UMA MEMBER COMPANIES IN THE NEWS:
C.R. ENGLAND RECEIVES HIGHEST POSSIBLE FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION RATING
PR Newswire
C.R. England received a "Satisfactory" rating, the highest rating possible, in a recent Compliance Review.
{read more}
July 25, 2011
Much of the conversation in Washington last week centered on possible deals that would allow the U.S. to raise its debt limit while also bringing about fiscal discipline.
Outside of the debt ceiling debate, much of the economic news last week focused on housing. As is often the case these days, the reports were mixed. On the positive side, housing starts jumped 14.6 percent in June to an annualized 629,000 units being constructed. Larger multi-family residences were the largest contributor to this growth, but single-family units also grew. More importantly, housing permits rose as well, which should bode well for future construction.
Housing starts have exceeded 600,000 units before (as recently as January) only to fall back. It will be important to see if we are beginning a slow rebound to this long-depressed sector. (See the figure above.) While a number of economists have forecast rising housing starts in the second half of this year, other housing releases this week show continued headwinds in the industry.
Specifically, existing home sales numbers from the National Association of Realtors fell 0.8 percent. What is most disturbing about this decline is the reason for it – a large uptick in cancellations, mostly due to difficulties in obtaining financing. Weakened household budgets and tighter credit standards are hindering sales activity, which could put a damper on future growth for the industry. A stronger economy in the second half of this year could help to rectify that problem.
The only manufacturing output numbers to be released last week came from the Philadelphia Federal Reserve Bank. Its Business Outlook Survey found that manufacturing activity in the mid-Atlantic region recovered in July from its contraction in June. New orders did not grow, but they stopped shrinking, and there were improvements on the measures for delivery times, inventories and employment. Pricing pressures also eased somewhat, even though they remain elevated.
The survey found reasons for optimism, with expectations for the next six months rising for new orders, shipments, capital expenditures and employment. Those opinions are widely dispersed, though, with economic uncertainty and rising costs leading some manufacturers in the region to be more pessimistic than the averages might suggest. Clearly, whatever optimism exists moving forward, it is cautious.
This week, a number of economic statistics could be in line with the Philadelphia Federal Reserve Bank’s. Regional manufacturing surveys will be released from Dallas, Kansas City and Richmond, and the Institute for Supply Management will discuss activity in the Chicago region. The Federal Reserve Board will summarize many of these trends in its monthly Beige Book, due out on Wednesday. The most anticipated release of the week will come on Friday with second-quarter real GDP numbers. Real GDP is expected to be lower than the 1.8 percent growth from the first quarter of this year.
Chad Moutray
Chief Economist
National Association of Manufacturers
WTO BOSS: DOHA FAILURE WILL PARALYZE TRADE
Today in Manufacturing
When it was launched in Qatar's capital in 2001, the Doha round was hailed as a chance to add billions to the global economy by cutting tariffs and helping poor countries ... continue
SHIPPING CONDITIONS IMPROVE FROM LOUSY TO SLIGHTLY LESS LOUSY
Quick Manufacturing News
The Shippers' Condition Index (SCI) has moved upward this month, signifying improving conditions for shippers. The current SCI rose to a reading of -3.6 from the -5.4 reported last month. Click to continue
20 STATES THAT FACE THE MOST AIR POLLUTION FROM POWER PLANTS
Quick Manufacturing News
If you live in Ohio, Pennsylvania, Florida or Kentucky, your state has a dubious claim to fame: It contains some of the nation's worst air pollution caused by power plants. Click to continue
OFF-THE-CLOCK WORK?
The Employers Council
When non-exempt employees use cell phones and other mobile devices for work, is all the time being tracked and paid? The devices can provide flexibility for both the company and employee, but can also lead to unexpected liability. Be sure to have clear rules for tracking time worked and for pre-approval of work. Managers need to understand the consequences of work-related, after-hours calls, texts, and e-mails to/from employees. Work-related tasks performed by a non-exempt employee, even if done away from the worksite and even if not pre-approved, are virtually always compensable. Employers cannot just sit back and reap the benefits of "off-the-clock" work by nonexempt employees!
I-9: EMPLOYMENT INTERRUPTIONS (PART 2)
The Employers Council
To continue our series on handling I-9s when there is an interruption in employment, Page 20 of the Handbook for Employers, Instructions for Completing Form I-9 www.uscis.gov/files/form/m-274.pdf has the following additional guidance on “continuing employment with a related, successor, or reorganized employer”:
"Leaves of Absence, Layoffs, Corporate Mergers and Other Interruptions of Employment
A related, successor, or reorganized employer includes:
• The same employer at another location;
• An employer who continues to employ some or all of a previous employer’s workforce in cases involving a corporate reorganization, merger, or sale of stock or assets;
• An employer who continues to employ any employee of another employer’s workforce, where both employers belong to the same multi-employer association and the employee continues to work in the same bargaining unit under the same collective bargaining agreement. For these purposes, any agent designated to complete and maintain Forms I-9 must record the employee’s date of hire and/or termination each time the employee is hired and/or terminated by an employer of the multi-employer association.
NOTE: The related, successor, or reorganized employer may choose to treat these employees as new hires and complete new Forms I-9 for each of them."
HOW BUSINESS CAN IMPROVE EDUCATION
By Whitney Downs National Review Online
On Monday, President Obama invited a group of CEOs from corporate giants including Intel, Time Warner, Bank of America, and Microsoft to a sit-down at the White House. In a time when cash-strapped states, districts, and schools are scrambling to plug budget shortfalls, the president's message was clear: Business needs to open its pocketbook and do more to fund K-12 education.
White House policy adviser Melody Barnes and Secretary of Education Arne Duncan addressed the business leaders, echoing the president's State of the Union speech, which stressed K-12 system improvement as vital to America's economic growth. Barnes said business leaders were acutely aware of the need to better prepare students for today's workforce, while Duncan noted that "business can be an amazing partner in driving reform."
The roundtable has already spurred huge pledges. Bank of America, Microsoft, and the Nike School Innovation Fund have announced a combined $66 million in education donations since Monday. America's Promise Alliance, the organization founded by Gen. Colin Powell and chaired by his wife, Alma Powell, pledged to raise $50 million through its Grad Nation Community Impact Fund to "support the goal of ending the dropout crisis and preparing young people for college and career." Other CEOs and business groups, such as the Business Roundtable, the U.S. Chamber of Commerce, and the Business Coalition for Student Achievement, seem primed to pitch in as well.
There's no question that these contributions are well-meant and will do some good. But business leaders should not be surprised when these types of efforts fail to have a widespread impact. Take Bank of America's initial $4.5 million pledge, for example. If it were given directly to the public schools of Philadelphia, it would amount to just $37 for every student who's eligible for free or reduced lunches. Even Bank of America's total three-year pledge, $50 million, totals just 0.26 percent of the New York City Department of Education's annual operating budget.
More important, it's unlikely that any of the five recipients of Bank of America's grant money -- all respected organizations that have no doubt helped thousands of individual students -- have the potential or inclination to fundamentally transform the way schools operate. While volunteer tutoring, youth-development efforts, and programs that place quality teachers into urban classrooms are all good things, they operate within the limits of today's education system.
For years, business has been content to stay above the political fray of school improvement, happily delivering dollars to educational leaders when called upon. But if business is truly serious about driving reform, it needs to recognize that it is uniquely positioned to step up in more consequential ways than donating supplies or sponsoring scholarships. Business leaders have specific expertise when it comes to evaluating performance, streamlining costs in tough times, and building data systems -- issues that educational leaders across the country are currently wrestling with.
In Austin, Texas, for example, a group of elite CEOs meets regularly with the CFO of the Austin Independent School District. "In these meetings, we're getting at what they're trying to do and what we would do as business leaders if we were faced with these budgetary challenges," said Ellen Wood, president of the professional-services firm vCFO and a member of the Austin Chamber of Commerce's board of directors. The Austin Chamber has also brought in numerous experts, including Ranjit Nair, former director of incentive-pay strategies for Bank of America, to work with the school district on human resources. Building on these efforts, in the fall of 2010, the Chamber helped the district secure $62.3 million from the U.S. Department of Education -- the largest Teacher Incentive Fund grant in the nation -- to help scale up its incentive-pay program.
Efforts such as these highlight the key role business can play when it sticks to what it does best. But it's also crucial to note that Austin's business leaders were true partners -- not pushovers. In the words of Drew Scheberle, senior vice president of education and talent development for the Austin Chamber of Commerce, "We had to have the moment when [Austin Independent School District] knew we were willing to walk away. We gave them a list of non-negotiables [and] said, 'If you want [our support], then you have to do these things. If you don't, we're out.'"
So, while Secretary Duncan may be right about business's potential to drive reform, these leaders would do well to remember that working with schools and educators doesn't mean simply subsidizing the status quo. By insisting that schools meet certain goals in areas such as performance and cost efficiency in return for their support, businesses can help ensure that each dollar they donate is a dollar well spent. With the right approach, it's possible to start spurring the transformational change needed to help our schools produce 21st-century talent.
Whitney Downs is a research assistant at AEI.
C.R. ENGLAND RECEIVES HIGHEST POSSIBLE FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION RATING
PR Newswire
C.R. England received a "Satisfactory" rating, the highest rating possible, in a recent Compliance Review.
{read more}
July 25, 2011Much of the conversation in Washington last week centered on possible deals that would allow the U.S. to raise its debt limit while also bringing about fiscal discipline.
Outside of the debt ceiling debate, much of the economic news last week focused on housing. As is often the case these days, the reports were mixed. On the positive side, housing starts jumped 14.6 percent in June to an annualized 629,000 units being constructed. Larger multi-family residences were the largest contributor to this growth, but single-family units also grew. More importantly, housing permits rose as well, which should bode well for future construction.
Housing starts have exceeded 600,000 units before (as recently as January) only to fall back. It will be important to see if we are beginning a slow rebound to this long-depressed sector. (See the figure above.) While a number of economists have forecast rising housing starts in the second half of this year, other housing releases this week show continued headwinds in the industry.
Specifically, existing home sales numbers from the National Association of Realtors fell 0.8 percent. What is most disturbing about this decline is the reason for it – a large uptick in cancellations, mostly due to difficulties in obtaining financing. Weakened household budgets and tighter credit standards are hindering sales activity, which could put a damper on future growth for the industry. A stronger economy in the second half of this year could help to rectify that problem.
The only manufacturing output numbers to be released last week came from the Philadelphia Federal Reserve Bank. Its Business Outlook Survey found that manufacturing activity in the mid-Atlantic region recovered in July from its contraction in June. New orders did not grow, but they stopped shrinking, and there were improvements on the measures for delivery times, inventories and employment. Pricing pressures also eased somewhat, even though they remain elevated.
The survey found reasons for optimism, with expectations for the next six months rising for new orders, shipments, capital expenditures and employment. Those opinions are widely dispersed, though, with economic uncertainty and rising costs leading some manufacturers in the region to be more pessimistic than the averages might suggest. Clearly, whatever optimism exists moving forward, it is cautious.
This week, a number of economic statistics could be in line with the Philadelphia Federal Reserve Bank’s. Regional manufacturing surveys will be released from Dallas, Kansas City and Richmond, and the Institute for Supply Management will discuss activity in the Chicago region. The Federal Reserve Board will summarize many of these trends in its monthly Beige Book, due out on Wednesday. The most anticipated release of the week will come on Friday with second-quarter real GDP numbers. Real GDP is expected to be lower than the 1.8 percent growth from the first quarter of this year.
Chad Moutray
Chief Economist
National Association of Manufacturers
WTO BOSS: DOHA FAILURE WILL PARALYZE TRADE
Today in Manufacturing
When it was launched in Qatar's capital in 2001, the Doha round was hailed as a chance to add billions to the global economy by cutting tariffs and helping poor countries ... continue
SHIPPING CONDITIONS IMPROVE FROM LOUSY TO SLIGHTLY LESS LOUSY
Quick Manufacturing News
The Shippers' Condition Index (SCI) has moved upward this month, signifying improving conditions for shippers. The current SCI rose to a reading of -3.6 from the -5.4 reported last month. Click to continue
20 STATES THAT FACE THE MOST AIR POLLUTION FROM POWER PLANTS
Quick Manufacturing News
If you live in Ohio, Pennsylvania, Florida or Kentucky, your state has a dubious claim to fame: It contains some of the nation's worst air pollution caused by power plants. Click to continue
OFF-THE-CLOCK WORK?
The Employers Council
When non-exempt employees use cell phones and other mobile devices for work, is all the time being tracked and paid? The devices can provide flexibility for both the company and employee, but can also lead to unexpected liability. Be sure to have clear rules for tracking time worked and for pre-approval of work. Managers need to understand the consequences of work-related, after-hours calls, texts, and e-mails to/from employees. Work-related tasks performed by a non-exempt employee, even if done away from the worksite and even if not pre-approved, are virtually always compensable. Employers cannot just sit back and reap the benefits of "off-the-clock" work by nonexempt employees!
I-9: EMPLOYMENT INTERRUPTIONS (PART 2)
The Employers Council
To continue our series on handling I-9s when there is an interruption in employment, Page 20 of the Handbook for Employers, Instructions for Completing Form I-9 www.uscis.gov/files/form/m-274.pdf has the following additional guidance on “continuing employment with a related, successor, or reorganized employer”:
"Leaves of Absence, Layoffs, Corporate Mergers and Other Interruptions of Employment
A related, successor, or reorganized employer includes:
• The same employer at another location;
• An employer who continues to employ some or all of a previous employer’s workforce in cases involving a corporate reorganization, merger, or sale of stock or assets;
• An employer who continues to employ any employee of another employer’s workforce, where both employers belong to the same multi-employer association and the employee continues to work in the same bargaining unit under the same collective bargaining agreement. For these purposes, any agent designated to complete and maintain Forms I-9 must record the employee’s date of hire and/or termination each time the employee is hired and/or terminated by an employer of the multi-employer association.
NOTE: The related, successor, or reorganized employer may choose to treat these employees as new hires and complete new Forms I-9 for each of them."
HOW BUSINESS CAN IMPROVE EDUCATION
By Whitney Downs National Review Online
On Monday, President Obama invited a group of CEOs from corporate giants including Intel, Time Warner, Bank of America, and Microsoft to a sit-down at the White House. In a time when cash-strapped states, districts, and schools are scrambling to plug budget shortfalls, the president's message was clear: Business needs to open its pocketbook and do more to fund K-12 education.
White House policy adviser Melody Barnes and Secretary of Education Arne Duncan addressed the business leaders, echoing the president's State of the Union speech, which stressed K-12 system improvement as vital to America's economic growth. Barnes said business leaders were acutely aware of the need to better prepare students for today's workforce, while Duncan noted that "business can be an amazing partner in driving reform."
The roundtable has already spurred huge pledges. Bank of America, Microsoft, and the Nike School Innovation Fund have announced a combined $66 million in education donations since Monday. America's Promise Alliance, the organization founded by Gen. Colin Powell and chaired by his wife, Alma Powell, pledged to raise $50 million through its Grad Nation Community Impact Fund to "support the goal of ending the dropout crisis and preparing young people for college and career." Other CEOs and business groups, such as the Business Roundtable, the U.S. Chamber of Commerce, and the Business Coalition for Student Achievement, seem primed to pitch in as well.
There's no question that these contributions are well-meant and will do some good. But business leaders should not be surprised when these types of efforts fail to have a widespread impact. Take Bank of America's initial $4.5 million pledge, for example. If it were given directly to the public schools of Philadelphia, it would amount to just $37 for every student who's eligible for free or reduced lunches. Even Bank of America's total three-year pledge, $50 million, totals just 0.26 percent of the New York City Department of Education's annual operating budget.
More important, it's unlikely that any of the five recipients of Bank of America's grant money -- all respected organizations that have no doubt helped thousands of individual students -- have the potential or inclination to fundamentally transform the way schools operate. While volunteer tutoring, youth-development efforts, and programs that place quality teachers into urban classrooms are all good things, they operate within the limits of today's education system.
For years, business has been content to stay above the political fray of school improvement, happily delivering dollars to educational leaders when called upon. But if business is truly serious about driving reform, it needs to recognize that it is uniquely positioned to step up in more consequential ways than donating supplies or sponsoring scholarships. Business leaders have specific expertise when it comes to evaluating performance, streamlining costs in tough times, and building data systems -- issues that educational leaders across the country are currently wrestling with.
In Austin, Texas, for example, a group of elite CEOs meets regularly with the CFO of the Austin Independent School District. "In these meetings, we're getting at what they're trying to do and what we would do as business leaders if we were faced with these budgetary challenges," said Ellen Wood, president of the professional-services firm vCFO and a member of the Austin Chamber of Commerce's board of directors. The Austin Chamber has also brought in numerous experts, including Ranjit Nair, former director of incentive-pay strategies for Bank of America, to work with the school district on human resources. Building on these efforts, in the fall of 2010, the Chamber helped the district secure $62.3 million from the U.S. Department of Education -- the largest Teacher Incentive Fund grant in the nation -- to help scale up its incentive-pay program.
Efforts such as these highlight the key role business can play when it sticks to what it does best. But it's also crucial to note that Austin's business leaders were true partners -- not pushovers. In the words of Drew Scheberle, senior vice president of education and talent development for the Austin Chamber of Commerce, "We had to have the moment when [Austin Independent School District] knew we were willing to walk away. We gave them a list of non-negotiables [and] said, 'If you want [our support], then you have to do these things. If you don't, we're out.'"
So, while Secretary Duncan may be right about business's potential to drive reform, these leaders would do well to remember that working with schools and educators doesn't mean simply subsidizing the status quo. By insisting that schools meet certain goals in areas such as performance and cost efficiency in return for their support, businesses can help ensure that each dollar they donate is a dollar well spent. With the right approach, it's possible to start spurring the transformational change needed to help our schools produce 21st-century talent.
Whitney Downs is a research assistant at AEI.
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