December 15, 2011

HOW EMERGING MARKETS DRIVE INNOVATION

SmartBrief on Leadership
Innovation is increasingly driven by the world's emerging markets, writes Deepak Kumar Pelluru of Infosys. Companies use "frugal engineering" techniques to devise affordable products for "bottom of the pyramid" consumers, and, in many cases, take the results to the West for sale as "value for money" products. "This shifts the center of gravity to the emerging markets," Pelluru writes. Forbes (12/14)

UTAH SEES GROWTH IN TECH JOBS
EDCUtah
Utah's aerospace and high-tech manufacturing industry is poised for some significant growth.

(Salt Lake Tribune) (Standard-Examiner)

CHINA TO FOCUS ON GROWTH
Today in Manufacturing
After two years of cooling the economy following the splurge in spending in 2009, China has pledged a more 'pro-active' economic agenda for 2012 ... continue

UNEMPLOYMENT AID APPLICATIONS FALL TO 3-YEAR LOW
Today in Manufacturing
The number of people applying for unemployment benefits dropped to the lowest level since May 2008, which could signal more hiring in early 2012 ... continue

U.S. LAWMAKERS BLAST 'UNJUSTIFIABLE' CHINA TARIFFS
Quick Manufacturing News
Urge Obama administration to 'exercise all available options,' including enforcing rights at the WTO. Click to continue

FLEXIBILITY AT WORK MIGHT HELP IMPROVE EMPLOYEE HEALTH, STUDY SHOWS
Quick Manufacturing News
A new study suggests that employees in flexible work environments get more sleep, have higher energy levels, are less likely to come to work sick and generally boast improved health and well-being. Click to continue

NATIONAL ASSOCIATION OF MANUFACTURERS CAPITALBRIEFING
Shale Gas Resources Could Create 1 Million U.S. Jobs
According to a new report released Wednesday, December 14, by the NAM and professional services firm PwC, the development of shale gas resources could create 1 million jobs, $11.6 billion in cost savings and greater investments in U.S. plants.

“Shale Gas: A Renaissance in US Manufacturing?” outlines how full-scale and robust shale gas development through 2025 could lead to a number of economic benefits, particularly in the manufacturing sector. The report was unveiled during a joint roundtable and media call with NAM President and CEO Jay Timmons and PwC U.S. Industrial Products Leader Bob McCutcheon.

According to PwC’s statement, the production of a stable supply of shale gas would increase demand from the domestic energy market—allowing manufacturing industries to lower feedstock and energy costs, invest in facilities, increase hiring and look to shale gas as a source of growth for their own products. The production of shale gas is vital to this country’s ability to become more energy independent, as well as to creating jobs and boosting our economy.

“Manufacturers and communities throughout the country are beginning to see and recognize the real economic benefits of shale gas,” said Timmons. “Shale gas development is a bright spot in our economy and it has the potential to boost manufacturing employment by 1 million jobs, which are badly needed.”

There are many misconceptions about shale gas, including how much exists in the United States. The fact is that the amount of shale gas in U.S. reserves could make the United States one of the top producers of shale gas in the world—leading to opportunities for the domestic economy, manufacturing and employment.

Greater investment in U.S. manufacturing plants and higher levels of employment can be a boon to the U.S. manufacturing sector. “To achieve these significant outcomes, manufacturing companies must effectively communicate the value that shale gas can create for U.S. workers and communities,” said McCutcheon. To that end, the NAM continues to embrace an “all of the above” approach to energy production. After all, manufacturing accounts for one-third of the energy consumed in the United States.

Effectively communicating the opportunities that shale gas can create for U.S. workers and communities is essential. The November jobs report cited a national unemployment rate of 8.6 percent, and according to a recent study by the Manufacturing Institute and the Manufacturers Alliance for Productivity and Innovation (MAPI), it is 20 percent more expensive to manufacture in America compared to our nine largest trading partners. Shale gas exploration can and will play a pivotal role in putting Americans back to work and restoring economic prosperity. To read the full report, click here.

House Votes to Halt Regulations and Speed Up Permitting. On Tuesday, December 13, the House of Representatives passed a year-end jobs package, including measures to force a decision on the Keystone XL pipeline and address the Environmental Protection Agency’s (EPA) overly burdensome Boiler MACT rules. The bill passed the House by a vote of 234-193. The Boiler MACT provision would: provide the EPA with an additional 15 months to rewrite the rules; give additional time for facilities to comply once the rules are finalized; and direct the EPA to re-issue the rules in a reasonable manner that clarifies that certain materials used for fuel are not considered solid waste under the Non-Hazardous Secondary Materials rule. The Keystone XL provision would expedite the permitting process for the construction of the pipeline—a project that would create more than 20,000 high-wage U.S. manufacturing and construction jobs immediately, as well as $20 billion in investment and 118,000 jobs in the long run. The U.S. economy is struggling to recover; it is important that slow permitting processes and overregulation do not inhibit manufacturers’ ability to grow. The NAM urges the Senate to include the same provisions in its jobs package.

Court to Hear NAM Lawsuit Against NLRB Union Notice Rule. In late August, the National Labor Relations Board (NLRB) issued a final rule requiring all employers who are subject to the National Labor Relations Act to post a notice of employees’ rights to join a union. In September, the NAM filed suit against the NLRB challenging the Board’s authority to issue the rule. The parties to the lawsuit have filed initial and reply briefs, and oral arguments will be heard Monday, December 19, in U.S. District Court in Washington, D.C. The judge is expected to issue her ruling prior to the effective date of the rule, which is now January 31, 2012. This lawsuit is just one aspect of the NAM’s efforts to halt the NLRB’s aggressive agenda.

NLRB Directs Regional Offices to Proceed with Union Notice Rule. On Wednesday, December 14, the NAM sent a letter to the NLRB expressing deep concern over the Board’s December 2 memorandum to its regional offices, which directs these offices to collect information on businesses and to proceed with the “posting requirement” rule. In the letter, the NAM questions why there is no indication from the Board that the rule is currently being challenged in federal court and points out that if the NLRB loses the case, the rule will not go into effect on January 31, 2012. Due to this omission and the direction of the memo, the NAM believes the NLRB is not acting in good faith and will create confusion in the business community.

Join the NAM in Discussing the NLRB and Labor Issues. NAM Vice President for Human Resources Policy Joe Trauger will host a conference call on Tuesday, December 20, to update members on the NAM’s lawsuit against the NLRB and general labor policy issues. The conversation will begin at 2:00 p.m. EST and will focus largely on the developments in the court case, but will also touch on the NLRB actions overall and how the agency's policies will affect manufacturers. To participate in the call, please click here to register by Friday, December 16. After registering, you will receive a pass code to join the discussion.

Potential Further Delay of Final Coal Ash Regulation. The Environmental Protection Agency (EPA) recently announced that it will release a risk analysis of coal ash reuse in products late next year. The analysis will focus on the potential health risks related to coal ash use and could be employed to justify the EPA’s decision to regulate coal ash as hazardous under Subtitle C of the Resource Conservation and Recovery Act (RCRA). This has sparked concern in the coal ash recycling community regarding a further delay in the issuance of a final rule. While industries that recycle and reuse coal ash have continuously expressed concerns over the possibility of the EPA regulating coal ash as hazardous, the uncertainty caused by the ongoing delay is taking a heavy toll on the beneficial use and recycling of coal ash. The regulation of coal ash as a hazardous material would be detrimental to the economic recovery and would inhibit the continued productivity of many businesses that recycle and reuse coal ash. The NAM will continue to monitor any developments on the analysis and the final rule.

NAM Raises Concerns About Mandatory Rotation of Auditors. In a letter to the Public Company Accounting Oversight Board (PCAOB) on Tuesday, December 13, manufacturers raised serious concerns about a mandatory audit rotation requirement proposed by the Board. The NAM noted that there is no evidence that the current system is not working and said that any potential benefits of requiring companies to change auditors are far outweighed by the costs. Manufacturers believe that adequate checks and balances exist in the current system to ensure auditor independence, objectivity and professional skepticism.

NAM President and CEO Says Administration Needs a Long-Term Vision for Growth. NAM President and CEO Jay Timmons attended the Reuters Manufacturing and Transportation Summit in New York on Tuesday, December 13. He shared his insights on the future of manufacturing but cautioned that substantive work on manufacturers’ top policy issues is unlikely in the year ahead. "The next year is really setting the table,” said Timmons. “It is an election year. So there may be a few areas of progress that we can make on the regulatory side, but I think it is really going to be important for the presidential candidates and all the candidates running for federal office to be outlining their comprehensive plan for economic growth." Click here to read more.

SCARCITY IN MANUFACTURING: THE TICKING TIMEBOMB
Today in Manufacturing
Supply chain collaboration will be fundamental in responding to the risks and opportunities posed by the scarcity of minerals and metals ... continue

US FACTORY OUTPUT DECLINED SHARPLY IN NOVEMBER
Today in Manufacturing
U.S. manufacturing output fell in November for the first time in seven months on a decrease in automotive production ... continue