies has established a worldwide leadership position. In less than 5 years, IM Flash went from zero to over 15 percent market share of the industry’s flash memory. The company has also been recognized as the most innovative memory process technology in the world. Each NAND flash product contains thousands of patents and is utilized in almost every technology product using a “memory” device.

Utah exported $13.6 billion last year and nearly $2 billion of that came from computers and electronics, with the majority coming from the IM Flash plant.

Supporting local IM Flash operations are 99 companies with more than 600 additional employees who work on site. These employees are working in the State because of the fact that IM Flash is located in Utah and are in addition to the more than 1,700 employees that will be employed at the Lehi facility over the coming years.

ATK TO OPEN 615,000 SQ. FT. AIRCRAFT COMMERCIAL CENTER OF EXCELLENCE FACILITY
PR Newswire

ATK is nearing completion of its state of the art Aircraft Commercial Center of Excellence in Clearfield, Utah. {read more}

BOEING GETS $1.7B ORDER FROM QATAR AIRWAYS

Today in Manufacturing
Boeing announced first big-ticket order in its rivalry with Airbus at the start of the Paris Air Show, saying Qatar Airways has ordered six 777 jets ... continue

June 20, 2011


Last week, hundreds of manufacturing executives visited Washington, DC, for the Manufacturing Summit to make the case that manufacturing success translates into more jobs for Americans. With well over 200 Congressional visits by manufacturers, legislators and their staffs heard first hand about how policies impact manufacturers, who stressed the need for globally competitive tax policies, passage of the Colombia, Panama, and South Korean free trade agreements, and the need to address excessive regulation.

Much of the economic news last week reflected continued weakness, helping to make the case for policies that would increase production and hiring within manufacturing. There were mixed survey reports on housing and deteriorating production news in the New York and Philadelphia Federal Reserve Bank monthly surveys. The National Association of Home Builders survey indicated that construction was being hampered by rising raw material costs (much like what we have seen in manufacturing), with additional headwinds in the market coming from continued foreclosure problems and falling home prices.

Meanwhile, financial markets anxiously followed Greece's political and fiscal challenges, hoping that the European Union can stem the damage and limit the need for other bailouts within Europe. It is also hoped that the European contagion does not spread beyond that continent -- a topic that takes on greater significance in light of U.S. fiscal woes and the ongoing conversations in Washington about raising the debt ceiling.

Not all of the news last week was negative. Industrial production figures were higher in May, with renewed strength in durables, which had seen weaker numbers more recently prompting talk of "cooling." While motor vehicle production was down, it shows sign of stabilizing and provides fresh hope that we can move beyond the supply chain disruptions driven by the tragedy in Japan. Moreover, with petroleum prices down, energy costs have moderated somewhat, with both consumers and producers benefiting. Still, core inflation is ticking up, particularly for producers. The producer price index for manufacturers rose 0.9 percent in May, or 8.9 percent for the year, further aggravating pricing pressures for these businesses.

The Federal Reserve will announce whether or not it will make any changes to monetary policy following its Federal Open Market Committee (FOMC) meeting on Wednesday. While interest rates are expected to rise later this year, do not expect any major announcements this week. The Fed has indicated a renewed concern about inflation, but it also continues to worry about economic growth, even as it sees signs of improvement. On Friday, we will get new figures on durable manufactured goods sales for May from the Census Bureau, which will hopefully reflect renewed growth in that segment.

Chad Moutray
Chief Economist
National Association of Manufacturers

U.S. SUPREME COURT UNANIMOUSLY HOLDS THAT COURTS CANNOT LIMIT GHG EMISSIONS UNDER FEDERAL COMMON LAW
James Holtkamp – Holland and Hart
On June 20, 2011, the United States Supreme Court issued a decision reversing the decision of the U.S. Court of Appeals for the Second Circuit, which had held that federal common law provides a basis for eight states, New York City, and three nonprofit organizations to seek reductions in greenhouse gas emissions from large coal-fired power plants. American Electric Power Co. v. Connecticut, No. 10-174 (June 20, 2011).

The unanimous Court, in an opinion written by Justice Ginsburg, held that the Clean Air Act displaces federal common law claims seeking abatement of greenhouse gas emissions. Justice Sotamayor recused herself, having sat on the Second Circuit panel that heard oral arguments in the case.

The Court pointed to its decision in Massachusetts v. EPA, 549 U.S. 497 (2007), in which it held that the Clean Air Act authorizes federal regulation of greenhouse gases from motor vehicles provided that certain prerequisites are met. The Court observed that the Clean Air Act and EPA actions under the Act displace any federal common law right to seek abatement of greenhouse gases from power plants. In particular, the Court pointed to EPA’s regulatory actions in commencing rulemaking to establish New Source Performance Standards for greenhouse gases from fossil-fueled power plants. The court also noted EPA’s finding that emissions of greenhouse gases from new motor vehicles endangers public health and welfare and rules setting greenhouse gas emission limits for new vehicles and requiring permits for major sources of greenhouse gases.
click here to read the full article

AP: U.S. NUKE REGULATORS WEAKEN SAFETY RULES

Today in Manufacturing
Time after time, NRC officials have decided that original regulations were too strict, arguing safety margins could be eased without peril, AP says ... continue

EMPLOYEES IN U.S. AREN'T VERY HAPPY

Quick Manufacturing
'Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation,' new Mercer survey says. Click to continue

RARE EARTH PRICES SURGE AS CHINA TIGHTENS GRIP

Quick Manufacturing
China produces more than 95% of the world's rare earths -- 17 elements critical to making everything from iPods to electric cars and missiles -- and Beijing has been trying to bring the minerals under state control. Click to continue

DOING THE RIGHT THING: THE BEST RISK PREVENTION

Quick Manufacturing
By switching from a controls-based to a values-based approach, ethical conduct can be ingrained into the way they do business -- and that can have an impact on the bottom line. Click to continue

SUPREME COURT BLOCKS CLIMATE CHANGE LAWSUIT

Today in Manufacturing
The Supreme Court has blocked a federal lawsuit by states and conservation groups trying to force cuts in greenhouse gas emissions from power plants ... continue

FEATURE: I-9 AUDITS AND REDUCING LIABILITY

Today in Manufacturing
Here is what manufacturers should do to ensure I-9 processes are in compliance with federal immigration laws and avoid costly fines and disruptions ... continue

FDA AIMS TO INCREASE IMPORT SAFETY

Today in Manufacturing
Regulators would share more information with foreign counterparts as part of a multi-faceted strategy to police the safety of millions of imported goods ... continue

IAEA: NUCLEAR SAFETY MUST BE IMPROVED

Today in Manufacturing
Head of the IAEA urged a worldwide review of safety measures but acknowledged that his organization lacks the authority to enforce rules ... continue

JAPANESE EXPORTS DROP IN MAY

Today in Manufacturing
Japanese exports dropped for the third straight month, hit by massive production losses in the auto sector following the earthquake and tsunami ... continue

HEALTHCARE COSTS STILL RISING
The Employers Council

Did your company’s health care premiums rise again? Are your premium costs similar to other employers? Do you know what portion of health care premiums local employees and employers are paying?

The Employers Council recently surveyed Utah employers, who reported a 6.67% increase in 2011 in total health insurance premiums (over 2010). Employees are paying approximately 28.14% of the premiums, leaving employers to pay the balance. We anticipate that health care reform will continue to have a major impact on medical premium costs. See this week’s attachment, “Employers and the Rising Costs of Health Insurance,” for more details.


I-9: "GREEN CARD" (I-551) CLARIFICATIONS
The Employers Council

Beginning on page 9, the Handbook for Employers,Instructions for Completing Form I-9 [Form M-274 (Rev. 01/05/11) N] www.uscis.gov/files/form/m-274.pdf has the following clarifications:
"Reverification and Evidence of Status for Certain Categories, Lawful Permanent Residents ***

If an employee presents a Form I-551, you should know that Forms I-551 may contain no expiration date, a 10-year expiration date, or a two-year expiration date. Cards that expire in 10 years or not at all are issued to lawful permanent residents with no conditions on their status. Cards that expire in two years are issued to lawful permanent residents with conditions on their status. Conditional residents can lose their status if they fail to remove these conditions.

Permanent Resident Cards with either an expiration date or no expiration date are List A documents that should not be re-verified.

Lawful permanent residents and conditional residents may be issued temporary I-551 documents. These documents are acceptable for Form I-9 as follows:
1. If an employee presents an expired Permanent Resident Card along with a Form I-797, Notice of Action, that indicates that the card is valid for an additional year, this combination is acceptable List C evidence of employment authorization for one year as indicated on Form I-797. At the end of the one-year period, you must reverify.
***
NOTE: If USCIS has approved the employee’s application to adjust status to that of a lawful permanent resident, but the employee has not yet received his or her initial Form I-551, he or she can obtain temporary evidence of permanent resident status at a local USCIS field office.

However, you may not accept Form I-797 that acknowledges receipt of an application for an
initial Form I-551 because receipts for an application for a new document are acceptable only if the original document has been lost, stolen, or damaged."