July 22, 2011

ECONOMIC SLUMP COULD LAST THROUGH SUMMER

Today in Manufacturing
The economy's spring slump appears to be extending into the summer, according to a slew of mixed data released Thursday ... continue

FOCUS: FORMER NLRB MEMBER TESTIFIES ON BEHALF OF NAM AGAINST SNAP ELECTIONS

NAM Capital Briefing
The National Labor Relations Board (NLRB) held two days of hearings this week on its proposed new rule to allow union certification elections within days after union organizers collect the necessary signatures to file a petition. These so-called “snap elections” would give employers as few as 10 days to communicate with their employees between the time a union files for an election and the election itself.

Peter Kirsanow, a labor lawyer and former member of the NLRB, testified at the hearing on behalf of the NAM. Kirsanow told Board members about the harmful consequences of its proposed rule on manufacturers, economic growth and job creation. He said:

“The rules are profoundly harmful to employees, who will be forced to make uninformed decisions regarding one of the most important aspects of their lives; and they will be profoundly harmful to employers, who will be effectively removed from, and have no input into the determination to unionize their workplaces.”

Click here to read Kirsanow’s full testimony to the NLRB. The NAM has been in the forefront arguing that these snap elections will be detrimental to employee–employer relations. The new proposal, announced June 21, would drastically alter the union election process—limiting both the opportunity for employees to receive (and for employers to prepare) information regarding union participation, and limiting employees’ ability to carefully contemplate their decision.

Smaller companies would be hit especially hard by this rulemaking timeline, and many would find it nearly impossible to communicate effectively with their employees in as few as 10 days.
The new time frame “will completely and utterly deprive employers of the ability to communicate vital information to their employees regarding their rights and the effect of unionization,” said Kirsanow.

This proposal is only the latest overreach by the NLRB, which is failing to properly understand and address both employer and employee concerns in the workplace. The NLRB is attempting to take control of business and weaken the role of employers. This overreach must be stopped.

The NAM also continues to monitor the NLRB’s dispute against Boeing, which has attracted the attention of lawmakers in Washington. The House Education and Workforce Committee is marking up a bill to prevent the NLRB from dictating where a company can expand, and the NAM expects the legislation to be voted on by the full House next week. The NAM sent a letter in support of the legislation on July 21.

Manufacturers are rightly concerned about these threats to job creation and economic growth, and the NAM remains committed to defending the rights of manufacturers and their employees.

NAM AND INDUSTRY GROUPS MEET WITH EPA ADMINISTRATOR ON OZONE STANDARD

NAM Capital Briefing
NAM President and CEO Jay Timmons, along with other representatives of U.S. industry, met with Environmental Protection Agency (EPA) Administrator Lisa Jackson on July 15 regarding the EPA’s reconsideration of the 2008 ozone National Ambient Air Quality Standards (NAAQS). The reconsideration is currently being reviewed by the Office of Management and Budget (OMB). Timmons conveyed the business community’s concern with the new proposal and told the Administrator that these standards will stifle economic growth and job creation. In addition, on Tuesday, July 19, NAM Senior Vice President of Policy and Government Relations Aric Newhouse joined other industry leaders to discuss the ozone standards with media. Along with Governor John Engler, president of the Business Roundtable (BRT); Jack Gerard, president and CEO of the American Petroleum Institute (API); Cal Dooley, president and CEO of the American Chemistry Council (ACC); and Bruce Josten, executive vice president for government affairs at the U.S. Chamber of Commerce, Newhouse explained how the ozone standards will affect a broad spectrum of industries and will freeze the economy, preventing future investment, expanded operations and job creation. The NAM continues to urge members to contact President Obama and ask him to oppose the new, more stringent ozone standards. For more information on the NAM’s No New Regs campaign, click here

MANUFACTURERS WELCOME BIPARTISAN LEGISLATION TO DELAY OVERREACHING BOILER MACT REGULATIONS

NAM Capital Briefing
Sen. Susan Collins (R-ME) and five bipartisan colleagues including Sen. Ron Wyden (D-OR) introduced legislation to address the Environmental Protection Agency’s (EPA) unachievable Boiler MACT rules this week. The bill would stay all portions of the rules, extend the compliance time frame, require the development of achievable standards and provide the Agency with an additional 15 months to re-propose the rules. “The Boiler MACT proposal is a costly and burdensome regulation that is unrealistic and threatens tens of thousands of jobs during a time of record unemployment,” said NAM Energy and Resources Policy Vice President Chip Yost in a statement. The NAM and several other trade associations signed a letter of support for the newly introduced Senate bill and a similar House version (H.R. 2250) and will actively promote the passage of both measures. For more information, visit www.NoNewRegs.org. Details: Alicia Meads, (202) 637-3174 and Mahta Mahdavi, (202) 637-3176.

NAM QUESTIONS FUTURE CAFÉ STANDARDS

NAM Capital Briefing
The Department of Transportation (DOT) and the EPA are in the process of developing national fuel economy standards for 2017-2025. The NAM is concerned that the new standards may be unattainable and unrealistic. The standards set for 2012-2016 raise the fleet average by 40 percent, to 35 miles per gallon. The agencies’ proposed 56.2 miles-per-gallon standard would be another enormous increase. While the NAM is supportive of reasonable standards to improve fuel efficiency, unreasonable standards will limit vehicle choice, increase costs for consumers and harm the automobile industry, which is still in the process of recovering. On July 15, the NAM sent a letter expressing these and other concerns to Transportation Secretary Ray LaHood and EPA Administrator Lisa Jackson. The NAM will continue to monitor the development of the standard closely.

SENATE LEADERS GAIN BIPARTISAN SUPPORT FOR TRANSPORTATION AUTHORIZATION

NAM Capital Briefing
Senate Environment and Public Works (EPW) Committee leaders reached bipartisan agreement this week on specific text for the highway sections of a two-year surface transportation authorization proposal. The Senate intends to submit the plan to counter the six-year transportation proposal outlined earlier in the month by House Transportation and Infrastructure Chairman John Mica (R-FL). Authored by EPW Chair Barbara Boxer (D-CA) and Ranking Member James Inhofe (R-OK), Moving Ahead Progress in the 21st Century (MAP-21), maintains investments at current FY 2011 funding levels and introduces key reforms to make federal highway programs more efficient. The scheduled EPW hearing on the MAP-21 outline is expected to provide additional momentum toward the reauthorization effort. The Senate’s Finance, Commerce and Banking Committees bear responsibility for drafting additional sections of the reauthorization. In addition to the anticipated revenues provided from the Highway Trust Fund, MAP-21 will need another $12 billion to finance the proposal for two years. The current SAFETEA-LU extension expires on September 30.

HOUSE PANEL APPROVES REGULATORY REFORM TO BENEFIT SMALL BUSINESS

NAM Capital Briefing
On July 13, the Regulatory Flexibility Improvements Act, H.R. 527, moved forward out of the House Small Business Committee. H.R. 527 will improve the regulatory process for small businesses by strengthening the 30-year-old Regulatory Flexibility Act, which has saved small businesses billions of dollars in reduced regulatory costs. Among other provisions, the bill expands the authority of the Small Business Administration’s (SBA) regulatory watchdog over agency rulemakings. This will help ensure agencies thoroughly consider small business impacts in their analysis and will eliminate loopholes that currently allow agencies to avoid this analysis. The NAM joined 68 other trade associations in signing a letter to the Committee in support of the bill. With committee approval, H.R. 527 is now eligible for floor consideration.


NAM SIGNS BROAD BUSINESS LETTER TO REPEAL MEDICAL DEVICE TAX

NAM Capital Briefing
The NAM joined more than 400 organizations in July 18 letters to House and Senate leadership urging them to support repeal of the 2.3 percent excise tax on medical devices, which is set to go into effect in 2013. The excise tax, which was included in the 2010 health care reform legislation, applies to a range of medical devices from bedpans to surgical instruments. Unlike an income tax, the tax will apply to the gross sales price of the product. The NAM strongly opposes this industry-specific tax that will increase the costs of medical devices and stifle research and innovation.


NAM RECOMMENDS FURTHER ACTION ON EXPORT CONTROL LIST

NAM Capital Briefing
The Commerce Department’s Bureau of Industry and Security (BIS) hosted its annual Update Conference on Export Controls and Policy July 19-21, allowing the exporting community to learn first-hand from senior U.S. government officials about current issues and trends in export control policies, regulations and practices. Presentations from the conference program and archived video of plenary remarks are available here. White House Chief of Staff Bill Daley provided the keynote address on July 19, highlighting President Obama’s continued commitment to the export control reform initiative and announcing the proposed framework for transferring items from the U.S. Munitions List to the Commercial Control List (CCL). The NAM issued a statement applauding the framework as a step forward but encouraging additional changes to enhance competitiveness. The framework establishes a new “Commerce Munitions List” within the CCL, outlines a process by which transferred items will become eligible for the new Strategic Trade Authorization (STA) license exception, transfers an initial tranche of items from USML Category VII (Tanks and Military Vehicles) to the CCL and provides new definitions of relevant terms—notably “specially designed.” Public comments are due by September 13, 2011.

NAM MEMBER TESTIFIES ON MANUFACTURING IN THE USA: TRAINING AMERICA’S WORKFORCE

NAM Capital Briefing
Last week, Chuck Wetherington, NAM Board member and president of BTE Technologies in Hanover, Md., testified before the Joint Economic Committee on labor and job training. In his testimony, Wetherington thanked the Senate Health, Education, Labor and Pensions (HELP) Committee for the recent release of a draft reauthorization of the Workforce Investment Act (WIA). The draft is the result of over two years of bipartisan negotiations to update programs contained under the WIA that have not been updated since 1998. He also encouraged the Senate to refine the draft WIA reauthorization to promote and emphasize the adoption of portable, industry-recognized skills credentials within the legislation as well as other workforce development programs. Click here for the full testimony.

CONTACT YOUR MEMBERS OF CONGRESS ON THE NATIONAL LABOR RELATIONS BOARD (NLRB) NEGATIVE ACTIONS!

NAM Action Request
Background: While manufacturers have been successful in defeating the Employee Free Choice Act (EFCA) in Congress, we now face an equal but less obvious challenge from the National Labor Relations Board (NLRB).

The NLRB’s complaint against Boeing for opening a new facility in South Carolina will have a chilling effect on growth and job creation and will create uncertainty for manufacturers that are considering expanding and opening new facilities.

The Boeing case has put a spotlight on the NLRB’s aggressive agenda and its efforts to implement a series of burdensome regulations that emulate the EFCA. Last year, President Obama used his recess appointment power to nominate labor union lawyer Craig Becker to the NLRB after the Senate rejected his nomination. Now the NLRB is advancing elements of the EFCA without congressional approval and has recently proposed a series of rules that will undermine employer-employee relations.

Status: On Monday, July 18, Rep. Tim Scott (R-SC) introduced the Protecting Jobs from Government Interference Act (H.R. 2587). This legislation will prohibit the NLRB from dictating where a private business can and cannot locate jobs in the United States.

Under current law, the NLRB has more than a dozen remedies at its disposal to hold employers accountable for unlawful labor practices, including the authority to order a private company to relocate or transfer existing or planned employment. The legislation amends the National Labor Relations Act to prohibit the NLRB from ordering any employer to relocate, shut down, or transfer employment under any circumstance. Upon enactment, the limitation on the NLRB’s authority will apply to all cases that have not reached final adjudication before the Board.

Action: It is critical that manufacturers make it clear to Congress that the NLRB’s actions negatively impact your ability to create and retain jobs. Please urge your representatives to support and cosponsor the Protecting Jobs from Government Interference Act (H.R. 2587). To send a message directly to your member of Congress, click here.

TELL YOUR LEGISLATOR TO SUPPORT THE NORTH AMERICAN-MADE ENERGY SECURITY ACT

NAM Action Request
The House of Representatives will soon consider H.R. 1938, the North American-Made Energy Security Act.

In 2008, TransCanada applied to build a new pipeline that would transport oil from oil sands in Canada to U.S. refineries on the Gulf Coast. Judging from its past experience in securing the necessary permits in the United States, the company expected a two-year process. After nearly three years, two State Department studies and 208,000 public comments, its permit remains in limbo, and many believe it will not be approved.

TransCanada estimates that building the pipeline will bring the United States more than $20 billion in investment and 13,000 new construction and manufacturing jobs. Construction related to the project is expected to generate $600 million in new state and local tax revenues and, over the life of the pipeline, another $5.2 billion in property taxes, as well as 118,000 "spin-off" jobs during the two years of construction.

The permit awaits final action at the State Department, but the Environmental Protection Agency’s (EPA) numerous objections, the most recent of which are contained in a nine-page report issued in June, threaten to doom the project.

H.R. 1938 would require the President, acting through the Secretary of Energy and coordinating with other federal agencies, to either deny or grant a Presidential permit by November 1, 2011. This legislation seeks to prevent the Administration from delaying the project to death while giving federal agencies authority to evaluate the process.

Please click here to urge your representatives to support and cosponsor this important legislation.

MAKE MONEY BY INVESTING IN MANUFACTURING

Quick Manufacturing News
Recommendations from investment manager Ben Dickey include Caterpillar, Honeywell and United Technologies. Click to continue

WHITE HOUSE SEES 'MOMENTUM' BUT DENIES DEBT DEAL IS IMMINENT

Quick Manufacturing News
'We are not close to a deal.' Click to continue

10 WAYS TO GET THE MOST OUT OF BUSINESS ANALYTICS

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Advances in information technology have fueled this explosive growth creating both opportunity in new ways for manufacturers to reach new markets and customers and complexity in trying to collect, manage and interpret data and into information that can help guide them to success. Click to continue

VENTURE CAPITAL IN LIFE SCIENCES AT HIGHEST LEVEL SINCE 2008

Quick Manufacturing News
VC investment jumps 37% in Q2 Click to continue

INLAND PORT SPACE IN DEMAND

Quick Manufacturing News
As global trade volumes rise, inland ports are becoming a critical component in the global supply chain, according to a recent report. Inland ports, or intermodal distribution centers, connected directly to major seaports, are helping retailers and manufacturers with cost-effective import distribution to consumers. Click to continue

NUCOR REPORTS EARNINGS JUMP AS SALES OFFSET HIGHER COSTS

Manufacturing Economy Daily (NAM)
The AP (7/22) reports, "Steel manufacturer Nucor Corp. said Thursday that its second-quarter earnings jumped as a 22 percent increase in sales helped offset higher costs. But it cautioned that stiffer competition could affect its third-quarter performance." The company reported net income of $299.8 million on $5.11 billion in revenues, up from a net income of $91 million and $4.2 billion in revenues in the same quarter last year. The results fell slightly shy of analysts' predictions of $5.13 billion in revenue. "Nucor said the average sales price per ton increased 21 percent from the year-ago quarter," and the company pointed out that it "paid more for energy and scrap metal used in its manufacturing process as production costs rose 14 percent from a year ago."

PROPOSED UTAH NUCLEAR PLANT PROVOKES DEBATE ON WATER USE

John Edwards – UAE Weekly Energy Brief
Blue Castle Holdings is encountering opposition as it prepares to file an application with the U.S. Nuclear Regulatory Commission for a 3,000-MW nuclear power plant in Utah.

The company, based in Provo, Utah, proposes to build the power plant near the Green River in east-central Utah.

Blue Castle CEO Aaron Tilton said the company is discussing the project with 18 utilities, but declined to identify them. Blue Castle would have a minority stake in the plant.

In an interview with Energy Prospects West, Tilton responded to allegations that 10 conservation groups made in an open letter to Utah State Engineer Kent Jones, urging Jones to reject an application for the lease of water rights to Blue Castle.

The conservation organizations object to the quantity of water the nuclear plant would take from the Green River, the costs of nuclear power, and safety risks in the wake of the Fukushima Daiichi nuclear plant disaster in Japan.

"Awarding a massive quantity of water -- 53,600 acre-feet [yearly] -- to nuclear reactors seems a poor choice given the realities of the already over-subscribed Colorado River system," of which the Green River is a part, the letter states.

Tilton disagreed. Utah has 1.4 million acre-feet of water allocations under the Colorado River Compact, he said. Of that total, 368,000 acre-feet are unused, although some are set aside for future use, he said. The 53,600 acre-feet that Blue Castle wants represent about one-seventh of the presently unused allocation.

Tilton calculates that Blue Castle is asking for 1 percent of the state's current water diversion and would produce half the state's baseload energy demand.

"We believe that's a very, very effective use of the state's water," he said. Thermal generation of electricity takes 2.2 percent of diverted water in Utah, he said, but 83 percent goes to agricultural uses and 12 percent to cities and industrial users.

"The big issue is the amount of water required," said Sandy Bahr, chapter director of the Sierra Club in Arizona, one of the organizations that sent the letter.

The Southwest is going through a severe drought, and scientists are predicting it will continue, Bahr said.

The Grand Canyon Trust fears the Green River will have insufficient quantities of water for the plant in eight to 10 years, when the plant is scheduled to start operations. That could result in reduction of water set aside for farms and ranches and for sustaining habitat for endangered fish species, said Laura Kamala, director of Utah programs for the Grand Canyon Trust.

Matt Pacenza, policy director of HEAL Utah, said Utah is the second-driest state in the U.S. and its population is expected to double in 40 years.

"We really need to be using power sources that use considerably less water," he said.
Kamala objected to the costs the federal government will bear by guaranteeing bonds for the nuclear power plant.

"It would be fiscal insanity for the United States to subsidize a nuclear power plant on the Green River," she said.

Tilton estimates it will cost between $13 billion and $16 billion to build a two-unit nuclear plant with capacity to generate 3,000 MW of electricity, plus $100 million for expenses in getting a license from the NRC.

If Utah utilities invest in the Blue Castle project, opponents said the plant would drive up electricity rates.

Investor-owned utilities might seek approval to recover costs before the nuclear plant is completed and generating electricity through a construction work-in-progress provision, Kamala said.

The cost of producing nuclear power, before debt expenses, runs 2.03 cents/KWh, compared with 2.97 cents for coal, Tilton said, citing the U.S. Energy Information Administration.

The CEO predicted that about half of the power would be used in Utah and the other half would be used by out-of-state electric utilities.

The state engineer is being asked to approve the lease of water to Blue Castle by Kane County and others. The state engineer is charged with considering the impact on existing water rights; the public interest; the project's physical and economic feasibility; and whether the application is in good faith, rather than being an attempt to monopolize or speculate on water.

Utah Gov. Gary Herbert favors nuclear power, which could be a factor in the decision.

The state engineer is expected to decide the case within a few months, but the decision can be appealed in state district court.

Tilton said the NRC, rather than the state engineer, will address concerns about the possibility of catastrophic damage like that experienced at Japan's Fukushima plant following the March tsunami and earthquake.

Nils Diaz, a former NRC chairman and now Blue Castle's chief strategic officer, developed a program for protecting against nuclear-plant problems following the Sept. 11 terrorist attacks, Tilton said.

Meanwhile, Blue Castle is gathering data so it can submit an application for an early site permit with the NRC by the first part of 2013. Tilton hopes to get a license in less than five years and to begin commercial power production by 2021.

Construction employment will range between 1,000 and 4,000, he said. The nuclear plant will employ 1,000 to 1,100 for operations

LEADING INDICATORS SIGNAL SLOW GROWTH

Today in Manufacturing
June's reading suggests that the recent slowdown in growth won't worsen into a recession, even with high unemployment and a weak housing market ... continue

UNEMPLOYMENT RATE RISES IN MOST STATES

Today in Manufacturing
Unemployment rates rose in more than half of U.S. states in June, evidence that slower hiring is affecting many parts of the country ... continue

UNEMPLOYMENT RATE RISES IN MOST STATES

Today in Manufacturing
Unemployment rates rose in more than half of U.S. states in June, evidence that slower hiring is affecting many parts of the country ... continue

GROUP: GULF DRILLING COULD ADD 230,000 JOBS

Today in Manufacturing
Energy research group predicted that an increase in drilling activity in the Gulf could create 230,000 jobs and add $44 billion to the economy next year ... continue