November 18, 2011

U.S. PACKAGING MACHINERY SHIPMENTS CLIMBED 12%

Quick Manufacturing News
PMMI, a trade association that represents the packaging industry, is reporting a healthy uptick for U.S. packaging machinery shipments. Total shipments in 2010 were $5.5 billion, up 12% from $4.9 billion in 2009. Click to continue

TRADE RESTRUCTURING IN CENTURY'S FIRST DECADE WILL AFFECT INTERNATIONAL ECONOMY IN THE NEXT
Quick Manufacturing News
The Chinese global share of manufactured exports soared from 7% in 2000 to 20% in 2010, while the U.S. share declined from 19% to 13%. The Japanese share dropped from 13% to 9% while the European Union share held steady at 20%. Click to continue

SENATOR TELLS CHINA ITS 'UNFAIR TRADE PRACTICES WILL NOT BE TOLERATED'
Quick Manufacturing News
Sen. Bob Casey: 'For far too long, the U.S. has allowed China to manipulate its currency without consequence and the practice has taken a dramatic toll on Pennsylvania's companies and workers.' Click to continue

AP: ECONOMISTS CONCERNED ABOUT BUDGET CUTS
Today in Manufacturing
A congressional panel is supposed to agree on a deficit-reduction package of at least $1.2 trillion, which has many concerned but not panicking ... continue

MANUFACTURERS SAY TRANSPORTATION BILL WILL CREATE JOBS, ENHANCE COMPETITIVENESS
NAM
Senior Vice President for Policy and Government Relations Aric Newhouse issued a statement on House Speaker John Boehner's (R-OH) announcement of the American Energy and Infrastructure Jobs Act. "Manufacturers support a multi-year surface bill because modern infrastructure is essential to ensuring our global competitiveness. Our nation's transportation infrastructure needs a significant boost in investment from all levels of government to meet the demands of today and tomorrow." Newhouse said, "In order to create a growing manufacturing economy, we must make long-term investments in transportation and infrastructure, reduce regulatory barriers and invest in our energy security."

UTAH NATURAL GAS RATES LOWEST IN U.S.
UAE Weekly Energy Brief
SALT LAKE CITY — Natural gas rates in Utah are the lowest in the continental U.S.
According to data from the U.S. Energy Information Administration, Questar Gas customers pay the lowest rates in the "lower 48" at $8.98 per Mcf (thousand cubic feet).

Colorado and Minnesota had slightly higher rates at just over $9 per thousand cubic feet, while Georgia and Florida had the highest rates at around $20 per thousand cubic feet.

As for how those rates will impact the average household heating bill this winter, barring an unforeseen "deep freeze," heating your home will cost about the same as last year, according to Questar Gas Senior Vice President Craig Wagstaff.

He said the supply of natural gas is plentiful at this time, which should result in generally stable pricing for customers.

"We see bills being very similar to what they were last year," he said. "We don't foresee any substantial increases at this point."

With the abundant supply, "that should carry us through the winter," he added.

In Utah this year, the average residential customer is estimated to pay about $681 annually for natural gas — slightly below the $703 a typical customer paid last year. Natural gas prices were at their lowest in recent history in '09 when the average annual cost was $657. That was contrary to the previous year when natural gas costs peaked at $774 for the average household.

Questar Gas serves about 915,000 customers in Utah, Idaho and Wyoming.

FOCUS: MANUFACTURERS SEE VICTORY WITH REPEAL OF WITHHOLDING TAX
NAM Capital Briefing
Manufacturers reached a substantial victory on Wednesday, November 16, when the House voted 422-0 to pass legislation to repeal a 3 percent withholding tax on government contractors. The legislation (H.R. 674) had already passed both the House and Senate, but it came back to the House for final agreement after some changes were made in the Senate. It now goes to President Obama’s desk for his signature.

The NAM key-voted this legislation, which repeals the 3 percent tax and prevents it from taking effect on January 1, 2013. The tax would have required federal, state and local government agencies to withhold 3 percent of their payments to businesses for goods and services. This would have hit manufacturers particularly hard.

Although the tax was originally created to address a so-called “tax gap” problem among a small number of government contractors, it would have applied to nearly all local, state and federal government contracts. It would have raised the cost of doing business when companies can least afford it.

With 9.1 percent unemployment and a bleak global economic outlook, manufacturers need policies that encourage economic growth and allow employers to expand and hire. Permanent repeal of the provision will begin to restore some certainty for manufacturers, which will improve their ability to create jobs.

“Today’s congressional action is a positive step toward creating the pro-growth environment manufacturers need to invest, create jobs and lead our economy. It is essential that we abolish burdensome tax provisions like these so that all manufacturers may better compete in a global marketplace,” said NAM President and CEO Jay Timmons.

Manufacturers can breathe a sigh of relief with the passage of this important legislation, and the NAM encourages President Obama to sign the bill immediately.

ADMINISTRATION’S KEYSTONE PIPELINE DELAY DENIES JOBS
NAM Capital Briefing
On Thursday, November 10, the Obama Administration and the State Department announced they will further delay the decision whether to grant a permit for the Keystone XL pipeline in order to gather more information on potential environmental impacts and alternative routes for the pipeline. The new timeline for the final decision will be sometime in 2013, ensuring that the issue will not be decided during an election year. The NAM called the Administration’s decision misguided. “It is unacceptable and outrageous that the Obama Administration has made a decision to prevent 118,000 jobs from being created. The Keystone XL pipeline is a shovel-ready project that must be approved,” said NAM President and CEO Jay Timmons. Manufacturers will continue to encourage the President to approve the pipeline to immediately add jobs and encourage economic growth by providing affordable energy for job creators. Click here to read the NAM’s statement.

HOUSE MEMBERS’ AMICUS BRIEF SUPPORTS NAM LAWSUIT AGAINST NLRB
NAM Capital Briefing
On Wednesday, November 16, House Education and Workforce Committee Chair John Kline (R-MN) and 35 other members of Congress filed an amicus brief with the federal court in support of the NAM’s lawsuit against the National Labor Relations Board (NLRB). The NAM filed suit against the NLRB over the Board’s final rule requiring all employers to post a notice of employees’ rights. The congressional brief raises three issues, which support the NAM’s contention that the NLRB lacks authority to issue such a rule: 1) Congress has not granted the Board the authority to require a general notice posting by employers; 2) Congress has restricted the Board’s authority to hearing facts from parties through a hearing process; and 3) the Board’s regulation undermines Congress’s efforts to inform workers of rights. Due to the lawsuit, the effective date of the rule has been postponed to January 31, 2012. The NAM will file a reply brief on Tuesday, November 22, and the hearing is scheduled for December 19.

LEGISLATION COULD PREVENT EPA’S PROPOSED CLEAN WATER GUIDANCE
NAM Capital Briefing
The EPA and the Army Corps of Engineers are again revisiting the definition of “waters of the United States” by looking at the guidance they issued earlier this year as a possible blueprint for a proposed rule. As currently drafted, the guidance expands the EPA’s and the Corps’ jurisdiction over water by bringing additional bodies of water under the purview of the Clean Water Act. This exponential overreach raises a number issues, including confusion about the definition of “waters of the United States,” uncertainty as to when an entity has to file for a permit and substantial increased costs in compliance and permitting. Sens. John Barrasso (R-WY) and Dean Heller (R-NV) have introduced an amendment to the energy and water appropriations bill, which was slated to go to the floor for a vote this week but has been postponed until after the Thanksgiving recess. The amendment would essentially prevent the Corps from using any funds in carrying out the guidance or proposed rulemaking. The NAM has signed on to a coalition letter in support of this amendment and will continue to actively reach out to Senate offices to garner support for the amendment.

HOUSE COMMITTEE ADVANCES TAX FAIRNESS LEGISLATION
NAM Capital Briefing
The House Judiciary Committee favorably reported the Mobile Workforce State Income Tax Simplification Act of 2011 (H.R. 1864) by voice vote on Thursday, November 17. An NAM-supported manager’s amendment was adopted prior to the final vote. The next step is for House floor action to be scheduled. The bipartisan bill, introduced by Reps. Howard Coble (R-NC) and Hank Johnson (D-GA), would establish fair and uniform rules clarifying that states cannot assess income taxes on non-resident employees who temporarily work in a state. If enacted, employees who work out-of-state for 30 days or fewer during a calendar year would not have to file an income tax return, pay income taxes, or seek a refund of tax overpayments from the nonresident state. Also, employers would no longer be required to calculate and remit state income tax withholdings for these short work periods. The NAM recently joined more than 100 companies and associations in signing a letter to the Committee in support of the bill.

IMPROVING PERFORMANCE WITH CAPACITY MANAGEMENT
Today in Manufacturing
Here is how project managers and resource planners can best manage resources to maximize productivity ... continue

COLUMN: RIGHT-TO-WORK LAWS PAY OFF WITH JOBS
Today in Manufacturing
What does the automotive industry's decision to set up shop mean for these right-to-work states? It means jobs and increased tax revenues ... continue