December 8, 2011

UNEMPLOYMENT AID APPLICATIONS DROP TO 9-MONTH LOW

Today in Manufacturing
The Labor Department said weekly applications dropped by 23,000 to a seasonally adjusted 381,000, the lowest since February ... continue

GETTING TO THE ROOT OF HEALTH CARE COSTS
Quick Manufacturing News
The U.S. spends by far the most per person on health care than any other country, according to a new report from the Organization for Economic Cooperation and Development (OECD). The finally tally shows expenditures of $7,960 for the U.S. compared to $3,233 per person for the average OECD country. Click to continue

CONSUMER BORROWING UP IN OCTOBER
AP
"The October increase reflected a 5.3 percent increase in borrowing in the category that includes car and student loans, much of it federally funded. The category that covers credit card purchases rose 0.6 percent, which matched September's gain after a revision. ... Borrowing has increased in 11 of the past 12 months."

Higher Education Commissioner Announces Upcoming Retirement
USHE News Release

Commissioner Sederburg plans to leave the Utah System of Higher Education in 2012

SALT LAKE CITY –Commissioner Bill Sederburg announced today that he intends to retire from his current position as head of the Utah System of Higher Education effective August 8,

2012. He will continue to be involved in higher education issues, both in Utah and at the national level.

“It has been a great honor to be associated with the Utah Higher Education System and its great institutions,” said Commissioner Sederburg. “Utah has been good to me and my family and I hope I have contributed to building a better future for the state’s citizens.”

Since becoming Commissioner, Sederburg has led an aggressive agenda for building support for higher education. He led the charge for the state to establish a goal of having 66% of its adult population have a post secondary education credential by 2020. The Board of Regents, the Governor’s Educational Excellence Commission, Prosperity 2020 and other organizations, endorse the 66% goal. “Last year, Commissioner Sederburg took on my charge to increase, in the next decade, the number of Utahns with postsecondary education,” said Governor Gary

Herbert. “He has been a strong and effective voice on my Educational Excellence
Commission and will be missed.”

“In his time as Commissioner of Higher Education, Bill Sederburg has worked closely with the Board of Regents to make great strides for our state’s colleges and universities,” said Board of Regents Chair David Jordan. “Bill’s work in uniting key groups like the Utah Cluster Acceleration Program and the K-16 Alliance has elevated higher education’s role in promoting economic development in Utah.”

Sederburg also helped facilitate the complex merger between Utah State University and the
College of Eastern Utah and has continually worked with the Utah legislature to maintain quality and access during a period of budget cuts. During his term, enrollment has increased by over 22% while the state budget was reduced by 14%, placing a premium on efficient delivery of educational services.

Sederburg has spent much of his career involved in education. Born and raised in the
Midwest, and after serving as a Michigan State Senator, Sederburg began his path in higher education in 1994 as President of Ferris State University in Michigan. In 2003, he made his way west to take over as the 5th president of Utah Valley State College, where he led the school through its transition to its status as Utah Valley University. In 2008, Sederburg replaced Dr. Richard Kendell as the 7th Commissioner of the Utah System of Higher Education.

During his time as Commissioner, Sederburg has served on the Utah Technology Council Board, UCAT Board of Trustees, Utah Economic Development Corporation, the Commission on Volunteers, the Governor’s Homeland Security Commission and the Governor’s Commission on Excellence in Education. He has also served on several non-profit boards for community organizations including the United Way, Utah Cultural Alliance and Orem Chamber of Commerce.

According to Regent Chair Jordan, a search for a new Commissioner will begin early in 2012 in order to facilitate a smooth transition.

EPA’S REVISED BOILER MACT RULES DO NOT ADDRESS MANUFACTURERS’ CONCERNS
NAM Capital Briefing
On Friday, December 2, the Environmental Protection Agency (EPA) released revised Boiler MACT rules the agency says will ease the cost burden and compliance impact on manufacturers of all sizes. The NAM issued a statement outlining why the agency’s revised rules on emissions from industrial and commercial boilers and process heaters will cost manufacturing jobs.

While the revisions include adjustments that address some of the concerns raised by manufacturers and other affected groups, a host of problems remain unaddressed: overall, the rules maintain an unrealistic compliance time frame, do not solve litigation issues and remain overly burdensome in cost.

“The EPA’s revised Boiler MACT rules will do significant harm to job growth and investment at a critical time in our recovery,” said NAM President and CEO Jay Timmons. “This is yet another example of the EPA pursuing an aggressive agenda that is putting jobs at risk and creating uncertainty throughout the economy. Factoring in regulatory costs currently in place, it is already 20 percent more expensive to manufacture in the United States compared to our major trade partners.”

The EPA’s final proposal is expected by April 2012. Manufacturers across several industry sectors would be impacted by the unaffordable and unachievable suite of Boiler MACT rules, including the chemical, food processing, petroleum refining and forest and paper sectors. The EPA’s originally proposed rules would cost manufacturers around $14 billion and would put 224,000 jobs at risk.

The NAM strongly supports legislation that would provide the agency with an additional 15 months to re-propose the rules and consider a more reasonable approach to setting emissions standards to ensure jobs and economic growth are not jeopardized. Such legislation (H.R. 2250) recently passed the House on a strong bipartisan vote of 275-142, and a companion bill is gaining traction in the Senate (S. 1392). Both H.R. 2250 and S. 1392 would provide regulatory relief to manufacturers by directing the EPA to re-issue boiler emissions standards that are achievable in practice and less burdensome—a goal consistent with President Obama's executive order on improving regulations. The NAM is leading a coalition of over 300 organizations in support of this legislation.

“We strongly encourage the Senate to take a stand for jobs and pass the EPA Regulatory Relief Act as soon as possible,” said Timmons. “America’s job creators can no longer afford to be saddled with costly, burdensome and unrealistic regulations.”

Manufacturers use one-third of our nation’s energy supply. It is imperative to encourage and allow manufacturers to invest in our nation’s future and create jobs. While the employment report for November was better than expected, the economy remains fragile. Manufacturers simply will not be able to hire and train new workers and expand if they have to constantly purchase new equipment to meet the list of ever-changing regulations.

HOUSE-PASSED REGULATORY REFORM WILL HELP SAVE JOBS AND GROW THE ECONOMY
NAM Capital Briefing
Last week, the House of Representatives passed two regulatory reform bills, the Regulatory Flexibility Improvements Act (H.R. 527) and the Regulatory Accountability Act (H.R. 3010), with bipartisan support. The NAM key voted both measures. H.R. 527 passed by a vote of 263-159, with 28 Democrats supporting. It focuses on reducing the cost of regulations on small businesses and would strengthen the 30-year-old Regulatory Flexibility Act, which requires agencies to thoughtfully consider small entities while formulating rules and has saved businesses billions of dollars. H.R. 527 requires expanded public participation, increases transparency and closes the loopholes agencies use to avoid current requirements. H.R. 3010 passed by a vote of 253-167, with 19 Democrats supporting. This comprehensive regulatory reform bill would subject independent regulatory agencies, such as the National Labor Relations Board, to the same regulatory principles as Executive Branch agencies. Among other provisions, the bill would require agencies to consider a rule’s indirect costs and jobs impact and would expand legal tools available to challenge agency determinations. Manufacturers of all sizes are impacted by harmful and unnecessary regulations, but small businesses are disproportionally affected. The Small Business Administration’s Office of Advocacy found that very small manufacturers pay an average of $28,300 in regulatory costs per employee.

LEGISLATION AIMS TO FORCE KEYSTONE XL PIPELINE ISSUE
NAM Capital Briefing
Republicans in both the House and Senate are attempting to use legislation to force the Administration to make a decision on the Keystone XL pipeline. The State Department this fall announced its intent to gather more information and put off final approval or rejection of the project until after the 2012 elections. In response to the Administration’s further delay on the pipeline decision, Sen. Richard Lugar (R-IN) introduced a bill last week that sets a 60-day deadline for the State Department to approve the pipeline based on the current Environmental Impact Statement (EIS)—which will be deemed an adequate review of the situation. There is also a possibility that pending legislation to extend the payroll tax cut will include language to push for a swifter ruling on the Keystone XL pipeline. The NAM supports the legislative push to get the pipeline approved. The project would create 118,000 jobs and would bolster the U.S. economy at a time when we are struggling to rebuild and recover from the worst recession in generations.

NAM URGES 100-PERCENT BONUS DEPRECIATION EXTENSION
NAM Capital Briefing
In a letter to congressional leaders on Wednesday, December 7, the NAM joined eight other associations urging legislative action now to extend the current 100-percent bonus depreciation provision through 2012. Absent congressional action, the provision will decrease to 50 percent on January 1, 2012. At this time of continued economic uncertainty and high unemployment, there is concern that the expiration of 100-percent bonus depreciation will reduce capital investments and the domestic jobs associated with them. This proposal is simply a timing change that would allow taxpayers a benefit now rather than in later years. In addition, bonus depreciation provisions enacted since 2008 have garnered broad, bipartisan support.

SENATORS SPEAK AT NAM ADVANCED MANUFACTURING EVENT
NAM Capital Briefing
NAM members joined representatives from the Departments of Defense and Energy in a packed hearing room on Capitol Hill on Wednesday, December 7, to discuss advanced materials and how they contribute to U.S. manufacturing growth. The honorary host of the event was the bipartisan Senate Science and Technology Caucus. Co-Chairs Lamar Alexander (R-TN) and Mark Udall (D-CO) opened the event and highlighted the importance of technology in manufacturing. The panel of industry and government experts all agreed that our country has embraced manufacturing as critical to economic growth—and that policymakers need to do the same. The overarching message was that leveraging the development of advanced materials in products and processes will benefit our global leadership position by reducing manufacturing and raw material costs.