July 7, 2011

APPLICATIONS FOR UNEMPLOYMENT BENEFITS FALL

Today in Manufacturing
Number of Americans applying for unemployment benefits fell last week to the lowest level in seven weeks, although applications remain elevated ... continue

UMA JOINS NAM IN OPPOSING LIFO REPEAL

The following is a letter sent to the Utah Congressional delegation by UMA President Tom Bingham urging them to oppose President Obama’s proposal to repeal the LIFO method of inventory accounting:

The Obama Administration recently proposed repeal of the 'last-in, first-out' (LIFO) method of inventory accounting as part of the current negotiations on a debt limit/deficit reduction package. Repeal of this long-standing tax policy would amount to a punitive tax increase on manufacturers of all sizes -- the job creators -- at a very vulnerable time for our nation's economy.

UMA member companies use LIFO and repeal of this provision would impose a retroactive tax increase on many manufacturers in Utah. In addition, since LIFO matches current inventory costs with current income and is a more accurate calculation of a company's taxable income, LIFO repeal also would increase their taxes on future income. The money these manufacturing companies will spend on these taxes is money they will not spend on jobs and investment.

While we support the need to address our nation's fiscal challenges, this proposed tax increase would make it even more difficult for American manufacturers to compete in the global marketplace. UMA urges you to strongly oppose the proposed LIFO repeal tax increase.

Sincerely,
Thomas E. Bingham, President
Utah Manufacturers Association

NAM - OTHERS URGING LAWMAKERS TO RAISE DEBT CEILING

The Hill
"Major business groups are urging lawmakers to reach a deal as soon as possible to raise the debt ceiling." In a letter to President Obama and congressional lawmakers, the groups warn that failure to act could have grave consequences for the US economy and its businesses. "In an introductory message to the letter, Jay Timmons, NAM's president and CEO, said a failure to raise the federal government's borrowing authority could threaten the economic recovery. He said the business group is circulating the letter in order to urge Congress and the White House 'to reach an agreement on these issues as soon as possible.'" Timmons also "asked the group's corporate members 'to share this letter with your supplier community and encourage them to sign on to the letter' and their association members 'to share this with their own member companies and encourage them to sign on as well.'"

UTAH “BACK TO WORK” PROGRAM AVAILABLE TO UTAH EMPLOYERS

Utah Department of Workforce Services
A DWS program has been set up to assist eligible Unemployment Insurance (UI) claimant job seekers and eligible youth job seekers, who are actively seeking employment, by offering qualified employers a wage subsidy of up to $2,000 for a maximum of 3 months, for each eligible job seeker they hire for full time employment. $500 will be paid to the employer when the eligible job seeker is hired and $1,500 will be paid upon three-month retention of the job seeker. For details on this program click on this link: http://jobs.utah.gov/btw/jsclaimant.html

U.S. AND MEXICO RESOLVE CROSS-BORDER TRUCKING DISPUTE

Quick Manufacturing News
The two countries signed an agreement that will pave the way for Mexico to lift retaliatory tariffs it imposed more than two years ago on more than $2 billion in U.S. manufactured goods and agricultural products. Click to continue

COMPANIES ARE VULNERABLE TO SUPPLY CHAIN RISKS

Quick Manufacturing News
Natural disasters, such as hurricanes and the series of tornadoes that caused severe damage across the United States this spring, can have drastic effects on business operations. Click to continue

DEMAND FOR COMMERCIAL VEHICLES REMAINED STRONG IN JUNE

Quick Manufacturing News
Research firm: Orders in North American have been bouncing back since late 2010. Click to continue