January 12, 2012

FED SURVEY SHOWS ECONOMY ENDED 2011 STRONG

Today in Manufacturing
The final weeks of 2011 were among the U.S. economy's strongest as Americans shopped and traveled more, ending the year with a shot of optimism ... continue

UNEMPLOYMENT BENEFIT APPLICATIONS JUMP TO 399,000
Today in Manufacturing
The number of people applying for weekly unemployment benefits spiked, largely because companies let go of thousands of workers after the holiday season ... continue

SURVEY: UTAH EMPLOYERS OPTIMISTIC ABOUT 2012 ECONOMY, BUT INCREASED HIRING STILL QUESTIONABLE
EDCUtah
Utah employers and their counterparts nationwide are slightly more optimistic about the 2012 economy than they were in 2011, but the optimism won't necessarily translate into more jobs. That's according to data just released by The Employers Council in its 2012 Economic Trends Survey.

Utah executives are more gung-ho about the economy than their peers nationally, with 93 percent of the Utah survey respondents expecting the 2012 economy to be about the same or better compared to 2011, and only seven percent feeling it will be worse verses 10 percent nationally who express pessimism. Further, among Utah executives, 70 percent expect the outlook for their own businesses to be more promising in 2012 with increases in sales and/or revenue.

"This is a boost from the 2011 Economic Trend Survey wherein only 64 percent projected increases," says Monica Whalen, president & CEO of The Employers Council, a Salt Lake City-based private, non-profit employer association with over 500 employer-members located throughout the Intermountain West.

Hiring Plans
Despite the optimism, Whalen says 2012 hiring plans among Utah employers are actually down from 2011 and even fall behind the nation. In fact, this year only 33 percent of Utah employers plan to increase staff levels, versus 45 percent in 2011, according to the survey. Whalen says this lags the national projection of 36 percent for 2012. Furthermore, 11 percent of Utah employers plan to reduce staff levels in 2012 compared to six percent nationally.

"This is an increase among Utah executives from the six percent that planned staff level reductions in 2011," she explains.

Whalen says the expectation by some Utah employers that they will not increase hiring is an indication that the businesses are running lean and that they are confident their employees can do more with less. It also may mean the full impact of the recession is hitting Utah a little later than it hit other parts of the country, necessitating some "right-sizing" a bit later than has already been done by other employers in other areas, she adds.

Barriers to Job Creation
The greatest barrier to job creation, according to the survey data from Utah respondents, is the concern about further economic decline (56 percent). The next two greatest response groups said the biggest barriers are excessive government regulations (18 percent) and limited consumer demand (16 percent).

The comprehensive survey included responses from 103 Utah business executives. Forty percent of the respondents were from the manufacturing industry; 62 percent of the respondents were from small businesses with less than 250 employees.

Twenty-nine percent of the Utah respondents said they expect the overall economy to be better in 2012 than it was in 2011; 65 percent said they expect 2012 to be about the same as 2011; seven percent said they expect 2012 to be worse. Comparatively, 15 percent of the respondents said they expect a significant increase in sales/revenue for 2012; 55 percent said they expect a slight increase; 22 percent predict flat sales/revenue; seven percent said they expect a slight decrease.

Cost-Cutting
Regarding plans to hire in 2012, 51 percent of Utah respondents said they had no plans to hire; 35 percent projected they would hire in the first quarter; 41 percent said the second quarter; 29 percent said the third quarter; 21 percent said the fourth quarter.

As for cost-cutting measures, 38 percent of the Utah respondents said they had no cost-cutting measures planned for 2012; 54 percent said they would continue or implement lean/process improvement initiatives; 23percent said they would shift a larger percentage of health care costs to employees; 10 percent said they planned permanent reductions in staff.

The survey was conducted by The Employer Associations of America (EAA), which surveyed 1890 companies: 45 percent were from manufacturing, 10 percent were from Professional and Business Services, six percent were from Health Services, and 39 percent from other industries. The survey also represents all sizes of companies, from 1-99 employees (53 percent), 100-249 employees (25 percent), 250-499 employees (12 percent), 500-999 employees (5 percent), and over 1,000 employees (5 percent). Survey data was collected in October through November of 2011.

OBAMA PROPOSES TAX BREAKS FOR MANUFACTURERS THAT BRING JOBS BACK TO THE US.
New York Times
The New York Times reported, "President Obama said on Wednesday that he would propose tax incentives for companies to bring home manufacturing jobs they had moved overseas, and curtail tax breaks for those that keep relocating jobs abroad. Flanked by executives from the aerospace, chemical and furniture industries - all of whom are building or expanding factories in the United States - Mr. Obama declared that the nation was beginning to see the reversal of a long-term trend toward outsourcing."

U.S. NEEDS TO MAKE AND SELL PRODUCTS THAT SAY 'MADE IN AMERICA' SAYS OBAMA
Quick Manufacturing News
'I don't want the next generation of manufacturing jobs taking root in China or Germany. I want them taking root in Michigan,Ohio,Virginia and North Carolina,' President Obama said. Click to continue

CONVEYOR ORDERS DROP 38% IN NOVEMBER, BUT STILL BETTER THAN 2010
Quick Manufacturing News
The Conveyor Equipment Manufacturers Association's November 2011 Booked Orders Index was 145, down 90 points or 38% from October 2011’s Index of 235. The November index represents an increase of 14% from the November 2010 Index of 127. Click to continue

COMMERCE DEPARTMENT REPORT: MANUFACTURING KEY TO RESTORING U.S. ECONOMIC COMPETIVENESS
Quick Manufacturing News
Roadmap highlights priorities for fostering innovation, including 'significant' federal support for R&D. Click to continue

FLEXIBLE WORKING ENHANCES JOB CONTROL, EMPLOYEE WELL-BEING
Quick Manufacturing News
Don't confuse 'flexible' with 'anything goes.' Flexible working actually is a structured system with vital ground rules. Click to continue

MOVING JOBS OFFSHORE BECOMING 'HARDER TO JUSTIFY'
Quick Manufacturing News
Report says economics and innovation priming comeback for U.S. manufacturing. Click to continue